Title 13 — Uniform Commercial Code

Lien or Claim. (1) Unless otherwise specified a credit may be used in portions in the discretion of the beneficiary. (2) Unless otherwise specified a person by presenting a documentary draft or demand for payment under a credit relinquishes upon its honor all claims to the docume…

(1) Unless otherwise agreed the beneficiary by transferring or presenting a documentary draft or demand for payment warrants to all interested parties that the necessary conditions of the credit have been complied with. This is in addition to any warranties arising under Division…

Rejection by Consent; Presenter. (1) A bank to which a documentary draft or demand for payment is presented under a credit may without dishonor of the draft, demand or credit COL120106 (a) Defer honor until the close of the third banking day following receipt of the documents; an…

(1) A bank seeking to obtain (whether for itself or another) honor, negotiation or reimbursement under a credit may give an indemnity to induce such honor, negotiation or reimbursement. (2) An indemnity agreement inducing honor, negotiation or reimbursement unless otherwise expli…

Reimbursement. (1) An issuer must honor a draft or demand for payment which complies with the terms of the relevant credit regardless of whether the goods or documents conform to the underlying contract for sale or other contract between the customer and the beneficiary. The issu…

(1) When an issuer wrongfully dishonors a draft or demand for payment presented under a credit the person entitled to honor has with respect to any documents the rights of a person in the position of a seller (Section 2707) and may recover from the issuer the face amount of the d…

(1) The right to draw under a credit can be transferred or assigned only when the credit is expressly designated as transferable or assignable. COL120106 (2) Even though the credit specifically states that it is nontransferable or nonassignable the beneficiary may before performa…

(1) Where an issuer or an advising or confirming bank or a bank which has for customer procured issuance of a credit by another bank becomes insolvent before final payment under the credit and the credit is one to which this division is made applicable by paragraph (a) or (b) of …

This division shall be known and may be cited as Uniform Commercial Code -- Bulk Transfers.

to This Division; Bulk Transfers Subject to This Division. (1) A bulk transfer is any transfer in bulk and not in the ordinary course of the transferor's business of a substantial part of the materials, supplies, merchandise, or other inventory (Section 9109) of an enterprise sub…

The following transfers are not subject to this division: (1) Those made to give a purchase money security interest (Section 9107); (2) Assignments for the benefit of all the creditors of the transferor, and subsequent transfers by the assignee thereunder; (3) Transfers of proper…

[Repealed, reserved, or text not separately stated.]

Any bulk transfer subject to this division except one made by auction sale (Section 6108) is ineffective against any creditor of the transferor unless the transferee gives notice of the transfer in the manner and within the time hereafter provided (Section 6107).

[Repealed, reserved, or text not separately stated.]

(1) The notice to creditors (Section 6105) shall state: (a) That a bulk transfer is about to be made; and (b) The names and business addresses of the transferor and, except in the case of a sale at auction, the transferee, and all other business names and addresses used by the tr…

(1) A bulk transfer is subject to this division even though it is by sale at auction, but only in the manner and with the results stated in this section. (2) The person or persons other than the transferor who direct, control or are responsible for the auction are collectively ca…

The creditors of the transferor mentioned in this division are those holding claims based on transactions or events occurring before the bulk transfer.

When the title of a transferee to property is subject to a defect by reason of his noncompliance with the requirements of this division, then: (1) A purchaser of any such property from such transferee who pays no value or who takes with notice of such non-compliance takes subject…

No action under this division shall be brought nor levy made more than one year after the date on which the transferee took possession of the goods unless the transfer has been concealed or, in the case of a security interest which constitutes a bulk transfer under this division,…

This division shall be known and may be cited as Uniform Commercial Code -- Documents of Title.

(1) In this division, unless the context otherwise requires: (a) Bailee means the person who by a warehouse receipt, bill of lading or other document of title acknowledges possession of goods and contracts to deliver them. (b) Consignee means the person named in a bill to whom or…

or Regulation. To the extent that any treaty or statute of the United States, regulatory statute of this Territory, or tariff, classification or regulation COL120106 AND O THER DOCUMENTS OF TITLE filed or issued pursuant thereto is applicable, the provisions of this division are …

Lading or Other Document of Title. (1) A warehouse receipt, bill of lading or other document of title is negotiable. (a) If by its terms the goods are to be delivered to bearer or to the order of a named person; or (b) Where recognized in overseas trade, if it runs to a named per…

The omission from either Chapter 2 or Chapter 3 of this division of a provision corresponding to a provision made in the other chapter does not imply that a corresponding rule of law is not applicable. ---------- CHAPTER 2 WAREHOUSE RECEIPTS: SPECIAL PROVISIONS

Government Bond. (1) A warehouse receipt may be issued by any warehouseman. (2) Where 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…

Terms. (1) A warehouse receipt need not be in any particular form. (2) Unless a warehouse receipt embodies within its written or printed terms each of the following, the warehouseman is liable for damages caused by the omission to a person injured thereby: (a) The location of the…

A party to or purchaser for value in good faith of a document of title other than a bill of lading relying in either case upon the description therein of the goods may recover from the issuer damages caused by the nonreceipt or misdescription of the goods, except to the extent th…

Liability. (1) A warehouseman is liable for damages for loss of or injury to the goods caused by his failure to exercise such care in regard to them as a reasonably careful man would exercise under like circumstances but unless otherwise agreed he is not liable for damages which …

A buyer in the ordinary course of business of fungible goods sold and delivered by a warehouseman who is also in the business of buying and selling such goods takes free of any claim under a warehouse receipt even though it has been duly negotiated.

(1) A warehouseman may on notifying the person on whose account the goods are held and any other person known to claim an interest in the goods require payment of any charges and removal of the goods from the warehouse at the termination of the period of storage fixed by the docu…

(1) Unless the warehouse receipt otherwise provides, a warehouseman must keep separate the goods covered by each receipt so as to permit at all times identification and delivery of those goods except that different lots of fungible goods may be commingled. (2) Fungible goods so c…

Where a blank in a negotiable warehouse receipt has been filled in without authority, a purchaser for value and without notice of the want of authority may treat the insertion as authorized. Any other unauthorized alteration leaves any receipt enforceable against the issuer accor…

(1) A warehouseman has a lien against the bailor on the goods deposited or on the proceeds thereof in his possession for charges for COL120106 AND O THER DOCUMENTS OF TITLE storage, processing incidental to storage, or transportation, including demurrage and terminal charges, ins…

COL120106 AND O THER DOCUMENTS OF TITLE (1) Except as provided in subdivision (2), a warehouseman's lien may be enforced by public or private sale of the goods in bloc or in par- cels, at any time or place and on any terms which are commercially reasonable, after notifying all pe…

Shipper's Load and Count; Improper Handling. (1) A consignee of a nonnegotiable bill who has given value in good faith or a holder to whom a negotiable bill has been duly negotiated relying in either case upon the description therein of the goods, or upon the date therein shown, …

(1) The issuer of a through bill of lading or other document embodying an undertaking to be performed in part by persons acting as its agents or by connecting carriers is liable to anyone entitled to recover on the document for any breach by such other persons or by a connecting …

COL120106 AND O THER DOCUMENTS OF TITLE (1) Unless the bill of lading otherwise provides, the carrier may deliver the goods to a person or destination other than that stated in the bill or may otherwise dispose of the goods on instructions from (a) The holder of a negotiable bill…

(1) Except where customary in overseas transportation, a bill of lading must not be issued in a set of parts. The issuer is liable for dam- ages caused by violation of this subdivision. (2) Where a bill of lading is lawfully drawn in a set of parts, each of which is numbered and …

(1) Instead of issuing a bill of lading to the consignor at the place of shipment a carrier may at the request of the consignor procure the bill to be issued at destination or at any other place designated in the request. (2) Upon request of anyone entitled as against the carrier…

An unauthorized alteration or filling in of a blank in a bill of lading leaves the bill enforceable according to its original tenor.

(1) A carrier has a lien on the goods covered by a bill of lading for charges subsequent to the date of its 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 tra…

COL120106 AND O THER DOCUMENTS OF TITLE (1) A carrier's lien may be enforced by public or private sale of the goods, in bloc or in parcels, at any time or place and on any terms which are commercially reasonable, after notifying all person known to claim an interest in the goods.…

(1) A carrier who issues a bill of lading whether negotiable or nonnegotiable must exercise the degree of care in relation to the goods which a reasonably careful man would exercise under like circumstances. This subdivision does not repeal or change any law or rule of law which …

The obligations imposed by this division on an issuer apply to a document of title regardless of the fact that COL120106 AND O THER DOCUMENTS OF TITLE (a) The document may not comply with the requirements of this division or of any other law or regulation regarding its issue, for…

Neither a duplicate nor any other document of title purporting to cover goods already represented by an outstanding document of the same issuer confers any right in the goods, except as provided in the case of bills in a set, overissue of documents for fungible goods and substitu…

(1) The bailee must deliver the goods to a person entitled under the document who complies with subdivision (2) and (3), unless and to the extent that the bailee establishes any of the following: (a) Delivery of the goods to a person whose receipt was rightful as against the clai…

Bill. A bailee who in good faith including observance of reasonable commercial standards has received goods and delivered or otherwise disposed of them according to the terms of the document of title or pursuant to this division is not liable therefor. This rule applies even thou…

(1) A negotiable document of title running to the order of a named person is negotiated by his indorsement and delivery. After his indorsement in blank or to bearer any person can negotiate it by delivery alone. (2) (a) A negotiable document of title is also negotiated by deliver…

COL120106 AND O THER DOCUMENTS OF TITLE (1) Subject to the following section and to the provisions of Section 7205 on fungible goods, a holder to whom a negotiable document of title has been duly negotiated acquires thereby: (a) Title to the document; (b) Title to the goods; (c) …

(1) A document of title confers no right in goods against a person who before issuance of the document had a legal interest or a perfected security interest in them and who neither (a) Delivered nor entrusted them nor any document of title covering them to the bailor or his nomin…