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General Laws

[ Text of section effective until July 1, 2013. For text effective July 1, 2013, see below.]

  Section 7-403. (1) The bailee must deliver the goods to a person entitled under the document who 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;

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

  (c) previous sale or other disposition of the goods in lawful enforcement of a lien or on warehouseman's lawful termination of storage;

  (d) the exercise by a seller of his right to stop delivery pursuant to the provisions of the Article on Sales (section 2-705);

  (e) a diversion, reconsignment or other disposition pursuant to the provisions of this Article (section 7-303) or tariff regulating such right;

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

  (g) any other lawful excuse.

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

  (3) Unless the person claiming is one against whom the document confers no right under section 7-503(1), he must surrender for cancellation or notation of partial deliveries any outstanding negotiable document covering the goods and the bailee must cancel the document or conspicuously note the partial delivery thereon or be liable to any person to whom the document is duly negotiated.

  (4) "Person entitled under the document'' means holder in the case of a negotiable document, or the person to whom delivery is to be made by the terms of or pursuant to written instructions under a nonnegotiable document.

Chapter 106: Section 7-403. Obligation Of Bailee To Deliver; Excuse

[ Text of section as recodified by 2013, 30, Sec. 45 effective July 1, 2013 applicable as provided by 2013, 30, Sec. 116. For text effective until July 1, 2013, see above.]

  Section 7-403. (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 section 2-705 or by a lessor of its right to stop delivery pursuant to section 2A-526;

  (5) a diversion, reconsignment or other disposition pursuant to section 7-303;

  (6) release, satisfaction or any other 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 if the bailee is prohibited by law from delivering the goods until the charges are paid.

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

  (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 the bailee is liable to any person to which the document is duly negotiated.

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