ROBERT L. EHRLICH, JR., Governor                           H.B. 140

(1)      DELIVERY OF THE GOODS TO A PERSON WHOSE RECEIPT WAS
RIGHTFUL AS AGAINST THE CLAIMANT;

(2)      DAMAGE TO OR DELAY, LOSS, OR DESTRUCTION OF THE GOODS FOR
WHICH THE BAILEE IS NOT LIABLE;

(3)     PREVIOUS SALE OR OTHER DISPOSITION OF THE GOODS IN LAWFUL
ENFORCEMENT OF A LIEN OR ON A WAREHOUSE'S LAWFUL TERMINATION OF
STORAGE;

(4)      THE EXERCISE BY A SELLER OF ITS RIGHT TO STOP DELIVERY
PURSUANT TO § 2-705 OR BY A LESSOR OF ITS RIGHT TO STOP DELIVERY PURSUANT
TO § 2A-526;

(5)      A DIVERSION, RECONSIGNMENT, OR OTHER DISPOSITION PURSUANT
TO § 7-303;

(6)      RELEASE, SATISFACTION, OR ANY OTHER PERSONAL DEFENSE
AGAINST THE CLAIMANT; OR

(7)      ANY OTHER LAWFUL EXCUSE.

(B)     A PERSON CLAIMING GOODS COVERED BY A DOCUMENT OF TITLE SHALL
SATISFY THE BAILEE'S LIEN IF THE BAILEE SO REQUESTS OR IF THE BAILEE IS
PROHIBITED BY LAW FROM DELIVERING THE GOODS UNTIL THE CHARGES ARE PAID.

(C)     UNLESS A PERSON CLAIMING THE GOODS IS A PERSON AGAINST WHICH
THE DOCUMENT OF TITLE DOES NOT CONFER A RIGHT UNDER § 7-503(A):

(1)      THE PERSON CLAIMING UNDER A DOCUMENT SHALL SURRENDER
POSSESSION OR CONTROL OF ANY OUTSTANDING NEGOTIABLE DOCUMENT
COVERING THE GOODS FOR CANCELLATION OR INDICATION OF PARTIAL
DELIVERIES; AND

(2)      THE BAILEE SHALL CANCEL THE DOCUMENT OR CONSPICUOUSLY
INDICATE IN THE DOCUMENT THE PARTIAL DELIVERY OR THE BAILEE IS LIABLE TO
ANY PERSON TO WHICH THE DOCUMENT IS DULY NEGOTIATED.

7-404.

A BAILEE THAT IN GOOD FAITH HAS RECEIVED GOODS AND DELIVERED OR
OTHERWISE DISPOSED OF THE GOODS ACCORDING TO THE TERMS OF A DOCUMENT
OF TITLE OR PURSUANT TO THIS TITLE IS NOT LIABLE FOR THE GOODS EVEN IF:

(1)     THE PERSON FROM WHICH THE BAILEE RECEIVED THE GOODS DID
NOT HAVE AUTHORITY TO PROCURE THE DOCUMENT OR TO DISPOSE OF THE GOODS;
OR

(2)      THE PERSON TO WHICH THE BAILEE DELIVERED THE GOODS DID
NOT HAVE AUTHORITY TO RECEIVE THE GOODS.

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