§7-1403. Obligation of bailee to deliver; excuse
472 words·~2 min read·
/me/title-11-uniform-commercial-code/7-1403A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1). A bailee shall deliver the goods to a person entitled under a document of title if the person complies with subsections
(2)and
(3), unless and to the extent that the bailee establishes any of the following:
(a). Delivery of the goods to a person whose receipt was rightful as against the claimant; [PL 2009, c. 324, Pt. A, §2 (NEW); PL 2009, c. 324, Pt. A, §4 (AFF).]
(b). Damage to or delay, loss or destruction of the goods for which the bailee is not liable; [PL 2009, c. 324, Pt. A, §2 (NEW); PL 2009, c. 324, Pt. A, §4 (AFF).]
(c). Previous sale or other disposition of the goods in lawful enforcement of a lien or on a warehouse's lawful termination of storage; [PL 2009, c. 324, Pt. A, §2 (NEW); PL 2009, c. 324, Pt. A, §4 (AFF).]
(d). The exercise by a seller of its right to stop delivery pursuant to section 2‑705 or by a lessor of its right to stop delivery pursuant to section 2‑1526 ; [PL 2009, c. 324, Pt. A, §2 (NEW); PL 2009, c. 324, Pt. A, §4 (AFF).]
(e). A diversion, reconsignment or other disposition pursuant to section 7‑1303 ; [PL 2009, c. 324, Pt. A, §2 (NEW); PL 2009, c. 324, Pt. A, §4 (AFF).]
(f). Release, satisfaction or any other personal defense against the claimant; or [PL 2009, c. 324, Pt. A, §2 (NEW); PL 2009, c. 324, Pt. A, §4 (AFF).]
(g). Any other lawful excuse. [PL 2009, c. 324, Pt. A, §2 (NEW); PL 2009, c. 324, Pt. A, §4 (AFF).]
[PL 2009, c. 324, Pt. A, §2 (NEW); PL 2009, c. 324, Pt. A, §4 (AFF).]
(2). A person claiming goods covered by a document of title shall satisfy the bailee's lien if the bailee so requests or if the bailee is prohibited by law from delivering the goods until the charges are paid.
[PL 2009, c. 324, Pt. A, §2 (NEW); PL 2009, c. 324, Pt. A, §4 (AFF).]
(3). Unless a person claiming the goods is a person against which the document of title does not confer a right under section 7‑1503, subsection
(1):
(a). The person claiming under a document shall surrender possession or control of any outstanding negotiable document covering the goods for cancellation or indication of partial deliveries; and [PL 2009, c. 324, Pt. A, §2 (NEW); PL 2009, c. 324, Pt. A, §4 (AFF).]
(b). The bailee shall cancel the document or conspicuously indicate in the document the partial delivery or the bailee is liable to any person to which the document is duly negotiated. [PL 2009, c. 324, Pt. A, §2 (NEW); PL 2009, c. 324, Pt. A, §4 (AFF).]
[PL 2009, c. 324, Pt. A, §2 (NEW); PL 2009, c. 324, Pt. A, §4 (AFF).]