2007 Minnesota Statutes

336.7-502 MS 2002 [Repealed, 2004 c 162 art 4 s 43]
336.7-502 RIGHTS ACQUIRED BY DUE NEGOTIATION.
(a) Subject to sections 336.7-205 and 336.7-503, a holder to which a negotiable document of
title has been duly negotiated acquires thereby:
(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; and
(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 article, but 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) Subject to section 336.7-503, 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.
History: 2004 c 162 art 4 s 31