§ 26-1-7-503 — Form of negotiation and requirements of "due negotiation"

Indiana § 26-1-7-503

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 7: 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 403 of this chapter;
or
(C) power of disposition under IC 26-1-2-403, IC 26-1-9.1-320,
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 504 of this chapter 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 sections 401 through 404 of this chapter
pursuant to its own bill of lading discharges the carrier's obligation to
deliver.
Formerly: Acts 1963, c.317, s.7-503. As amended by
P.L.152-1986, SEC.258; P.L.57-2000, SEC.37; P.L.143-2007,
SEC.54.