84-7-506. Delivery without indorsement; right to compel indorsement. The transferee of a negotiable tangible document of title has a specifically enforceable right to have its transferor supply any necessary indorsement, but the transfer becomes a negotiation only as of the time the indorsement is supplied.
History: L. 2007, ch. 90, § 35; July 1, 2008.
KANSAS COMMENT, 1996
This section is substantially in accord with former K.S.A. 82-143 and present K.S.A. 34-283, but it eliminates the requirement that the transfer be "for value." However, K.S.A. 34-283 retains the "for value" requirement, and these sections are in conflict to that extent.
The rule of this section is analogous to that established for negotiable instruments under 84-3-203(c), with the exception of the "for value" requirement in that section. The removal of the "for value" requirement for negotiable documents of title seems justified because, under 84-7-505, the indorser assumes no liability merely by the indorsement. Therefore, there is no reason for not requiring the transferor to indorse a document of title. "Due negotiation," however, requires a transfer "for value." See 84-7-501(4). Although a document may be transferred without indorsement, the transferee must obtain indorsement to be able to claim rights through due negotiation or demand the goods from the bailee, and knowledge of defenses gained after the transfer but before the indorsement may prevent due indorsement under 84-7-501(4).
For an illustration of the operation of this section, see Branch Banking & Trust v. Gill, 293 N.C. 164, 237 S.E.2d 21 (1977).
Revisor's Note:
Former section 84-7-506 repealed by L. 2007, ch. 90, § 78 and the number reassigned to the current text.
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