diff --git a/src/core/codestream/ojph_params.cpp b/src/core/codestream/ojph_params.cpp
index f56a793..54e884e 100644
--- a/src/core/codestream/ojph_params.cpp
+++ b/src/core/codestream/ojph_params.cpp
@@ -372,17 +372,17 @@ namespace ojph {
   //
   ////////////////////////////////////////////////////////////////////////////
 
-  //////////////////////////////////////////////////////////////////////////
-  void param_nlt::set_type3_transformation(ui32 comp_num, bool enable)
+  ////////////////////////////////////////////////////////////////////////////
+  void param_nlt::set_nonlinearity(ui32 comp_num, nonlinearity type)
   {
-    state->set_type3_transformation(comp_num, enable);
+    state->set_nonlinearity(comp_num, type);
   }
 
-  //////////////////////////////////////////////////////////////////////////
-  bool param_nlt::get_type3_transformation(ui32 comp_num, ui8& bit_depth,
-                                           bool& is_signed)
+  ////////////////////////////////////////////////////////////////////////////
+  bool param_nlt::get_nonlinearity(ui32 comp_num, ui8& bit_depth, 
+                                   bool& is_signed, nonlinearity& type) const
   {
-    return state->get_type3_transformation(comp_num, bit_depth, is_signed);
+    return state->get_nonlinearity(comp_num, bit_depth, is_signed, type);
   }
 
   ////////////////////////////////////////////////////////////////////////////
@@ -1333,7 +1333,7 @@ namespace ojph {
 
       // first stage; find out if all components captured by the default
       // entry (ALL_COMPS) has the same bit_depth/signedness,
-      // while doing this, set the BDnlt for components not captured but the
+      // while doing this, set the BDnlt for components not captured by the
       // default entry (ALL_COMPS)
       ui32 bit_depth = 0;      // unknown yet
       bool is_signed = false;  // unknown yet
@@ -1405,23 +1405,29 @@ namespace ojph {
 
       trim_non_existing_components(num_comps);
 
-      if (is_any_enabled() == false)
-        return;
-      siz.set_Rsiz_flag(param_siz::RSIZ_EXT_FLAG | param_siz::RSIZ_NLT_FLAG);
+      if (is_any_enabled() == true)
+        siz.set_Rsiz_flag(param_siz::RSIZ_EXT_FLAG | param_siz::RSIZ_NLT_FLAG);
     }
 
     //////////////////////////////////////////////////////////////////////////
-    void param_nlt::set_type3_transformation(ui32 comp_num, bool enable)
+    void param_nlt::set_nonlinearity(ui32 comp_num, nonlinearity type)
     {
+      if (type != ojph::param_nlt::OJPH_NLT_NO_NLT && 
+          type != ojph::param_nlt::OJPH_NLT_BINARY_COMPLEMENT_NLT)
+      OJPH_ERROR(0x00050171, "Nonliearity other than types 0 "
+        "(No Nonlinearity) and 3 (Binary Binary Complement to Sign Magnitude "
+        "Conversion) is not supported yet");
       param_nlt* p = get_comp_object(comp_num);
       if (p == NULL)
         p = add_object(comp_num);
-      p->enabled = enable;
+      p->Tnlt = type;
+      p->enabled = true;
     }
 
     //////////////////////////////////////////////////////////////////////////
-    bool param_nlt::get_type3_transformation(ui32 comp_num, ui8& bit_depth, 
-                                             bool& is_signed) const
+    bool
+    param_nlt::get_nonlinearity(ui32 comp_num, ui8& bit_depth, bool& is_signed, 
+                                nonlinearity& type) const
     {
       const param_nlt* p = get_comp_object(comp_num);
       p = p ? p : this;
@@ -1430,8 +1436,10 @@ namespace ojph {
         bit_depth = (ui8)((p->BDnlt & 0x7F) + 1);
         bit_depth = bit_depth <= 38 ? bit_depth : 38;
         is_signed = (p->BDnlt & 0x80) == 0x80;
+        type = (nonlinearity)p->Tnlt;
+        return true;
       }
-      return p->enabled;
+      return false;
     }
 
     //////////////////////////////////////////////////////////////////////////
@@ -1499,14 +1507,10 @@ namespace ojph {
     //////////////////////////////////////////////////////////////////////////
     const param_nlt* param_nlt::get_comp_object(ui32 comp_num) const
     {
-      if (Cnlt == comp_num)
-        return this;
-      else {
-        param_nlt* p = next;
-        while (p && p->Cnlt != comp_num)
-          p = p->next;
-        return p;
-      }
+      const param_nlt* p = this;
+      while (p && p->Cnlt != comp_num)
+        p = p->next;
+      return p;
     }
 
     //////////////////////////////////////////////////////////////////////////
@@ -1540,8 +1544,11 @@ namespace ojph {
     {
       param_nlt* p = this->next;
       while (p) {
-          if (p->enabled == true && p->Cnlt >= num_comps)
+          if (p->enabled == true && p->Cnlt >= num_comps) {
             p->enabled = false;
+            OJPH_INFO(0x00050161, "We are removing the NLT marker segment "
+              "for the non-existing component %d", p->Cnlt);
+          }
         p = p->next;
       }
     }
diff --git a/src/core/codestream/ojph_params_local.h b/src/core/codestream/ojph_params_local.h
index b458ca5..23547cb 100644
--- a/src/core/codestream/ojph_params_local.h
+++ b/src/core/codestream/ojph_params_local.h
@@ -673,12 +673,13 @@ namespace ojph {
     struct param_nlt
     {
       using special_comp_num = ojph::param_nlt::special_comp_num;
+      using nonlinearity = ojph::param_nlt::nonlinearity;
     public:
       param_nlt() { 
         Lnlt = 6;
         Cnlt = special_comp_num::ALL_COMPS; // default
         BDnlt = 0;
-        Tnlt = 3;
+        Tnlt = nonlinearity::OJPH_NLT_NO_NLT;
         enabled = false; next = NULL; alloced_next = false;
       }
 
@@ -691,9 +692,9 @@ namespace ojph {
       }
 
       void check_validity(param_siz& siz);
-      void set_type3_transformation(ui32 comp_num, bool enable);
-      bool get_type3_transformation(ui32 comp_num, ui8& bit_depth, 
-                                    bool& is_signed) const;
+      void set_nonlinearity(ui32 comp_num, nonlinearity type);
+      bool get_nonlinearity(ui32 comp_num, ui8& bit_depth, 
+                            bool& is_signed, nonlinearity& type) const;
       bool write(outfile_base* file) const;
       void read(infile_base* file);
 
diff --git a/src/core/common/ojph_params.h b/src/core/common/ojph_params.h
index 602fd99..dfc4e91 100644
--- a/src/core/common/ojph_params.h
+++ b/src/core/common/ojph_params.h
@@ -141,6 +141,12 @@ namespace ojph {
   {
   public:
     enum special_comp_num : ui16 { ALL_COMPS = 65535 };
+    enum nonlinearity : ui8 { 
+      OJPH_NLT_NO_NLT = 0,                // supported
+      OJPH_NLT_GAMMA_STYLE_NLT = 1,       // not supported
+      OJPH_NLT_LUT_STYLE_NLT = 2,         // not supported
+      OJPH_NLT_BINARY_COMPLEMENT_NLT = 3  // supported
+    };
   public:
     param_nlt(local::param_nlt* p) : state(p) {}
 
@@ -148,26 +154,53 @@ namespace ojph {
       * @brief enables or disables type 3 nonlinearity for a component 
       *        or the default setting
       * 
-      * If you think that you need type 3 nonlinearity for all components,
-      * call this function with comp_num set to 65535 and enable to true.
+      * When creating a codestream for writing, call this function before
+      * you call codestream::write_headers.
+      * 
+      * There are a few things to know here.  
+      * The NLT marker segment contains the nonlinearity type and the 
+      * bit depth and signedness of the component to which it applies.
+      * There is the default component ALL_COMPS which applies to all 
+      * components unless it is overridden by another NLT segment marker.
+      * The library checks that the settings make sense, and also make
+      * sure that bit depth and signedness are correct, creating any missing
+      * NLT marker segments.
+      * If all components have the same bit depth and signedness, and need
+      * nonlinearity type 3 (Binary Complement to Sign Magnitude Conversion), 
+      * then the best option is to set ALL_COMPS to type 3.
+      * Otherwise, the best option is to set type 3 only to components that 
+      * need it, leaving out the default ALL_COMPS nonlinearity not set.
+      * Another option is for the end-user can set the ALL_COMPS to type 3, 
+      * and then put exception for the components that does not need type 3, 
+      * by setting them to type 0.
+      * 
+      * It also worth noting that type 3 nonlinearity has no effect on 
+      * positive image samples.  It is also not recommended for integer-valued 
+      * types. It is only recommended for floating-points image samples for 
+      * which some of the samples are negative, where type 3 nonlinearity 
+      * should be beneficial.  This is because the encoding engine expects 
+      * two-complement representation for negative values while floating point 
+      * numbers have a sign bit followed by an exponent, which has a biased 
+      * integer representation.  The core idea is to make floating-point
+      * representation more compatible with integer representation.
       * 
       * @param comp_num: component number, or 65535 for the default setting
-      * @param enable: true to enable nlt type 3 for this component or the 
-                       default setting, false to disable nlt type 3.
+      * @param type: desired non-linearity from enum nonlinearity
       */
-    void set_type3_transformation(ui32 comp_num, bool enable);
+    void set_nonlinearity(ui32 comp_num, nonlinearity type);
 
     /**
-      * @brief get the state (enabled or disabled) of type 3 nonlinearity 
-      *        for a component or the default setting
+      * @brief get the nonlinearity type associated with comp_num, which 
+      *        should be one from enum nonlinearity
       *
       * @param comp_num: component number, or 65535 for the default setting
       * @param bit_depth: returns the bit depth of the component/default
       * @param is_signed: returns true if the component/default is signed
-      * @return true if enabled or false if not.
+      * @param type: nonlinearity type
+      * @return true if the nonlinearity for comp_num is set
       */
-    bool get_type3_transformation(ui32 comp_num, ui8& bit_depth, 
-                                  bool& is_signed);
+    bool get_nonlinearity(ui32 comp_num, ui8& bit_depth, 
+                          bool& is_signed, nonlinearity& type) const;
 
   private:
     local::param_nlt* state;