There is a newer version of the Kentucky Revised Statutes
2009 Kentucky Revised Statutes
Article 7 Warehouse Receipts, Bills of Lading,
355.7.502 Rights acquired by due negotiation.
Download pdfacquires thereby:
(a) Title to the document;
(b) Title to the goods;
(c) All rights accruing under the law of agency or estoppel, including rights to goods delivered to the bailee after the document was issued; and (d) The direct obligation of the issuer to hold or deliver the goods according to the terms of the document free of any defense or claim by him except those
arising under the terms of the document or under this article. In the case of a
delivery order the bailee's obligation accrues only upon acceptance and the
obligation acquired by the holder is that the issuer and any indorser will
procure the acceptance of the bailee. (2) Subject to KRS 355.7-503, title and rights so acquired are not defeated by any stoppage of the goods represented by the document or by surrender of such goods
by the bailee, and are not impaired even though the negotiation or any prior
negotiation constituted a breach of duty or even though any person has been
deprived of possession of the document by misrepresentation, fraud, accident,
mistake, duress, loss, theft or conversion, or even though a previous sale or other
transfer of the goods or document has been made to a third person. Effective: July 1, 1960
History: Created 1958 Ky. Acts ch. 77, sec. 7-502, effective July 1, 1960.
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