{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.7-501.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.7-501.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.7-501.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.7-501.html"}],"law_id":83251,"edition_id":1,"section_id":83251,"structure_id":15835,"section_number":"8.7-501","catch_line":"Form of negotiation and requirements of “due negotiation”","history":"Code 1950, \u00a7\u00a7 61-40 to 61-43, 61-50; 1964, c. 219; 2004, c. 200.","full_text":"1\n\nThe following rules apply to a negotiable tangible document:a\n\nIf the document’s original terms run to the order of a named person, the document is negotiated by his endorsement and delivery. After his endorsement in blank or to bearer any person can negotiate the document by delivery alone.b\n\nIf the document’s original terms run to bearer, it is negotiated by delivery alone.c\n\nIf a document’s original terms run to the order of a named person and it is delivered to him, the effect is the same as if the document had been negotiated.d\n\nNegotiation of the document after it has been endorsed to a named person requires endorsement by the named person as well as delivery.e\n\nA document is “duly negotiated” when it is negotiated in the manner stated in this subsection to a holder who 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 money obligation.2\n\nThe following rules apply to a negotiable electronic document:a\n\nIf 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. Endorsement by the named person is not required to negotiate the document.b\n\nIf 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.c\n\nA document is duly negotiated if it is negotiated in the manner stated in this subsection 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.3\n\nEndorsement of a nonnegotiable document neither makes it negotiable nor adds to the transferee’s rights.4\n\nThe naming in a negotiable bill of a person to be notified of the arrival of the goods does not limit the negotiability of the bill nor constitute notice to a purchaser thereof of any interest of such person in the goods.","order_by":null,"text":{"0":{"id":298269,"text":"The following rules apply to a negotiable tangible document:","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"next_prefix":"1a"},"1":{"id":298270,"text":"If the document’s original terms run to the order of a named person, the document is negotiated by his endorsement and delivery. After his endorsement in blank or to bearer any person can negotiate the document by delivery alone.","type":"section","prefixes":["1","a"],"prefix":"a","entire_prefix":"1a","prefix_anchor":"1a","level":2,"prior_prefix":"1","next_prefix":"1b"},"2":{"id":298271,"text":"If the document’s original terms run to bearer, it is negotiated by delivery alone.","type":"section","prefixes":["1","b"],"prefix":"b","entire_prefix":"1b","prefix_anchor":"1b","level":2,"prior_prefix":"1a","next_prefix":"1c"},"3":{"id":298272,"text":"If a document’s original terms run to the order of a named person and it is delivered to him, the effect is the same as if the document had been negotiated.","type":"section","prefixes":["1","c"],"prefix":"c","entire_prefix":"1c","prefix_anchor":"1c","level":2,"prior_prefix":"1b","next_prefix":"1d"},"4":{"id":298273,"text":"Negotiation of the document after it has been endorsed to a named person requires endorsement by the named person as well as delivery.","type":"section","prefixes":["1","d"],"prefix":"d","entire_prefix":"1d","prefix_anchor":"1d","level":2,"prior_prefix":"1c","next_prefix":"1e"},"5":{"id":298274,"text":"A document is “duly negotiated” when it is negotiated in the manner stated in this subsection to a holder who 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 money obligation.","type":"section","prefixes":["1","e"],"prefix":"e","entire_prefix":"1e","prefix_anchor":"1e","level":2,"prior_prefix":"1d","next_prefix":"2"},"6":{"id":298275,"text":"The following rules apply to a negotiable electronic document:","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1e","next_prefix":"2a"},"7":{"id":298276,"text":"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. Endorsement by the named person is not required to negotiate the document.","type":"section","prefixes":["2","a"],"prefix":"a","entire_prefix":"2a","prefix_anchor":"2a","level":2,"prior_prefix":"2","next_prefix":"2b"},"8":{"id":298277,"text":"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.","type":"section","prefixes":["2","b"],"prefix":"b","entire_prefix":"2b","prefix_anchor":"2b","level":2,"prior_prefix":"2a","next_prefix":"2c"},"9":{"id":298278,"text":"A document is duly negotiated if it is negotiated in the manner stated in this subsection 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.","type":"section","prefixes":["2","c"],"prefix":"c","entire_prefix":"2c","prefix_anchor":"2c","level":2,"prior_prefix":"2b","next_prefix":"3"},"10":{"id":298279,"text":"Endorsement of a nonnegotiable document neither makes it negotiable nor adds to the transferee’s rights.","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2c","next_prefix":"4"},"11":{"id":298280,"text":"The naming in a negotiable bill of a person to be notified of the arrival of the goods does not limit the negotiability of the bill nor constitute notice to a purchaser thereof of any interest of such person in the goods.","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3"}},"ancestry":[{"id":15835,"edition_id":1,"name":"Warehouse Receipts and Bills of Lading: Negotiation and Transfer","identifier":"5","label":"part","depth":2,"order_by":1,"parent_id":13810,"metadata":{},"date_created":"2026-06-26 04:00:18","date_modified":"2026-06-26 04:00:18","permalink":{"id":283559,"object_type":"structure","relational_id":15835,"identifier":"5","token":"8.7\/5","url":"\/8.7\/5\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13810,"edition_id":1,"name":"Commercial Code \u2014 Warehouse Receipts, Bills of Lading and Other Documents of Title","identifier":"8.7","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:45:56","date_modified":"2026-06-26 03:45:56","permalink":{"id":283429,"object_type":"structure","relational_id":13810,"identifier":"8.7","token":"8.7","url":"\/8.7\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":83251,"structure_id":15835,"section_number":"8.7-501","catch_line":"Form of negotiation and requirements of \"due negotiation\"","url":"\/8.7-501\/","token":"8.7\/5\/8.7-501","metadata":false},{"id":86028,"structure_id":15835,"section_number":"8.7-502","catch_line":"Rights acquired by due negotiation","url":"\/8.7-502\/","token":"8.7\/5\/8.7-502","metadata":false},{"id":61107,"structure_id":15835,"section_number":"8.7-503","catch_line":"Document to goods defeated in certain cases","url":"\/8.7-503\/","token":"8.7\/5\/8.7-503","metadata":false},{"id":83770,"structure_id":15835,"section_number":"8.7-504","catch_line":"Rights acquired in the absence of due negotiation; effect of diversion; seller's stoppage of delivery","url":"\/8.7-504\/","token":"8.7\/5\/8.7-504","metadata":false},{"id":67496,"structure_id":15835,"section_number":"8.7-505","catch_line":"Endorser not a guarantor for other parties","url":"\/8.7-505\/","token":"8.7\/5\/8.7-505","metadata":false},{"id":85687,"structure_id":15835,"section_number":"8.7-506","catch_line":"Delivery without endorsement; right to compel endorsement","url":"\/8.7-506\/","token":"8.7\/5\/8.7-506","metadata":false},{"id":73201,"structure_id":15835,"section_number":"8.7-507","catch_line":"Warranties on negotiation or delivery of receipt or bill","url":"\/8.7-507\/","token":"8.7\/5\/8.7-507","metadata":false},{"id":82645,"structure_id":15835,"section_number":"8.7-508","catch_line":"Warranties of collecting bank as to documents","url":"\/8.7-508\/","token":"8.7\/5\/8.7-508","metadata":false},{"id":72052,"structure_id":15835,"section_number":"8.7-509","catch_line":"Receipt or bill; when adequate compliance with commercial contract","url":"\/8.7-509\/","token":"8.7\/5\/8.7-509","metadata":false}],"next_section":{"id":86028,"structure_id":15835,"section_number":"8.7-502","catch_line":"Rights acquired by due negotiation","url":"\/8.7-502\/","token":"8.7\/5\/8.7-502","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.7-501\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 2 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1964, chapter 219; in 2004, chapter 200<\/a>.<\/p>","references":[{"id":71683,"section_number":"59.1-494","catch_line":"Transferable records","order_by":null,"url":"\/59.1-494\/"},{"id":67942,"section_number":"8.7-102","catch_line":"Definitions and index of definitions","order_by":null,"url":"\/8.7-102\/"}],"refers_to":false,"permalink":{"id":283561,"object_type":"law","relational_id":83251,"identifier":"8.7-501","token":"8.7\/5\/8.7-501","url":"\/8.7-501\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.7-501\/","token":"8.7\/5\/8.7-501","dublin_core":{"Title":"Form of negotiation and requirements of “due negotiation”","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.7-501","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

1.<\/span> The following rules apply to a negotiable tangible document: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

a.<\/span> If the document’s original terms run to the order<\/span> of a named person, the document is negotiated by his endorsement and delivery. After his endorsement in blank or to bearer any person can negotiate the document by delivery alone. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> If the document’s original terms run to bearer, it is negotiated by delivery alone. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> If a document’s original terms run to the order<\/span> of a named person and it is delivered to him, the effect is the same as if the document had been negotiated. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

d.<\/span> Negotiation of the document after it has been endorsed to a named person requires endorsement by the named person as well as delivery. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

e.<\/span> A document is “duly negotiated” when it is negotiated in the manner stated in this subsection to a holder who 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<\/span> or payment of a money obligation. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The following rules apply to a negotiable electronic document: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

a.<\/span> If the document’s original terms run to the order<\/span> of a named person or to bearer, the document is negotiated by delivery of the document to another person. Endorsement by the named person is not required to negotiate the document. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> If the document’s original terms run to the order<\/span> 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. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> A document is duly negotiated if it is negotiated in the manner stated in this subsection 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<\/span> or payment of a monetary obligation. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Endorsement of a nonnegotiable document neither makes it negotiable nor adds to the transferee’s rights. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> The naming in a negotiable bill of a person to be notified of the arrival of the goods does not limit the negotiability of the bill nor constitute notice to a purchaser thereof of any interest of such person in the goods. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nFORM OF NEGOTIATION AND REQUIREMENTS OF “DUE NEGOTIATION” (\u00a7\n8.7-501)\n\n1. The following rules apply to a negotiable tangible document:\n\n a. If the document’s original terms run to the order of a named person,\n the document is negotiated by his endorsement and delivery. After his\n endorsement in blank or to bearer any person can negotiate the document by\n delivery alone.\n\n b. If the document’s original terms run to bearer, it is negotiated by\n delivery alone.\n\n c. If a document’s original terms run to the order of a named person and\n it is delivered to him, the effect is the same as if the document had been\n negotiated.\n\n d. Negotiation of the document after it has been endorsed to a named person\n requires endorsement by the named person as well as delivery.\n\n e. A document is “duly negotiated” when it is negotiated in the\n manner stated in this subsection to a holder who purchases it in good faith,\n without notice of any defense against or claim to it on the part of any\n person, and for value, unless it is established that the negotiation is not in\n the regular course of business or financing or involves receiving the document\n in settlement or payment of a money obligation.\n\n2. The following rules apply to a negotiable electronic document:\n\n a. If the document’s original terms run to the order of a named person\n or to bearer, the document is negotiated by delivery of the document to\n another person. Endorsement by the named person is not required to negotiate\n the document.\n\n b. If the document’s original terms run to the order of a named person\n and the named person has control of the document, the effect is the same as if\n the document had been negotiated.\n\n c. A document is duly negotiated if it is negotiated in the manner stated in\n this subsection to a holder that purchases it in good faith, without notice of\n any defense against or claim to it on the part of any person, and for value,\n unless it is established that the negotiation is not in the regular course of\n business or financing or involves taking delivery of the document in\n settlement or payment of a monetary obligation.\n\n3. Endorsement of a nonnegotiable document neither makes it negotiable nor adds\nto the transferee’s rights.\n\n4. The naming in a negotiable bill of a person to be notified of the arrival of\nthe goods does not limit the negotiability of the bill nor constitute notice to\na purchaser thereof of any interest of such person in the goods.\n\nHISTORY: Code 1950, \u00a7\u00a7 61-40 to 61-43, 61-50; 1964, c. 219; 2004, c. 200.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}