Kentucky Statutes 355.7-503 – Document of title to goods defeated in certain cases
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(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 covering the goods to the bailor or the bailor’s nominee with actual or apparent authority to ship, store, or sell; with power to obtain delivery under KRS § 355.7-403; or with power of disposition under KRS § 355.2-403, 355.2A-304(2), 355.2A-305(2), or 355.9-
320 or other statute or rule of law; or
(b) Acquiesce in the procurement by the bailor or its nominee of any document.
(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 KRS § 355.7-504 to the same extent as the rights of the issuer or a transferee from the issuer.
(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 of this article pursuant to its own bill of lading discharges the carrier’s obligation to deliver.
Effective: July 12, 2012
History: Repealed and reenacted 2012 Ky. Acts ch. 132, sec. 32, effective July 12,
2012. — Amended 2000 Ky. Acts ch. 408, sec. 168, effective July 1, 2001. — Created
1958 Ky. Acts ch. 77, sec. 7-503, effective July 1, 1960.
(a) Deliver or entrust the goods or any document covering the goods to the bailor or the bailor’s nominee with actual or apparent authority to ship, store, or sell; with power to obtain delivery under KRS § 355.7-403; or with power of disposition under KRS § 355.2-403, 355.2A-304(2), 355.2A-305(2), or 355.9-
Terms Used In Kentucky Statutes 355.7-503
- Carrier: means a person that issues a bill of lading. See Kentucky Statutes 355.7-102
- Goods: means all things that are treated as movable for the purposes of a contract for storage or transportation. See Kentucky Statutes 355.7-102
- Issuer: means a bailee that issues a document of title or, in the case of an unaccepted delivery order, the person that orders the possessor of goods to deliver. See Kentucky Statutes 355.7-102
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Statute: A law passed by a legislature.
- Warehouse: means a person engaged in the business of storing goods for hire. See Kentucky Statutes 355.7-102
320 or other statute or rule of law; or
(b) Acquiesce in the procurement by the bailor or its nominee of any document.
(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 KRS § 355.7-504 to the same extent as the rights of the issuer or a transferee from the issuer.
(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 of this article pursuant to its own bill of lading discharges the carrier’s obligation to deliver.
Effective: July 12, 2012
History: Repealed and reenacted 2012 Ky. Acts ch. 132, sec. 32, effective July 12,
2012. — Amended 2000 Ky. Acts ch. 408, sec. 168, effective July 1, 2001. — Created
1958 Ky. Acts ch. 77, sec. 7-503, effective July 1, 1960.