Section 7--501. Form of Negotiation and Requirements of "Due Negotiation"

(1) A negotiable document of title running to the  order  of  a  named
  person  is  negotiated  by  his  indorsement  and  delivery.  After  his
  indorsement in blank or  to  bearer  any  person  can  negotiate  it  by
  delivery alone.
    (2)  (a) A negotiable document of title is also negotiated by delivery
  alone when by its original terms it runs to bearer;
         (b) When a document running to the order of  a  named  person  is
             delivered  to  him  the effect is the same as if the document
             had been negotiated.
    (3) Negotiation of a negotiable document of title after  it  has  been
  indorsed  to  a  specified  person  requires  indorsement by the special
  indorsee as well as delivery.
    (4) A negotiable document of title is "duly  negotiated"  when  it  is
  negotiated  in  the  manner  stated  in  this  section  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.
    (5)  Indorsement  of  a  non-negotiable  document  neither  makes   it
  negotiable nor adds to the transferee's rights.
    (6)  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.