§ 80103. Negotiable and nonnegotiable bills

• (a)
  • (1) A bill of lading is negotiable if the bill—
    • (A) states that the goods are to be delivered to the order of a consignee; and
    • (B) does not contain on its face an agreement with the shipper that the bill is not negotiable.
  • (2) Inserting in a negotiable bill of lading the name of a person to be notified of the arrival of the goods—
    • (A) does not limit its negotiability; and
    • (B) is not notice to the purchaser of the goods of a right the named person has to the goods.
• (b)
  • (1) A bill of lading is nonnegotiable if the bill states that the goods are to be delivered to a consignee. The indorsement of a nonnegotiable bill does not—
    • (A) make the bill negotiable; or
    • (B) give the transferee any additional right.
  • (2) A common carrier issuing a nonnegotiable bill of lading must put “nonnegotiable” or “not negotiable” on the bill. This paragraph does not apply to an informal memorandum or acknowledgment.