57A-7-403. Obligation of bailee to deliver--Excuse.

275 words·~1 min read·/sd/title-57/chapter-57-7/57a-7-403

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)A bailee shall deliver the goods to a person entitled under a document of title if the person complies with subsections

(b)and (c), unless and to the extent that the bailee establishes any of the following:

(1)Delivery of the goods to a person whose receipt was rightful as against the claimant;

(2)Damage to or delay, loss, or destruction of the goods for which the bailee is not liable;

(3)Previous sale or other disposition of the goods in lawful enforcement of a lien or on a warehouse's lawful termination of storage;

(4)The exercise by a seller of its right to stop delivery pursuant to § 57A-2-705 or by a lessor of its right to stop delivery pursuant to § 57A-2A-526 ;

(5)A diversion, reconsignment, or other disposition pursuant to § 57A-7-303 ;

(6)Release, satisfaction, or any other fact affording a personal defense against the claimant; or

(7)Any other lawful excuse.

(b)A person claiming goods covered by a document of title shall satisfy the bailee's lien if the bailee so requests or the bailee is prohibited by law from delivering the goods until the charges are paid.

(c)Unless a person claiming the goods is one against which the document of title does not confer a right under § 57A-7-503(a):

(1)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

(2)The bailee shall cancel the document or conspicuously indicate in the document the partial delivery or be liable to any person to which the document is duly negotiated.