Where a blank in a negotiable warehouse receipt has been filled in without authority, a purchaser for value and without notice of the want of authority, may treat the insertion as authorized. Any other unauthorized alteration leaves any receipt enforceable against the issuer according to its original tenor.
CREDIT(S)
(Dec. 30, 1963, 77 Stat. 721, Pub. L. 88-243, § 1.)
Prior Uniform Statutory Provision: Section 13, Uniform Warehouse Receipts Act.
Changes: Generally revised and simplified; explicit treatment of the situation where a blank in an executed document is filled without authority.
Purposes of Changes:
1. The execution of warehouse receipts in blank is a dangerous practice. As between the issuer and an innocent purchaser the risks should clearly fall on the former.
2. An unauthorized alteration whether made with or without fraudulent intent does not relieve the issuer of his liability on the warehouse receipt as originally executed. The unauthorized alteration itself is of course ineffective against the warehouseman.
Definitional Cross References:
“Issuer”. Section 7-102.
“Notice”. Section 1-201.
“Purchaser”. Section 1-201.
“Value”. Section 1-201.
“Warehouse receipt”. Section 1-201.
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 28:7-208.
1973 Ed., § 28:7-208.