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The Vermont Statutes Online



Title

09A

:
Uniform Commercial Code






Chapter

007

:
Documents of Title











 

§

7-403. Obligation of bailee to deliver; excuse

(a) A bailee

shall deliver the goods to a person entitled under a document of title if the

person complies with subsections (b) and (c) of this section, unless and to the

extent that the bailee establishes any of the following:

(1) delivery of

the goods to a person whose receipt was rightful as against the claimant;

(2) damage to or

delay, loss, or destruction of the goods for which the bailee is not liable;

(3) previous

sale or other disposition of the goods in lawful enforcement of a lien or on a

warehouse's lawful termination of storage;

(4) the exercise

by a seller of its right to stop delivery pursuant to section 2-705 of this

title or by a lessor of its right to stop delivery pursuant to section 2A-526

of this title;

(5) a diversion,

reconsignment, or other disposition pursuant to section 7-303 of this title;

(6) release,

satisfaction, or any other personal defense against the claimant; or

(7) any other

lawful excuse.

(b) 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.

(c) Unless a

person claiming the goods is a person against which the document of title does

not confer a right under subsection 7-503(a) of this title:

(1) 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

(2) 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. (Added 2015, No. 51, § B.3, eff. June 3, 2015.)