CHAPTER 7. DOCUMENTS OF TITLE

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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.

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.

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.

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.

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.

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.

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.

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.

(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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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