§ 41-07-28 — (7-403) Obligation of bailee to deliver - Excuse

1. A bailee shall deliver the goods to a person entitled under a document of title if the
person 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 a warehouse's lawful termination of storage;
d. The exercise by a seller of its right to stop delivery pursuant to section 41-02-84
or by a lessor of its right to stop delivery pursuant to section 41-02.1-74;
e. A diversion, reconsignment, or other disposition pursuant to section 41-07-19;
f. Release, satisfaction, or any other personal defense against the claimant; or
g. Any other lawful excuse.
2. 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.
3. Unless a person claiming the goods is a person against which the document of title
does not confer a right under subsection 1 of section 41-07-32:
a. 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
b. 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.