{"data":{"id":"us-ky/krs-355.7-502","jurisdiction":"us-ky","citation":"KRS 355.7-502","heading":"Rights acquired by due negotiation.","body":"(1) Subject to KRS 355.7 -205 and 355.7-503, a holder to which a negotiable document\nof title has been duly negotiated acquires thereby:\n(a) Title to the document;\n(b) Title to the goods;\n(c) All rights accruing under the law of agency or estoppel, including ri ghts to\ngoods delivered to the bailee after the document was issued; and\n(d) The direct obligation of the issuer to hold or deliver the goods according to the\nterms of the document free of any defense or claim by the issuer except those\narising under the t erms of the document or under this article. In the case of a\ndelivery order, the bailee's obligation accrues only upon the bailee's\nacceptance of the delivery order and the obligation acquired by the holder is\nthat the issuer and any indorser will procure the acceptance of the bailee.\n(2) Subject to KRS 355.7 -503, title and rights acquired by due negotiation are not\ndefeated by any stoppage of the goods represented by the document of title or by\nsurrender of the goods by the bailee and are not impaired even if:\n(a) The due negotiation or any prior due negotiation constituted a breach of duty;\n(b) Any person has been deprived of possession of a negotiable tangible\ndocument or control of a negotiable electronic document by\nmisrepresentation, fraud, accident, m istake, duress, loss, theft, or conversion;\nor\n(c) A previous sale or other transfer of the goods or document has been made to a\nthird person.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=40632","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:46Z","sha256":"9cc361ce3654a66e4ba63e28b1cf889d536a2d16e869e55991f79b16c11677fd","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.7-501","next":"us-ky/krs-355.7-503"},"notice":"GroundRules: Original legal text. Not legal advice."}