{"data":{"id":"us-ky/krs-355.7-501","jurisdiction":"us-ky","citation":"KRS 355.7-501","heading":"Form of negotiation and requirements of due negotiation.","body":"(1) The following rules apply to a negotiable tangible document of title:\n(a) If the document's original terms run to the order of a named person, the\ndocument is negotiated by the named person's indorsement and delivery. After\nthe named person's indorsement i n blank or to bearer, any person may\nnegotiate the document by delivery alone.\n(b) If the document's original terms run to bearer, it is negotiated by delivery\nalone.\n(c) If the document's original terms run to the order of a named person and it is\ndelivered to the named person, the effect is the same as if the document had\nbeen negotiated.\n(d) Negotiation of the document after it has been indorsed to a named person\nrequires indorsement by the named person as well as delivery.\n(e) A document is duly negotia ted if it is negotiated in the manner stated in this\nsubsection to a holder that purchases it in good faith, without notice of any\ndefense against or claim to it on the part of any person, and for value, unless it\nis established that the negotiation is not  in the regular course of business or\nfinancing or involves receiving the document in settlement or payment of a\nmonetary obligation.\n(2) The following rules apply to a negotiable electronic document of title:\n(a) If the document's original terms run to th e order of a named person or to\nbearer, the document is negotiated by delivery of the document to another\nperson. Indorsement by the named person is not required to negotiate the\ndocument.\n(b) If the document's original terms run to the order of a named pe rson and the\nnamed person has control of the document, the effect is the same as if the\ndocument had been negotiated.\n(c) A document is duly negotiated if it is negotiated in the manner stated in this\nsubsection to a holder that purchases it in good faith,  without notice of any\ndefense against or claim to it on the part of any person, and for value, unless it\nis established that the negotiation is not in the regular course of business or\nfinancing or involves taking delivery of the document in settlement or\npayment of a monetary obligation.\n(3) Indorsement of a nonnegotiable document of title neither makes it negotiable nor\nadds to the transferee's rights.\n(4) The naming in a negotiable bill of lading of a person to be notified of the arrival of\nthe goods do es not limit the negotiability of the bill or constitute notice to a\npurchaser of the bill of any interest of that person in the goods.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=40631","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:46Z","sha256":"34154efc6b7fae58f8fd2ae5ca81716773ac7009e2a8f848b2f7027773ab5b25","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.7-404","next":"us-ky/krs-355.7-502"},"notice":"GroundRules: Original legal text. Not legal advice."}