CHAPTER 7. DOCUMENTS OF TITLE
BUSINESS AND COMMERCE CODE
TITLE 1. UNIFORM COMMERCIAL CODE
CHAPTER 7. DOCUMENTS OF TITLE
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 7.101. SHORT TITLE. This chapter may be cited as Uniform
Commercial Code--Documents of Title.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
Sec. 7.102. DEFINITIONS AND INDEX OF DEFINITIONS. (a) In this
chapter, unless the context otherwise requires:
(1) "Bailee" means a person that by a warehouse receipt, bill of
lading, or other document of title acknowledges possession of
goods and contracts to deliver them.
(2) "Carrier" means a person that issues a bill of lading.
(3) "Consignee" means a person named in a bill of lading to
which or to whose order the bill promises delivery.
(4) "Consignor" means a person named in a bill of lading as the
person from which the goods have been received for shipment.
(5) "Delivery order" means a record that contains an order to
deliver goods directed to a warehouse, carrier, or other person
that in the ordinary course of business issues warehouse receipts
or bills of lading.
(6) [Reserved.]
(7) "Goods" means all things that are treated as movable for the
purposes of a contract for storage or transportation.
(8) "Issuer" means a bailee that issues a document of title or,
in the case of an unaccepted delivery order, the person that
orders the possessor of goods to deliver. The term includes a
person for which an agent or employee purports to act in issuing
a document if the agent or employee has real or apparent
authority to issue documents, even if the issuer did not receive
any goods, the goods were misdescribed, or in any other respect
the agent or employee violated the issuer's instructions.
(9) "Person entitled under the document" means the holder, in
the case of a negotiable document of title, or the person to
which delivery of the goods is to be made by the terms of, or
pursuant to instructions in a record under, a nonnegotiable
document of title.
(10) [Reserved.]
(11) "Shipper" means a person that enters into a contract of
transportation with a carrier.
(12) "Sign" means, with present intent to authenticate or adopt
a record:
(A) to execute or adopt a tangible symbol; or
(B) to attach to or logically associate with the record an
electronic sound, symbol, or process.
(13) "Warehouse" means a person engaged in the business of
storing goods for hire.
(b) Definitions in other chapters applying to this chapter and
the sections in which they appear are:
(1) "Contract for sale," Section 2.106.
(2) "Lessee in ordinary course of business," Section 2A.103.
(3) "'Receipt' of goods," Section 2.103.
(c) In addition, Chapter 1 contains general definitions and
principles of construction and interpretation applicable
throughout this chapter.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
Sec. 7.103. RELATION OF ARTICLE TO TREATY OR STATUTE. (a) This
chapter is subject to any treaty or statute of the United States
or a regulatory statute of this state to the extent the treaty,
statute, or regulatory statute is applicable.
(b) This chapter does not repeal or modify any law prescribing
the form or contents of a document of title or the services or
facilities to be afforded by a bailee, or otherwise regulating a
bailee's businesses in respects not specifically treated in this
chapter. However, violation of these laws does not affect the
status of a document of title that otherwise complies with the
definition of a document of title.
(c) This chapter modifies, limits, and supersedes the federal
Electronic Signatures in Global and National Commerce Act (15
U.S.C. Section 7001 et seq.) but does not modify, limit, or
supersede Section 101(c) of that Act (15 U.S.C. Section 7001(c))
or authorize electronic delivery of any of the notices described
in Section 103(b) of that Act (15 U.S.C. Section 7003(b)).
(d) To the extent there is a conflict between Chapter 322 and
this chapter, this chapter governs.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.04, eff. April 1, 2009.
Sec. 7.104. NEGOTIABLE AND NONNEGOTIABLE DOCUMENT OF TITLE. (a)
A document of title is negotiable if by its terms the goods are
to be delivered to bearer or to the order of a named person.
(b) A document of title other than one described in Subsection
(a) is nonnegotiable. A bill of lading that states that the
goods are consigned to a named person is not made negotiable by a
provision that the goods are to be delivered only against an
order in a record signed by the same or another named person.
(c) A document of title is nonnegotiable if, at the time it is
issued, the document has a conspicuous legend, however expressed,
that it is nonnegotiable.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
Sec. 7.105. REISSUANCE IN ALTERNATIVE MEDIUM. (a) Upon request
of a person entitled under an electronic document of title, the
issuer of the electronic document may issue a tangible document
of title as a substitute for the electronic document if:
(1) the person entitled under the electronic document surrenders
control of the document to the issuer; and
(2) the tangible document when issued contains a statement that
it is issued in substitution for the electronic document.
(b) Upon issuance of a tangible document of title in
substitution for an electronic document of title in accordance
with Subsection (a):
(1) the electronic document ceases to have any effect or
validity; and
(2) the person that procured issuance of the tangible document
warrants to all subsequent persons entitled under the tangible
document that the warrantor was a person entitled under the
electronic document when the warrantor surrendered control of the
electronic document to the issuer.
(c) Upon request of a person entitled under a tangible document
of title, the issuer of the tangible document may issue an
electronic document of title as a substitute for the tangible
document if:
(1) the person entitled under the tangible document surrenders
possession of the document to the issuer; and
(2) the electronic document when issued contains a statement
that it is issued in substitution for the tangible document.
(d) Upon issuance of the electronic document of title in
substitution for a tangible document of title in accordance with
Subsection (c):
(1) the tangible document ceases to have any effect or validity;
and
(2) the person that procured issuance of the electronic document
warrants to all subsequent persons entitled under the electronic
document that the warrantor was a person entitled under the
tangible document when the warrantor surrendered possession of
the tangible document to the issuer.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
Sec. 7.106. CONTROL OF ELECTRONIC DOCUMENT OF TITLE. (a) A
person has control of an electronic document of title if a system
employed for evidencing the transfer of interests in the
electronic document reliably establishes that person as the
person to which the electronic document was issued or
transferred.
(b) A system satisfies Subsection (a), and a person is deemed to
have control of an electronic document of title, if the document
is created, stored, and assigned in such a manner that:
(1) a single authoritative copy of the document exists which is
unique, identifiable, and, except as otherwise provided in
Subdivisions (4), (5), and (6), unalterable;
(2) the authoritative copy identifies the person asserting
control as:
(A) the person to which the document was issued; or
(B) if the authoritative copy indicates that the document has
been transferred, the person to which the document was most
recently transferred;
(3) the authoritative copy is communicated to and maintained by
the person asserting control or its designated custodian;
(4) copies or amendments that add or change an identified
assignee of the authoritative copy can be made only with the
consent of the person asserting control;
(5) each copy of the authoritative copy and any copy of a copy
is readily identifiable as a copy that is not the authoritative
copy; and
(6) any amendment of the authoritative copy is readily
identifiable as authorized or unauthorized.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
SUBCHAPTER B. WAREHOUSE RECEIPTS: SPECIAL PROVISIONS
Sec. 7.201. PERSON THAT MAY ISSUE A WAREHOUSE RECEIPT; STORAGE
UNDER BOND. (a) A warehouse receipt may be issued by any
warehouse.
(b) If goods, including distilled spirits and agricultural
commodities, are stored under a statute requiring a bond against
withdrawal or a license for the issuance of receipts in the
nature of warehouse receipts, a receipt issued for the goods is
deemed to be a warehouse receipt even if issued by a person that
is the owner of the goods and is not a warehouse.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
Sec. 7.202. FORM OF WAREHOUSE RECEIPT. (a) A warehouse receipt
need not be in any particular form.
(b) Unless a warehouse receipt provides for each of the
following, the warehouse is liable for damages caused to a person
injured by its omission:
(1) the location of the warehouse facility where the goods are
stored;
(2) the date of issue of the receipt;
(3) the unique identification code of the receipt;
(4) a statement whether the goods received will be delivered to
the bearer, to a named person, or to a named person or its order;
(5) the rate of storage and handling charges, but if goods are
stored under a field warehousing arrangement, a statement of that
fact is sufficient on a nonnegotiable receipt;
(6) a description of the goods or the packages containing them;
(7) the signature of the warehouse or its agent;
(8) if the receipt is issued for goods that the warehouse owns,
either solely, jointly, or in common with others, the fact of
that ownership; and
(9) a statement of the amount of advances made and of
liabilities incurred for which the warehouse claims a lien or
security interest, but if the precise amount of advances made or
of liabilities incurred is, at the time of the issue of the
receipt, unknown to the warehouse or to its agent that issued the
receipt, a statement of the fact that advances have been made or
liabilities incurred and the purpose of the advances or
liabilities is sufficient.
(c) A warehouse may insert in its receipt any terms that are not
contrary to this title and do not impair its obligation of
delivery under Section 7.403 or its duty of care under Section
7.204. Any contrary provisions are ineffective.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
Sec. 7.203. LIABILITY FOR NONRECEIPT OR MISDESCRIPTION. A party
to or purchaser for value in good faith of a document of title,
other than a bill of lading, that relies upon the description of
the goods in the document may recover from the issuer damages
caused by the nonreceipt or misdescription of the goods, except
to the extent that:
(1) the document conspicuously indicates that the issuer does
not know whether all or part of the goods in fact were received
or conform to the description, such as a case in which the
description is in terms of marks or labels or kind, quantity, or
condition, or the receipt or description is qualified by
"contents, condition, and quality unknown," "said to contain," or
words of similar import, if the indication is true; or
(2) the party or purchaser otherwise has notice of the
nonreceipt or misdescription.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
Sec. 7.204. DUTY OF CARE; CONTRACTUAL LIMITATION OF WAREHOUSE'S
LIABILITY. (a) A warehouse is liable for damages for loss of or
injury to the goods caused by its failure to exercise care with
regard to the goods that a reasonably careful person would
exercise under similar circumstances. However, unless otherwise
agreed, the warehouse is not liable for damages that could not
have been avoided by the exercise of that care.
(b) Damages may be limited by a term in the warehouse receipt or
storage agreement limiting the amount of liability in case of
loss or damage beyond which the warehouse is not liable. Such a
limitation is not effective with respect to the warehouse's
liability for conversion to its own use. The warehouse's
liability, on request of the bailor in a record at the time of
signing such storage agreement or within a reasonable time after
receipt of the warehouse receipt, may be increased on part or all
of the goods covered by the storage agreement or the warehouse
receipt. In this event, increased rates may be charged based on
an increased valuation of the goods.
(c) Reasonable provisions as to the time and manner of
presenting claims and commencing actions based on the bailment
may be included in the warehouse receipt or storage agreement.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
Sec. 7.205. TITLE UNDER WAREHOUSE RECEIPT DEFEATED IN CERTAIN
CASES. A buyer in ordinary course of business of fungible goods
sold and delivered by a warehouse that is also in the business of
buying and selling such goods takes the goods free of any claim
under a warehouse receipt even if the receipt is negotiable and
has been duly negotiated.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
Sec. 7.206. TERMINATION OF STORAGE AT WAREHOUSE'S OPTION. (a)
A warehouse, by giving notice to the person on whose account the
goods are held and any other person known to claim an interest in
the goods, may require payment of any charges and removal of the
goods from the warehouse at the termination of the period of
storage fixed by the document of title or, if a period is not
fixed, within a stated period not less than 30 days after the
warehouse gives notice. If the goods are not removed before the
date specified in the notice, the warehouse may sell them
pursuant to Section 7.210.
(b) If a warehouse in good faith believes that goods are about
to deteriorate or decline in value to less than the amount of its
lien within the time provided in Subsection (a) and Section
7.210, the warehouse may specify in the notice given under
Subsection (a) any reasonable shorter time for removal of the
goods and, if the goods are not removed, may sell them at public
sale held not less than one week after a single advertisement or
posting.
(c) If, as a result of a quality or condition of the goods of
which the warehouse did not have notice at the time of deposit,
the goods are a hazard to other property, the warehouse
facilities, or other persons, the warehouse may sell the goods at
public or private sale without advertisement or posting on
reasonable notification to all persons known to claim an interest
in the goods. If the warehouse, after a reasonable effort, is
unable to sell the goods, it may dispose of them in any lawful
manner and does not incur liability by reason of that
disposition.
(d) A warehouse shall deliver the goods to any person entitled
to them under this chapter upon due demand made at any time
before sale or other disposition under this section.
(e) A warehouse may satisfy its lien from the proceeds of any
sale or disposition under this section but shall hold the balance
for delivery on the demand of any person to which the warehouse
would have been bound to deliver the goods.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
Sec. 7.207. GOODS MUST BE KEPT SEPARATE; FUNGIBLE GOODS. (a)
Unless the warehouse receipt provides otherwise, a warehouse
shall keep separate the goods covered by each receipt so as to
permit at all times identification and delivery of those goods.
However, different lots of fungible goods may be commingled.
(b) If different lots of fungible goods are commingled, the
goods are owned in common by the persons entitled thereto and the
warehouse is severally liable to each owner for that owner's
share. If, because of overissue, a mass of fungible goods is
insufficient to meet all the receipts the warehouse has issued
against it, the persons entitled include all holders to which
overissued receipts have been duly negotiated.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
Sec. 7.208. ALTERED WAREHOUSE RECEIPTS. If a blank in a
negotiable tangible warehouse receipt has been filled in without
authority, a good faith purchaser for value and without notice of
the lack of authority may treat the insertion as authorized. Any
other unauthorized alteration leaves any tangible or electronic
warehouse receipt enforceable against the issuer according to its
original tenor.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
Sec. 7.209. LIEN OF WAREHOUSE. (a) A warehouse has a lien
against the bailor on the goods covered by a warehouse receipt or
storage agreement or on the proceeds thereof in its possession
for charges for storage or transportation, including demurrage
and terminal charges, insurance, labor, or other charges, present
or future, in relation to the goods, and for expenses necessary
for preservation of the goods or reasonably incurred in their
sale pursuant to law. If the person on whose account the goods
are held is liable for similar charges or expenses in relation to
other goods whenever deposited and it is stated in the warehouse
receipt or storage agreement that a lien is claimed for charges
and expenses in relation to other goods, the warehouse also has a
lien against the goods covered by the warehouse receipt or
storage agreement or on the proceeds thereof in its possession
for those charges and expenses, whether or not the other goods
have been delivered by the warehouse. However, as against a
person to which a negotiable warehouse receipt is duly
negotiated, a warehouse's lien is limited to charges in an amount
or at a rate specified in the warehouse receipt or, if no charges
are so specified, to a reasonable charge for storage of the
specific goods covered by the receipt subsequent to the date of
the receipt.
(b) The warehouse may also reserve a security interest under
Chapter 9 against the bailor for the maximum amount specified on
the receipt for charges other than those specified in Subsection
(a), such as for money advanced and interest. A security
interest is governed by Chapter 9.
(c) A warehouse's lien for charges and expenses under Subsection
(a) or a security interest under Subsection (b) is also effective
against any person that so entrusted the bailor with possession
of the goods that a pledge of them by the bailor to a good faith
purchaser for value would have been valid. However, the lien or
security interest is not effective against a person that before
issuance of a document of title had a legal interest or a
perfected security interest in the goods and that did not:
(1) deliver or entrust the goods or any document covering the
goods to the bailor or the bailor's nominee with actual or
apparent authority to ship, store, or sell; or with power to
obtain delivery under Section 7.403; or with power of disposition
under Section 2.403, 2A.304(a)(2), 2A.305(a)(2), or 9.320 or
other statute or rule of law; or
(2) acquiesce in the procurement by the bailor or its nominee of
any document.
(d) A warehouse's lien on household goods for charges and
expenses in relation to the goods under Subsection (a) is also
effective against all persons if the depositor was the legal
possessor of the goods at the time of deposit. In this
subsection, "household goods" means furniture, furnishings, or
personal effects used by the depositor in a dwelling.
(e) A warehouse loses its lien on any goods that it voluntarily
delivers or unjustifiably refuses to deliver.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967. Amended by Acts 1971, 62nd Leg., p. 3048, ch. 1010, Sec. 1,
eff. June 15, 1971.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
Sec. 7.210. ENFORCEMENT OF WAREHOUSE'S LIEN. (a) Except as
otherwise provided in Subsection (b), a warehouse's lien may be
enforced by public or private sale of the goods, in bulk or in
packages, at any time or place and on any terms that are
commercially reasonable, after notifying all persons known to
claim an interest in the goods. The notification must include a
statement of the amount due, the nature of the proposed sale, and
the time and place of any public sale. The fact that a better
price could have been obtained by a sale at a different time or
in a different method from that selected by the warehouse is not
of itself sufficient to establish that the sale was not made in a
commercially reasonable manner. The warehouse has sold in a
commercially reasonable manner if the warehouse sells the goods
in the usual manner in any recognized market therefor, sells at
the price current in that market at the time of the sale, or has
otherwise sold in conformity with commercially reasonable
practices among dealers in the type of goods sold. A sale of
more goods than apparently necessary to be offered to ensure
satisfaction of the obligation is not commercially reasonable,
except in cases covered by the preceding sentence.
(b) A warehouse's lien on goods, other than goods stored by a
merchant in the course of its business, may be enforced only if
the following requirements are satisfied:
(1) All persons known to claim an interest in the goods must be
notified.
(2) The notification must include an itemized statement of the
claim, a description of the goods subject to the lien, a demand
for payment within a specified time not less than 10 days after
receipt of the notification, and a conspicuous statement that
unless the claim is paid within that time the goods will be
advertised for sale and sold by auction at a specified time and
place.
(3) The sale must conform to the terms of the notification.
(4) The sale must be held at the nearest suitable place to where
the goods are held or stored.
(5) After the expiration of the time given in the notification,
an advertisement of the sale must be published once a week for
two weeks consecutively in a newspaper of general circulation
where the sale is to be held. The advertisement must include a
description of the goods, the name of the person on whose account
the goods are being held, and the time and place of the sale.
The sale must take place at least 15 days after the first
publication. If there is no newspaper of general circulation
where the sale is to be held, the advertisement must be posted at
least 10 days before the sale in not less than six conspicuous
places in the neighborhood of the proposed sale.
(c) Before any sale pursuant to this section, any person
claiming a right in the goods may pay the amount necessary to
satisfy the lien and the reasonable expenses incurred in
complying with this section. In that event, the goods may not be
sold but must be retained by the warehouse subject to the terms
of the receipt and this chapter.
(d) A warehouse may buy at any public sale held pursuant to this
section.
(e) A purchaser in good faith of goods sold to enforce a
warehouse's lien takes the goods free of any rights of persons
against which the lien was valid, despite the warehouse's
noncompliance with this section.
(f) A warehouse may satisfy its lien from the proceeds of any
sale pursuant to this section but shall hold the balance, if any,
for delivery on demand to any person to which the warehouse would
have been bound to deliver the goods.
(g) The rights provided by this section are in addition to all
other rights allowed by law to a creditor against a debtor.
(h) If a lien is on goods stored by a merchant in the course of
its business, the lien may be enforced in accordance with
Subsection (a) or (b).
(i) A warehouse is liable for damages caused by failure to
comply with the requirements for sale under this section and, in
case of wilful violation, is liable for conversion.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
SUBCHAPTER C. BILLS OF LADING: SPECIAL PROVISIONS
Sec. 7.301. LIABILITY FOR NONRECEIPT OR MISDESCRIPTION; "SAID TO
CONTAIN"; "SHIPPER'S LOAD AND COUNT"; IMPROPER HANDLING. (a) A
consignee of a nonnegotiable bill of lading which has given value
in good faith, or a holder to which a negotiable bill has been
duly negotiated, relying upon the description of the goods in the
bill or upon the date shown in the bill, may recover from the
issuer damages caused by the misdating of the bill or the
nonreceipt or misdescription of the goods, except to the extent
that the document of title indicates that the issuer does not
know whether any part or all of the goods in fact were received
or conform to the description, such as in a case in which the
description is in terms of marks or labels or kind, quantity, or
condition, or the receipt or description is qualified by
"contents or condition of contents of packages unknown," "said to
contain," "shipper's weight, load and count," or words of similar
import, if that indication is true.
(b) If goods are loaded by the issuer of the bill of lading, the
issuer shall count the packages of goods if shipped in packages
and ascertain the kind and quantity if shipped in bulk and words
such as "shipper's weight, load and count," or words of similar
import indicating that the description was made by the shipper
are ineffective except as to goods concealed by packages.
(c) If bulk goods are loaded by a shipper that makes available
to the issuer of the bill of lading adequate facilities for
weighing those goods, the issuer shall ascertain the kind and
quantity within a reasonable time after receiving the shipper's
request in a record to do so. In that case, "shipper's weight"
or words of similar import are ineffective.
(d) The issuer, by including in the bill of lading the words
"shipper's weight, load and count," or words of similar import,
may indicate that the goods were loaded by the shipper, and, if
that statement is true, the issuer is not liable for damages
caused by the improper loading. However, omission of such words
does not imply liability for damages caused by improper loading.
(e) A shipper guarantees to the issuer the accuracy at the time
of shipment of the description, marks, labels, number, kind,
quantity, condition, and weight, as furnished by the shipper, and
the shipper shall indemnify the issuer against damage caused by
inaccuracies in those particulars. This right of the issuer to
that indemnity does not limit its responsibility or liability
under the contract of carriage to any person other than the
shipper.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
Sec. 7.302. THROUGH BILLS OF LADING AND SIMILAR DOCUMENTS OF
TITLE. (a) The issuer of a through bill of lading or other
document of title embodying an undertaking to be performed in
part by a person acting as its agent or by a performing carrier
is liable to any person entitled to recover on the document for
any breach by the other person or the performing carrier of its
obligation under the document. However, to the extent that the
bill covers an undertaking to be performed overseas or in
territory not contiguous to the continental United States or an
undertaking including matters other than transportation, this
liability for breach by the other person or the performing
carrier may be varied by agreement of the parties.
(b) If goods covered by a through bill of lading or other
document of title embodying an undertaking to be performed in
part by a person other than the issuer are received by that
person, the person is subject, with respect to its own
performance while the goods are in its possession, to the
obligation of the issuer. The person's obligation is discharged
by delivery of the goods to another person pursuant to the
document and does not include liability for breach by any other
person or by the issuer.
(c) The issuer of a through bill of lading or other document of
title described in Subsection (a) is entitled to recover from the
performing carrier, or other person in possession of the goods
when the breach of the obligation under the document occurred:
(1) the amount it may be required to pay to any person entitled
to recover on the document for the breach, as may be evidenced by
any receipt, judgment, or transcript of judgment; and
(2) the amount of any expense reasonably incurred by the issuer
in defending any action commenced by any person entitled to
recover on the document for the breach.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
Sec. 7.303. DIVERSION; RECONSIGNMENT; CHANGE OF INSTRUCTIONS.
(a) Unless the bill of lading otherwise provides, a carrier may
deliver the goods to a person or destination other than that
stated in the bill or may otherwise dispose of the goods, without
liability for misdelivery, on instructions from:
(1) the holder of a negotiable bill;
(2) the consignor on a nonnegotiable bill even if the consignee
has given contrary instructions;
(3) the consignee on a nonnegotiable bill in the absence of
contrary instructions from the consignor, if the goods have
arrived at the billed destination or if the consignee is in
possession of the tangible bill or in control of the electronic
bill; or
(4) the consignee on a nonnegotiable bill, if the consignee is
entitled as against the consignor to dispose of the goods.
(b) Unless instructions described in Subsection (a) are included
in a negotiable bill of lading, a person to which the bill is
duly negotiated may hold the bailee according to the original
terms.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
Sec. 7.304. TANGIBLE BILLS OF LADING IN SET. (a) Except as
customary in international transportation, a tangible bill of
lading may not be issued in a set of parts. The issuer is liable
for damages caused by violation of this subsection.
(b) If a tangible bill of lading is lawfully issued in a set of
parts, each of which contains an identification code and is
expressed to be valid only if the goods have not been delivered
against any other part, the whole of the parts constitutes one
bill.
(c) If a tangible negotiable bill of lading is lawfully issued
in a set of parts and different parts are negotiated to different
persons, the title of the holder to which the first due
negotiation is made prevails as to both the document of title and
the goods even if any later holder may have received the goods
from the carrier in good faith and discharged the carrier's
obligation by surrendering its part.
(d) A person that negotiates or transfers a single part of a
tangible bill of lading issued in a set is liable to holders of
that part as if it were the whole set.
(e) The bailee is obliged to deliver in accordance with
Subchapter D against the first presented part of a tangible bill
of lading lawfully issued in a set. Delivery in this manner
discharges the bailee's obligation on the whole bill.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
Sec. 7.305. DESTINATION BILLS. (a) Instead of issuing a bill
of lading to the consignor at the place of shipment, a carrier,
at the request of the consignor, may procure the bill to be
issued at destination or at any other place designated in the
request.
(b) Upon request of any person entitled as against a carrier to
control the goods while in transit and on surrender of possession
or control of any outstanding bill of lading or other receipt
covering the goods, the issuer, subject to Section 7.105, may
procure a substitute bill to be issued at any place designated in
the request.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
Sec. 7.306. ALTERED BILLS OF LADING. An unauthorized alteration
or filling in of a blank in a bill of lading leaves the bill
enforceable according to its original tenor.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
Sec. 7.307. LIEN OF CARRIER. (a) A carrier has a lien on the
goods covered by a bill of lading or on the proceeds thereof in
its possession for charges after the date of the carrier's
receipt of the goods for storage or transportation, including
demurrage and terminal charges, and for expenses necessary for
preservation of the goods incident to their transportation or
reasonably incurred in their sale pursuant to law. However,
against a purchaser for value of a negotiable bill of lading, a
carrier's lien is limited to charges stated in the bill or the
applicable tariffs or, if no charges are stated, a reasonable
charge.
(b) A lien for charges and expenses under Subsection (a) on
goods that the carrier was required by law to receive for
transportation is effective against the consignor or any person
entitled to the goods unless the carrier had notice that the
consignor lacked authority to subject the goods to those charges
and expenses. Any other lien under Subsection (a) is effective
against the consignor and any person that permitted the bailor to
have control or possession of the goods unless the carrier had
notice that the bailor lacked authority.
(c) A carrier loses its lien on any goods that it voluntarily
delivers or unjustifiably refuses to deliver.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
Sec. 7.308. ENFORCEMENT OF CARRIER'S LIEN. (a) A carrier's
lien on goods may be enforced by public or private sale of the
goods, in bulk or in packages, at any time or place and on any
terms that are commercially reasonable, after notifying all
persons known to claim an interest in the goods. The
notification must include a statement of the amount due, the
nature of the proposed sale, and the time and place of any public
sale. The fact that a better price could have been obtained by a
sale at a different time or in a different method from that
selected by the carrier is not of itself sufficient to establish
that the sale was not made in a commercially reasonable manner.
The carrier has sold goods in a commercially reasonable manner if
the carrier sells the goods in the usual manner in any recognized
market therefor, sells at the price current in that market at the
time of the sale, or has otherwise sold in conformity with
commercially reasonable practices among dealers in the type of
goods sold. A sale of more goods than apparently necessary to be
offered to ensure satisfaction of the obligation is not
commercially reasonable, except in cases covered by the preceding
sentence.
(b) Before any sale pursuant to this section, any person
claiming a right in the goods may pay the amount necessary to
satisfy the lien and the reasonable expenses incurred in
complying with this section. In that event, the goods may not be
sold but must be retained by the carrier, subject to the terms of
the bill of lading and this chapter.
(c) A carrier may buy at any public sale pursuant to this
section.
(d) A purchaser in good faith of goods sold to enforce a
carrier's lien takes the goods free of any rights of persons
against which the lien was valid, despite the carrier's
noncompliance with this section.
(e) A carrier may satisfy its lien from the proceeds of any sale
pursuant to this section but shall hold the balance, if any, for
delivery on demand to any person to which the carrier would have
been bound to deliver the goods.
(f) The rights provided by this section are in addition to all
other rights allowed by law to a creditor against a debtor.
(g) A carrier's lien may be enforced pursuant to either
Subsection (a) or the procedure set forth in Section 7.210(b).
(h) A carrier is liable for damages caused by failure to comply
with the requirements for sale under this section and, in case of
wilful violation, is liable for conversion.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967. Amended by Acts 1983, 68th Leg., p. 1532, ch. 290, Sec. 5,
eff. Aug. 29, 1983.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
Sec. 7.309. DUTY OF CARE; CONTRACTUAL LIMITATION OF CARRIER'S
LIABILITY. (a) A carrier that issues a bill of lading, whether
negotiable or nonnegotiable, shall exercise the degree of care in
relation to the goods which a reasonably careful person would
exercise under similar circumstances. This subsection does not
affect any statute, regulation, or rule of law that imposes
liability upon a common carrier for damages not caused by its
negligence.
(b) Damages may be limited by a term in the bill of lading or in
a transportation agreement that the carrier's liability may not
exceed a value stated in the bill or transportation agreement if
the carrier's rates are dependent upon value and the consignor is
afforded an opportunity to declare a higher value and is advised
of the opportunity. However, such a limitation is not effective
with respect to the carrier's liability for conversion to its own
use.
(c) Reasonable provisions as to the time and manner of
presenting claims and commencing actions based on the shipment
may be included in a bill of lading or a transportation
agreement.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
SUBCHAPTER D. WAREHOUSE RECEIPTS AND BILLS OF LADING: GENERAL
OBLIGATIONS
Sec. 7.401. IRREGULARITIES IN ISSUE OF RECEIPT OR BILL OR
CONDUCT OF ISSUER. The obligations imposed by this chapter on an
issuer apply to a document of title even if:
(1) the document does not comply with the requirements of this
chapter or of any other statute, rule, or regulation regarding
its issue, form, or content;
(2) the issuer violated laws regulating the conduct of its
business;
(3) the goods covered by the document were owned by the bailee
when the document was issued; or
(4) the person issuing the document is not a warehouse but the
document purports to be a warehouse receipt.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
Sec. 7.402. DUPLICATE DOCUMENT OF TITLE; OVERISSUE. A duplicate
or any other document of title purporting to cover goods already
represented by an outstanding document of the same issuer does
not confer any right in the goods, except as provided in the case
of tangible bills of lading in a set of parts, overissue of
documents for fungible goods, substitutes for lost, stolen, or
destroyed documents, or substitute documents issued pursuant to
Section 7.105. The issuer is liable for damages caused by its
overissue or failure to identify a duplicate document by a
conspicuous notation.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
Sec. 7.403. OBLIGATION OF WAREHOUSE OR CARRIER 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), 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 or by a lessor of its right to stop
delivery pursuant to Section 2A.526;
(5) a diversion, reconsignment, or other disposition pursuant to
Section 7.303;
(6) release, satisfaction, or any other fact affording a
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 the bailee
is prohibited by law from delivering the goods until the charges
are paid.
(c) Unless a person claiming the goods is one against which the
document of title does not confer a right under Section 7.503(a):
(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 be liable to any
person to which the document is duly negotiated.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
Sec. 7.404. NO LIABILITY FOR GOOD FAITH DELIVERY PURSUANT TO
DOCUMENT OF TITLE. A bailee that in good faith has received
goods and delivered or otherwise disposed of the goods according
to the terms of a document of title or pursuant to this chapter
is not liable for the goods even if:
(1) the person from which the bailee received the goods did not
have authority to procure the document or to dispose of the
goods; or
(2) the person to which the bailee delivered the goods did not
have authority to receive the goods.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
SUBCHAPTER E. WAREHOUSE RECEIPTS AND BILLS OF LADING: NEGOTIATION
AND TRANSFER
Sec. 7.501. FORM OF NEGOTIATION AND REQUIREMENTS OF DUE
NEGOTIATION. (a) The following rules apply to a negotiable
tangible document of title:
(1) If the document's original terms run to the order of a named
person, the document is negotiated by the named person's
indorsement and delivery. After the named person's indorsement
in blank or to bearer, any person may negotiate the document by
delivery alone.
(2) If the document's original terms run to bearer, it is
negotiated by delivery alone.
(3) If the document's original terms run to the order of a named
person and it is delivered to the named person, the effect is the
same as if the document had been negotiated.
(4) Negotiation of the document after it has been indorsed to a
named person requires indorsement by the named person as well as
delivery.
(5) A document is duly negotiated if it is negotiated in the
manner stated in this subsection to a holder that purchases it in
good faith, without notice of any defense against or claim to it
on the part of any person, and for value, unless it is
established that the negotiation is not in the regular course of
business or financing or involves receiving the document in
settlement or payment of a monetary obligation.
(b) The following rules apply to a negotiable electronic
document of title:
(1) If the document's original terms run to the order of a named
person or to bearer, the document is negotiated by delivery of
the document to another person. Indorsement by the named person
is not required to negotiate the document.
(2) If the document's original terms run to the order of a named
person and the named person has control of the document, the
effect is the same as if the document had been negotiated.
(3) A document is duly negotiated if it is negotiated in the
manner stated in this subsection to a holder that purchases it in
good faith, without notice of any defense against or claim to it
on the part of any person, and for value, unless it is
established that the negotiation is not in the regular course of
business or financing or involves taking delivery of the document
in settlement or payment of a monetary obligation.
(c) Indorsement of a nonnegotiable document of title neither
makes it negotiable nor adds to the transferee's rights.
(d) The naming in a negotiable bill of lading of a person to be
notified of the arrival of the goods does not limit the
negotiability of the bill or constitute notice to a purchaser of
the bill of any interest of that person in the goods.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
Sec. 7.502. RIGHTS ACQUIRED BY DUE NEGOTIATION. (a) Subject to
Sections 7.205 and 7.503, a holder to which a negotiable document
of title has been duly negotiated acquires thereby:
(1) title to the document;
(2) title to the goods;
(3) all rights accruing under the law of agency or estoppel,
including rights to goods delivered to the bailee after the
document was issued; and
(4) 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 the issuer except those arising under the terms of
the document or under this chapter. In the case of a delivery
order, the bailee's obligation accrues only upon the bailee's
acceptance of the delivery order and the obligation acquired by
the holder is that the issuer and any indorser will procure the
acceptance of the bailee.
(b) Subject to Section 7.503, title and rights acquired by due
negotiation are not defeated by any stoppage of the goods
represented by the document of title or by surrender of the goods
by the bailee and are not impaired even if:
(1) the due negotiation or any prior due negotiation constituted
a breach of duty;
(2) any person has been deprived of possession of a negotiable
tangible document or control of a negotiable electronic document
by misrepresentation, fraud, accident, mistake, duress, loss,
theft, or conversion; or
(3) a previous sale or other transfer of the goods or document
has been made to a third person.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
Sec. 7.503. DOCUMENT OF TITLE TO GOODS DEFEATED IN CERTAIN
CASES. (a) A document of title confers no right in goods
against a person that before issuance of the document had a legal
interest or a perfected security interest in the goods and that
did not:
(1) deliver or entrust the goods or any document covering the
goods to the bailor or the bailor's nominee with actual or
apparent authority to ship, store, or sell; with power to obtain
delivery under Section 7.403; or with power of disposition under
Section 2.403, 2A.304(a)(2), 2A.305(a)(2), or 9.320 or other
statute or rule of law; or
(2) acquiesce in the procurement by the bailor or its nominee of
any document.
(b) Title to goods based upon an unaccepted delivery order is
subject to the rights of any person to which a negotiable
warehouse receipt or bill of lading covering the goods has been
duly negotiated. That title may be defeated under Section 7.504
to the same extent as the rights of the issuer or a transferee
from the issuer.
(c) Title to goods based upon a bill of lading issued to a
freight forwarder is subject to the rights of any person to which
a bill issued by the freight forwarder is duly negotiated.
However, delivery by the carrier in accordance with Subchapter D
pursuant to its own bill of lading discharges the carrier's
obligation to deliver.
Amended by Acts 1999, 76th Leg., ch. 414, Sec. 2.25, eff. July 1,
2001.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
Sec. 7.504. RIGHTS ACQUIRED IN ABSENCE OF DUE NEGOTIATION;
EFFECT OF DIVERSION; STOPPAGE OF DELIVERY. (a) A transferee of
a document of title, whether negotiable or nonnegotiable, to
which the document has been delivered but not duly negotiated,
acquires the title and rights that its transferor had or had
actual authority to convey.
(b) In the case of a nonnegotiable document of title, until but
not after the bailee receives notice of the transfer, the rights
of the transferee may be defeated:
(1) by those creditors of the transferor that could treat the
transfer as void under Section 2.402 or 2A.308;
(2) by a buyer from the transferor in ordinary course of
business if the bailee has delivered the goods to the buyer or
received notification of the buyer's rights;
(3) by a lessee from the transferor in ordinary course of
business if the bailee has delivered the goods to the lessee or
received notification of the lessee's rights; or
(4) as against the bailee, by good faith dealings of the bailee
with the transferor.
(c) A diversion or other change of shipping instructions by the
consignor in a nonnegotiable bill of lading which causes the
bailee not to deliver the goods to the consignee defeats the
consignee's title to the goods if the goods have been delivered
to a buyer in ordinary course of business or a lessee in ordinary
course of business and in any event defeats the consignee's
rights against the bailee.
(d) Delivery of the goods pursuant to a nonnegotiable document
of title may be stopped by a seller under Section 2.705 or a
lessor under Section 2A.526, subject to the requirements of due
notification in those sections. A bailee honoring the seller's
or lessor's instructions is entitled to be indemnified by the
seller or lessor against any resulting loss or expense.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
Sec. 7.505. INDORSER NOT GUARANTOR FOR OTHER PARTIES. The
indorsement of a tangible document of title issued by a bailee
does not make the indorser liable for any default by the bailee
or previous indorsers.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
Sec. 7.506. DELIVERY WITHOUT INDORSEMENT; RIGHT TO COMPEL
INDORSEMENT. The transferee of a negotiable tangible document of
title has a specifically enforceable right to have its transferor
supply any necessary indorsement, but the transfer becomes a
negotiation only as of the time the indorsement is supplied.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
Sec. 7.507. WARRANTIES ON NEGOTIATION OR DELIVERY OF DOCUMENT OF
TITLE. If a person negotiates or delivers a document of title
for value, otherwise than as a mere intermediary under Section
7.508, unless otherwise agreed, the transferor warrants to its
immediate purchaser only in addition to any warranty made in
selling or leasing the goods that:
(1) the document is genuine;
(2) the transferor does not have knowledge of any fact that
would impair the document's validity or worth; and
(3) the negotiation or delivery is rightful and fully effective
with respect to the title to the document and the goods it
represents.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
Sec. 7.508. WARRANTIES OF COLLECTING BANK AS TO DOCUMENTS OF
TITLE. A collecting bank or other intermediary known to be
entrusted with documents of title on behalf of another or with
collection of a draft or other claim against delivery of
documents warrants by the delivery of the documents only its own
good faith and authority even if the collecting bank or other
intermediary has purchased or made advances against the claim or
draft to be collected.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
Sec. 7.509. ADEQUATE COMPLIANCE WITH COMMERCIAL CONTRACT.
Whether a document of title is adequate to fulfill the
obligations of a contract for sale, a contract for lease, or the
conditions of a letter of credit is determined by Chapter 2, 2A,
or 5.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
SUBCHAPTER F. WAREHOUSE RECEIPTS AND BILLS OF LADING:
MISCELLANEOUS PROVISIONS
Sec. 7.601. LOST, STOLEN, OR DESTROYED DOCUMENTS OF TITLE. (a)
If a document of title is lost, stolen, or destroyed, a court may
order delivery of the goods or issuance of a substitute document
and the bailee may without liability to any person comply with
the order. If the document was negotiable, a court may not order
delivery of the goods or issuance of a substitute document
without the claimant's posting security unless it finds that any
person that may suffer loss as a result of nonsurrender of
possession or control of the document is adequately protected
against the loss. If the document was nonnegotiable, the court
may require security. The court may also order payment of the
bailee's reasonable costs and attorney's fees in any action under
this subsection.
(b) A bailee that without court order delivers goods to a person
claiming under a missing negotiable document of title is liable
to any person injured thereby. If the delivery is not in good
faith, the bailee is liable for conversion. Delivery in good
faith is not conversion if the claimant posts security with the
bailee in an amount at least double the value of the goods at the
time of posting to indemnify any person injured by the delivery
that files a notice of claim within one year after the delivery.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
Sec. 7.602. ATTACHMENT OF GOODS COVERED BY NEGOTIABLE DOCUMENT
OF TITLE. Unless a document of title was originally issued upon
delivery of the goods by a person that did not have power to
dispose of them, a lien does not attach by virtue of any judicial
process to goods in the possession of a bailee for which a
negotiable document of title is outstanding unless possession or
control of the document is first surrendered to the bailee or the
document's negotiation is enjoined. The bailee may not be
compelled to deliver the goods pursuant to process until
possession or control of the document is surrendered to the
bailee or to the court. A purchaser of the document for value
without notice of the process or injunction takes free of the
lien imposed by judicial process.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.
Sec. 7.603. CONFLICTING CLAIMS; INTERPLEADER. If more than one
person claims title to or possession of the goods, the bailee is
excused from delivery until the bailee has a reasonable time to
ascertain the validity of the adverse claims or to commence an
action for interpleader. The bailee may assert an interpleader
either in defending an action for nondelivery of the goods or by
original action.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Amended by:
Acts 2005, 79th Leg., Ch.
122, Sec. 1, eff. September 1, 2005.