NM Stat § 55-7-506 (2021)
2021 New Mexico Statutes|Chapter 55 - Uniform Commercial Code|Article 7 - Documents of Title|Part 5 - WAREHOUSE RECEIPTS AND BILLS OF LADING; NEGOTIATION AND TRANSFER|Section 55-7-506 - 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: 1953 Comp., § 50A-7-506, enacted by Laws 1961, ch. 96, § 7-506; 2005, ch. 144, § 85. ANNOTATIONSOFFICIAL COMMENTS UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved. Prior Uniform Statutory Provision. — Former Section 7-506 [55-7-506 NMSA 1978]. Changes. — Limited to tangible documents of title. 1. This section is limited to tangible documents of title as the concept of indorsement is irrelevant to electronic documents of title. Electronic documents of title will be transferred by delivery of control. Section 7-106 [55-7-106 NMSA 1978]. From a commercial point of view the intention to transfer a tangible negotiable document of title which requires an indorsement for its transfer, is incompatible with an intention to withhold such indorsement and so defeat the effective use of the document. Further, the preceding section and the Comment thereto make it clear that an indorsement generally imposes no responsibility on the indorser. 2. Although this section provides that delivery of a tangible document of title without the necessary indorsement is effective as a transfer, the transferee, of course, has not regularized its position until such indorsement is supplied. Until this is done the transferee cannot claim rights under due negotiation within the requirements of this Article (Section 7-501(a)(5) [55-7-501(a)(5) NMSA 1978]) on "due negotiation". Similarly, despite the transfer to the transferee of the transferor's title, the transferee cannot demand the goods from the bailee until the negotiation has been completed and the document is in proper form for surrender. See Section 7-403(c) [55-7-403(c) NMSA 1978]. Point 1: Sections 7-106 [55-7-106 NMSA 1978] and 7-505 [55-7-505 NMSA 1978]. Point 2: Sections 7-501(a)(5) [55-7-501(a)(5) NMSA 1978] and 7-403(c) [55-7-403(c) NMSA 1978]. "Document of title". Section 1-201 [55-1-201 NMSA 1978]. "Rights". Section 1-201. Repeals and reenactments. — Laws 2005, ch. 144, § 85, effective January 1, 2006, repealed former 55-7-506 NMSA 1978 as enacted by Laws 1961, ch. 96, § 7-506, and enacted a new section. Pursuant to 12-2A-14 NMSA 1978, the 2005 revision is considered an amendment rather than a new enactment. Am. Jur. 2d, A.L.R. and C.J.S. references. — 13 Am. Jur. 2d Carriers § 305; 15A Am. Jur. 2d Commercial Code § 61; 78 Am. Jur. 2d Warehouses § 65. Lack of endorsement or irregular endorsement of warehouse receipt as affecting pledge of goods, 18 A.L.R. 588. Rights of purchaser of warehouse receipt against warehouseman, 38 A.L.R. 1205. 6A C.J.S. Assignments § 53; 80 C.J.S. Shipping § 114; 93 C.J.S. Warehousemen and Safe Depositaries § 27.