§ 26-1-7-601 — Lost and missing documents

Indiana § 26-1-7-601

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 7: Documents of Title

Text

(a) If a document of title is lost, stolen, or
destroyed, a court may order delivery of the goods or issuance of a
substitute document and the bailee may without liability to any person
comply with the order. If the document was negotiable, a court may not
order delivery of the goods or issuance of a substitute document
without the claimant's posting security unless it finds that any person
that may suffer loss as a result of nonsurrender of possession or control
of the document is adequately protected against the loss. If the
document was nonnegotiable, the court may require security. The court
may also order payment of the bailee's reasonable costs and attorney's
fees in an action under this subsection.
(b) A bailee that, without a court order, delivers goods to a person
claiming under a missing negotiable document of title is liable to any
person injured thereby. If the delivery is not in good faith, the bailee is
liable for conversion. Delivery in good faith is not conversion if the
claimant posts security with the bailee in an amount at least double the
value of the goods at the time of posting to indemnify any person
injured by the delivery that files a notice of claim within one (1) year
after the delivery.
Formerly: Acts 1963, c.317, s.7-601. As amended by
P.L.143-2007, SEC.61.