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§ 7502. Rights acquired by due negotiation

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 13 Pa.C.S.A. Commercial CodeEffective: June 16, 2008

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 13 Pa.C.S.A. Commercial Code (Refs & Annos)
Division 7. Warehouse Receipts, Bills of Lading and Other Documents of Title (Refs & Annos)
Chapter 75. Warehouse Receipts and Bills of Lading: Negotiation and Transfer (Refs & Annos)
Effective: June 16, 2008
13 Pa.C.S.A. § 7502
§ 7502. Rights acquired by due negotiation
Currentness
(a) Rights.--Subject to sections 7205 (relating to title under warehouse receipt defeated in certain cases) and 7503 (relating to document of title to goods defeated in certain cases), a holder to which a negotiable document of title has been duly negotiated acquires thereby all of the following:
(1) Title to the document.
(2) Title to the goods.
(3) All rights accruing under the law of agency or estoppel, including rights to goods delivered to the bailee after the document was issued.
(4) The direct obligation of the issuer to hold or deliver the goods according to the terms of the document free of any defense or claim by the issuer except those arising under the terms of the document or under this division. In the case of a delivery order, the bailee's obligation accrues only upon the bailee's acceptance of the delivery order, and the obligation acquired by the holder is that the issuer and any indorser will procure the acceptance of the bailee.
(b) Effect of stoppage or surrender.--Subject to section 7503, title and rights acquired by due negotiation are not defeated by any stoppage of the goods represented by the document of title or by surrender of the goods by the bailee and are not impaired even if:
(1) the due negotiation or any prior due negotiation constituted a breach of duty;
(2) any person has been deprived of possession of a negotiable tangible document or control of a negotiable electronic document by misrepresentation, fraud, accident, mistake, duress, loss, theft or conversion; or
(3) a previous sale or other transfer of the goods or document has been made to a third person.

Credits

2008, April 16, P.L. 57, No. 13, § 13, effective in 60 days [June 16, 2008].
13 Pa.C.S.A. § 7502, PA ST 13 Pa.C.S.A. § 7502
Current through Act 11 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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