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This entry was published on 2014-12-26
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SECTION 7-601
Lost, Stolen, or Destroyed Documents of Title
Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 7, PART 6
Section 7--601. Lost, Stolen, or Destroyed Documents of Title.

(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 one year
after the delivery.