Section 7-1503 - Document of title to goods defeated in certain cases(1). 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: (a). Deliver or entrust the goods or any document of title covering the goods to the bailor or the bailor's nominee with:(i) Actual or apparent authority to ship, store or sell;(ii) Power to obtain delivery under section 7-1403; or(iii) Power of disposition under section 2-403; section 2-1304, subsection (2); section 2-1305, subsection (2); section 9-1320; or section 9-1321, subsection (3) or other statute or rule of law; or [2009, c. 324, Pt. A, §2(NEW); 2009, c. 324, Pt. A, §4(AFF).](b). Acquiesce in the procurement by the bailor or its nominee of any document. [2009, c. 324, Pt. A, §2(NEW); 2009, c. 324, Pt. A, §4(AFF).] [2009, c. 324, Pt. A, §2(NEW); 2009, c. 324, Pt. A, §4(AFF).]
(2). 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 7-1504 to the same extent as the rights of the issuer or a transferee from the issuer. [2009, c. 324, Pt. A, §2(NEW); 2009, c. 324, Pt. A, §4(AFF).]
(3). 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 pursuant to its own bill of lading discharges the carrier's obligation to deliver. [2009, c. 324, Pt. A, §2(NEW); 2009, c. 324, Pt. A, §4(AFF).]
2009, c. 324, Pt. A, §2 (NEW) . 2009, c. 324, Pt. A, §4 (AFF) .