CO Code § 4-7-401 (2021)
2021 Colorado Code|Title 4 - Uniform Commercial Code|Article 7 - Documents of Title|Part 4 - Warehouse Receipts and Bills of Lading - General Obligations|§ 4-7-401. Irregularities in Issue of Receipt or Bill or Conduct of Issuer

 The obligations imposed by this article on an issuer apply to a document of title even if:    The document does not comply with the requirements of this article or of any other statute, rule, or regulation regarding its issuance, form, or content;    The issuer violated laws regulating the conduct of its business;    The goods covered by the document were owned by the bailee when the document was issued; or    The person issuing the document is not a warehouse but the document purports to be a warehouse receipt.     History. Source: L. 2006: Entire article R&RE, p. 483, § 2, effective September 1. L. 2007: (1) amended, p. 371, § 16, effective August 3.    Cross references:   For offenses relating to this title, see part 5 of article 5 of title 18.   Official Comments   Copyright by the American Law Institute and the National Conference of Commissioners on Uniform State Laws. Reproduced with the permission of the Permanent Editorial Board for the Uniform Commercial Code. All rights reserved. —   Editor's note:   The Official Comments to the Uniform Commercial Code are available only in the printed book form of Colorado Revised Statutes. As noted above, the Official Comments are subject to copyright by the American Law Institute and the National Conference of Commissioners on Uniform State Laws. At this time, Colorado has a license to reprint the Official Comments in the printed book form.   Editor's note:    The “Uniform Commercial Code-Documents of Title”, as adopted by the Colorado General Assembly in 2006, reflects the draft version of the Code and the Comments thereto by the National Conference of Commissioners on Uniform State Laws and American Law Institute dated February 2003.    This article was numbered as article 7 of chapter 155, C.R.S. 1963. The provisions of this article were repealed and reenacted in 2006, resulting in the addition, relocation, and elimination of sections as well as subject matter. For amendments to this article prior to 2006, consult the Colorado statutory research explanatory note and the table itemizing the replacement volumes and supplements to the original volume of C.R.S. 1973 beginning on page vii in the front of this volume. Former C.R.S. section numbers are shown in editor's notes following those sections that were relocated.     Law reviews:   For article, “Documents of Title”, see 11 Colo. Law. 1150 .   Editor's note:   This section is similar to former § 4-7-401 as it existed prior to 2006.   OFFICIAL COMMENT   Prior Uniform Statutory Provision: Former Section 7-401.   Changes: Changes for style only.   Purposes:   The bailee's liability on its document despite non-receipt or misdescription of the goods is affirmed in Sections 7-203 and 7-301. The purpose of this section is to make it clear that regardless of irregularities a document which falls within the definition of document of title imposes on the issuer the obligations stated in this Article. For example, a bailee will not be permitted to avoid its obligation to deliver the goods (Section 7-403) or its obligation of due care with respect to them (Sections 7-204 and 7-309) by taking the position that no valid “document” was issued because it failed to file a statutory bond or did not pay stamp taxes or did not disclose the place of storage in the document. Tate v. Action Moving Storage, Inc., 383 S.E.2d 229 (N.C. App. 1989), rev. denied 389 S.E.2d 104 (N.C. 1990). Sanctions against violations of statutory or administrative duties with respect to documents should be limited to revocation of license or other measures prescribed by the regulation imposing the duty. See Sections 7-103.   Cross References: Sections 7-103, 7-203, 7-204, 7-301, 7-309.   Definitional Cross References:   “Bailee”. Section 7-102.   “Document of title”. Section 1-201.   “Goods”. Section 7-102.   “Issuer”. Section 7-102.   “Person”. Section 1-201.   “Warehouse receipt”. Section 1-201.   “Warehouse”. Section 7-102.