Ch. 95

2004 LAWS OF MARYLAND

(4) AS AGAINST THE BAILEE, BY GOOD-FAITH DEALINGS OF THE BAILEE
WITH THE TRANSFEROR

(C)     A DIVERSION OR OTHER CHANGE OF SHIPPING INSTRUCTIONS BY THE
CONSIGNOR IN A NONNEGOTIABLE BILL OF LADING WHICH CAUSES THE BAILEE NOT
TO DELIVER THE GOODS TO THE CONSIGNEE DEFEATS THE CONSIGNEE'S TITLE TO
THE GOODS IF THE GOODS HAVE BEEN DELIVERED TO A BUYER IN ORDINARY
COURSE OF BUSINESS OR A LESSEE IN ORDINARY COURSE OF BUSINESS AND, IN ANY
EVENT, DEFEATS THE CONSIGNEE'S RIGHTS AGAINST THE BAILEE.

(D)     DELIVERY OF THE GOODS PURSUANT TO A NONNEGOTIABLE DOCUMENT
OF TITLE MAY BE STOPPED BY A SELLER UNDER § 2-705 OR A LESSOR UNDER §
2A-526, SUBJECT TO THE REQUIREMENTS OF DUE NOTIFICATION IN THOSE
SECTIONS. A BAILEE THAT HONORS THE SELLER'S OR LESSOR'S INSTRUCTIONS IS
ENTITLED TO BE INDEMNIFIED BY THE SELLER OR LESSOR AGAINST ANY
RESULTING LOSS OR EXPENSE. "

7-505.

THE INDORSEMENT OF A TANGIBLE DOCUMENT OF TITLE ISSUED BY A BAILEE
DOES NOT MAKE THE INDORSER LIABLE FOR ANY DEFAULT BY THE BAILEE OR
PREVIOUS INDORSERS. .

7-506.

THE TRANSFEREE OF A NEGOTIABLE TANGIBLE DOCUMENT OF TITLE HAS A
SPECIFICALLY ENFORCEABLE RIGHT TO HAVE ITS TRANSFEROR SUPPLY ANY
NECESSARY INDORSEMENT, BUT THE TRANSFER BECOMES A NEGOTIATION ONLY AS
OF THE TIME THE INDORSEMENT IS SUPPLIED.

7-507.

IF A PERSON NEGOTIATES OR DELIVERS A DOCUMENT OF TITLE FOR VALUE,
OTHERWISE THAN AS A MERE INTERMEDIARY UNDER § 7-508, UNLESS OTHERWISE
AGREED, THE TRANSFEROR, IN ADDITION TO ANY WARRANTY MADE IN SELLING OR
LEASING THE GOODS, WARRANTS TO ITS IMMEDIATE PURCHASER ONLY THAT:

(1)      THE DOCUMENT IS GENUINE;

(2)      THE TRANSFEROR DOES NOT HAVE KNOWLEDGE OF ANY FACT THAT
WOULD IMPAIR THE DOCUMENT'S VALIDITY OR WORTH; AND

(3)     THE NEGOTIATION OR DELIVERY IS RIGHTFUL AND FULLY
EFFECTIVE WITH RESPECT TO THE TITLE TO THE DOCUMENT AND THE GOODS IT
REPRESENTS.

7-508.

A COLLECTING BANK OR OTHER INTERMEDIARY KNOWN TO BE ENTRUSTED
WITH DOCUMENTS OF TITLE ON BEHALF OF ANOTHER OR WITH COLLECTION OF A
DRAFT OR OTHER CLAIM AGAINST DELIVERY OF DOCUMENTS WARRANTS BY THE
DELIVERY OF THE DOCUMENTS ONLY ITS OWN GOOD FAITH AND AUTHORITY EVEN

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