reglab/statecodes huggingface dataset:
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 49 - Letters of Credit (§§ 1201-1217 — 1237) › § 1230 - Remedies

(a) 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) 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) If an adviser or nominated person other than a confirmed breaches an obligation under §§ 1221-1236 of this title or an issuer breaches an obligation not covered in subsection (a) or (b) of this section, 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 confirmed has the liability of an issuer specified in this subsection and subsections (a) and (b) of this section.
(d) An issuer, nominated person, or adviser who is found liable under subsection (a), (b), or (c) of this section shall pay interest on the amount owed thereunder from the date of wrongful dishonor or other appropriate date.
(e) Reasonable attorney’s fees and other expenses of litigation must be awarded to the prevailing party in an action in which a remedy is sought under §§ 1221-1236 of this title.
(f) Damages that would otherwise be payable by a party for breach of an obligation under §§ 1221-1236 of this title 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.
History —Sept. 19, 1996, No. 241, added as § 5-111 on Dec. 31, 1997, No. 214, § 1, eff. Jan. 1, 1998.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 49 - Letters of Credit (§§ 1201-1217 — 1237) › § 1231 - Transfer of letter of credit

(a) Except as otherwise provided in § 1232 of this title, 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) 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 § 1227(e) of this title or is otherwise reasonable under the circumstances.
History —Sept. 19, 1996, No. 241, added as § 5-112 on December 31, 1997, No. 214, § 1, eff. Jan. 1, 1998.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 49 - Letters of Credit (§§ 1201-1217 — 1237) › § 1232 - Transfer by operation of law

(a) 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) 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) of this section, 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 § 1227(e) of this title or, in the absence of such a practice, compliance with other reasonable procedures sufficient to protect the issuer.
(c) 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) Honor of a purported successor apparently complying presentation under subsection (a) or (b) of this section has the consequences specified in § 1227(i) of this title 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 § 1228 of this title.
(e) An issuer whose rights of reimbursement are not covered by subsection (d) of this section or substantially similar law and any confirmed or nominated person may decline to recognize a presentation under subsection (b) of this section.
(f) 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.
History —Sept. 19, 1996, No. 241, added as § 5-113 on Dec. 31, 1997, No. 214, § 1, eff. Jan. 1, 1998.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 49 - Letters of Credit (§§ 1201-1217 — 1237) › § 1233 - Assignment of proceeds

(a) In this section, “proceeds of a letter of credit” means the cash, check, accepted draft, or other items of value paid or delivered upon honor or giving of value by the issuer or any nominated person under the letter of credit. The terms does not include a beneficiary’s drawing rights or documents presented by the beneficiary.
(b) A beneficiary may assign its right to a 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) An issuer or nominated person need not recognize an assignment of proceeds of a letter of credit until it consents to the assignment.
(d) 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 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) 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 rights to proceeds is governed by §§ 2001-2207 of this title 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 rights to proceeds and its perfection are governed by §§ 2001-2207 of this title or other law.
History —Sept. 19, 1996, No. 241, added as § 5-114 on Dec. 31, 1997, No. 214, § 1, eff. January 1, 1998.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 49 - Letters of Credit (§§ 1201-1217 — 1237) › § 1234 - Statute of limitations

An action to enforce a right or obligation arising under §§ 1221-1236 of this title 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.
History —Sept. 19, 1996, No. 241, added as § 5-115 on Dec. 31, 1997, No. 214, § 1, eff. Jan. 1, 1998.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 49 - Letters of Credit (§§ 1201-1217 — 1237) › § 1235 - Choice of law and forum

(a) The liability of an issuer, nominated person, or adviser 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 § 1223 of this title 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) Unless subsection (a) of this section 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 judicial 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) 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) Sections 1221-1236 of this title would govern the liability of an issuer, nominated person. or adviser under subsection (a) or (b) of this section,
(2) the relevant undertaking incorporates rules of custom or practice, and
(3) there is conflict between §§ 1221-1236 of this title and those rules as applied to that undertaking, those rules govern except to the extent of any conflict with the nonvariable provisions specified in § 1222(c) of this title.
(d) If there is conflict between §§ 1221-1236 of this title and §§ 501-1167 or §§ 2001-2207 of this title, §§ 1221-1236 of this title govern.
(e) The forum for settling disputes arising out of an undertaking within §§ 1221-1236 of this title may be chosen in the manner and with the binding effect that governing law may be chosen in accordance with subsection (a) of this section.
History —Sept. 19, 1996, No. 241, added as § 5-116 on Dec. 31, 1997, No. 214, § 1, eff. Jan. 1, 1998.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 49 - Letters of Credit (§§ 1201-1217 — 1237) › § 1236 - Subrogation of issuer, applicant, and nominated person

(a) 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) 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) of this section.
(c) 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 same extent as if the nominated person were a secondary obligor of the underlying obligation owed to the applicant.
(d) Notwithstanding any agreement or term to the contrary, the rights of subrogation stated in subsections (a) and (b) of this section do not arise until the issuer honors the letter of credit or otherwise pays and the rights in subsection (c) of this section 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.
History —Sept. 19, 1996, No. 241, added as § 5-177 on Dec. 31, 1997, No. 214, § 1, eff. Jan. 1, 1998.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 49 - Letters of Credit (§§ 1201-1217 — 1237) › § 1237 - Security interest of issuer or nominated person

(a) 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) 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) of this section, the security interest continues and is subject to §§ 2211 et seq. of this title, but:
(1) A security agreement is not necessary to make the security interest enforceable under § 2233(b)(3) of this title;
(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.
History —Jan. 17, 2012, No. 21, § 15.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 51 - Warehouse Receipts, Bills of Lading and Other Documents of Title (§§ 1401 — 1653) › Subchapter I - Bills of Lading: Special Provisions (§§ 1401 — 1405) › § 1401 - Title

Sections 1401-1653 of this title may be cited as Chapter 51: Documents of Title.
History —Aug. 17, 1995, No. 208, added as § 7-101 on Sept. 19, 1996, No. 241, § 11.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 51 - Warehouse Receipts, Bills of Lading and Other Documents of Title (§§ 1401 — 1653) › Subchapter I - Bills of Lading: Special Provisions (§§ 1401 — 1405) › § 1402 - Definitions and index of definitions

(1) In §§ 1401-1653 of this title, unless the context otherwise requires:
(a) Bailee. — Means the person who by a warehouse receipt, bill of lading or other document of title acknowledges possession of goods and contracts to deliver them.
(b) Consignee. — Means the person named in a bill to whom or to whose order the bill promises delivery.
(c) Consignor. — Means the person named in a bill as the person from whom the goods have been received for shipment.
(d) Delivery order. — Means a written order to deliver goods directed to a warehouseman, carrier or other person who in the ordinary course of business issues warehouse receipts or bills of lading.
(e) Document. — Means document of title as defined in the general definitions in §§ 401-458 of this title (§ 451 of this title).
(f) Goods. — Means all things which are treated as movable for the purposes of a contract of storage or transportation.
(g) Issuer. — Means a bailee who issues a document except that in relation to an unaccepted delivery order it means the person who orders the possessor of goods to deliver. Issuer includes any person for whom an agent or employee purports to act in issuing a document if the agent or employee has real or apparent authority to issue documents, notwithstanding that the issuer received no goods or that the goods were misdescribed or that in any other respect the agent or employee violated his instructions.
(h) Overseas. — Means a shipment by water or by air or a contract contemplating such shipment insofar as by usage of trade or agreement it is subject to commercial, financing or shipping practices characteristic of international deep water commerce.
(i) Receipt of goods. — Means taking physical possession of them.
(j) Warehouseman. — A person engaged in the business of storing goods for hire.
(2) Other definitions applying to §§ 1401-1653 of this title or to specified subchapters thereof, and the sections in which they appear are:
Duly negotiate § 1601
Person entitled under the document § 1553(4)
(3) Definitions in other chapters applying to §§ 1401-1653 of this title and the sections in which they appear are:
Contract for sale § 2005(f)
(4) In addition, §§ 401-458 of this title contain general definitions and principles of construction and interpretation applicable throughout §§ 1401-1653 of this title.
History —Aug. 17, 1995, No. 208, added as § 7-102 on Sept. 19, 1996, No. 241, § 11.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 51 - Warehouse Receipts, Bills of Lading and Other Documents of Title (§§ 1401 — 1653) › Subchapter I - Bills of Lading: Special Provisions (§§ 1401 — 1405) › § 1403 - Relation of §§ 1401-1653 of this title to treaty, statute, tariff, classification or regulation

To the extent that any treaty or statute of the United States, regulatory statute of Puerto Rico or tariff, classification or regulation filed or issued pursuant thereto is applicable, the provisions of §§ 1401-1653 of this title are subject thereto.
History —Aug. 17, 1995, No. 208, added as § 7-103 on Sept. 19, 1996, No. 241, § 11.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 51 - Warehouse Receipts, Bills of Lading and Other Documents of Title (§§ 1401 — 1653) › Subchapter I - Bills of Lading: Special Provisions (§§ 1401 — 1405) › § 1404 - Negotiable and non-negotiable warehouse receipt, bill of lading or other document or title

(1) A warehouse receipt, bill of lading or other document of title is negotiable
(a) If by its terms the goods are to be delivered to bearer or to the order of a named person, or
(b) where recognized in overseas trade, if it runs to a named person or assigns.
(2) Any other document is non-negotiable. A bill of lading in which it is stated 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 a written order signed by the same or another named person.
History —Aug. 17, 1995, No. 208, added as § 7-104 on Sept. 19, 1996, No. 241, § 11.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 51 - Warehouse Receipts, Bills of Lading and Other Documents of Title (§§ 1401 — 1653) › Subchapter I - Bills of Lading: Special Provisions (§§ 1401 — 1405) › § 1405 - Construction against negative implication

The omission from either Subchapter 2 or subchapter 3 of §§ 1401-1653 of this title of a provision corresponding to a provision made in the other subchapter does not imply that a corresponding rule of law is not applicable.
History —Aug. 17, 1995, No. 208, added as § 7-105 on Sept. 19, 1996, No. 241, art. 11.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 51 - Warehouse Receipts, Bills of Lading and Other Documents of Title (§§ 1401 — 1653) › Subchapter II - Warehouse Receipts: Special Provisions (§§ 1451 — 1460) › § 1451 - Who may issue a warehouse receipt; storage under government bond

(1) A warehouse receipt may be issued by any warehouseman.
(2) Where 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 has like effect as a warehouse receipt even though issued by a person who is the owner of the goods and is not a warehouseman.
History —Aug. 17, 1995, No. 208, added as § 7-201 on Sept. 19, 1996, No. 241, § 11.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 51 - Warehouse Receipts, Bills of Lading and Other Documents of Title (§§ 1401 — 1653) › Subchapter II - Warehouse Receipts: Special Provisions (§§ 1451 — 1460) › § 1452 - Form of warehouse receipt; essential terms; optional terms

(1) A warehouse receipt need not be in any particular form.
(2) Unless a warehouse receipt embodies within its written or printed terms each of the following, the warehouseman is liable for damages caused by the omission to a person injured thereby:
(a) The location of the warehouse where the goods are stored;
(b) the date of issue of the receipt;
(c) the consecutive number of the receipt;
(d) a statement whether the goods received will be delivered to the bearer, to a specified person, or to a specified person or his order;
(e) the rate of storage and handling charges, except that where goods are stored under a field warehousing arrangement a statement of that fact is sufficient on a non-negotiable receipt;
(f) a description of the goods or of the packages containing them;
(g) the signature of the warehouseman, which may be made by his authorized agent;
(h) if the receipt is issued for goods of which the warehouseman is owner, either solely or jointly or in common with others, the fact of such ownership, and
(i) a statement of the amount of advances made and of liabilities incurred for which the warehouseman claims a lien or security interest (§ 1459 of this title). If the precise amount of such advances made or of such liabilities incurred is, at the time of the issue of the receipt, unknown to the warehouseman or to his agent who issues it, a statement of the fact that advances have been made or liabilities incurred and the purpose thereof is sufficient.
(3) A warehouseman may insert in his receipt any other terms which are not contrary to the provisions of §§ 401 et seq. of this title and do not impair his obligation of delivery § 1553 of this title) or his duty of care § 1454 of this title). Any contrary provisions shall be ineffective.
History —Aug. 17, 1995, No. 208, added as § 7-202 on Sept. 19, 1996, No. 241, § 11.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 51 - Warehouse Receipts, Bills of Lading and Other Documents of Title (§§ 1401 — 1653) › Subchapter II - Warehouse Receipts: Special Provisions (§§ 1451 — 1460) › § 1453 - Liability for non-receipt or misdescription

A party to or purchaser for value in good faith of a document of title other than a bill of lading relying in either case upon the description therein of the goods may recover from the issuer damages caused by the non-receipt or misdescription of the goods, except to the extent that the document conspicuously indicates that the issuer does not know whether any part or all of the goods in fact were received or conform to the description, as where 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 the like, if such indication be true, or the party or purchaser otherwise has notice.
History —Aug. 17, 1995, No. 208, added as § 7-203 on Sept. 19, 1996, No. 241, § 11.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 51 - Warehouse Receipts, Bills of Lading and Other Documents of Title (§§ 1401 — 1653) › Subchapter II - Warehouse Receipts: Special Provisions (§§ 1451 — 1460) › § 1454 - Duty of care; contractual limitation of warehouseman’s liability

(1) A warehouseman is liable for damages for loss of or injury to the goods caused by his failure to exercise such care in regard to them as a reasonably careful man would exercise under like circumstances but unless otherwise agreed he is not liable for damages which could not have been avoided by the exercise of such care.
(2) 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, and setting forth a specific liability per article or item, or value per unit of weight, beyond which the warehouseman shall not be liable; provided, however, that such liability may on written request of the bailor at the time of signing such storage agreement or within a reasonable time after receipt of the warehouse receipt be increased on part or all of the goods thereunder, in which event increased rates may be charged based on such increased valuation, but that no such increase shall be permitted contrary to a lawful limitation of liability contained in the warehouseman’s tariff, if any. No such limitation is effective with respect to the warehouseman’s liability for conversion to his own use.
(3) Reasonable provisions as to the time and manner of presenting claims and instituting actions based on the bailment may be included in the warehouse receipt or tariff.
History —Aug. 17, 1995, No. 208, added as § 7-204 on Sept. 19, 1996, No. 241, § 11.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 51 - Warehouse Receipts, Bills of Lading and Other Documents of Title (§§ 1401 — 1653) › Subchapter II - Warehouse Receipts: Special Provisions (§§ 1451 — 1460) › § 1455 - Title under warehouse receipt defeated in certain cases

A buyer in the ordinary course of business of fungible goods sold and delivered by a warehouseman who is also in the business of buying and selling such goods takes free of any claim under a warehouse receipt even though it has been duly negotiated.
History —Aug. 17, 1995, No. 208, added as § 7-205 on Sept. 19, 1996, No. 241, § 11.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 51 - Warehouse Receipts, Bills of Lading and Other Documents of Title (§§ 1401 — 1653) › Subchapter II - Warehouse Receipts: Special Provisions (§§ 1451 — 1460) › § 1456 - Termination of storage at warehouseman’s option

(1) A warehouseman may on notifying the person on whose account the goods are held and any other person known to claim an interest in the goods 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, or, if no period is fixed, within a stated period not less than thirty days after the notification. If the goods are not removed before the date specified in the notification, the warehouseman may sell them in accordance with the provisions of the section on enforcement of a warehouseman’s lien (§ 1460 of this title).
(2) If a warehouseman in good faith believes that the goods are about to deteriorate or decline in value to less than the amount of his lien within the time prescribed in subsection (1) of this section for notification, advertisement and sale, the warehouseman may specify in the notification any reasonable shorter time for removal of the goods and in case 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 warehouseman had no notice at the time of deposit the goods are a hazard to other property or to the warehouse or to persons, the warehouseman may sell the goods at public or private sale without advertisement on reasonable notification to all persons known to claim an interest in the goods. If the warehouseman after a reasonable effort is unable to sell the goods he may dispose of them in any lawful manner and shall incur no liability by reason of such disposition.
(4) The warehouseman must deliver the goods to any person entitled to them under §§ 1401-1653 of this title upon due demand made at any time prior to sale or other disposition under this section.
(5) The warehouseman may satisfy his lien from the proceeds of any sale or disposition under this section but must hold the balance for delivery on the demand of any person to whom he would have been bound to deliver the goods.
History —Aug. 17, 1995, No. 208, added as § 7-206 on Sept. 19, 1996, No. 241, § 11.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 51 - Warehouse Receipts, Bills of Lading and Other Documents of Title (§§ 1401 — 1653) › Subchapter II - Warehouse Receipts: Special Provisions (§§ 1451 — 1460) › § 1457 - Goods must be kept separate; fungible goods

(1) Unless the warehouse receipt otherwise provides, a warehouseman must keep separate the goods covered by each receipt so as to permit at all times identification and delivery of those goods except that different lots of fungible goods may be commingled.
(2) Fungible goods so commingled are owned in common by the persons entitled thereto and the warehouseman is severally liable to each owner for that owner’s share. Where because of overissue a mass of fungible goods is insufficient to meet all the receipts which the warehouseman has issued against it, the persons entitled include all holders to whom overissued receipts have been duly negotiated.
History —Aug. 17, 1995, No. 208, added as § 7-207 on Sept. 19, 1996, No. 241, § 11.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 51 - Warehouse Receipts, Bills of Lading and Other Documents of Title (§§ 1401 — 1653) › Subchapter II - Warehouse Receipts: Special Provisions (§§ 1451 — 1460) › § 1458 - Altered warehouse receipts

Where a blank in a negotiable warehouse receipt has been filled in without authority, a purchaser for value and without notice of the want of authority may treat the insertion as authorized. Any other unauthorized alteration leaves any receipt enforceable against the issuer according to its original tenor.
History —Aug. 17, 1995, No. 208, added as § 7-208 on Sept. 19, 1996, No. 241, § 11.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 51 - Warehouse Receipts, Bills of Lading and Other Documents of Title (§§ 1401 — 1653) › Subchapter II - Warehouse Receipts: Special Provisions (§§ 1451 — 1460) › § 1459 - Lien of warehouseman

(1) A warehouseman has a lien against the bailor on the goods covered by a warehouse receipt or on the proceeds thereof in his possession for charges for storage or transportation (including demurrage and terminal charges), insurance, labor, or 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 like charges or expenses in relation to other goods whenever deposited and it is stated in the receipt that a lien is claimed for charges and expenses in relation to other goods, the warehouseman also has a lien against him for such charges and expenses whether or not the other goods have been delivered by the warehouseman. But against a person to whom a negotiable warehouse receipt is duly negotiated a warehouseman’s lien is limited to charges in an amount or at a rate specified on the receipt or if no charges are so specified then to a reasonable charge for storage of the goods covered by the receipt subsequent to the date of the receipt.
(2) The warehouseman may also reserve a security interest against the bailor for a 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. Such a security interest is governed by the chapter on secured transactions (§§ 2001-2207 of this title).
(3)
(a) A warehouseman’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 who so entrusted the bailor with possession of the goods that a pledge of them by him to a good faith purchaser for value would have been valid but is not effective against a person as to whom the document confers no right in the goods covered by it under § 1603 of this title.
(b) A warehouseman’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. “Household goods” means furniture, furnishings and personal effects used by the depositor in a dwelling.
(4) A warehouseman loses his lien on any goods which he voluntarily delivers or which he unjustifiably refuses to deliver.
History —Aug. 17, 1995, No. 208, added as § 7-209 on Sept. 19, 1996, No. 241, § 11.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 51 - Warehouse Receipts, Bills of Lading and Other Documents of Title (§§ 1401 — 1653) › Subchapter III - Bills of Lading: Special Provisions (§§ 1501 — 1509) › § 1501 - Liability for non-receipt or misdescription; “Said to contain”; “Shipper’s load and count”; improper handling

(1) A consignee of a non-negotiable bill who has given value in good faith or a holder to whom a negotiable bill has been duly negotiated relying in either case upon the description therein of the goods, or upon the date therein shown, may recover from the issuer damages caused by the misdating of the bill or the non-receipt or misdescription of the goods, except to the extent that the document indicates that the issuer does not know whether any part or all of the goods in fact were received or conform to the description, as where 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 the like, if such indication be true.
(2) When goods are loaded by an issuer who is a common carrier, the issuer must count the packages of goods if package freight and ascertain the kind and quantity if bulk freight. In such cases “shipper’s weight, load and count” or other words indicating that the description was made by the shipper are ineffective except as to freight concealed by packages.
(3) When bulk freight is loaded by a shipper who makes available to the issuer adequate facilities for weighing such freight, an issuer who is a common carrier must ascertain the kind and quantity within a reasonable time after receiving the written request of the shipper to do so. In such cases “shipper’s weight” or other words of like purport are ineffective.
(4) The issuer may by inserting in the bill the words “shipper’s weight, load and count” or other words of like purport indicate that the goods were loaded by the shipper; and if such statement be true the issuer shall not be liable for damages caused by the improper loading. But their omission does not imply liability for such damages.
(5) The shipper shall be deemed to have guaranteed to the issuer the accuracy at the time of shipment of the description, marks, labels, number, kind, quantity, condition and weight, as furnished by him; and the shipper shall indemnify the issuer against damage caused by inaccuracies in such particulars. The right of the issuer to such indemnity shall in no way limit his responsibility and liability under the contract of carriage to any person other than the shipper.
History —Aug. 17, 1995, No. 208, added as § 7-301 on Sept. 19, 1996, No. 241, § 11.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 51 - Warehouse Receipts, Bills of Lading and Other Documents of Title (§§ 1401 — 1653) › Subchapter III - Bills of Lading: Special Provisions (§§ 1501 — 1509) › § 1502 - Through bills of lading and similar documents

(1) The issuer of a through bill of lading or other document embodying an undertaking to be performed in part by persons acting as its agents or by connecting carriers is liable to anyone entitled to recover on the document for any breach by such other persons or by a connecting carrier of its obligation under the document but to the extent that the bill 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 may be varied by agreement of the parties.
(2) Where goods covered by a through bill of lading or other document embodying an undertaking to be performed in part by persons other than the issuer are received by any such person, he is subject with respect to his own performance while the goods are in his possession to the obligation of the issuer. His obligation is discharged by delivery of the goods to another such person pursuant to the document, and does not include liability for breach by any other such persons or by the issuer.
(3) The issuer of such through bill of lading or other document shall be entitled to recover from the connecting carrier or such other person in possession of the goods when the breach of the obligation under the document occurred, the amount it may be required to pay to anyone entitled to recover on the document therefor, as may be evidenced by any receipt, judgment, or transcript thereof, and the amount of any expense reasonably incurred by it in defending any action brought by anyone entitled to recover on the document therefor.
History —Aug. 17, 1995, No. 208, added as § 7-302 on Sept. 19, 1996, No. 241, § 11.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 51 - Warehouse Receipts, Bills of Lading and Other Documents of Title (§§ 1401 — 1653) › Subchapter III - Bills of Lading: Special Provisions (§§ 1501 — 1509) › § 1503 - Diversion; reconsignment; change of instructions

(1) Unless the bill of lading otherwise provides, the carrier may deliver the goods to a person or destination other than that stated in the bill or may otherwise dispose of the goods on instructions from
(a) The holder of a negotiable bill; or
(b) the consignor on a non-negotiable bill notwithstanding contrary instructions from the consignee; or
(c) the consignee on a non-negotiable bill in the absence of contrary instructions from the consignor, if the goods have arrived at the billed destination or if the consignee is in possession of the bill, or
(d) the consignee on a non-negotiable bill if he is entitled as against the consignor to dispose of them.
(2) Unless such instructions are noted on a negotiable bill of lading, a person to whom the bill is duly negotiated can hold the bailee according to the original terms.
History —Aug. 17, 1995, No. 208, added as § 7-303 on Sept. 19, 1996, No. 241, § 11.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 51 - Warehouse Receipts, Bills of Lading and Other Documents of Title (§§ 1401 — 1653) › Subchapter III - Bills of Lading: Special Provisions (§§ 1501 — 1509) › § 1504 - Bills of lading in a set

(1) Except where customary in overseas transportation, a bill of lading must not be issued in a set of parts. The issuer is liable for damages caused by violation of this subsection.
(2) Where a bill of lading is lawfully drawn in a set of parts, each of which is numbered and expressed to be valid only if the goods have not been delivered against any other part, the whole of the parts constitute one bill.
(3) Where a 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 whom the first due negotiation is made prevails as to both the document and the goods even though any later holder may have received the goods from the carrier in good faith and discharged the carrier’s obligation by surrender of his part.
(4) Any person who negotiates or transfers a single part of a bill of lading drawn in a set is liable to holders of that part as if it were the whole set.
(5) The bailee is obliged to deliver in accordance with §§ 1551-1554 of this title against the first presented part of a bill of lading lawfully drawn in a set. Such delivery discharges the bailee’s obligation on the whole bill.
History —Aug. 17, 1995, No. 208, added as § 7-304 on Sept. 19, 1996, No. 241, § 11.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 51 - Warehouse Receipts, Bills of Lading and Other Documents of Title (§§ 1401 — 1653) › Subchapter III - Bills of Lading: Special Provisions (§§ 1501 — 1509) › § 1505 - Destination bills

(1) Instead of issuing a bill of lading to the consignor at the place of shipment a carrier may at the request of the consignor procure the bill to be issued at destination or at any other place designated in the request.
(2) Upon request of anyone entitled as against the carrier to control the goods while in transit and on surrender of any outstanding bill of lading or other receipt covering such goods, the issuer may procure a substitute bill to be issued at any place designated in the request.
History —Aug. 17, 1995, No. 208, added as § 7-305 on Sept. 19, 1996, No. 241, § 11.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 51 - Warehouse Receipts, Bills of Lading and Other Documents of Title (§§ 1401 — 1653) › Subchapter III - Bills of Lading: Special Provisions (§§ 1501 — 1509) › § 1506 - 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.
History —Aug. 17, 1995, No. 208, added as § 7-306 on Sept. 19, 1996, No. 241, § 11.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 51 - Warehouse Receipts, Bills of Lading and Other Documents of Title (§§ 1401 — 1653) › Subchapter III - Bills of Lading: Special Provisions (§§ 1501 — 1509) › § 1507 - Lien of carrier

(1) A carrier has a lien on the goods covered by a bill of lading for charges subsequent to the date of its 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. But 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 then to a reasonable charge.
(2) A lien for charges and expenses under subsection (1) of this section on goods which 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 such charges and expenses. Any other lien under subsection (1) of this section is effective against the consignor and any person who permitted the bailor to have control or possession of the goods unless the carrier had notice that the bailor lacked such authority.
(3) A carrier loses his lien on any goods which he voluntarily delivers or which he unjustifiably refuses to deliver.
History —Aug. 17, 1995, No. 208, added as § 7-307 on Sept. 19, 1996, No. 241, § 11.