§ 41-07-39 — (7-601) Lost, stolen, or destroyed documents of title

North Dakota § 41-07-39

• Jurisdiction: North Dakota
• Title 41: Uniform Commercial Code
• Ch. 41-07: Documents of Title

Text

1. 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 non-negotiable, the court may require security. The court
may also order payment of the bailee's reasonable costs and attorney's fees in any
action under this subsection.
2. 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 which files a notice of claim within one year after the delivery.