§490:7-503  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 of
title covering the goods to the bailor or the bailor's nominee with:



(A)  Actual or apparent authority to ship,
store, or sell;



(B)  Power to obtain delivery under section
490:7-403; or



(C)  Power of disposition under section
490:2-403, 490:2A-304(2), 490:2A-305(2), 490:9-320, or 490:9-321(c) 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 490:7-504 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 part 4 pursuant to its own bill of lading
discharges the carrier's obligation to deliver. [L 2004, c 163, pt of §1]