400.7-503. Document of title to goods defeated in certain cases.
Document of title to goods defeated in certain cases.
400.7-503. (1) A document of title confers no right in goods againsta person who before issuance of the document had a legal interest or aperfected security interest in them and who neither
(a) delivered or entrusted them or any document of title coveringthem to the bailor or his or her nominee with actual or apparent authorityto ship, store or sell or with power to obtain delivery under this article(section 400.7-403) or with power of disposition under this chapter(sections 400.2-403 and 400.9-320) or other statute or rule of law; nor
(b) acquiesced in the procurement by the bailor or his or her nomineeof any document of title.
(2) Title to goods based upon an unaccepted delivery order is subjectto the rights of anyone to whom a negotiable warehouse receipt or bill oflading covering the goods has been duly negotiated. Such a title may bedefeated under section 400.7-504 to the same extent as the rights of theissuer or a transferee from the issuer.
(3) Title to goods based upon a bill of lading issued to a freightforwarder is subject to the rights of anyone to whom a bill issued by thefreight forwarder is duly negotiated; but delivery by the carrier inaccordance with part 4 of this article pursuant to its own bill of ladingdischarges the carrier's obligation to deliver.
(L. 1963 p. 503 § 7-503, A.L. 2001 S.B. 288)Effective 7-01-01