§ 25-7-403. Obligation of bailee to deliver; excuse.
§ 25‑7‑403. Obligation of bailee to deliver; excuse.
(a) A bailee shalldeliver the goods to a person entitled under a document of title if the personcomplies with subsections (b) and (c) of this section, unless and to the extentthat the bailee establishes any of the following:
(1) Delivery of thegoods 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 orother disposition of the goods in lawful enforcement of a lien or on awarehouse's lawful termination of storage;
(4) The exercise by aseller of its right to stop delivery pursuant to G.S. 25‑2‑705 orby a lessor of its right to stop delivery pursuant to G.S. 25‑2A‑526;
(5) A diversion,reconsignment, or other disposition pursuant to G.S. 25‑7‑303;
(6) Release,satisfaction, or any other personal defense against the claimant; or
(7) Any other lawfulexcuse.
(b) A person claiminggoods covered by a document of title shall satisfy the bailee's lien if thebailee so requests or if the bailee is prohibited by law from delivering thegoods until the charges are paid.
(c) Unless a personclaiming the goods is a person against whom the document of title does notconfer a right under G.S. 25‑7‑503(a):
(1) The person claimingunder a document shall surrender possession or control of any outstandingnegotiable document covering the goods for cancellation or indication ofpartial deliveries; and
(2) The bailee shallcancel the document or conspicuously indicate in the document the partialdelivery or the bailee is liable to any person to whom the document is dulynegotiated. (1917,c. 37, ss. 8, 9, 11, 12, 36; 1919, c. 65, ss. 8, 9, 11, 12, 26; C.S., ss. 290,291, 293, 294, 308, 4048, 4049, 4051, 4052, 4076; 1965, c. 700, s. 1; 2006‑112,s. 25.)