Title UCC, Uniform Commercial Code

Section 5--109. Fraud and forgery.\n (a) If a presentation is made that appears on its face strictly to\ncomply with the terms and conditions of the letter of credit, but a\nrequired document is forged or materially fraudulent, or honor of the\npresentation would facilitate a mat…

Section 5--110. Warranties.\n (a) If its presentation is honored, the beneficiary warrants:\n (1) To the issuer, any other person to whom presentation is made,\n and the applicant that there is no fraud or forgery of the\n kind described in subsection (a) of section 5--109; and\n…

Section 5--111. Remedies.\n (a) If an issuer wrongfully dishonors or repudiates its obligation to\npay money under a letter of credit before presentation, the beneficiary,\nsuccessor, or nominated person presenting on its own behalf may recover\nfrom the issuer the amount that is…

Section 5--112. Transfer of letter of credit.\n (a) Except as otherwise provided in section 5--113, unless a letter of\ncredit provides that it is transferable, the right of a beneficiary to\ndraw or otherwise demand performance under a letter of credit may not be\ntransferred.\n…

Section 5--113. Transfer by operation of law.\n (a) A successor of a beneficiary may consent to amendments, sign and\npresent documents, and receive payment or other items of value in the\nname of the beneficiary without disclosing its status as a successor.\n (b) A successor of …

Section 5--114. Assignment of proceeds.\n (a) In this section, "proceeds of a letter of credit" means the cash,\ncheck, accepted draft, or other item of value paid or delivered upon\nhonor or giving of value by the issuer or any nominated person under the\nletter of credit. The t…

Section 5--115. Statute of limitations.\n An action to enforce a right or obligation arising under this article\nmust be commenced within one year after the expiration date of the\nrelevant letter of credit or one year after the cause of action accrues,\nwhichever occurs later. A…

Section 5--116. Choice of law and forum.\n (a) The liability of an issuer, nominated person, or adviser for\naction or omission is governed by the law of the jurisdiction chosen by\nan agreement in the form of a record signed by the affected parties or\nby a provision in the pers…

Section 5--117. Subrogation of issuer, applicant, and nominated person.\n (a) An issuer that honors a beneficiary's presentation is subrogated\nto the rights of the beneficiary to the same extent as if the issuer\nwere a secondary obligor of the underlying obligation owed to the\…

Section 5--118. Security Interest of Issuer or Nominated Person.\n (a) An issuer or nominated person has a security interest in a\ndocument presented under a letter of credit and any identifiable\nproceeds of the collateral to the extent that the issuer or nominated\nperson honor…

Section 5--119. Applicability.\n This article applies to a letter of credit that is issued on or after\nthe effective date of this article. This article does not apply to a\ntransaction, event, obligation, or duty arising out of or associated\nwith a letter of credit that was iss…

Section 5--120. Savings clause.\n A transaction arising out of or associated with a letter of credit\nthat was issued before the effective date of this article and the\nrights, obligations, and interests flowing from that transaction are\ngoverned by any statute or other law amen…

Section 7--101. Short title.\n This article may be cited as Uniform Commercial Code-Documents of\nTitle.\n

Section 7--102. Definitions and Index of Definitions.\n (a) In this article, unless the context otherwise requires:\n (1) "Bailee" means a person that by a warehouse receipt, bill of\nlading, or other document of title acknowledges possession of goods and\ncontracts to deliver th…

Section 7--103. Relation of Article to Treaty or Statute.\n (a) This article is subject to any treaty or statute of the United\nStates or regulatory statute of this state to the extent the treaty,\nstatute, or regulatory statute is applicable.\n (b) This article does not modify o…

Section 7--104. Negotiable and Nonnegotiable Document of Title.\n (a) Except as otherwise provided in subsection (c), a document of\ntitle is negotiable if by its terms the goods are to be delivered to\nbearer or to the order of a named person.\n (b) A document of title other tha…

Section 7--105. Reissuance in Alternative Medium.\n (a) Upon request of a person entitled under an electronic document of\ntitle, the issuer of the electronic document may issue a tangible\ndocument of title as a substitute for the electronic document if:\n (1) the person entitle…

Section 7--106. Control of Electronic Document of Title.\n (a) A person has control of an electronic document of title if a\nsystem employed for evidencing the transfer of interests in the\nelectronic document reliably establishes that person as the person to\nwhich the electroni…

Section 7--201. Person That May Issue a Warehouse Receipt; Storage Under\n Bond.\n (a) A warehouse receipt may be issued by any warehouse.\n (b) If goods, including distilled spirits and agricultural\ncommodities, are stored under a statute requiring a bond against\nwithdrawal or…

Section 7--202. Form of Warehouse Receipt; Effect of Omission.\n (a) A warehouse receipt need not be in any particular form.\n (b) Unless a warehouse receipt provides for each of the following, the\nwarehouse is liable for damages caused to a person injured by its\nomission:\n (1…

Section 7--203. Liability for Nonreceipt or Misdescription.\n A party to, or purchaser for, value in good faith of a document of\ntitle, other than a bill of lading, that relies upon the description of\nthe goods in the document may recover from the issuer damages caused by\nthe …

Section 7--204. Duty of Care; Contractual Limitation of Warehouse's\n Liability.\n (a) A warehouse is liable for damages for loss of or injury to the\ngoods caused by its failure to exercise care with regard to the goods\nthat a reasonably careful person would exercise under simi…

Section 7--205. Title Under Warehouse Receipt Defeated in Certain Cases.\n A buyer in ordinary course of business of fungible goods sold and\ndelivered by a warehouse that is also in the business of buying and\nselling such goods takes the goods free of any claim under a warehous…

Section 7--206. Termination of Storage at Warehouse's Option.\n (a) A warehouse, by giving notice to the person on whose account the\ngoods are held and any other person known to claim an interest in the\ngoods, may require payment of any charges and removal of the goods from\nth…

Section 7--207. Goods Must Be Kept Separate; Fungible Goods.\n (a) Unless the warehouse receipt provides otherwise, a warehouse shall\nkeep separate the goods covered by each receipt so as to permit at all\ntimes identification and delivery of those goods. However, different\nlot…

Section 7--208. Altered Warehouse Receipts.\n If a blank in a negotiable tangible warehouse receipt has been filled\nin without authority, a good-faith purchaser for value and without\nnotice of the lack of authority may treat the insertion as authorized.\nAny other unauthorized …

Section 7--209. Lien of Warehouse.\n (a) A warehouse has a lien against the bailor on the goods covered by\na warehouse receipt or storage agreement or on the proceeds thereof in\nits possession for charges for storage or transportation, including\ndemurrage and terminal charges,…

Section 7--210. Enforcement of Warehouse's Lien.\n (a) Except as otherwise provided in subsection (b), a warehouse's lien\nmay be enforced by public or private sale of the goods, in bulk or in\npackages, at any time or place and on any terms that are commercially\nreasonable, aft…

Section 7--301. Liability for Nonreceipt or Misdescription; "Said to\n Contain"; "Shipper's Weight, Load, and Count";\n Improper Handling.\n (a) A consignee of a nonnegotiable bill of lading which has given\nvalue in good faith, or a holder to which a negotiable bill has been\ndu…

Section 7--302. Through Bills of Lading and Similar Documents of Title.\n (a) The issuer of a through bill of lading, or other document of title\nembodying an undertaking to be performed in part by a person acting as\nits agent or by a performing carrier, is liable to any person …

Section 7--303. Diversion; Reconsignment; Change of Instructions.\n (a) Unless the bill of lading otherwise provides, a carrier may\ndeliver the goods to a person or destination other than that stated in\nthe bill or may otherwise dispose of the goods, without liability for\nmisd…

Section 7--304. Tangible Bills of Lading in a Set.\n (a) Except as customary in international transportation, a tangible\nbill of lading may not be issued in a set of parts. The issuer is liable\nfor damages caused by violation of this subsection.\n (b) If a tangible bill of ladi…

Section 7--305. Destination Bills.\n (a) Instead of issuing a bill of lading to the consignor at the place\nof shipment, a carrier, at the request of the consignor, may procure the\nbill to be issued at destination or at any other place designated in the\nrequest.\n (b) Upon requ…

Section 7--306. Altered Bills of Lading.\n An unauthorized alteration or filling in of a blank in a bill of\nlading leaves the bill enforceable according to its original tenor.\n

Section 7--307. Lien of Carrier.\n (a) A carrier has a lien on the goods covered by a bill of lading or\non the proceeds thereof in its possession for charges after the date of\nthe carrier's receipt of the goods for storage or transportation,\nincluding demurrage and terminal ch…

Section 7--308. Enforcement of Carrier's Lien.\n (a) A carrier's lien on goods may be enforced by public or private\nsale of the goods, in bulk or in packages, at any time or place and on\nany terms that are commercially reasonable, after notifying all persons\nknown to claim an …

Section 7--309. Duty of Care; Contractual Limitation of Carrier's\n Liability.\n (a) A carrier that issues a bill of lading, whether negotiable or\nnonnegotiable, shall exercise the degree of care in relation to the\ngoods which a reasonably careful person would exercise under si…

Section 7--401. Irregularities in Issue of Receipt or Bill or Conduct of\n Issuer.\n The obligations imposed by this article on an issuer apply to a\ndocument of title even if:\n (1) the document does not comply with the requirements of this article\nor of any other statute, rule…

Section 7--402. Duplicate Document of Title; Overissue.\n A duplicate or any other document of title purporting to cover goods\nalready represented by an outstanding document of the same issuer does\nnot confer any right in the goods, except as provided in the case of\ntangible b…

Section 7--403. Obligation of Bailee to Deliver; Excuse.\n (a) A bailee shall deliver the goods to a person entitled under a\ndocument of title if the person complies with subsections (b) and (c),\nunless and to the extent that the bailee establishes any of the\nfollowing:\n (1) …

Section 7--404. No Liability for Good-Faith Delivery Pursuant to\n Document of Title.\n A bailee that in good faith has received goods and delivered or\notherwise disposed of the goods according to the terms of a document of\ntitle or pursuant to this article is not liable for th…

Section 7--501. Form of Negotiation and Requirements of Due Negotiation.\n (a) The following rules apply to a negotiable tangible document of\ntitle:\n (1) If the document's original terms run to the order of a named\nperson, the document is negotiated by the named person's indor…

Section 7--502. Rights Acquired by Due Negotiation.\n (a) Subject to Sections 7--205 and 7--503, a holder to which a\nnegotiable document of title has been duly negotiated acquires thereby:\n (1) title to the document;\n (2) title to the goods;\n (3) all rights accruing under the…

Section 7--503. Document of Title to Goods Defeated in Certain Cases.\n (a) A document of title confers no right in goods against a person\nthat before issuance of the document had a legal interest or a perfected\nsecurity interest in the goods and that did not:\n (1) deliver or …

Section 7--504. Rights Acquired in Absence of Due Negotiation; Effect of\n Diversion; Stoppage of Delivery.\n (a) A transferee of a document of title, whether negotiable or\nnonnegotiable, to which the document has been delivered but not duly\nnegotiated, acquires the title and r…

Section 7--505. Indorser Not Guarantor for Other Parties.\n The indorsement of a tangible document of title issued by a bailee\ndoes not make the indorser liable for any default by the bailee or\nprevious indorsers.\n

Section 7--506. Delivery Without Indorsement: Right to Compel\n Indorsement.\n The transferee of a negotiable tangible document of title has a\nspecifically enforceable right to have its transferor supply any\nnecessary indorsement, but the transfer becomes a negotiation only as …

Section 7--507. Warranties on Negotiation or Delivery of Document of\n Title.\n If a person negotiates or delivers a document of title for value,\notherwise than as a mere intermediary under Section 7--508, unless\notherwise agreed, the transferor, in addition to any warranty mad…

Section 7--508. Warranties of Collecting Bank as to Documents of Title.\n A collecting bank or other intermediary known to be entrusted with\ndocuments of title on behalf of another or with collection of a draft or\nother claim against delivery of documents warrants by the delive…

Section 7--509. Adequate Compliance With Commercial Contract.\n Whether a document of title is adequate to fulfill the obligations of\na contract for sale, a contract for lease, or the conditions of a letter\nof credit is determined by Article 2, 2-A, or 5.\n