Negotiable and nonnegotiable document of title

84-7-104. Negotiable and nonnegotiable document of title. (a) Except as otherwise provided in subsection (c), a document of title is negotiable if by its terms the goods are to be delivered to bearer or to the order of a named person. (b) A document of title other than one described in subsection (a) is nonnegotiable. A bill of lading that states that the goods are consigned to a named person is not made negotiable by a provision that the goods are to be delivered only against an order in a record signed by the same or another named person. (c) A document of title is nonnegotiable if, at the time it is issued, the document has a conspicuous legend, however expressed, that it is nonnegotiable. History: L. 2007, ch. 90, § 4; July 1, 2008. KANSAS COMMENT, 1996 This section prescribes formal requirements for negotiable documents of title. Paragraph (1)(a) states the normal understanding that a document is negotiable if the goods are to be delivered to "order" or "bearer." There are no other requirements, unlike the definition in 84-3-104 on negotiable instruments. See also K.S.A. 34-243 and 34-244 which define nonnegotiable and negotiable warehouse receipts for grain storage. A negotiable bill of lading, under the Federal Bills of Lading Act, is called an "order bill;" a nonnegotiable bill of lading is called a "straight bill." See 49 U.S.C. §§ 82 and 83. The Code eliminates the requirements of former K.S.A. 82-107 that warehousemen expressly mark nonnegotiable receipts either "nonnegotiable" or "not negotiable." This marking requirement remains in K.S.A. 34-245, however, and warehousemen should comply with that section. In addition, K.S.A. 34-239(f) would seem to require that the word "negotiable" or "nonnegotiable" or similar words appear on a receipt. Paragraph (1)(b) is new, and the "assigns" language indicates the possibility of further negotiation. Subsection (2) is new. The additional language referring to a written order refers to the commonly used delivery order under 84-7-102(1)(d). Revisor's Note: Former section 84-7-104 repealed by L. 2007, ch. 90, § 78 and the number reassigned to the current text. Law Review and Bar Journal References: Risk of loss under UCC, Patrick L. Baude, 13 K.L.R. 565, 568 (1965).