ROBERT L. EHRLICH, JR., Governor                              Ch. 95

IF THE COLLECTING BANK OR OTHER INTERMEDIARY HAS PURCHASED OR MADE
ADVANCES AGAINST THE CLAIM OR DRAFT TO BE COLLECTED.

7-509.

WHETHER A DOCUMENT OF TITLE IS ADEQUATE TO FULFILL THE OBLIGATIONS
OF A CONTRACT FOR SALE, A CONTRACT FOR LEASE, OR THE CONDITIONS OF A
LETTER OF CREDIT IS DETERMINED BY TITLE 2, TITLE 2A, OR TITLE 5.

Subtitle 6. Warehouse Receipts and Bills of Lading: Miscellaneous Provisions.
7-601.

(A)     IF A DOCUMENT OF TITLE IS 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 THE ORDER IF
THE DOCUMENT WAS NEGOTIABLE, A COURT MAY NOT ORDER DELIVERY OF THE
GOODS OR ISSUANCE OF A SUBSTITUTE DOCUMENT WITHOUT THE CLAIMANT'S
POSTING SECURITY UNLESS IT FINDS THAT ANY PERSON THAT MAY SUFFER LOSS AS
A RESULT OF NONSURRENDER OF POSSESSION OR CONTROL OF THE DOCUMENT IS
ADEQUATELY PROTECTED AGAINST THE LOSS. IF THE DOCUMENT WAS
NONNEGOTIABLE, THE COURT MAY REQUIRE SECURITY. THE COURT MAY ALSO
ORDER PAYMENT OF THE BAILEE'S REASONABLE COSTS AND ATTORNEY'S FEES IN
ANY ACTION UNDER THIS SUBSECTION.

(B)     A BAILEE THAT, WITHOUT A COURT ORDER, DELIVERS GOODS TO A
PERSON CLAIMING UNDER A MISSING NEGOTIABLE DOCUMENT OF TITLE IS LIABLE
TO ANY PERSON INJURED THEREBY. IF THE DELIVERY IS NOT IN GOOD FAITH, THE
BAILEE IS LIABLE FOR CONVERSION. DELIVERY IN GOOD FAITH IS NOT CONVERSION
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 WHICH FILES A NOTICE OF CLAIM WITHIN 1
YEAR AFTER THE DELIVERY.

7-602.

UNLESS A DOCUMENT OF TITLE WAS ORIGINALLY ISSUED UPON DELIVERY OF
THE GOODS BY A PERSON THAT DID NOT HAVE POWER TO DISPOSE OF THEM, A LIEN
DOES NOT ATTACH BY VIRTUE OF ANY JUDICIAL PROCESS TO GOODS IN THE
POSSESSION OF A BAILEE FOR WHICH A NEGOTIABLE DOCUMENT OF TITLE IS
OUTSTANDING UNLESS POSSESSION OR CONTROL OF THE DOCUMENT IS FIRST
SURRENDERED TO THE BAILEE OR THE DOCUMENT'S NEGOTIATION IS ENJOINED.
THE BAILEE MAY NOT BE COMPELLED TO DELIVER THE GOODS PURSUANT TO
PROCESS UNTIL POSSESSION OR CONTROL OF THE DOCUMENT IS SURRENDERED TO
THE BAILEE OR TO THE COURT. A PURCHASER OF THE DOCUMENT FOR VALUE
WITHOUT NOTICE OF THE PROCESS OR INJUNCTION TAKES FREE OF THE LIEN
IMPOSED BY JUDICIAL PROCESS.

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