C.R.S. Section 4-7-501
Form of negotiation and requirements of due negotiation


(a)

The following rules apply to a negotiable tangible document of title:

(1)

If the document’s original terms run to the order of a named person, the document is negotiated by the named person’s indorsement and delivery. After the named person’s indorsement in blank or to bearer, any person may negotiate the document by delivery alone.

(2)

If the document’s original terms run to bearer, it is negotiated by delivery alone.

(3)

If the document’s original terms run to the order of a named person and it is delivered to the named person, the effect is the same as if the document had been negotiated.

(4)

Negotiation of the document after it has been indorsed to a named person requires indorsement by the named person and delivery.

(5)

A document is duly negotiated if it is negotiated in the manner stated in this subsection (a) to a holder that purchases it in good faith, without notice of any defense against or claim to it on the part of any person, and for value, unless it is established that the negotiation is not in the regular course of business or financing or involves receiving the document in settlement or payment of a monetary obligation.

(b)

The following rules apply to a negotiable electronic document of title:

(1)

If the document’s original terms run to the order of a named person or to bearer, the document is negotiated by delivery of the document to another person. Indorsement by the named person is not required to negotiate the document.

(2)

If the document’s original terms run to the order of a named person and the named person has control of the document, the effect is the same as if the document had been negotiated.

(3)

A document is duly negotiated if it is negotiated in the manner stated in this subsection (b) to a holder that purchases it in good faith, without notice of any defense against or claim to it on the part of any person, and for value, unless it is established that the negotiation is not in the regular course of business or financing or involves taking delivery of the document in settlement or payment of a monetary obligation.

(c)

Indorsement of a nonnegotiable document of title neither makes it negotiable nor adds to the transferee’s rights.

(d)

The naming in a negotiable bill of lading of a person to be notified of the arrival of the goods does not limit the negotiability of the bill or constitute notice to a purchaser of the bill of any interest of that person in the goods.

Source: Section 4-7-501 — Form of negotiation and requirements of due negotiation, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-04.­pdf (accessed Oct. 20, 2023).

4‑7‑101
Short title
4‑7‑102
Definitions and index of definitions
4‑7‑103
Relation of article to treaty or statute
4‑7‑104
Negotiable and nonnegotiable document of title
4‑7‑105
Reissuance in alternative medium
4‑7‑106
Control of electronic document of title
4‑7‑201
Person that may issue a warehouse receipt - storage under bond
4‑7‑202
Form of warehouse receipt - effect of omission
4‑7‑203
Liability for nonreceipt or misdescription
4‑7‑204
Duty of care - contractual limitation of warehouse’s liability
4‑7‑205
Title under warehouse receipt defeated in certain cases
4‑7‑206
Termination of storage at warehouse’s option
4‑7‑207
Goods must be kept separate - fungible goods
4‑7‑208
Altered warehouse receipts
4‑7‑209
Lien of warehouse
4‑7‑210
Enforcement of warehouse’s lien
4‑7‑301
Liability for nonreceipt or misdescription - “said to contain” - “shipper’s weight, load, and count” - improper handling
4‑7‑302
Through bills of lading and similar documents of title
4‑7‑303
Diversion - reconsignment - change of instructions
4‑7‑304
Tangible bills of lading in a set
4‑7‑305
Destination bills
4‑7‑306
Altered bills of lading
4‑7‑307
Lien of carrier
4‑7‑308
Enforcement of carrier’s lien
4‑7‑309
Duty of care - contractual limitation of carrier’s liability
4‑7‑401
Irregularities in issue of receipt or bill or conduct of issuer
4‑7‑402
Duplicate document of title - overissue
4‑7‑403
Obligation of bailee to deliver - excuse
4‑7‑404
No liability for good-faith delivery pursuant to document of title
4‑7‑501
Form of negotiation and requirements of due negotiation
4‑7‑502
Rights acquired by due negotiation
4‑7‑503
Document of title to goods defeated in certain cases
4‑7‑504
Rights acquired in absence of due negotiation - effect of diversion - stoppage of delivery
4‑7‑505
Indorser not guarantor for other parties
4‑7‑506
Delivery without indorsement - right to compel indorsement
4‑7‑507
Warranties on negotiation or delivery of document of title
4‑7‑508
Warranties of collecting bank as to documents of title
4‑7‑509
Adequate compliance with commercial contract
4‑7‑601
Lost, stolen, or destroyed documents of title
4‑7‑602
Attachment of goods covered by negotiable document of title
4‑7‑603
Conflicting claims - interpleader
4‑7‑701
Effective date
4‑7‑702
Applicability
4‑7‑703
Saving clause
Green check means up to date. Up to date

Current through Fall 2024

§ 4-7-501’s source at colorado​.gov