reglab/statecodes huggingface dataset:
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 51 - Letters of Credit › Section 5104 - Formal requirements

§ 5104. Formal requirements.
A letter of credit, confirmation, advice, transfer, amendment or cancellation may be issued in any form that is a record and is authenticated:
(1) by a signature; or
(2) in accordance with the agreement of the parties or the standard practice referred to in section 5108(e)
(relating to standard practice).
Special Provisions in Appendix.
See section 28 of Act 18 of 2001 in the appendix to this title for special provisions relating to applicability of transitional provisions.
Cross References.
Section 5104 is referred to in sections 5102, 5116, 9700 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 51 - Letters of Credit › Section 5105 - Consideration

§ 5105. Consideration.
Consideration is not required to issue, amend, transfer or cancel a letter of credit, advice or confirmation.
Special Provisions in Appendix.
See section 28 of Act 18 of 2001 in the appendix to this title for special provisions relating to applicability of transitional provisions.
Cross References.
Section 5105 is referred to in section 9700 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 51 - Letters of Credit › Section 5106 - Issuance, amendment, cancellation and duration

§ 5106. Issuance, amendment, cancellation and duration.
(a) Issuance; revocability.
--A letter of credit is issued and becomes enforceable according to its terms against the issuer when the issuer sends or otherwise transmits it to the person requested to advise or to the beneficiary. A letter of credit is revocable only if it so provides.
(b) Effect of amendment or cancellation in certain circumstances.
--After a letter of credit is issued, rights and obligations of a beneficiary, applicant, confirmer and issuer are not affected by an amendment or cancellation to which that person has not consented except to the extent the letter of credit provides that it is revocable or that the issuer may amend or cancel the letter of credit without that consent.
(c) No stated expiration date.
--If there is no stated expiration date or other provision that determines its duration, a letter of credit expires one year after its stated date of issuance or, if none is stated, after the date on which it is issued.
(d) Perpetual letters of credit.
--A letter of credit that states that it is perpetual expires five years after its stated date of issuance or, if none is stated, after the date on which it is issued.
Special Provisions in Appendix.
See section 28 of Act 18 of 2001 in the appendix to this title for special provisions relating to applicability of transitional provisions.
Cross References.
Section 5106 is referred to in sections 5103, 9700 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 51 - Letters of Credit › Section 5107 - Confirmer, nominated person and advisor

§ 5107. Confirmer, nominated person and adviser.
(a) Rights and obligations of a confirmer.
--A confirmer is directly obligated on a letter of credit and has the rights and obligations of an issuer to the extent of its confirmation. The confirmer also has rights against and obligations to the issuer as if the issuer were an applicant and the confirmer had issued the letter of credit at the request and for the account of the issuer.
(b) Nominated person.
--A nominated person who is not a confirmer is not obligated to honor or otherwise give value for a presentation.
(c) Advisers.
--A person requested to advise may decline to act as an adviser. An adviser that is not a confirmer is not obligated to honor or give value for a presentation. An adviser undertakes to the issuer and to the beneficiary accurately to advise the terms of the letter of credit, confirmation, amendment or advice received by that person and undertakes to the beneficiary to check the apparent authenticity of the request to advise. Even if the advice is inaccurate, the letter of credit, confirmation or amendment is enforceable as issued.
(d) Notice to transferee beneficiary.
--A person who notifies a transferee beneficiary of the terms of a letter of credit, confirmation, amendment or advice has the rights and obligations of an adviser under subsection (c). The terms in the notice to the transferee beneficiary may differ from the terms in any notice to the transferor beneficiary to the extent permitted by the letter of credit, confirmation, amendment or advice received by the person who so notifies.
Special Provisions in Appendix.
See section 28 of Act 18 of 2001 in the appendix to this title for special provisions relating to applicability of transitional provisions.
Cross References.
Section 5107 is referred to in section 9700 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 51 - Letters of Credit › Section 5109 - Fraud and forgery

§ 5109. Fraud and forgery.
(a) Fraud and forgery generally.
--If a presentation is made that appears on its face strictly to comply with the terms and conditions of the letter of credit, but a required document is forged or materially fraudulent, or honor of the presentation would facilitate a material fraud by the beneficiary on the issuer or applicant:
(1) the issuer shall honor the presentation if honor is demanded by:
(i) a nominated person who has given value in good faith and without notice of forgery or material fraud;
(ii) a confirmer who has honored its confirmation in good faith;
(iii) a holder in due course of a draft drawn under the letter of credit which was taken after acceptance by the issuer or nominated person; or
(iv) an assignee of the issuer's or nominated person's deferred obligation that was taken for value and without notice of forgery or material fraud after the obligation was incurred by the issuer or nominated person; and
(2) the issuer, acting in good faith, may honor or dishonor the presentation in any other case.
(b) Conditions for injunction.
--If an applicant claims that a required document is forged or materially fraudulent or that honor of the presentation would facilitate a material fraud by the beneficiary on the issuer or applicant, a court of competent jurisdiction may temporarily or permanently enjoin the issuer from honoring a presentation or grant similar relief against the issuer or other persons only if the court finds that:
(1) the relief is not prohibited under the law applicable to an accepted draft or deferred obligation incurred by the issuer;
(2) a beneficiary, issuer or nominated person who may be adversely affected is adequately protected against loss that it may suffer because the relief is granted;
(3) all of the conditions to entitle a person to the relief under the law of this Commonwealth have been met; and
(4) on the basis of the information submitted to the court, the applicant is more likely than not to succeed under its claim of forgery or material fraud and the person demanding honor does not qualify for protection under subsection (a)(1).
Special Provisions in Appendix.
See section 28 of Act 18 of 2001 in the appendix to this title for special provisions relating to applicability of transitional provisions.
Cross References.
Section 5109 is referred to in sections 2512, 5108, 5110, 5113, 9700 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 51 - Letters of Credit › Section 5110 - Warranties

§ 5110. Warranties.
(a) Warranties generally.
--If its presentation is honored, the beneficiary warrants:
(1) to the issuer, any other person to whom presentation is made and the applicant that there is no fraud or forgery of the kind described in section 5109(a) (relating to fraud and forgery generally); and
(2) to the applicant that the drawing does not violate any agreement between the applicant and beneficiary or any other agreement intended by them to be augmented by the letter of credit.
(b) Warranties arising under other divisions.
--The warranties in subsection (a) are in addition to warranties arising under Divisions 3 (relating to negotiable instruments), 4 (relating to bank deposits and collections), 7 (relating to warehouse receipts, bills of lading and other documents of title) and 8 (relating to investment securities) because of the presentation or transfer of documents covered by any of those divisions.
Special Provisions in Appendix.
See section 28 of Act 18 of 2001 in the appendix to this title for special provisions relating to applicability of transitional provisions.
Cross References.
Section 5110 is referred to in sections 5108, 9700 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 51 - Letters of Credit › Section 5111 - Remedies

§ 5111. Remedies.
(a) Wrongful dishonor or repudiation before presentation.
-- If an issuer wrongfully dishonors or repudiates its obligation to pay money under a letter of credit before presentation, the beneficiary, successor or nominated person presenting on its own behalf may recover from the issuer the amount that is the subject of the dishonor or repudiation. If the issuer's obligation under the letter of credit is not for the payment of money, the claimant may obtain specific performance or, at the claimant's election, recover an amount equal to the value of performance from the issuer. In either case, the claimant may also recover incidental but not consequential damages. The claimant is not obligated to take action to avoid damages that might be due from the issuer under this subsection. If, although not obligated to do so, the claimant avoids damages, the claimant's recovery from the issuer must be reduced by the amount of damages avoided. The issuer has the burden of proving the amount of damages avoided. In the case of repudiation the claimant need not present any document.
(b) Wrongful dishonor upon presentation; wrongful honor.
--If an issuer wrongfully dishonors a draft or demand presented under a letter of credit or honors a draft or demand in breach of its obligation to the applicant, the applicant may recover damages resulting from the breach, including incidental but not consequential damages, less any amount saved as a result of the breach.
(c) Certain other breaches.
--If an adviser or nominated person other than a confirmer breaches an obligation under this division or an issuer breaches an obligation not covered in subsection (a) or (b), a person to whom the obligation is owed may recover damages resulting from the breach, including incidental but not consequential damages, less any amount saved as a result of the breach. To the extent of the confirmation, a confirmer has the liability of an issuer specified in this subsection and subsections (a) and (b).
(d) Interest.
--An issuer, nominated person or advisor who is found liable under subsection (a), (b) or (c) shall pay interest on the amount owed thereunder from the date of wrongful dishonor or other appropriate date.
(e) Attorney fees.
--Reasonable attorney fees and other expenses of litigation may be awarded to the prevailing party in an action in which a remedy is sought under this division.
(f) Liquidated damages.
--Damages that would otherwise be payable by a party for breach of an obligation under this division may be liquidated by agreement or undertaking but only in an amount or by a formula that is reasonable in light of the harm anticipated.
Special Provisions in Appendix.
See section 28 of Act 18 of 2001 in the appendix to this title for special provisions relating to applicability of transitional provisions.
Cross References.
Section 5111 is referred to in section 9700 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 51 - Letters of Credit › Section 5112 - Transfer of letter of credit

§ 5112. Transfer of letter of credit.
(a) Transfer generally.
--Except as otherwise provided in section 5113 (relating to transfer by operation of law), unless a letter of credit provides that it is transferable, the right of a beneficiary to draw or otherwise demand performance under a letter of credit may not be transferred.
(b) Limitations on duty to recognize or carry out a transfer.
--Even if a letter of credit provides that it is transferable, the issuer may refuse to recognize or carry out a transfer if:
(1) the transfer would violate applicable law; or
(2) the transferor or transferee has failed to comply with any requirement stated in the letter of credit or any other requirement relating to transfer imposed by the issuer which is within the standard practice referred to in section 5108(e) (relating to standard practice and role of court) or is otherwise reasonable under the circumstances.
Special Provisions in Appendix.
See section 28 of Act 18 of 2001 in the appendix to this title for special provisions relating to applicability of transitional provisions.
Cross References.
Section 5112 is referred to in section 9700 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 51 - Letters of Credit › Section 5113 - Transfer by operation of law

§ 5113. Transfer by operation of law.
(a) Undisclosed successor.
--A successor of a beneficiary may consent to amendments, sign and present documents and receive payment or other items of value in the name of the beneficiary without disclosing its status as a successor.
(b) Disclosed successor.
--A successor of a beneficiary may consent to amendments, sign and present documents and receive payment or other items of value in its own name as the disclosed successor of the beneficiary. Except as otherwise provided in subsection (e), an issuer shall recognize a disclosed successor of a beneficiary as beneficiary in full substitution for its predecessor upon compliance with the requirements for recognition by the issuer of a transfer of drawing rights by operation of law under the standard practice referred to in section 5108(e) (relating to standard practice) or, in the absence of such a practice, compliance with other reasonable procedures sufficient to protect the issuer.
(c) Determination of successor status, signature.
--An issuer is not obliged to determine whether a purported successor is a successor of a beneficiary or whether the signature of a purported successor is genuine or authorized.
(d) Effect of honor of presentation by purported successor.
--Honor of a purported successor's apparently complying presentation under subsection (a) or (b) has the consequences specified in section 5108(i) (relating to certain consequences of honor) even if the purported successor is not the successor of a beneficiary. Documents signed in the name of the beneficiary or of a disclosed successor by a person who is neither the beneficiary nor the successor of the beneficiary are forged documents for the purposes of section 5109 (relating to fraud and forgery).
(e) Right to decline to recognize presentation.
--An issuer whose rights of reimbursement are not covered by subsection (d) or substantially similar law and any confirmer or nominated person may decline to recognize a presentation under subsection (b).
(f) Change of name.
--A beneficiary whose name is changed after the issuance of a letter of credit has the same rights and obligations as a successor of a beneficiary under this section.
Special Provisions in Appendix.
See section 28 of Act 18 of 2001 in the appendix to this title for special provisions relating to applicability of transitional provisions.
Cross References.
Section 5113 is referred to in sections 5108, 5112, 9700 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 51 - Letters of Credit › Section 5114 - Assignment of proceeds

§ 5114. Assignment of proceeds.
(a) Definition.
--As used in this section, the term "proceeds of a letter of credit" means the cash, check, accepted draft or other item of value paid or delivered upon honor or giving of value by the issuer or any nominated person under the letter of credit. The term does not include a beneficiary's drawing rights or documents presented by the beneficiary.
(b) Beneficiary's right to assign proceeds.
--A beneficiary may assign its right to part or all of the proceeds of a letter of credit. The beneficiary may do so before presentation as a present assignment of its right to receive proceeds contingent upon its compliance with the terms and conditions of the letter of credit.
(c) Recognition of assignment of proceeds.
--An issuer or nominated person need not recognize an assignment of proceeds of a letter of credit until it consents to the assignment.
(d) Consent to assignment of proceeds.
--An issuer or nominated person has no obligation to give or withhold its consent to an assignment of proceeds of a letter of credit, but consent may not be unreasonably withheld if the assignee possesses and exhibits the letter of credit and presentation of the letter of credit is a condition to honor.
(e) Rights of transferee beneficiary or nominated person.
-- Rights of a transferee beneficiary or nominated person are independent of the beneficiary's assignment of the proceeds of a letter of credit and are superior to the assignee's right to the proceeds.
(f) Certain rights not affected; relationship to Division 9.
--Neither the rights recognized by this section between an assignee and an issuer, transferee beneficiary or nominated person nor the issuer's or nominated person's payment of proceeds to an assignee or a third person affect the rights between the assignee and any person other than the issuer, transferee beneficiary or nominated person. The mode of creating and perfecting a security interest in or granting an assignment of a beneficiary's right to proceeds is governed by Division 9 (relating to secured transactions) or other law. Against persons other than the issuer, transferee beneficiary or nominated person, the rights and obligations arising upon the creation of a security interest or other assignment of a beneficiary's right to proceeds and its perfection are governed by Division 9 or other law.
Special Provisions in Appendix.
See section 28 of Act 18 of 2001 in the appendix to this title for special provisions relating to applicability of transitional provisions.
Cross References.
Section 5114 is referred to in sections 5103, 9102, 9107, 9109, 9700 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 51 - Letters of Credit › Section 5115 - Statute of limitations

§ 5115. Statute of limitations.
An action to enforce a right or obligation arising under this division must be commenced within one year after the expiration date of the relevant letter of credit or one year after the cause of action accrues, whichever occurs later. A cause of action accrues when the breach occurs, regardless of the aggrieved party's lack of knowledge of the breach, except that, in the event of a fraud or forgery adversely affecting the aggrieved party, a cause of action accrues on the earlier of the date on which the fraud or forgery was discovered by the aggrieved party or the date on which the fraud or forgery could have been discovered by the aggrieved party by the exercise of reasonable diligence.
Special Provisions in Appendix.
See section 28 of Act 18 of 2001 in the appendix to this title for special provisions relating to applicability of transitional provisions.
Cross References.
Section 5115 is referred to in section 9700 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 51 - Letters of Credit › Section 5116 - Choice of law and forum

§ 5116. Choice of law and forum.
(a) Express choice of law.--
The liability of an issuer, nominated person or advisor for action or omission is governed by the law of the jurisdiction chosen by an agreement in the form of a record signed or otherwise authenticated by the affected parties in the manner provided in section 5104 (relating to formal requirements) or by a provision in the person's letter of credit, confirmation or other undertaking. The jurisdiction whose law is chosen need not bear any relation to the transaction.
(b) Governing law otherwise.--
Unless subsection (a) applies, the liability of an issuer, nominated person or adviser for action or omission is governed by the law of the jurisdiction in which the person is located. The person is considered to be located at the address indicated in the person's undertaking. If more than one address is indicated, the person is considered to be located at the address from which the person's undertaking was issued. For the purpose of jurisdiction, choice of law and recognition of interbranch letters of credit, but not enforcement of a judgment, all branches of a bank are considered separate juridical entities, and a bank is considered to be located at the place where its relevant branch is considered to be located under this subsection.
(c) Role of custom or practice.--
Except as otherwise provided in this subsection, the liability of an issuer, nominated person or adviser is governed by any rules of custom or practice, such as the Uniform Customs and Practice for Documentary Credits, to which the letter of credit, confirmation or other undertaking is expressly made subject. If:
(1) this division would govern the liability of an issuer, nominated person or adviser under subsection (a) or (b);
(2) the relevant undertaking incorporates rules of custom or practice; and
(3) there is conflict between this division and those rules as applied to that undertaking;
those rules govern except to the extent of any conflict with the nonvariable provisions specified in section 5103(c) (relating to variation by agreement or undertaking).
(d) Conflict with certain other divisions.--
If there is conflict between this division and Division 3 (relating to negotiable instruments), 4 (relating to bank deposits and collections), 4A (relating to funds transfers) or 9 (relating to secured transactions), this division governs.
(e) Forum.--
The forum for settling disputes arising out of an undertaking within this division may be chosen in the manner and with the binding effect that governing law may be chosen in accordance with subsection (a).
Special Provisions in Appendix.
See section 28 of Act 18 of 2001 in the appendix to this title for special provisions relating to applicability of transitional provisions.
Cross References.
Section 5116 is referred to in sections 1301, 9306 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 51 - Letters of Credit › Section 5117 - Subrogation of issuer, applicant and nominated person

§ 5117. Subrogation of issuer, applicant and nominated person.
(a) Subrogation rights of issuer.
--An issuer that honors a beneficiary's presentation is subrogated to the rights of the beneficiary to the same extent as if the issuer were a secondary obligor of the underlying obligation owed to the beneficiary and of the applicant to the same extent as if the issuer were the secondary obligor of the underlying obligation owed to the applicant.
(b) Subrogation rights of applicant.
--An applicant that reimburses an issuer is subrogated to the rights of the issuer against any beneficiary, presenter or nominated person to the same extent as if the applicant were the secondary obligor of the obligations owed to the issuer and has the rights of subrogation of the issuer to the rights of the beneficiary stated in subsection (a).
(c) Subrogation rights of nominated person.
--A nominated person who pays or gives value against a draft or demand presented under a letter of credit is subrogated to the rights of:
(1) the issuer against the applicant to the same extent as if the nominated person were a secondary obligor of the obligation owed to the issuer by the applicant;
(2) the beneficiary to the same extent as if the nominated person were a secondary obligor of the underlying obligation owed to the beneficiary; and
(3) the applicant to the same extent as if the nominated person were a secondary obligor of the underlying obligation owed to the applicant.
(d) Time at which subrogation rights arise.
--Notwithstanding any agreement or term to the contrary, the rights of subrogation stated in subsections (a) and (b) do not arise until the issuer honors the letter of credit or otherwise pays and the rights in subsection (c) do not arise until the nominated person pays or otherwise gives value. Until then, the issuer, nominated person and the applicant do not derive under this section present or prospective rights forming the basis of a claim, defense or excuse.
Special Provisions in Appendix.
See section 28 of Act 18 of 2001 in the appendix to this title for special provisions relating to applicability of transitional provisions.
Cross References.
Section 5117 is referred to in sections 5103, 5108, 9700 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 51 - Letters of Credit › Section 5118 - Security interest of issuer or nominated person

§ 5118. Security interest of issuer or nominated person.
(a) General rule.
--An issuer or nominated person has a security interest in a document presented under a letter of credit to the extent that the issuer or nominated person honors or gives value for the presentation.
(b) Duration.
--So long as and to the extent that an issuer or nominated person has not been reimbursed or has not otherwise recovered the value given with respect to a security interest in a document under subsection (a), the security interest continues and is subject to Division 9 (relating to secured transactions), but:
(1) a security agreement is not necessary to make the security interest enforceable under section 9203(b)(3)
(relating to attachment and enforceability of security interest; proceeds; supporting obligations; formal requisites);
(2) if the document is presented in a medium other than a written or other tangible medium, the security interest is perfected; and
(3) if the document is presented in a written or other tangible medium and is not a certificated security, chattel paper, a document of title, an instrument or a letter of credit, the security interest is perfected and has priority over a conflicting security interest in the document so long as the debtor does not have possession of the document.
Cross References.
Section 5118 is referred to in sections 9102, 9109, 9203, 9309, 9322 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 61 - Bulk Transfers (Repealed) › Section 6101 - § 6111 - (Repealed)

1992 Repeal Note.
Division 6 (Chapter 61) was added November 1, 1979, P.L.255, No.86, and repealed July 9, 1992, P.L.507, No.97, effective in one year. Section 30 of Act 97 provided that rights and obligations that arose under Division 6 before its repeal remain valid and may be enforced as though those provisions had not been repealed.
CHAPTER 61
BULK TRANSFERS
(Repealed)
1992 Repeal Note.
Chapter 61 (§§ 6101 - 6111) was added November 1, 1979, P.L.255, No.86, and repealed July 9, 1992, P.L.507, No.97, effective in one year.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 71 - General › Extra - Chapter Notes

Enactment.
Chapter 71 was added April 16, 2008, P.L.57, No.13, effective in 60 days.
Prior Provisions.
Former Chapter 71, which related to the same subject matter, was added November 1,
            1979, P.L.255, No.86, and repealed April 16, 2008, P.L.57, No.13, effective in 60
            days.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 71 - General › Section 7102 - Definitions and index of definitions

§ 7102. Definitions and index of definitions.
(a) Division 7 definitions.
--The following words and phrases when used in this division shall have, unless the context clearly indicates otherwise, the meanings given to them in this subsection:
"Bailee."
A person that by a warehouse receipt, bill of lading or other document of title acknowledges possession of goods and contracts to deliver them.
"Carrier."
A person that issues a bill of lading.
"Consignee."
A person named in a bill of lading to which or to whose order the bill promises delivery.
"Consignor."
A person named in a bill of lading as the person from which the goods have been received for shipment.
"Delivery order."
A record that contains an order to deliver goods directed to a warehouse, carrier or other person that in the ordinary course of business issues warehouse receipts or bills of lading.
"Goods."
All things that are treated as movable for the purposes of a contract for storage or transportation.
"Issuer."
A bailee that issues a document of title or, in the case of an unaccepted delivery order, the person that orders the possessor of goods to deliver. The term includes a person for which an agent or employee purports to act in issuing a document if the agent or employee has real or apparent authority to issue documents even if the issuer did not receive any goods, the goods were misdescribed or in any other respect the agent or employee violated the issuer's instructions.
"Person entitled under the document."
The holder, in the case of a negotiable document of title, or the person to which delivery of the goods is to be made by the terms of or pursuant to instructions in a record under a nonnegotiable document of title.
"Shipper."
A person that enters into a contract of transportation with a carrier.
"Sign."
With present intent to authenticate or adopt a record:
(1) to execute or adopt a tangible symbol; or
(2) to attach to or logically associate with the record an electronic sound, symbol or process.
"Warehouse."
A person engaged in the business of storing goods for hire.
(b) Definitions in other divisions.
--Definitions in other divisions applying to this division and the sections in which they appear are:
(1) "Contract for sale." Section 2106 (relating to definitions: "contract"; "agreement"; "contract for sale";
"sale"
;
"present sale"
;
"conforming"
to contract;
"termination"
;
"cancellation"
).
(2) "Lessee in ordinary course of business." Section 2A103 (relating to definitions and index of definitions).
(3) "Receipt." Section 2103 (relating to definitions and index of definitions).
(c) Division 1 definitions and principles.
--In addition, Division 1 (relating to general provisions) contains general definitions and principles of construction and interpretation applicable throughout this division.
Cross References.
Section 7102 is referred to in sections 2103, 9102 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 71 - General › Section 7103 - Relation of division to treaty or statute

§ 7103. Relation of division to treaty or statute.
(a) Hierarchy.
--This division is subject to any treaty or statute of the United States or a regulatory statute of this Commonwealth to the extent the treaty, statute or regulatory statute is applicable.
(b) No repeal or modification.
--This division 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 businesses in respects not specifically treated in this division. However, violation of these laws does not affect the status of a document of title that otherwise is within the definition of a document of title.
(c) Electronic Signatures in Global and National Commerce Act.
--This title modifies, limits and supersedes the Electronic Signatures in Global and National Commerce Act (Public Law 106- 229, 15 U.S.C. § 7001 et seq.) but does not modify, limit or supersede section 101(c) of that act (15 U.S.C. § 7001(c)) or authorize electronic delivery of any of the notices described in section 103(b) of that act (15 U.S.C. § 7003(b)).
(d) Conflict.
--To the extent there is a conflict between Chapter 1, 3 or 5 of the act of December 16, 1999 (P.L.971, No.69), known as the Electronic Transactions Act, and this division, this division governs.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 71 - General › Section 7104 - Negotiable and nonnegotiable document of title

§ 7104. Negotiable and nonnegotiable document of title.
(a) Negotiable.
--Except as otherwise provided in subsection (c), document of title is negotiable if, by its terms, the goods are to be delivered to the bearer or to the order of a named person.
(b) Nonnegotiable.
--A document of title other than one described in subsection (a) 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.
(c) Legend determinative.
--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.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 71 - General › Section 7105 - Reissuance in alternative medium

§ 7105. Reissuance in alternative medium.
(a) Authority for electronic to tangible.
--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:
(1) the person entitled under the electronic document surrenders control of the document to the issuer; and
(2) the tangible document, when issued, contains a statement that it is issued in substitution for the electronic document.
(b) Effect of electronic to tangible.
--Upon issuance of a tangible document of title in substitution for an electronic document of title in accordance with subsection (a):
(1) the electronic document ceases to have any effect or validity; and
(2) the person that procured issuance of the tangible document warrants to all subsequent persons entitled under the tangible document that the warrantor was a person entitled under the electronic document when the warrantor surrendered control of the electronic document to the issuer.
(c) Authority for tangible to electronic.
--Upon request of a person entitled under a tangible document of title, the issuer of the tangible document may issue an electronic document of title as a substitute for the tangible document if:
(1) the person entitled under the tangible document surrenders possession of the document to the issuer; and
(2) the electronic document, when issued, contains a statement that it is issued in substitution for the tangible document.
(d) Effect of tangible to electronic.
--Upon issuance of the electronic document of title in substitution for a tangible document of title in accordance with subsection (c):
(1) the tangible document ceases to have any effect or validity; and
(2) 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.
Cross References.
Section 7105 is referred to in sections 7305, 7402 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 71 - General › Section 7106 - Control of electronic document of title

§ 7106. Control of electronic document of title.
(a) Establishment.
--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.
(b) Manner.
--A system satisfies subsection (a) 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:
(1) a single authoritative copy of the document exists which is unique, identifiable and, except as otherwise provided in paragraphs (4), (5) and (6), unalterable;
(2) the authoritative copy identifies the person asserting control as:
(i) the person to which the document was issued; or
(ii) if the authoritative copy indicates that the document has been transferred, the person to which the document was most recently transferred;
(3) the authoritative copy is communicated to and maintained by the person asserting control or its designated custodian;
(4) copies or amendments that add or change an identified assignee of the authoritative copy can be made only with the consent of the person asserting control;
(5) each copy of the authoritative copy and any copy of a copy is readily identifiable as a copy that is not the authoritative copy; and
(6) any amendment of the authoritative copy is readily identifiable as authorized or unauthorized.
Cross References.
Section 7106 is referred to in sections 2103, 4104, 9102, 9203, 9207, 9314, 9601 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 72 - Warehouse Receipts: Special Provisions › Extra - Chapter Notes

Enactment.
Chapter 72 was added April 16, 2008, P.L.57, No.13, effective in 60 days.
Prior Provisions.
Former Chapter 72, which related to the same subject matter, was added November 1,
            1979, P.L.255, No.86, and repealed April 16, 2008, P.L.57, No.13, effective in 60
            days.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 72 - Warehouse Receipts: Special Provisions › Section 7201 - Person that may issue a warehouse receipt; storage under bond

§ 7201. Person that may issue a warehouse receipt; storage under bond.
(a) Issuer.--
A warehouse receipt may be issued by any warehouse.
(b) Storage under bond.--
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.
Cross References.
Section 7201 is referred to in section 9102 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 72 - Warehouse Receipts: Special Provisions › Section 7202 - Form of warehouse receipt; effect of omission

§ 7202. Form of warehouse receipt; effect of omission.
(a) Form.
--A warehouse receipt need not be in any particular form.
(b) Effect of omission.
--Unless a warehouse receipt provides for each of the following, the warehouse is liable for damages caused to a person injured by its omission:
(1) a statement of the location of the warehouse facility where the goods are stored;
(2) the date of issue of the receipt;
(3) the unique identification code of the receipt;
(4) a statement whether the goods received will be delivered to the bearer, to a named person or its order;
(5) the rate of storage and handling charges, unless goods are stored under a field warehousing arrangement, in which case a statement of that fact is sufficient on a nonnegotiable receipt;
(6) a description of the goods or the packages containing them;
(7) the signature of the warehouse or its agent;
(8) if the receipt is issued for goods that the warehouse owns, either solely, jointly or in common with others, a statement of the fact of that ownership; and
(9) a statement of the amount of advances made and of liabilities incurred for which the warehouse claims a lien or security interest, unless the precise amount of advances made or of liabilities incurred, at the time of the issue of the receipt, is unknown to the warehouse or to its agent that issued the receipt, in which case a statement of the fact that advances have been made or liabilities incurred and the purpose of the advances or liabilities is sufficient.
(c) Permissible terms.
--A warehouse may insert in its receipt any terms that are not contrary to this title and do not impair its obligation of delivery under section 7403 (relating to obligation of bailee to deliver; excuse) or its duty of care under section 7204 (relating to duty of care; contractual limitation of warehouse's liability). Any contrary provision is ineffective.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 72 - Warehouse Receipts: Special Provisions › Section 7203 - Liability for nonreceipt or misdescription

§ 7203. 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.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 72 - Warehouse Receipts: Special Provisions › Section 7204 - Duty of care; contractual limitation of warehouse's liability

§ 7204. Duty of care; contractual limitation of warehouse's
liability.
(a) Duty of care.
--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.
(b) Contractual limitation.
--Damages may be limited by a term in the warehouse receipt or storage agreement limiting the amount of liability in case of loss or damage beyond which the warehouse is not liable. Such a limitation is not effective with respect to the warehouse's liability for conversion to its own use. On request of the bailor in a record at the time of signing the storage agreement or within a reasonable time after receipt of the warehouse receipt, the warehouse's liability may be increased on part or all of the goods covered by the storage agreement or the warehouse receipt. In this event, increased rates may be charged based on an increased valuation of the goods.
(c) Claim presentation.
--Reasonable provisions as to the time and manner of presenting claims and commencing actions based on the bailment may be included in the warehouse receipt or storage agreement.
Cross References.
Section 7204 is referred to in section 7202 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 72 - Warehouse Receipts: Special Provisions › Section 7205 - Title under warehouse receipt defeated in certain cases

§ 7205. 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.
Cross References.
Section 7205 is referred to in section 7502 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 72 - Warehouse Receipts: Special Provisions › Section 7206 - Termination of storage at warehouse's option

§ 7206. Termination of storage at warehouse's option.
(a) Payment and removal.
--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 section 7210 (relating to enforcement of warehouse's lien).
(b) Perishable goods.
--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 (a) and section 7210, the warehouse may specify in the notice given under subsection (a) 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.
(c) Hazardous goods.
--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.
(d) Demand.
--A warehouse shall deliver the goods to any person entitled to them under this division upon due demand made at any time before sale or other disposition under this section.
(e) Lien satisfaction.
--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.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 72 - Warehouse Receipts: Special Provisions › Section 7207 - Goods must be kept separate; fungible goods

§ 7207. Goods must be kept separate; fungible goods.
(a) Separation.
--
(1) Unless the warehouse receipt provides otherwise, except as set forth in paragraph (2), a warehouse shall keep separate the goods covered by each receipt so as to permit at all times identification and delivery of those goods.
(2) Different lots of fungible goods may be commingled.
(b) Fungible goods.
--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.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 72 - Warehouse Receipts: Special Provisions › Section 7208 - Altered warehouse receipts

§ 7208. 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.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 73 - Bills of Lading: Special Provisions › Extra - Chapter Notes

Enactment.
Chapter 73 was added April 16, 2008, P.L.57, No.13, effective in 60 days.
Prior Provisions.
Former Chapter 73, which related to the same subject matter, was added November 1,
            1979, P.L.255, No.86, and repealed April 16, 2008, P.L.57, No.13, effective in 60
            days.