47-7403. Obligation of bailee 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 of this section, 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
47-2705 or by a lessor of its right to stop delivery pursuant to section 47-2A526;


5. A diversion, reconsignment or other disposition pursuant to section 47-7303;


6. Release, satisfaction or any other 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 if the bailee is prohibited by law from
delivering the goods until the charges are paid.


C. Unless a person claiming the goods is a person against which the document of
title does not confer a right under section 47-7503, subsection 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 the bailee is liable to any person to which the document is duly
negotiated.