730
PUBLIC LAW 88-243-DEC. 30, 1963
[77
STAT.
(4) Delivery pursuant to a non-negotiable document may be stopped by a seller under sex'.tion 28:2—705, and subject to the requirement of due notification there provided. A bailee honoring the seller's instructions is entitled to be indemnified by the seller against any resulting loss or expense. § 28:1'—505. Indorser not a guarantor for other parties The indorsement of a document of title issued by a bailee dims not make the indorser liable for any default by the bailee or by previous indorsers. §28:7—506. Delivery vt^ithout indorsement: right to compel indorsement The transferee of a negotiable document of title has a specifically enforceable right to havehis transferor supply any necessary indorsement but the transfer becomes a negotiation only as of the time the indorsement is supplied. §28:7—507. Warranties on negotiation or transfer of receipt or bill Where a, person negotiates or transfers a document of title for value otherwise than as a mere intermediary under the next following section, then unless otherwise agreed he warrants to his immediate purchaser only in addition to any warranty made in selling the goods (a) that the document is ijenuine; and (b) that he has no knowledge of any fact which would impair its validity or worth; and (c) that his negotiation or transfer is rightful and fully effective with respect to the title to the documeivt and the goods it represents. § 28:7—508. Warranties of collecting bank as to documents A collecting bank or other intermediary known to be entrusted with documents on behalf of another or with collection of a draft or other claim against delivery of documents warrants by such deliveiy of the documents only its own good faith and authority. This rule applies even though the intermediary has purchased or made advances against the claim or draft to be collected. §28:7—509. Receipt or bill: when adequate compliance with commercial contract The question whether a document is adequate to fulfill the obligations of a contract for sale or the conditions of a credit is governed by the articles on sales (article 2) and on letters of credit (article 5). PART 6—WAREHOUSE RECEIPTS AND BILLS OF LADING: MISCELLANEOUS PROVISIONS §28:7—601. Lost and missing documents (1) If a document has been 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 such order. If the document was negotiable the claimant must post security approved by the court to indemnify any person who may suffer loss as a result of non-surrender of the document. If the document was not negotiable, such security may be required at the discretion of the court. The court may also in its discretion order payment of the bailee's reasonable costs and counsel fees. (2) A bailee who without court order delivers goods to a person claiming under a missing negotiable document is liable to any person injured thereby, and if the delivery is not in good faith becomes liable
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