Source: https://www.oregonlegislature.gov/bills_laws/ors/ors077.html
Timestamp: 2017-08-17 05:48:15
Document Index: 421676808

Matched Legal Cases: ['§77', '§77', '§50', '§77', '§51', '§77', '§52', '§77', '§53', '§54', '§77', '§55', '§77', '§56', '§77', '§57', '§77', '§58', '§77', '§59', '§77', '§60', '§77', '§61', '§77', '§62', '§77', '§1', '§149', '§63', '§77', '§64', '§77', '§65', '§77', '§66', '§77', '§67', '§77', '§68', '§77', '§69', '§77', '§77', '§70', '§77', '§71', '§77', '§72', '§77', '§73', '§77', '§74', '§77', '§75', '§77', '§76', '§77', '§77', '§77', '§78', '§77', '§150', '§79', '§77', '§80', '§77', '§81', '§77', '§82', '§77', '§83', '§77', '§84', '§77', '§85', '§77', '§86', '§77', '§87', '§77', '§88', '§77', '§27', '§116']

Chapter 77 — Warehouse Receipts, Bills of Lading and Other Documents of Title
77.1010 Short title
77.1020 Definitions and index of definitions
77.1030 Relation of chapter to treaty or statute
77.1040 Negotiable and nonnegotiable document of title
77.1050 Reissuance in alternative medium
77.1060 Control of electronic document of title
77.2010 Person that may issue a warehouse receipt; storage under bond
77.2020 Form of warehouse receipt; effect of omission
77.2030 Liability for nonreceipt or misdescription
77.2040 Duty of care; contractual limitation of warehouse’s liability
77.2050 Title under warehouse receipt defeated in certain cases
77.2060 Termination of storage at warehouse’s option
77.2070 Goods must be kept separate; fungible goods
77.2080 Altered warehouse receipts
77.2090 Lien of warehouse
77.2100 Enforcement of warehouse’s lien
77.3010 Liability for nonreceipt or misdescription; said to contain; shipper’s weight, load and count; improper handling
77.3020 Through bills of lading and similar documents of title
77.3030 Diversion; reconsignment; change of instructions
77.3040 Bills of lading in a set
77.3050 Destination bills
77.3060 Altered bills of lading
77.3070 Lien of carrier
77.3080 Enforcement of carrier’s lien
77.3090 Duty of care; contractual limitation of carrier’s liability
77.4010 Irregularities in issue of receipt or bill or conduct of issuer
77.4020 Duplicate document of title; overissue
77.4030 Obligation of bailee to deliver; excuse
77.4040 No liability for good faith delivery pursuant to document of title
77.5010 Form of negotiation and requirements of due negotiation
77.5020 Rights acquired by due negotiation
77.5030 Document of title to goods defeated in certain cases
77.5040 Rights acquired in the absence of due negotiation; effect of diversion; stoppage of delivery
77.5050 Indorser not a guarantor for other parties
77.5060 Delivery without indorsement; right to compel indorsement
77.5070 Warranties on negotiation or delivery of document of title
77.5080 Warranties of collecting bank as to documents
77.5090 Adequate compliance with commercial contract
77.6010 Lost, stolen or destroyed documents of title
77.6020 Judicial process against goods covered by negotiable document of title
77.6030 Conflicting claims; interpleader
77.1010 Short title. This chapter may be cited as Uniform Commercial Code–Documents of Title. [1961 c.762 §77.1010]
77.1020 Definitions and index of definitions. (1) In this chapter, unless the context otherwise requires:
(a) “Contract for sale,” as defined in ORS 72.1060.
(b) “Lessee in the ordinary course of business,” as defined in ORS 72A.1030.
(c) “Receipt” of goods, as defined in ORS 72.1030.
(3) In addition, ORS chapter 71 contains general definitions and principles of construction and interpretation applicable throughout this chapter. [1961 c.726 §77.1020; 2009 c.181 §50]
77.1030 Relation of chapter to treaty or statute. (1) This chapter is subject to any treaty or statute of the United States or regulatory statute of this state to the extent the treaty, statute or regulatory statute is applicable.
(2) This chapter does not modify or repeal any law prescribing the form or content of a document of title or the services or facilities to be afforded by a bailee, or otherwise regulating a bailee’s business in respects not specifically treated in this chapter. However, violation of such a law does not affect the status of a document of title that otherwise is within the definition of a document of title.
(3) This chapter modifies, limits and supersedes the federal Electronic Signatures in Global and National Commerce Act, 15 U.S.C. 7001 et seq., except that nothing in this chapter modifies, limits or supercedes 7001(c) of that Act or authorizes electronic delivery of any of the notices described in section 7003(b) of that Act.
(4) To the extent there is a conflict between the Uniform Electronic Transactions Act and this chapter, this chapter governs. [1961 c.726 §77.1030; 2009 c.181 §51]
77.1040 Negotiable and nonnegotiable document of title. (1) Except as otherwise provided in subsection (3) of this section, a document of title is negotiable if by its terms the goods are to be delivered to bearer or to the order of a named person.
(2) A document of title other than one described in subsection (1) of this section is nonnegotiable. A bill of lading that states that the goods are consigned to a named person is not made negotiable by a provision that the goods are to be delivered only against an order in a record signed by the same or another named person.
(3) A document of title is nonnegotiable if, at the time it is issued, the document has a conspicuous legend, however expressed, that it is nonnegotiable. [1961 c.726 §77.1040; 2009 c.181 §52]
77.1050 Reissuance in alternative medium. (1) Upon request of a person entitled under an electronic document of title, the issuer of the electronic document may issue a tangible document of title as a substitute for the electronic document if:
(2) Upon issuance of a tangible document of title in substitution for an electronic document of title in accordance with subsection (1) of this section:
(4) Upon issuance of an electronic document of title in substitution for a tangible document of title in accordance with subsection (3) of this section:
(b) The person that procured issuance of the electronic document warrants to all subsequent persons entitled under the electronic document that the warrantor was a person entitled under the tangible document when the warrantor surrendered possession of the tangible document to the issuer. [1961 c.726 §77.1050; 2009 c.181 §53]
77.1060 Control of electronic document of title. (1) A person has control of an electronic document of title if a system employed for evidencing the transfer of interests in the electronic document reliably establishes that person as the person to which the electronic document was issued or transferred.
(2) A system satisfies subsection (1) of this section, and a person is deemed to have control of an electronic document of title, if the document is created, stored and assigned in such a manner that:
(a) A single authoritative copy of the document exists which is unique, identifiable and, except as otherwise provided in paragraphs (d), (e) and (f) of this subsection, unalterable;
(c) The authoritative copy is communicated to and maintained by the person asserting control or a designated custodian;
(f) Any amendment of the authoritative copy is readily identifiable as authorized or unauthorized. [2009 c.181 §54]
Note: 77.1060 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 77 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.
77.2010 Person that may issue a warehouse receipt; storage under bond. (1) A warehouse receipt may be issued by any warehouse.
(2) If goods, including distilled spirits and agricultural commodities, are stored under a statute requiring a bond against withdrawal or a license for the issuance of receipts in the nature of warehouse receipts, a receipt issued for the goods is deemed to be a warehouse receipt even if issued by a person that is the owner of the goods and is not a warehouse. [1961 c.726 §77.2010; 2009 c.181 §55]
77.2020 Form of warehouse receipt; effect of omission. (1) A warehouse receipt need not be in any particular form.
(3) A warehouse may insert in its receipt any terms that are not contrary to the Uniform Commercial Code and do not impair its obligation of delivery under ORS 77.4030 or its duty of care under ORS 77.2040. Any contrary provision is ineffective. [1961 c.726 §77.2020; 2009 c.181 §56]
77.2030 Liability for nonreceipt or misdescription. A party to or purchaser for value in good faith of a document of title, other than a bill of lading, that relies upon the description of the goods in the document may recover from the issuer damages caused by the nonreceipt or misdescription of the goods, except to the extent that:
(1) The document conspicuously indicates that the issuer does not know whether all or part of the goods in fact were received or conform to the description, such as a case in which the description is in terms of marks or labels or kind, quantity or condition, or the receipt or description is qualified by “contents, condition and quality unknown,” “said to contain” or words of similar import, if the indication is true; or
(2) The party or purchaser otherwise has notice of the nonreceipt or misdescription. [1961 c.726 §77.2030; 2009 c.181 §57]
77.2040 Duty of care; contractual limitation of warehouse’s liability. (1) A warehouse is liable for damages for loss of or injury to the goods caused by its failure to exercise care with regard to the goods that a reasonably careful person would exercise under similar circumstances. Unless otherwise agreed, the warehouse is not liable for damages that could not have been avoided by the exercise of that care.
(4) This section does not modify or repeal any existing law or rule of law that imposes a higher responsibility upon the warehouse or invalidates a contractual limitation that would be permissible under this chapter. [1961 c.726 §77.2040; 2009 c.181 §58]
77.2050 Title under warehouse receipt defeated in certain cases. A buyer in ordinary course of business of fungible goods sold and delivered by a warehouse that is also in the business of buying and selling such goods takes the goods free of any claim under a warehouse receipt even if the receipt is negotiable and has been duly negotiated. [1961 c.726 §77.2050; 2009 c.181 §59]
77.2060 Termination of storage at warehouse’s option. (1) A warehouse, by giving notice to the person on whose account the goods are held and any other person known to claim an interest in the goods, may require payment of any charges and removal of the goods from the warehouse at the termination of the period of storage fixed by the document of title, or, if a period is not fixed, within a stated period not less than 30 days after the warehouse gives notice. If the goods are not removed before the date specified in the notice, the warehouse may sell them pursuant to ORS 77.2100.
(2) If a warehouse in good faith believes that goods are about to deteriorate or decline in value to less than the amount of its lien within the time provided in subsection (1) of this section and ORS 77.2100, the warehouse may specify in the notice given under subsection (1) of this section any reasonable shorter time for removal of the goods and, if the goods are not removed, may sell them at public sale held not less than one week after a single advertisement or posting.
(3) If as a result of a quality or condition of the goods of which the warehouse did not have notice at the time of deposit the goods are a hazard to other property, the warehouse facilities or other persons, the warehouse may sell the goods at public or private sale without advertisement or posting on reasonable notification to all persons known to claim an interest in the goods. If the warehouse, after a reasonable effort, is unable to sell the goods it may dispose of them in any lawful manner and does not incur liability by reason of that disposition.
(5) A warehouse may satisfy its lien from the proceeds of any sale or disposition under this section but shall hold the balance for delivery on the demand of any person to which the warehouse would have been bound to deliver the goods. [1961 c.726 §77.2060; 2009 c.181 §60]
77.2070 Goods must be kept separate; fungible goods. (1) Unless the warehouse receipt provides otherwise, a warehouse shall keep separate the goods covered by each receipt so as to permit at all times identification and delivery of those goods. However, different lots of fungible goods may be commingled.
(2) If different lots of fungible goods are commingled, the goods are owned in common by the persons entitled thereto and the warehouse is severally liable to each owner for that owner’s share. If, because of overissue, a mass of fungible goods is insufficient to meet all the receipts the warehouse has issued against it, the persons entitled include all holders to which overissued receipts have been duly negotiated. [1961 c.726 §77.2070; 2009 c.181 §61]
77.2080 Altered warehouse receipts. If a blank in a negotiable tangible warehouse receipt has been filled in without authority, a good-faith purchaser for value and without notice of the lack of authority may treat the insertion as authorized. Any other unauthorized alteration leaves any tangible or electronic warehouse receipt enforceable against the issuer according to its original tenor. [1961 c.726 §77.2080; 2009 c.181 §62]
77.2090 Lien of warehouse. (1) A warehouse has a lien against the bailor on the goods covered by a warehouse receipt or storage agreement or on the proceeds thereof in its possession for charges for storage or transportation, including demurrage and terminal charges, insurance, labor or other charges, present or future, in relation to the goods, and for expenses necessary for preservation of the goods or reasonably incurred in their sale pursuant to law. If the person on whose account the goods are held is liable for similar charges or expenses in relation to other goods whenever deposited and it is stated in the warehouse receipt or storage agreement that a lien is claimed for charges and expenses in relation to other goods, the warehouse also has a lien against the goods covered by the warehouse receipt or storage agreement or on the proceeds thereof in its possession for those charges and expenses whether or not the other goods have been delivered by the warehouse. However, as against a person to which a negotiable warehouse receipt is duly negotiated, a warehouse’s lien is limited to charges in an amount or at a rate specified in the warehouse receipt or, if no charges are so specified, to a reasonable charge for storage of the specific goods covered by the receipt subsequent to the date of the receipt.
(2) The warehouse may also reserve a security interest against the bailor for the maximum amount specified on the receipt for charges other than those specified in subsection (1) of this section, such as for money advanced and interest. The security interest is governed by ORS chapter 79.
(3) A warehouse’s lien for charges and expenses under subsection (1) of this section or a security interest under subsection (2) of this section is also effective against any person that so entrusted the bailor with possession of the goods that a pledge of them by the bailor to a good-faith purchaser for value would have been valid. However, the lien or security interest is not effective against a person that before issuance of a document of title had a legal interest or a perfected security interest in the goods and that did not:
(a) 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 ORS 77.4030; or
(C) Power of disposition under ORS 72.4030, 72A.3040 (2), 72A.3050 (2), 79.0320 or 79.0321 (3) or other statute or rule of law; or
(4) A warehouse’s lien on household goods for charges and expenses in relation to the goods under subsection (1) of this section is also effective against all persons if the depositor was the legal possessor of the goods at the time of deposit. In this subsection, “household goods” means furniture, furnishings or personal effects used by the depositor in a dwelling.
(5) A warehouse loses its lien on any goods that it voluntarily delivers or unjustifiably refuses to deliver. [1961 c.726 §77.2090; 1971 c.370 §1; 2001 c.445 §149; 2009 c.181 §63]
77.2100 Enforcement of warehouse’s lien. (1) Except as otherwise provided in subsection (2) of this section, a warehouse’s lien may be enforced by public or private sale of the goods, in bulk or in packages, at any time or place and on any terms that are commercially reasonable, after notifying all persons known to claim an interest in the goods. The notification must include a statement of the amount due, the nature of the proposed sale and the time and place of any public sale. The fact that a better price could have been obtained by a sale at a different time or in a method different from that selected by the warehouse is not of itself sufficient to establish that the sale was not made in a commercially reasonable manner. The warehouse sells in a commercially reasonable manner if the warehouse sells the goods in the usual manner in any recognized market therefor, sells at the price current in that market at the time of sale or otherwise sells in conformity with commercially reasonable practices among dealers in the type of goods sold. A sale of more goods than apparently necessary to be offered to ensure satisfaction of the obligation is not commercially reasonable except in cases covered by the preceding sentence.
(9) A warehouse is liable for damages caused by failure to comply with the requirements for sale under this section and in case of willful violation is liable for conversion. [1961 c.726 §77.2100; 2009 c.181 §64]
77.3010 Liability for nonreceipt or misdescription; said to contain; shipper’s weight, load and count; improper handling. (1) A consignee of a nonnegotiable bill of lading which has given value in good faith or a holder to which a negotiable bill has been duly negotiated relying upon the description of the goods in the bill or upon the date shown in the bill, may recover from the issuer damages caused by the misdating of the bill or the nonreceipt or misdescription of the goods, except to the extent that the bill indicates that the issuer does not know whether any part or all of the goods in fact were received or conform to the description, such as in a case in which the description is in terms of marks or labels or kind, quantity or condition or the receipt or description is qualified by “contents or condition of contents of packages unknown,” “said to contain,” “shipper’s weight, load and count” or words of similar import, if that indication is true.
(2) If goods are loaded by the issuer of a bill of lading:
(a) The issuer shall count the packages of goods if shipped in packages and ascertain the kind and quantity if shipped in bulk; and
(b) Words such as “shipper’s weight, load and count” or words of similar import indicating that the description was made by the shipper are ineffective except as to goods concealed in packages.
(3) If bulk goods are loaded by a shipper that makes available to the issuer of a bill of lading adequate facilities for weighing those goods, the issuer shall ascertain the kind and quantity within a reasonable time after receiving the shipper’s request in a record to do so. In that case, “shipper’s weight” or other words of similar import are ineffective.
(4) The issuer of a bill of lading, by including in the bill the words “shipper’s weight, load and count” or words of similar import, may indicate that the goods were loaded by the shipper, and if that statement is true, the issuer is not liable for damages caused by the improper loading. However, omission of such words does not imply liability for damages caused by improper loading.
(5) A shipper guarantees to an issuer the accuracy at the time of shipment of the description, marks, labels, number, kind, quantity, condition and weight, as furnished by the shipper. The shipper shall indemnify the issuer against damage caused by inaccuracies in those particulars. This right of indemnity does not limit the issuer’s responsibility or liability under the contract of carriage to any person other than the shipper. [1961 c.726 §77.3010; 2009 c.181 §65]
77.3020 Through bills of lading and similar documents of title. (1) The issuer of a through bill of lading or other document of title embodying an undertaking to be performed in part by a person acting as its agent or by a performing carrier is liable to any person entitled to recover on the bill or other document for any breach by the other person or the performing carrier of its obligation under the bill or other document. However, to the extent that the bill or other document covers an undertaking to be performed overseas or in territory not contiguous to the continental United States or an undertaking including matters other than transportation, this liability for breach by the other person or the performing carrier may be varied by agreement of the parties.
(2) If goods covered by a through bill of lading or other document of title embodying an undertaking to be performed in part by a person other than the issuer are received by that person, the person is subject with respect to its own performance while the goods are in its possession to the obligation of the issuer. The person’s obligation is discharged by delivery of the goods to another person pursuant to the bill or other document and does not include liability for breach by any other person or by the issuer.
(3) The issuer of a through bill of lading or other document of title described in subsection (1) of this section is entitled to recover from the performing carrier, or other person in possession of the goods when the breach of the obligation under the bill or other document occurred:
(a) The amount it may be required to pay to any person entitled to recover on the bill or other document for the breach, as may be evidenced by any receipt, judgment or transcript of judgment; and
(b) The amount of any expense reasonably incurred by the issuer in defending any action commenced by any person entitled to recover on the bill or other document for the breach. [1961 c.726 §77.3020; 2009 c.181 §66]
77.3030 Diversion; reconsignment; change of instructions. (1) Unless the bill of lading otherwise provides, a carrier may deliver the goods to a person or destination other than that stated in the bill or may otherwise dispose of the goods, without liability for misdelivery, on instructions from:
(a) The holder of a negotiable bill;
(b) The consignor on a nonnegotiable bill, even if the consignee has given contrary instructions;
(2) Unless instructions described in subsection (1) of this section are included in a negotiable bill of lading, a person to which the bill is duly negotiated may hold the bailee according to the original terms. [1961 c.726 §77.3030; 2009 c.181 §67]
77.3040 Bills of lading in a set. (1) Except as customary in international transportation, a tangible bill of lading may not be issued in a set of parts. The issuer is liable for damages caused by violation of this subsection.
(2) If a tangible bill of lading is lawfully issued in a set of parts, each of which contains an identification code and is expressed to be valid only if the goods have not been delivered against any other part, the whole of the parts constitutes one bill.
(3) If a tangible negotiable bill of lading is lawfully issued in a set of parts and different parts are negotiated to different persons, the title of the holder to which the first due negotiation is made prevails as to both the document of title and the goods even if any later holder may have received the goods from the carrier in good faith and discharged the carrier’s obligation by surrendering its part.
(5) The bailee shall deliver in accordance with ORS 77.4010 to 77.4040 against the first presented part of a tangible bill of lading lawfully issued in a set. Delivery in this manner discharges the bailee’s obligation on the whole bill. [1961 c.726 §77.3040; 2009 c.181 §68]
77.3050 Destination bills. (1) Instead of issuing a bill of lading to the consignor at the place of shipment a carrier at the request of the consignor may procure the bill to be issued at destination or at any other place designated in the request.
(2) Upon request of any person entitled as against a carrier to control the goods while in transit and on surrender of possession or control of any outstanding bill of lading or other receipt covering the goods, the issuer, subject to ORS 77.1050, may procure a substitute bill to be issued at any place designated in the request. [1961 c.726 §77.3050; 2009 c.181 §69]
77.3060 Altered bills of lading. An unauthorized alteration or filling in of a blank in a bill of lading leaves the bill enforceable according to its original tenor. [1961 c.726 §77.3060]
77.3070 Lien of carrier. (1) A carrier has a lien on the goods covered by a bill of lading or on the proceeds thereof in the carrier’s possession for charges after the date of the carrier’s receipt of the goods for storage or transportation, including demurrage and terminal charges, and for expenses necessary for preservation of the goods incident to their transportation or reasonably incurred in their sale pursuant to law. However, against a purchaser for value of a negotiable bill of lading, a carrier’s lien is limited to charges stated in the bill or the applicable tariffs or, if no charges are stated, a reasonable charge.
(2) A lien for charges and expenses under subsection (1) of this section on goods that the carrier was required by law to receive for transportation is effective against the consignor or any person entitled to the goods unless the carrier had notice that the consignor lacked authority to subject the goods to those charges and expenses. Any other lien under subsection (1) of this section is effective against the consignor and any person that permitted the bailor to have control or possession of the goods unless the carrier had notice that the bailor lacked authority.
(3) A carrier loses its lien on any goods that it voluntarily delivers or unjustifiably refuses to deliver. [1961 c.726 §77.3070; 2009 c.181 §70]
77.3080 Enforcement of carrier’s lien. (1) A carrier’s lien on goods may be enforced by public or private sale of the goods, in bulk or in packages, at any time or place and on any terms that are commercially reasonable, after notifying all persons known to claim an interest in the goods. The notification must include a statement of the amount due, the nature of the proposed sale and the time and place of any public sale. The fact that a better price could have been obtained by a sale at a different time or in a method different from that selected by the carrier is not of itself sufficient to establish that the sale was not made in a commercially reasonable manner. The carrier sells goods in a commercially reasonable manner if the carrier sells the goods in the usual manner in any recognized market therefor, sells at the price current in that market at the time of sale or otherwise sells in conformity with commercially reasonable practices among dealers in the type of goods sold. A sale of more goods than apparently necessary to be offered to ensure satisfaction of the obligation is not commercially reasonable except in cases covered by the preceding sentence.
(2) Before any sale pursuant to this section any person claiming a right in the goods may pay the amount necessary to satisfy the lien and the reasonable expenses incurred in complying with this section. In that event, the goods may not be sold but must be retained by the carrier subject to the terms of the bill of lading and this chapter.
(4) A purchaser in good faith of goods sold to enforce a carrier’s lien takes the goods free of any rights of persons against which the lien was valid, despite the carrier’s noncompliance with this section.
(7) A carrier’s lien may be enforced pursuant to either subsection (1) of this section or the procedure set forth in ORS 77.2100 (2).
(8) A carrier is liable for damages caused by failure to comply with the requirements for sale under this section and in case of willful violation is liable for conversion. [1961 c.726 §77.3080; 2009 c.181 §71]
77.3090 Duty of care; contractual limitation of carrier’s liability. (1) A carrier that issues a bill of lading, whether negotiable or nonnegotiable, shall exercise the degree of care in relation to the goods which a reasonably careful person would exercise under similar circumstances. This subsection does not affect any statute, regulation or rule of law that imposes liability upon a common carrier for damages not caused by its negligence.
(2) Damages may be limited by a term in the bill of lading or in a transportation agreement that the carrier’s liability may not exceed a value stated in the bill or transportation agreement if the carrier’s rates are dependent upon value and the consignor is afforded an opportunity to declare a higher value and the consignor is advised of the opportunity. However, such a limitation is not effective with respect to the carrier’s liability for conversion to its own use.
(3) Reasonable provisions as to the time and manner of presenting claims and commencing actions based on the shipment may be included in a bill of lading or a transportation agreement. [1961 c.726 §77.3090; 2009 c.181 §72]
77.4010 Irregularities in issue of receipt or bill or conduct of issuer. The obligations imposed by this chapter on an issuer apply to a document of title even if:
(1) The document does not comply with the requirements of this chapter or of any other statute, rule or regulation regarding its issuance, form or content;
(4) The person issuing the document is not a warehouse but the document purports to be a warehouse receipt. [1961 c.726 §77.4010; 2009 c.181 §73]
77.4020 Duplicate document of title; overissue. A duplicate or any other document of title purporting to cover goods already represented by an outstanding document of the same issuer does not confer any right in the goods, except as provided in the case of tangible bills of lading in a set of parts, overissue of documents for fungible goods, substitutes for lost, stolen or destroyed documents or substitute documents issued pursuant to ORS 77.1050. The issuer is liable for damages caused by its overissue or failure to identify a duplicate document by conspicuous notation. [1961 c.726 §77.4020; 2009 c.181 §74]
77.4030 Obligation of bailee to deliver; excuse. (1) A bailee shall deliver the goods to a person entitled under a document of title if the person complies with subsections (2) and (3) of this section unless and to the extent that the bailee establishes any of the following:
(d) The exercise by a seller of its right to stop delivery pursuant to ORS 72.7050 or by a lessor of its right to stop delivery pursuant to ORS 72A.5260;
(e) A diversion, reconsignment or other disposition pursuant to ORS 77.3030;
(3) Unless a person claiming the goods is a person against which the document of title does not confer a right under ORS 77.5030 (1):
(b) 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. [1961 c.726 §77.4030; 2009 c.181 §75]
77.4040 No liability for good faith delivery pursuant to document of title. 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 chapter is not liable for the goods even if:
(2) The person to which the bailee delivered the goods did not have authority to receive the goods. [1961 c.726 §77.4040; 2009 c.181 §76]
77.5010 Form of negotiation and requirements of due negotiation. (1) The following rules apply to a negotiable tangible document of title:
(a) If the document’s original terms run to the order of a named person, the document is negotiated by the named person’s indorsement and delivery. After the named person’s indorsement in blank or to bearer, any person may negotiate the document by delivery alone.
(b) If the document’s original terms run to bearer, it is negotiated by delivery alone.
(c) If the document’s original terms run to the order of a named person and the document is delivered to the named person, the effect is the same as if the document had been negotiated.
(d) Negotiation of the document after it has been indorsed to a named person requires indorsement by the named person and delivery.
(a) If the document’s original terms run to the order of a named person or to bearer, the document is negotiated by delivery of the document to another person. Indorsement by the named person is not required to negotiate the document.
(b) If the document’s original terms run to the order of a named person and the named person has control of the document, the effect is the same as if the document had been negotiated.
(c) A document is duly negotiated if it is negotiated in the manner stated in this subsection to a holder that purchases the document in good faith, without notice of any defense against or claim to the document on the part of any person, and for value, unless it is established that the negotiation is not in the regular course of business or financing or involves taking delivery of the document in settlement or payment of a monetary obligation.
(3) Indorsement of a nonnegotiable document of title neither makes it negotiable nor adds to the transferee’s rights.
(4) The naming in a negotiable bill of lading of a person to be notified of the arrival of the goods does not limit the negotiability of the bill or constitute notice to a purchaser of the bill of any interest of that person in the goods. [1961 c.726 §77.5010; 2009 c.181 §77]
77.5020 Rights acquired by due negotiation. (1) Subject to ORS 77.2050 and 77.5030, a holder to which a negotiable document of title has been duly negotiated acquires thereby:
(d) The direct obligation of the issuer to hold or deliver the goods according to the terms of the document free of any defense or claim by the issuer except those arising under the terms of the document or under this chapter, but in the case of a delivery order the bailee’s obligation accrues only upon the bailee’s acceptance of the delivery order and the obligation acquired by the holder is that the issuer and any indorser will procure the acceptance of the bailee.
(2) Subject to ORS 77.5030, title and rights acquired by due negotiation are not defeated by any stoppage of the goods represented by the document of title or by surrender of the goods by the bailee and are not impaired even if:
(c) A previous sale or other transfer of the goods or document has been made to a third person. [1961 c.726 §77.5020; 2009 c.181 §78]
77.5030 Document of title to goods defeated in certain cases. (1) 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:
(2) 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 ORS 77.5040 to the same extent as the rights of the issuer or a transferee from the issuer.
(3) Title to goods based upon a bill of lading issued to a freight forwarder is subject to the rights of any person to which a bill issued by the freight forwarder is duly negotiated. However, delivery by the carrier in accordance with ORS 77.4010 to 77.4040 pursuant to its own bill of lading discharges the carrier’s obligation to deliver. [1961 c.726 §77.5030; 2001 c.445 §150; 2009 c.181 §79]
77.5040 Rights acquired in the absence of due negotiation; effect of diversion; stoppage of delivery. (1) A transferee of a document of title, whether negotiable or nonnegotiable, to which the document has been delivered but not duly negotiated, acquires the title and rights that the document’s transferor had or had actual authority to convey.
(2) In the case of a transfer of a nonnegotiable document of title, until but not after the bailee receives notice of the transfer, the rights of the transferee may be defeated:
(a) By those creditors of the transferor which could treat the transfer as void under ORS 72.4020 or 72A.3080;
(b) By a buyer from the transferor in ordinary course of business if the bailee has delivered the goods to the buyer or received notification of the buyer’s rights;
(c) By a lessee from the transferor in ordinary course of business if the bailee has delivered the goods to the lessee or received notification of the lessee’s rights; or
(3) 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 lessee in ordinary course of business and, in any event, defeats the consignee’s rights against the bailee.
(4) Delivery of the goods pursuant to a nonnegotiable document of title may be stopped by a seller under ORS 72.7050 or a lessor under ORS 72A.5260 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. [1961 c.726 §77.5040; 2009 c.181 §80]
77.5050 Indorser not a guarantor for other parties. 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 by previous indorsers. [1961 c.726 §77.5050; 2009 c.181 §81]
77.5060 Delivery without indorsement; right to compel indorsement. The transferee of a negotiable tangible document of title has a specifically enforceable right to have the document’s transferor supply any necessary indorsement, but the transfer becomes a negotiation only as of the time the indorsement is supplied. [1961 c.726 §77.5060; 2009 c.181 §82]
77.5070 Warranties on negotiation or delivery of document of title. If a person negotiates or delivers a document of title for value, otherwise than as a mere intermediary under ORS 77.5080, unless otherwise agreed, the transferor, in addition to any warranty made in selling or leasing the goods, warrants to the immediate purchaser only that:
(3) The negotiation or delivery is rightful and fully effective with respect to the title to the document and the goods it represents. [1961 c.726 §77.5070; 2009 c.181 §83]
77.5080 Warranties of collecting bank as to documents. 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 if the collecting bank or other intermediary has purchased or made advances against the claim or draft to be collected. [1961 c.726 §77.5080; 2009 c.181 §84]
77.5090 Adequate compliance with commercial contract. 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 ORS chapter 72, 72A or 75. [1961 c.726 §77.5090; 2009 c.181 §85]
77.6010 Lost, stolen or destroyed documents of title. (1) 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 fees in any action under this subsection.
(2) 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. [1961 c.726 §77.6010; 2009 c.181 §86]
77.6020 Judicial process against goods covered by negotiable document of title. 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. [1961 c.726 §77.6020; 2009 c.181 §87]
77.6030 Conflicting claims; interpleader. If more than one person claims title to or possession of the goods, the bailee is excused from delivery until the bailee has a reasonable time to ascertain the validity of the adverse claims or to commence an action for interpleader. The bailee may assert an interpleader either in defending an action for nondelivery of the goods or by original action. [1961 c.726 §77.6030; 2009 c.181 §88]
77.6040 [1961 c.726 §77.6040; 1995 c.79 §27; repealed by 2009 c.181 §116]