Warehouse Receipts Bills of Lading and Other Documents of

Chapter 77

1963 REPLACEMENT PART

Warehouse Receipts Bills of Lading and Other Documents of Title

773090 Duty of care contractual limitation of carGENERAL

771010 Short title771020 Definitions and index of definitions771030 Relation of ORS 771010 to 776040 to treaty

774020

statute tariff classification or regulation771040 Negotiable and nonnegotiable warehouse re

ceipt bill of lading or other document of

774040

title

771050 Construction against negative implication

WAREHOUSE RECEIPTS SPECIAL PROVISIONS

772010 Who may issue a warehouse receipt storage

Form of negotiation and requirements of

under government bond772020 Form of warehouse receipt essential terms

Rights acquired by due negotiation

optional terms772030 Liability for nonreceipt or misdescription772040 Duty of care contractual limitation of ware

Rights acquired in the absence of due nego

housemansliability772050 Title under warehouse receipt defeated in

page of delivery

certain cases

772060 Termination of storage at warehousemans

Delivery without indorsement right to com

option772070 Goods must be kept separate fungible goods772080 Altered warehouse receipts772090 Lien of warehouseman772100 Enforcement of warehousemanslien

BILLS OF LADING SPECIAL PROVISIONS

773010 Liability for nonreceipt or misdescriptionsaid to contain shippers load and

WAREHOUSE RECEIPTS AND BILLS OF

count improper handling773020 Through bills of lading and similar docu

776020

ments

773030 Diversion reconsignment change of in

776030

structions

773040 Bills of lading in a set773050 Destination bills

773060 Altered bills of lading773070 Lien of carrier778080 Enforcement of carrierslien

773090 Duty of care contractual limitation of car

CROSS REFERENCES

For Comments on 1958 Official Text of UniformCommercial Code and on ORS 771010 to 776040

see pamphlet Oregons Uniform CommercialCode published in 1962 by the LegislativeCounsel Committee

Validity of transactions entered into before September 1 1963 under laws amended or repealed byUniform Commercial Code 1961 c726 427

771040

Form of negotiable grain warehouse receipt 586360772020


Liens right of keeper of property to retain possessionpriority 87500

773010

Liability of carriers Ch 771

583

riers liability

WAREHOUSE RECEIPTS AND BILLS OFLADING GENERAL OBLIGATIONS

774010 Irregularities in issue of receipt or bill orconduct of issuer

774020 Duplicate receipt or bill overissue774030 Obligation of warehouseman or carrier to

deliver excuse774040 No liability for good faith delivery pursuant

to receipt or bill

WAREHOUSE RECEIPTS AND BILLS OF

LADING NEGOTIATION AND TRANSFER

775010 Form of negotiation and requirements ofdue negotiation

775020 Rights acquired by due negotiation775030 Document of title to goods defeated in cer

tain cases

775040 Rights acquired in the absence of due negotiation effect of diversion sellers stoppage of delivery

775050 Indorser not a guarantor for other parties775060 Delivery without indorsement right to com

pel indorsement775070 Warranties on negotiation or transfer of re

ceipt or bill775080 Warranties of collecting bank as to docu

ments

775090 Receipt or bill when adequate compliancewith commercial contract

WAREHOUSE RECEIPTS AND BILLS OFLADING MISCELLANEOUS PROVISIONS

776010 Lost and missing documents776020 Attachment of goods covered by a negoti

able document

776030 Conflicting claims interpleader776040 Laws not repealed

CROSS REFERENCES

For Comments on 1958 Official Text of UniformCommercial Code and on ORS 771010 to 776040

see pamphlet Oregons Uniform CommercialCode published in 1962 by the LegislativeCounsel Committee

Validity of transactions entered into before September 1 1963 under laws amended or repealed byUniform Commercial Code 1961 c726 427

771040



Liens right of keeper of property to retain possessionpriority 87500

773010

Liability of carriers Ch 771

583

771010

GENERAL

CONMERCIAL TRANSACTIONS

771010 Short title ORS 771010 to

776040 may be cited as Uniform CommercialCode Documents of Title1961 c726 771010

771020 Definitions and index of defi

nitions 1 In ORS 771010 to 776040 unless the context otherwise requires

a Bailee means the person who by awarehouse receipt bill of lading or otherdocument of title acknowledges possession ofgoods and contracts to deliver them

b Consignee means the person namedin a bill to whom or to whose order the bill

promises deliveryc Consignor means the person named

in a bill as the person from whom the goodshave been received for shipment

d Delivery order means a writtenorder to deliver goods directed to a warehouseman carrier or other person who in theordinary course of business issues warehousereceipts or bills of lading

e Document means document of titleas defined in ORS 712010

f Goods means all things which aretreated as movable for the purposes of acontract of storage or transportation

g Issuer means a bailee who issues adocument except that in relation to an unaccepted delivery order it means the personwho orders the possessor of goods to deliverIssuer includes any person for whom an agentor employe purports to act in issuing a document if the agent or employe has real orapparent authority to issue documents notwithstanding that the issuer received no goodsor that the goods were misdescribed or thatin any other respect the agent or employeviolated his instructions

h Warehouseman is a person engaged in the business of storing goods forhire

2 Other definitions applying to ORS771010 to 776040 and the sections in whichthey appear are

a Duly negotiate as defined in ORS775010 2 Any other document is nonnegoti

able A bill of lading in which it is stated thatthe goods are consigned to a named personis not made negotiable by a provision thatthe goods are to be delivered only against awritten order signed by the same or anothernamed person

5841961 c726 771040

b Person entitled under the document as defined in subsection 4 of ORS774030

3 Definitions in other sections whichapply to ORS 771010 to 776040 and the sections in which they appear are

a Contract for sale as defined inORS 721060

b Overseas as defined in ORS723230

c Receipt of goods as defined inORS 721030

4 In addition ORS 711010 to 712080contain general definitions and principles ofconstruction and interpretation applicablethroughout ORS 771010 to 7760401961 c726 771020

Definitional cross references

Bill of lading ORS 712010Contract ORS 712010

Contract for sale ORS 721060

Delivery ORS 712010

Document of title ORS 712010Person ORS 712010

Purchase ORS 712010

Receipt of goods ORS 721030

Rights ORS 712010

Warehouse receipt ORS 712010Written ORS 712010

771030 Relation of ORS 771010 to

776040 to treaty statute tariff classification or regulation To the extent that anytreaty or statute of the United States regulatory statute of this state or tariff classification or regulation filed or issued pursuant thereto is applicable the provisions ofORS 771010 to 776040 are subject thereto1961 c726 771030

Definitional cross reference

Bill of lading ORS 712010

771040 Negotiable and nonnegotiablewarehouse receipt bill of lading or otherdocument of title 1 A warehouse receiptbill of lading or other document of title isnegotiable

a If by its terms the goods are to bedelivered to bearer or to the order of a

named person orb Where recognized in overseas trade

if it runs to a named person or assigns

DOCUMENTS OF TITLE

Definitional cross referencesBearer ORS 712010Bill of lading ORS 712010Delivery ORS 712010Document of title ORS 712010Overseas ORS 723230Person ORS 712010Warehouse receipt ORS 712010

771050 Construction against negativeimplication The omission from ORS 772010to 772100 of a provision contained in ORS773010 to 773090 or the omission from ORS773010 to 773090 of a provision contained inORS 772010 to 772100 does not imply thata corresponding rule of law is not applicable1961 c726 771050

771060 to 772000 Reserved for expansion

WAREHOUSE RECEIPTSSPECIAL PROVISIONS

772010 Who may issue a warehouse receipt storage under government bond 1A warehouse receipt may be issued by anywarehouseman

2 Where goods including distilled spirits and agricultural commodities are storedunder a statute requiring a bond againstwithdrawal or a license for the issuance ofreceipts in the nature of warehouse receiptsa receipt issued for the goods has like effectas a warehouse receipt even though issued bya person who is the owner of the goods andis not a warehouseman

1961 c726 772010


Warehouse receipt ORS 712010Warehouseman ORS 771020

772020 Form of warehouse receipt essential terms optional terms 1 A warehouse receipt need not be in any particularform

2 Unless a warehouse receipt embodieswithin its written or printed terms each ofthe following the warehouseman is liable fordamages caused by the omission to a personinjured thereby

a The location of the warehouse wherethe goods are stored

b The date of issue of the receiptc The consecutive number of the re

ceiptd A statement whether the goods re

ceived will be delivered to the bearer to a

772030

specified person or to a specified person orhis order

e The rate of storage and handlingcharges except that where goods are storedunder a field warehousing arrangement astatement of that fact is sufficient on a nonnegotiable receiptf A description of the goods or of the

packages containing themg The signature of the warehouseman

which may be made by his authorized agenth If the receipt is issued for goods of

which the warehouseman is owner eithersolely or jointly or in common with othersthe fact of such ownership andi A statement of the amount of ad

vances made and of liabilities incurred forwhich the warehouseman claims a lien or se

curity interest pursuant to ORS 772090 Ifthe precise amount of such advances made orof such liabilities incurred is at the time ofthe issue of the receipt unknown to the warehouseman or to his agent who issues it astatement of the fact that advances havebeen made or liabilities incurred and the purpose thereof is sufficient

3 A warehouseman may insert in hisreceipt any other terms which are not contrary to the provisions of the Uniform Commercial Code and do not impair his obligationof delivery as set forth in ORS 774030 or hisduty of care as set forth in ORS 772040Any contrary provisions shall be ineffective1961 c726 772020


Bearer ORS 712010Delivery ORS 712010Goods ORS 771020

Person ORS 712010

Security interest ORS 712010Term ORS 712010

Warehouse receipt ORS 712010Warehouseman ORS 771020Written ORS 712010

772030 Liability for nonreceipt or misdescription A party to or purchaser forvalue in good faith of a document of titleother than a bill of lading relying in eithercase upon the description therein of the goodsmay recover from the issuer damages causedby the nonreceipt or misdescription of thegoods except to the extent that the document conspicuously indicates that the issuerdoes not know whether any part or all of thegoods in fact were received or conform tothe description as where the description is in

X85

772040 COYMMRCIAL TRANSACTIONS

terms of marks or labels or kind quantity orcondition or the receipt or description isqualified by contents condition and qualityunknown said to contain or the like ifsuch indication be true or the party or purchaser otherwise has notice1961 c726 772030


Conspicuous ORS 712010Document ORS 771020Document of title ORS 712010Goods ORS 771020Issuer ORS 771020Notice ORS 712010

Party ORS 712010Purchaser ORS 712010

Receipt of goods ORS 721030Value ORS 712010

772040 Duty of care contractual limitation of warehousemans liability 1 Awarehouseman is liable for damages for lossof or injury to the goods caused by his failure to exercise such care in regard to themas a reasonably careful man would exerciseunder like circumstances but unless other

wise agreed he is not liable for damageswhich could not have been avoided by theexercise of such care

2 Damages may be limited by a termin the warehouse receipt or storage agreement limiting the amount of liability in caseof loss or damage and setting forth a specific liability per article or item or value perunit of weight beyond which the warehouseman shall not be liable provided howeverthat such liability may on written request ofthe bailor at the time of signing such storageagreement or within a reasonable time afterreceipt of the warehouse receipt be increasedon part or all of the goods thereunder inwhich event increased rates may be chargedbased on such increased valuation but thatno such increase shall be permitted contraryto a lawful limitation of liability contained inthe warehousemanstariff if any No suchlimitation is effective with respect to thewarehousemans liability for conversion tohis own use

3 Reasonable provisions as to the timeand manner of presenting claims and instituting actions based on the bailment may beincluded in the warehouse receipt or tariff

4 This section does not repeal or

change any existing law or rule of law whichimposes a higher responsibility upon the

586

warehouseman or invalidates contractual limitations which would be permissible underORS 771010 to 7760401961 c726 772040

Definitional cross referencesAction ORS 712010

Agreed ORS 712010Goods ORS 771020Reasonable time ORS 712040Sign ORS 712010Term ORS 712010Value ORS 712010

Warehouse receipt ORS 712010Warehouseman ORS 771020Written ORS 712010

772050 Title under warehouse receiptdefeated in certain cases A buyer in the ordinary course of business of fungible goodssold and delivered by a warehouseman whois also in the business of buying and sellingsuch goods takes free of any claim under awarehouse receipt even though it has beenduly negotiated1961 c726 772050

Definitional cross referencesBuyer in ordinary course of

business ORS 712010Delivery ORS 712010Duly negotiate ORS 775010Fungible goods ORS 712010Goods ORS 771020Value ORS 712010


772060 Termination of storage at warehousemans option 1 A warehousemanmay on notifying the person on whose account the goods are held and any other person known to claim an interest in the goodsrequire payment of any charges and removalof the goods from the warehouse at the termination of the period of storage fixed bythe document or if no period is fixed withina stated period not less than 30 days afterthe notification If the goods are not removedbefore the date specified in the notificationthe warehouseman may sell them in accordance with the provisions of ORS 772100 onenforcement of a warehousemanslien

2 If a warehouseman in good faith believes that the goods are about to deteriorateor decline in value to less than the amount ofhis lien within the time prescribed in subsection 1 of this section for notification advertisement and sale the warehouseman may

DOCUMENTS OF TITLE

specify in the notification any reasonableshorter time for removal of the goods and incase the goods are not removed may sellthem at public sale held not less than oneweek 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 thegoods are a hazard to other property or tothe warehouse or to persons the warehouseman may sell the goods at public or privatesale without advertisement on reasonable no

tification to all persons known to claim aninterest in the goods If the warehousemanafter a reasonable effort is unable to sell the

goods he may dispose of them in any lawfulmanner and shall incur no liability by reasonof such disposition

4 The warehouseman must deliver thegoods to any person entitled to them underORS 771010 to 776040 upon due demandmade at any time prior to sale or other disposition under this section

5 The warehouseman may satisfy hislien from the proceeds of any sale or disposition under this section but must hold the bal

ance for delivery on the demand of any person to whom he would have been bound to

deliver the goods1961 c726 772060


Delivery ORS 712010Document ORS 771020Good faith ORS 712010Goods ORS 771020

Notice ORS 712010Notification ORS 712010Person ORS 712010Reasonable time ORS 712040Value ORS 712010

Warehouseman ORS 771020

772070 Goods must be kept separatefungible goods 1 Unless the warehouse receipt otherwise provides a warehousemanmust keep separate the goods covered byeach receipt so as to permit at all times identification and delivery of those goods exceptthat different lots of fungible goods may becommingled

2 Fungible goods so commingled areowned in common by the persons entitledthereto and the warehouseman is severallyliable to each owner for that owners share

Where because of overissue a mass of fungible goods is insufficient to meet all the receipts which the warehouseman has issued

772090

against it the persons entitled include allholders to whom overissued receipts havebeen duly negotiated1961 c726 772070


Delivery ORS 712010Duly negotiate ORS 775010Fungible goods ORS 712010Goods ORS 771020Holder ORS 712010Person ORS 712010


772080 A l t e r e d warehouse receiptsWhere a blank in a negotiable warehouse receipt has been filled in without authority apurchaser for value and without notice of thewant of authority may treat the insertion asauthorized Any other unauthorized alteration leaves any receipt enforceable againstthe issuer according to its original tenor1961 c726 772080


Issuer ORS 771020Notice ORS 712010Purchaser ORS 712010Value ORS 712010Warehouse receipt ORS 712010

772090 Lien of warehouseman 1 Awarehouseman has a lien against the bailoron the goods covered by a warehouse receiptor on the proceeds thereof in his possessionfor charges for storage or transportation including demurrage and terminal charges insurance labor or charges present or futurein relation to the goods and for expensesnecessary for preservation of the goods orreasonably incurred in their sale pursuant tolaw If the person on whose account thegoods are held is liable for like charges orexpenses in relation to other goods wheneverdeposited and it is stated in the receipt thata lien is claimed for charges and expenses inrelation to other goods the warehousemanalso has a lien against him for such chargesand expenses whether or not the other goodshave been delivered by the warehousemanBut against a person to whom a negotiablewarehouse receipt is duly negotiated a warehousemans lien is limited to charges in anamount or at a rate specified on the receiptor if no charges are so specified then to areasonable charge for storage of the goodscovered by the receipt subsequent to the dateof the receipt

i87

772100 CONWERCIAL TRANSACTIONS

2 The warehouseman may also reservea security interest against the bailor for amaximum amount specified on the receipt forcharges other than those specified in subsection 1 of this section such as for moneyadvanced and interest Such a security interest is governed by ORS 791010 to 795070 onsecured transactions

3 A warehousemanslien for chargesand expenses under subsection 1 of thissection or a security interest under subsection 2 of this section is also effectiveagainst any person who so entrusted thebailor with possession of the goods that apledge of them by him to a good faith purchaser for value would have been valid but

is not effective against a person as to whomthe document confers no right in the goodscovered by it under ORS 775030

4 A warehouseman loses his lien on anygoods which he voluntarily delivers or whichhe unjustifiably refuses to deliver1961 c726 772090


Deliver ORS 712010Document ORS 771020Goods ORS 771020Money ORS 712010Person ORS 712010Purchaser ORS 712010Rights ORS 712010

Security interest ORS 712010Value ORS 712010


772100 Enforcement of warehouse

mans lien 1 Except as provided in subsection 2 of this section a warehousemanslien may be enforced by public or private saleof the goods in bloc or in parcels at any timeor place and on any terms which are commercially reasonable after notifying all persons known to claim an interest in the goodsSuch notification must include a statement of

the amount due the nature of the proposedsale and the time and place of any publicsale The fact that a better price could havebeen obtained by a sale at a different time orin a different method from that selected bythe warehouseman is not of itself sufficientto establish that the sale was not made in a

commercially reasonable manner If the warehouseman either sells the goods in the usualmanner in any recognized market thereforor if he sells at the price current in suchmarket at the time of his sale or if he has

otherwise sold in conformity with commercially reasonable practices among dealers inthe type of goods sold he has sold in a commercially reasonable manner A sale of moregoods than apparently necessary to be offered to insure satisfaction of the obligationis not commercially reasonable except incases covered by the preceding sentence

2 A warehousemans lien on goodsother than goods stored by a merchant inthe course of his business may be enforcedonly as follows

a All persons known to claim an interest in the goods must be notified

b The notification must be delivered in

person or sent by registered letter to thelastknown address of any person to be notified

c The notification must include an

itemized statement of the claim a description of the goods subject to the lien a demand for payment within a specified timenot less than 10 days after receipt of the notification and a conspicuous statement thatunless the claim is paid within that time thegoods will be advertised for sale and sold byauction at a specified time and place

d The sale must conform to the termsof the notification

e The sale must be held at the nearest

suitable place to that where the goods areheld or stored

f After the expiration of the time givenin the notification an advertisement of thesale must be published once a week for twoweeks consecutively in a newspaper of general circulation where the sale is to be held The

advertisement must include a description ofthe goods the name of the person on whoseaccount they are being held and the time andplace of the sale The sale must take place atleast 15 days after the first publication Ifthere is no newspaper of general circulationwhere the sale is to be held the advertisement must be posted at least 10 days beforethe sale in not less than six conspicuousplaces in the neighborhood of the proposedsale

3 Before any sale pursuant to this section any person claiming a right in the goodsmay pay the amount necessary to satisfy thelien and the reasonable expenses incurred under this section In that event the goods mustnot be sold but must be retained by thewarehouseman subject to the terms of thereceipt and ORS 771010 to 776040

iss

DOCUMENTS OF TITLE

4 The warehouseman may buy at anypublic sale pursuant to this section

5 A purchaser in good faith of goodssold to enforce a warehousemanslien takesthe goods free of any rights of personsagainst whom the lien was valid despite noncompliance by the warehouseman with therequirements of this section

6 The warehouseman may satisfy hislien from the proceeds of any sale pursuantto this section but must hold the balance ifany for delivery on demand to any person towhom he would have been bound to deliverthe goods

7 The rights provided by this sectionshall be in addition to all other rights allowed by law to a creditor against his debtor

8 Where a lien is on goods stored by amerchant in the course of his business the

lien may be enforced in accordance witheither subsection 1 or 2 of this section

9 The warehouseman is liable for damages caused by failure to comply with the requirements for sale under this section and incase of wilful violation is liable for conversion

1961 c726 772100



Conspicuous ORS 712010

Creditor ORS 712010

Delivery ORS 712010

Document ORS 771020

Good faith ORS 712010

Goods ORS 771020

Notification ORS 712010

Notifies ORS 712010

Person ORS 712010

Purchaser ORS 712010

Rights ORS 712010Term ORS 712010

Warehouseman ORS 771020


BILLS OF LADING SPECIALPROVISIONS

773010 Liability for nonreceipt or misdescription said to contain shippersload and count improper handling 1 Aconsignee of a nonnegotiable bill who hasgiven value in good faith or a holder towhom a negotiable bill has been duly negotiated relying in either case upon the de

773010

scription therein of the goods or upon thedate therein shown may recover from theissuer damages caused by the misdating ofthe bill or the nonreceipt or misdescriptionof the goods except to the extent that thedocument indicates that the issuer does not

know whether any part or all of the goodsin fact were received or conform to the description as where the description is in termsof marks or labels or kind quantity or condition or the receipt or description is qualified by contents or condition of contents ofpackages unknown said to contain shippers weight load and count or the like ifsuch indication be true

2 When goods are loaded by an issuerwho is a common carrier the issuer mustcount the packages of goods if packagefreight and ascertain the kind and quantityif bulk freight In such cases shippersweight load and count or other words indicating that the description was made bythe shipper are ineffective except as tofreight concealed by packages

3 When bulk freight is loaded by ashipper who makes available to the issueradequate facilities for weighing such freightan issuer who is a common carrier must as

certain the kind and quantity within a reasonable time after receiving the written request of the shipper to do so In such casesshippers weight or other words of likepurport are ineffective

4 The issuer may by inserting in thebill the words shippers weight load andcount or other words of like purport indicate that the goods were loaded by the shipper and if such statement be true the issuershall not be liable for damages caused by theimproper loading But their omission does notimply liability for such damages

5 The shipper shall be deemed to haveguaranteed to the issuer the accuracy at thetime of shipment of the description markslabels number kind quantity condition andweight as furnished by him and the shippershall indemnify the issuer against damagecaused by inaccuracies in such particularsThe right of the issuer to such indemnityshall in no way limit his responsibility andliability under the contract of carriage toany person other than the shipper

5891961 c726 773010

773020 COMMERCIAL TRANSACTIONS



Consignee ORS 771020

Document ORS 771020

Duly negotiate ORS 775010


Goods ORS 770 10200

Holder ORS 712010

Issuer ORS 771020

Notice ORS 712010

Party ORS 712010

Purchaser ORS 712010

Receipt of goods ORS 721030Value ORS 712010

773020 Through bills of lading and similar documents 1 The issuer of a throughbill of lading or other document embodyingan undertaking to be performed in part bypersons acting as its agents or by connectingcarriers is liable to anyone entitled to recoveron the document for any breach by suchother persons or by a connecting carrier ofits obligation under the document but to theextent that the bill covers an undertakingto be performed overseas or in territory notcontiguous to the continental United Statesor an undertaking including matters otherthan transportation this liability may bevaried by agreement of the parties

2 Where goods covered by a throughbill of lading or other document embodyingan undertaking to be performed in part bypersons other than the issuer are received byany such person he is subject with respect tohis own performance while the goods are inhis possession to the obligation of the issuerHis obligation is discharged by delivery ofthe goods to another such person pursuant tothe document and does not include liabilityfor breach by any other such persons or bythe issuer

3 The issuer of such through bill oflading or other document shall be entitled torecover from the connecting carrier or suchother person in possession of the goods whenthe breach of the obligation under the document occurred the amount it may be required to pay to anyone entitled to recoveron the document therefor as may be evidenced by any receipt judgment or

transcript thereof and the amount of anyexpense reasonably incurred by it in defending any action brought by anyone entitled torecover on the document therefor1961 c726 773020


Agreement ORS 712010Bailee ORS 771020

Bill of lading ORS 712010Delivery ORS 712010Document ORS 771020Goods ORS 771020Issuer ORS 771020

Overseas ORS 723230Party ORS 712010Person ORS 712010

773030 D i v e r s i o n reconsignmentchange of instructions 1 Unless the billof lading otherwise provides the carrier maydeliver the goods to a person or destinationother than that stated in the bill or mayotherwise dispose of the goods on instructions from

a The holder of a negotiable bill orb The consignor on a nonnegotiable bill

notwithstanding contrary instructions fromthe consignee or

c The consignee on a nonnegotiable billin the absence of contrary instructions fromthe consignor if the goods have arrived atthe billed destination or if the consignee is inpossession of the bill or

d The consignee on a nonnegotiable billif he is entitled as against the consignor todispose of them

2 Unless such instructions are noted ona negotiable bill of lading a person to whomthe bill is duly negotiated can hold the baileeaccording to the original terms1961 c726 773030


Bailee ORS 771020Bill of lading ORS 712010Consignee ORS 771020Consignor ORS 771020Delivery ORS 712010Goods ORS 771020Holder ORS 712010Notice ORS 712010Person ORS 712010Purchaser ORS 712010Term ORS 712010

773040 Bills of lading in a set 1 Except where customary in overseas transportation a bill of lading must not be issued ina set of parts The issuer is liable for damages caused by violation of this subsection

2 Where a bill of lading is lawfullydrawn in a set of parts each of which isnumbered and expressed to be valid only ifthe goods have not been delivered against

90

DOCUMENTS OF TITLE

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 arenegotiated to different persons the title ofthe holder to whom the first due negotiationis made prevails as to both the document andthe goods even though any later holder mayhave received the goods from the carrier ingood faith and discharged the carriers obligation by surrender of his part

4 Any person who negotiates or transfers a single part of a bill of lading drawn ina set is liable to holders of that part as if itwere the whole set

5 The bailee is obliged to deliver in accordance with ORS 774010 to 774040

against the first presented part of a bill oflading lawfully drawn in a set Such deliverydischarges the bailees obligation on thewhole bill1961 c726 773040


Bailee ORS 771020Bill of lading ORS 771020Delivery ORS 712010Document ORS 771020

Duly negotiate ORS 775010Good faith ORS 712010Goods ORS 771020Holder ORS 712010Issuer ORS 771020Overseas ORS 723230Person ORS 712010Receipt of goods ORS 721030

773050 Destination bills 1 Insteadof issuing a bill of lading to the consignor atthe place of shipment a carrier may at therequest of the consignor procure the bill tobe issued at destination or at any other placedesignated in the request

2 Upon request of anyone entitled asagainst the carrier to control the goods whilein transit and on surrender of any outstanding bill of lading or other receipt coveringsuch goods the issuer may procure a substitute bill to be issued at any place designated in the request1961 c726 773050



Consignor ORS 771020Goods ORS 771020

Issuer ORS 771020

Receipt of goods ORS 721030

773080

773060 Altered bills of lading An unauthorized alteration or filling in of a blankin a bill of lading leaves the bill enforceableaccording to its original tenor1961 c726 773060


Bill of lading ORS 712010Issuer ORS 77 1020

773070 Lien of carrier 1 A carrierhas a lien on the goods covered by a bill oflading for charges subsequent to the date ofits receipt of the goods for storage or transportation including demurrage and terminalcharges and for expenses necessary forpreservation of the goods incident to theirtransportation or reasonably incurred intheir sale pursuant to law But against a purchaser for value of a negotiable bill of lading a carriers lien is limited to chargesstated in the bill or the applicable tariffs orif no charges are stated then to a reasonablecharge

2 A lien for charges and expenses under subsection 1 of this section on goodswhich the carrier was required by law to receive for transportation is effective againstthe consignor or any person entitled to thegoods unless the carrier had notice that theconsignor lacked authority to subject thegoods to such charges and expenses Anyother lien under subsection 1 of this section is effective against the consignor andany person who permitted the bailor to havecontrol or possession of the goods unless thecarrier had notice that the bailor lacked such

authority3 A carrier loses his lien on any goods

which he voluntarily delivers or which heunjustifiably refuses to deliver1961 c726 773070


Bill of lading ORS 712010Consignor ORS 771020Delivery ORS 712010Goods ORS 771020Person ORS 712010

Purchaser ORS 712010Value ORS 712010

773080 Enforcement of carriers lien

1 A carriers lien may be enforced by public or private sale of the goods in bloc or inparcels at any time or place and on anyterms which are commercially reasonableafter notifying all persons known to claim aninterest in the goods Such notification must

591


include a statement of the amount due thenature of the proposed sale and the time andplace of any public sale The fact that a better price could have been obtained by a saleat a different time or in a different methodfrom that selected by the carrier is not ofitself sufficient to establish that the sale was

not made in a commercially reasonable manner If the carrier either sells the goods inthe usual manner in any recognized markettherefor or if he sells at the price current insuch market at the time of his sale or if he

has otherwise sold in conformity with commercially reasonable practices among dealersin the type of goods sold he has sold in acommercially reasonable manner A sale ofmore goods than apparently necessary to beoffered to ensure satisfaction of the obligation is not commercially reasonable except incases covered by the preceding sentence

2 Before any sale pursuant to this section any person claiming a right in the goodsmay pay the amount necessary to satisfy thelien and the reasonable expenses incurredunder this section In that event the goodsmust not be sold but must be retained bythe carrier subject to the terms of the billand ORS 771010 to 776040

3 The carrier may buy at any publicsale pursuant to this section

4 A purchaser in good faith of goodssold to enforce a carriers lien takes thegoods free of any rights of persons againstwhom the lien was valid despite noncompliance by the carrier with the requirementsof this section

5 The carrier may satisfy his lien fromthe proceeds of any sale pursuant to this section but must hold the balance if any fordelivery on demand to any person to whomhe would have been bound to deliver the

goods

6 The rights provided by this sectionshall be in addition to all other rights allowedby law to a creditor against his debtor

7 A carriers lien may be enforced inaccordance with either subsection 1 of this

section or the procedure set forth in subsection 2 of ORS 772100

8 The carrier is liable for damagescaused by failure to comply with the requirements for sale under this section and in case

of wilful violation is liable for conversion1961 c726 773080

592


Bill of lading ORS 712010Creditor ORS 712010Delivery ORS 712010Good faith ORS 712010Goods ORS 771020Notification ORS 712010Notifies ORS 712010

Person ORS 712010Purchaser ORS 712010Rights ORS 712010Term ORS 712010

773090 Duty of care contractual limitation of carriers liability 1 A carrierwho issues a bill of lading whether negotiableor nonnegotiable must exercise the degree ofcare in relation to the goods which a reasonably careful man would exercise under likecircumstances This subsection does not repeal or change any law or rule of law whichimposes liability upon a common carrier fordamages not caused by its negligence

2 Damages may be limited by a provision that the carriers liability shall not exceed a value stated in the document if the

carriers rates are dependent upon value andthe consignor by the carriers tariff is afforded an opportunity to declare a highervalue or a value as lawfully provided in thetariff or where no tariff is filed he is otherwise advised of such opportunity but nosuch limitation is effective with respect tothe carriers liability for conversion to itsown use

3 Reasonable provisions as to the timeand manner of presenting claims and instituting actions based on the shipment may beincluded in a bill of lading or tariff1961 c726 773090

Definitional cross referencesAction ORS 712010

Bill of lading ORS 712010Consignor ORS 771020Document ORS 771020

Goods ORS 771020Value ORS 712010


WAREHOUSE RECEIPTS AND BILLS OFLADING GENERAL OBLIGATIONS

774010 Irregularities in issue of receiptor bill or conduct of issuer The obligationsimposed by ORS 771010 to 776040 on anissuer apply to a document of title regardlessof the fact that

1 The document may not comply with

DOCUMENTS OF TITLE

the requirements of ORS 771010 to 776040or of any other law or regulation regardingits issue form or content or

2 The issuer may have violated lawsregulating the conduct of his business or

3 The goods covered by the documentwere owned by the bailee at the time thedocument was issued or

4 The person issuing the documentdoes not come within the definition of ware

houseman if it purports to be a warehousereceipt1961 c726 774010


Bailee ORS 771020Document ORS 771020Document of title ORS 712010Goods ORS 771020Issuer ORS 771020Person ORS 712010Warehouse receipt ORS 712010Warehouseman ORS 771020

774020 Duplicate receipt or bill overissue Neither a duplicate nor any other document of title purporting to cover goods already represented by an outstanding document of the same issuer confers any right inthe goods except as provided in the case ofbills in a set overissue of documents forfungible goods and substitutes for lost stolenor destroyed documents But the issuer isliable for damages caused by his overissue orfailure to identify a duplicate document assuch by conspicuous notation on its face1961 c726 774020


Bill of lading ORS 712010Conspicuous ORS 712010Document ORS 771020Document of title ORS 712010Fungible goods ORS 712010Goods ORS 771020Issuer ORS 771020

Rights ORS 712010

774030 Obligation of warehouseman orcarrier to deliver excuse 1 The baileemust deliver the goods to a person entitledunder the document who complies with subsections 2 and 3 of this section unlessand to the extent that the bailee establishes

any of the followinga Delivery of the goods to a person

whose receipt was rightful as against theclaimant

774030

b Damage to or delay loss or destruction of the goods for which the bailee is notliable but the burden of establishing negligence in such cases is on the person entitledunder the document

c Previous sale or other disposition ofthe goods in lawful enforcement of alien oron warehousemans lawful termination ofstorage

d The exercise by a seller of his rightto stop delivery pursuant to the provisionsof ORS 727050

e A diversion reconsignment or otherdisposition pursuant to the provisions of ORS773030 or tariff regulating such rightf Release satisfaction or any other

fact affording a personal defense against theclaimant

g Any other lawful excuse2 A person claiming goods covered by

a document of title must satisfy the baileeslien where the bailee so requests or wherethe bailee is prohibited by law from delivering the goods until the charges are paid

3 Unless the person claiming is oneagainst whom the document confers no rightunder subsection 1 of ORS 775030 hemust surrender for cancellation or notationof partial deliveries any outstanding negotiable document covering the goods and thebailee must cancel the document or con

spicuously note the partial delivery thereonor be liable to any person to whom the document is duly negotiated

4 Person entitled under the document means holder in the case of a negotiable document or the person to whom delivery is to be made by the terms of or pursuant to written instructions under a nonnegotiable document1961 c726 774030

593


Bailee ORS 771020

Conspicuous ORS 712010Delivery ORS 712010Document ORS 771020Document of title ORS 712010

Duly negotiate ORS 775010Goods ORS 771020Person ORS 712010

Receipt of goods ORS 721030Rights ORS 712010Term ORS 712010Warehouseman ORS 771020Written ORS 712010


774040 No liability for good faith delivery pursuant to receipt or bill A bailee whoin good faith including observance of reasonable commercial standards has receivedgoods and delivered or otherwise disposed ofthem according to the terms of the documentof title or pursuant to ORS 771010 to776040 is not liable therefor This rule applies even though the person from whom hereceived the goods had no authority to procure the document or to dispose of the goodsand even though the person to whom hedelivered the goods had no authority to receive them1961 c726 774040


Bailee ORS 771020

Delivery ORS 712010Document of title ORS 712010Good faith ORS 712010Goods ORS 771020Person ORS 712010

Receipt of goods ORS 721030Term ORS 712010

5 Indorsement of a nonnegotiable document neither makes it negotiable nor adds tothe transfereesrights

6 The naming in a negotiable bill ofa person to be notified of the arrival of thegoods does not limit the negotiability of thebill nor constitute notice to a purchaserthereof of any interest of such person in thegoods1961 c726 775010


Bearer ORS 712010Delivery ORS 712010Document ORS 771020Document of title ORS 712010Good faith ORS 712010Holder ORS 712010Notice ORS 712010Person ORS 712010

Purchase ORS 712010Rights ORS 712010Term ORS 712010Value ORS 712010


WAREHOUSE RECEIPTS AND BALLS OFLADING NEGOTIATION AND TRANSFER

775010 Form of negotiation and requirements of due negotiation 1 A

negotiable document of title running to theorder of a named person is negotiated by hisindorsement and delivery After his indorsement in blank or to bearer any person cannegotiate it by delivery alone

2 a A negotiable document of titleis also negotiated by delivery alone when byits original terms it runs to bearer

b When a document running to theorder of a named person is delivered to himthe effect is the same as if the document hadbeen negotiated

3 Negotiation of a negotiable documentof title after it has been indorsed to a specified person requires indorsement by thespecial indorsee as well as delivery 2 Subject to ORS 77 NOM title and

is rights so acquired are not defeated by anym stoppage of the goods represented by the

document or by surrender of such goods bythe bailee and are not impaired even thoughthe negotiation or any prior negotiation constituted a breach of duty or even though any

m person has been deprived of possession ofthe document by misrepresentation fraudaccident mistake duress loss theft or conversion or even though a previous sale or

594

4 A negotiable document of titleduly negotiated when it is negotiatedthe manner stated in this section to a holderwho purchases it in good faith without noticeof any defense against or claim to it on thepart of any person and for value unless itis established that the negotiation is notthe regular course of business or financingor involves receiving the document in settlement or payment of a money obligation

775020 Rights acquired by due negotiation 1 Subject to ORS 775030 and tothe provisions of ORS 772050 on fungiblegoods a holder to whom a negotiable document of title has been duly negotiated acquires thereby

a Title to the documentb Title to the goodsc All rights accruing under the law of

agency or estoppel including rights to goodsdelivered to the bailee after the documentwas issued and

d The direct obligation of the issuer tohold or deliver the goods according to theterms of the document free of any defense orclaim by him except those arising under theterms of the document or under ORS 771010

to 776040 In the case of a delivery orderthe bailees obligation accrues only upon acceptance and the obligation acquired by theholder is that the issuer and any indorserwill procure the acceptance of the bailee

DOCUMENTS OF TITLE

other transfer of the goods or document hasbeen made to a third person1961 c726 775020


Bailee ORS 771020

Delivery ORS 712010Delivery order ORS 771020Document ORS 771020

Document of title ORS 712010

Duly negotiate ORS 775010

Fungible ORS 712010Goods ORS 771020

Holder ORS 712010

Issuer ORS 771020

Person ORS 712010

Rights ORS 712010Term ORS 712010

Warehouse receipt ORS 712010

775030 Document of title to goods defeated in certain cases 1 A document oftitle confers no right in goods against aperson who before issuance of the documenthad a legal interest or a perfected securityinterest in them and who neither

a Delivered or entrusted them or anydocument of title covering them to the bailoror his nominee with actual or apparent authority to ship store or sell or with power toobtain delivery under ORS 774030 or withpower of disposition under ORS 724030 and793070 or other statute or rule of law nor

b Acquiesced in the procurement bythe bailor or his nominee of any documentof title

2 Title to goods based upon an unaccepted delivery order is subject to the rightsof anyone to whom a negotiable warehousereceipt or bill of lading covering the goodshas been duly negotiated Such a title may bedefeated under ORS 775040 to the same ex

tent as the rights of the issuer or a transferee from the issuer

3 Title to goods based upon a bill oflading issued to a freight forwarder is subject to the rights of anyone to whom a billissued by the freight forwarder is duly negotiated but delivery by the carrier in accordance with ORS 774010 to 774040 pursuant to its own bill of lading discharges thecarriers obligation to deliver1961 c726 775030

775040



Contract for sale ORS 721060

Delivery ORS 712010

Delivery order ORS 771020

Document ORS 771020

Document of title ORS 712010

Duly negotiate ORS 775010Goods ORS 771020

Person ORS 712010

Right ORS 712010

Warehouse receipt ORS 712010

775040 Rights acquired in the absenceof due negotiation effect of diversion sellers stoppage of delivery 1 A transfereeof a document whether negotiable or nonnegotiable to whom the document has beendelivered but not duly negotiated acquiresthe title and rights which his transferor hador had actual authority to convey

2 In the case of a nonnegotiable document until but not after the bailee receivesnotification of the transfer the rights of thetransferee may be defeated

a By those creditors of the transferorwho could treat the sale as void under ORS724020 or

b By a buyer from the transferor inordinary course of business if the bailee hasdelivered the goods to the buyer or receivednotification of his rights or

c As against the bailee by good faithdealings of the bailee with the transferor

3 A diversion or other change of shipping instructions by the consignor in a nonnegotiable bill of lading which causes thebailee not to deliver to the consignee defeatsthe consigneestitle to the goods if they havebeen delivered to a buyer in ordinary courseof business and in any event defeats theconsignees rights against the bailee

4 Delivery pursuant to a nonnegotiabledocument may be stopped by a seller underORS 727050 and subject to the requirementof due notification there provided A baileehonoring the sellers instructions is entitledto be indemnified by the seller against anyresulting loss or expense

5951961 c726 7750401



Bailee ORS 771020Bill of lading ORS 712010Buyer in ordinary course of

business ORS 712010Consignee ORS 771020Consignor ORS 771020Creditor ORS 712010Delivery ORS 712010Document ORS 771020Duly negotiate ORS 775010Good faith ORS 712010Goods ORS 771020Honor ORS 712010Notification ORS 712010Purchaser ORS 712010Rights ORS 712010

775050 Indorser not a guarantor forother parties The indorsement of a docu

ment of title issued by a bailee does not makethe indorser liable for any default by thebailee or by previous indorsers1961 c726 775050

Definitional cross referencesBailee ORS 771020Document of title ORS 712010Party ORS 712010

775060 Delivery without indorsementright to compel indorsement The trans

feree of a negotiable document of title hasa specifically enforceable right to have histransferor supply any necessary indorsementbut the transfer becomes a negotiation onlyas of the time the indorsement is supplied1961 c726 775060


Document of title ORS 712010Rights ORS 712010


Document ORS 771020Document of title ORS 712010Genuine ORS 712010Goods ORS 771020Person ORS 712010

Purchaser ORS 712010Value ORS 712010

775080 Warranties of collecting bankas to documents A collecting bank or otherintermediary known to be entrusted withdocuments on behalf of another or withcollection of a draft or other claim againstdelivery of documents warrants by such delivery of the documents only its own goodfaith and authority This rule applies eventhough the intermediary has purchased ormade advances against the claim or draft tobe collected1961 c726 775080


Collecting bank ORS 741050Delivery ORS 712010Document ORS 771020Draft ORS 751030Good faith ORS 711010

775090 Receipt or bill when adequatecompliance with commercial contract The

question whether a document is adequate tofulfill the obligations of a contract for saleor the conditions of a credit is governed byORS 721010 to 727250 on sales and ORS751010 to 751170 on letters of credit1961 c726 775090


Contract for sale ORS 721060Document ORS 771020

775100 to 776000 Reserved for expansion775070 Warranties on negotiation or

transfer of receipt or bill Where a personnegotiates or transfers a document of titlefor value otherwise than as a mere intermediary under ORS 775080 then unlessotherwise agreed he warrants to his immediate purchaser only in addition to any warranty made in selling the goods

1 That the document is genuine and2 That he has no knowledge of any

fact which would impair its validity orworth and

3 That his negotiation or transfer isrightful and fully effective with respect tothe title to the document and the goods itrepresents1961 c726 775070

WAREHOUSE RECEIPTS AND BILLS OFLADING MISCELLANEOUS PROVISIONS

776010 Lost and missing documents1 If a document has been lost stolen ordestroyed a court may order delivery ofthe goods or issuance of a substitute document and the bailee may without liability toany person comply with such order If thedocument was negotiable the claimant mustpost security approved by the court to indemnify any person who may suffer loss asa result of nonsurrender of the document If

the document was not negotiable such security may be required at the discretion ofthe court The court may also in its discretion

596

DOCUMENTS OF TITLE 776040

order payment of the bailees reasonablecosts and counsel fees

2 A bailee who without court orderdelivers goods to a person claiming under amissing negotiable document is liable to anyperson injured thereby and if the deliveryis not in good faith becomes liable for conversion Delivery in good faith is not conversion if made in accordance with a filedclassification or tariff or where no classification or tariff is filed if the claimant postssecurity with the bailee in an amount at leastdouble the value of the goods at the time ofposting to indemnify any person injured bythe delivery who files a notice of claim within one year after the delivery1961 c726 776010


Bailee ORS 771020

Bill of lading ORS 712010Delivery ORS 712010Document ORS 771020


Goods ORS 771020

Person ORS 712010


776020 Attachment of goods coveredby a negotiable document Except wherethe document was originally issued upondelivery of the goods by a person who hadno power to dispose of them no lien attachesby virtue of any judicial process to goodsin the possession of a bailee for which anegotiable document of title is outstandingunless the document be first surrendered tothe bailee or its negotiation enjoined andthe bailee shall not be compelled to deliverthe goods pursuant to process until the document is surrendered to him or impounded bythe court One who purchases the documentfor value without notice of the process or

injunction takes free of the lien imposed byjudicial process1961 c726 776020

Definitional cross referencesBailee ORS 771020Delivery ORS 712010Document ORS 771020Goods ORS 771020Notice ORS 712010Person ORS 712010Purchase ORS 712010Value ORS 712010

776030 Conflicting claims interpleaderIf more than one person claims title orpossession of the goods the bailee is excusedfrom delivery until he has had a reasonabletime to ascertain the validity of the adverseclaims or to bring an action to compel allclaimants to interplead and may compel suchinterpleader either in defending an actionfor nondelivery of the goods or by originalaction whichever is appropriate1961 c726 776030

Definitional cross referencesAction ORS 712010Bailee ORS 771020Delivery ORS 712010Goods ORS 771020Person ORS 712010Reasonable time ORS 712040

776040 Laws not repealed ORS

771010 to 776030 on documents of title donot repeal or modify any laws prescribingthe form or contents of documents of titleor the services or facilities to be afforded bybailees or otherwise regulating bailees businesses in respects not specifically dealt withherein but the fact that such laws are violated does not affect the status of a documentof title which otherwise complies with thedefinition of a document of title as definedin ORS 7120101961 c726 776040

CERTIFICATE OF LEGISLATIVE COUNSEL

Pursuant to ORS 173170 I Sam R Haley Legislative Counsel do hereby certify that I have comparedeach section printed in this chapter with the original section in the enrolled bill and that the sections inthis chapter are correct copies of the enrolled sections with the exception of the changes in form permittedby ORS 173160 and other changes specifically authorized by lawDone at Salem Oregon Sam R Haley

on December 1 1963 Legislative Counsel

597

598