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- Title 7. Commercial Code
- Article 7. Warehouse Receipts, Bills of Lading and Other Documents of Title
- Part 5. Warehouse Receipts and Bills of Lading: Negotiation and Transfer
Ala. Code § 7-7-503 (1975) Document of Title to Goods Defeated In Certain Cases
Library | Alabama Statutes |
Edition | 2023 |
Currency | Current with legislation from the 2023 Regular and Special Sessions. |
Year | 2023 |
Citation | Ala. Code § 7-7-503 (1975) |
(a) A document of title confers no right in goods against a person that before issuance of the document had a legal interest or a perfected security interest in the goods and that did not:
(1) Deliver or entrust the goods or any document of title covering the goods to the bailor or the bailor's nominee with:
(A) Actual or apparent authority to ship, store, or sell;
(B) Power to obtain delivery under Section 7-7-403; or
(C) Power of disposition under Section <codecitation statecd="AL" sessionyear="2023" datatype="S" title="7" catchline="Power to transfer; good faith purchase of goods; "entrusting."">7-2-403</codecitation>, 7-2A-304(2), 7-2A-305(2), 7-9A-320, or 7-9A-321(c) or other statute or rule of law; or
(2) Acquiesce in the procurement by the bailor or its nominee of any document.
</subsect>
(b) Title to goods based upon an unaccepted delivery order is subject to the rights of any person to which a negotiable warehouse receipt or bill of lading covering the goods has been duly negotiated. That title may be defeated under Section 7-7-504 to the same extent as the rights of the issuer or a transferee from the issuer.
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