2022 Kentucky Revised Statutes Chapter 355 - Uniform commercial code Article 355.7 - Warehouse Receipts, Bills of Lading, and Other Documents of Title 355.7-403 Obligation of bailee to deliver -- Excuse.
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355.7-403 Obligation of bailee to deliver -- Excuse.
(1)
(2)
(3)
A bailee shall deliver the goods to a person entitled under a document of title if the
person complies with subsections (2) and (3) of this section, unless and to the extent
that the bailee establishes any of the following:
(a) Delivery of the goods to a person whose receipt was rightful as against the
claimant;
(b) Damage to or delay, loss, or destruction of the goods for which the bailee is
not liable;
(c) Previous sale or other disposition of the goods in lawful enforcement of a lien
or on a warehouse's lawful termination of storage;
(d) The exercise by a seller of its right to stop delivery pursuant to KRS 355.2705 or by a lessor of its right to stop delivery pursuant to KRS 355.2A-526;
(e) A diversion, reconsignment, or other disposition pursuant to KRS 355.7-303;
(f) Release, satisfaction, or any other fact affording a personal defense against the
claimant; or
(g) Any other lawful excuse.
A person claiming goods covered by a document of title shall satisfy the bailee's
lien if the bailee so requests or the bailee is prohibited by law from delivering the
goods until the charges are paid.
Unless a person claiming the goods is one against which the document of title does
not confer a right under KRS 355.7-503(1):
(a) 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
(b) The bailee shall cancel the document or conspicuously indicate in the
document the partial delivery or be liable to any person to which the document
is duly negotiated.
Effective: July 12, 2012
History: Repealed and reenacted 2012 Ky. Acts ch. 132, sec. 28, effective July 12,
2012. -- Created 1958 Ky. Acts ch. 77, sec. 7-403, effective July 1, 1960.
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