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LAWS OF MARYLAND

(Ch. 49

(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 document and the goods it represents.

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 delivery 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.

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 [subtitles]
TITLES on sales [subtitle] TITLE 2) and on letters of
credit ([subtitle] TITLE 5).

SUBTITLE 6. WAREHOUSE RECEIPTS AND BILLS OF LADING:
MISCELLANEOUS PROVISIONS.

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 for
conversion. Delivery in good faith is not conversion if
made in accordance with a filed classification or tariff
or, where no classification or tariff is filed, if the
claimant posts security with the bailee in an amount at
least double the value of the goods at the time of
posting to indemnify any person injured by the delivery
who files a notice of claim within one year after the