49 U.S.C. § 80103: Negotiable and nonnegotiable bills

(a) Negotiable Bills.—(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) Nonnegotiable Bills.—(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.