§ 4-7-503 — Document of title to goods defeated in certain cases

Colorado § 4-7-503

• Jurisdiction: Colorado
• Title 04: Uniform
• Art.: Documents of Title

Text

(a) A
document of title confers no right in goods against a person that before issuance of
the document had a legal interest or a perfected security interest in the goods and
that did not:

(1) Deliver or entrust the goods or any document of title covering the goods
to the bailor or the bailor's nominee with:

(A) Actual or apparent authority to ship, store, or sell;

(B) Power to obtain delivery under section 4-7-403; or

(C) Power of disposition under section 4-2-403, 4-2.5-304 (2), 4-2.5-305 (2),
4-9-320, or 4-9-321 (c) or other statute or rule of law; or

(2) Acquiesce in the procurement by the bailor or its nominee of any
document.

(b) Title to goods based upon an unaccepted delivery order is subject to the
rights of any person to which a negotiable warehouse receipt or bill of lading
covering the goods has been duly negotiated. That title may be defeated under
section 4-7-504 to the same extent as the rights of the issuer or a transferee from
the issuer.

(c) Title to goods based upon a bill of lading issued to a freight forwarder is
subject to the rights of any person to which a bill issued by the freight forwarder is
duly negotiated. However, delivery by the carrier in accordance with part 4 of this
article pursuant to its own bill of lading discharges the carrier's obligation to
deliver.

Legislative History

Source: L. 2006: Entire article R&RE, p. 486, � 2, effective September 1. L. 2007: (a)(1) amended, p. 372, � 20, effective August 3.