<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 57A-7-503 - Document of title to goods defeated in certain cases. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073574Normal { text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2073574SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073574CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073574Normal-000000 { text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2073574DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073574Normal-000001 { margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } p.s2073574Normal-000002 { text-indent: 0.25in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2073574000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073574SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073574SCL-000004 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style></head><body><div><p dir="ltr" class="s2073574Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-7-503"><span class="s2073574SENU">57A-7-503</span></a><span xml:space="preserve" class="s2073574SENU">. </span><span class="s2073574CL">Document of title to goods defeated in certain cases.</span></p><p dir="ltr" class="s2073574Normal-000000"><span class="s2073574DefaultParagraphFont">(a) A document of title confers no right in goods against a person that before issuance of the document had a legal interest or a perfected security interest in the goods and that did not:</span></p><p dir="ltr" class="s2073574Normal-000001"><span xml:space="preserve" class="s2073574DefaultParagraphFont">(1)    Deliver or entrust the goods or any document covering the goods to the bailor or the bailor's nominee with actual or apparent authority to ship, store, or sell; with power to obtain delivery under § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-7-403"><span class="s2073574DefaultParagraphFont">57A-7-403</span></a><span xml:space="preserve" class="s2073574DefaultParagraphFont">; or with power of disposition under § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-2-403"><span class="s2073574DefaultParagraphFont">57A-2-403</span></a><span xml:space="preserve" class="s2073574DefaultParagraphFont">, 57A-2A-304(2), 57A-2A-305(2), or </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-9-320"><span class="s2073574DefaultParagraphFont">57A-9-320</span></a><span xml:space="preserve" class="s2073574DefaultParagraphFont"> or other statute or rule of law; or</span></p><p dir="ltr" class="s2073574Normal-000001"><span class="s2073574DefaultParagraphFont">(2)    Acquiesce in the procurement by the bailor or its nominee of any document.</span></p><p dir="ltr" class="s2073574Normal-000002"><span xml:space="preserve" class="s2073574DefaultParagraphFont">(b) Title to goods based upon an unaccepted delivery order is subject to the rights of any person to which a negotiable warehouse receipt or bill of lading covering the goods has been duly negotiated. That title may be defeated under § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-7-504"><span class="s2073574DefaultParagraphFont">57A-7-504</span></a><span xml:space="preserve" class="s2073574DefaultParagraphFont"> to the same extent as the rights of the issuer or a transferee from the issuer.</span></p><p dir="ltr" class="s2073574Normal-000002"><span xml:space="preserve" class="s2073574DefaultParagraphFont">(c) Title to goods based upon a bill of lading issued to a freight forwarder is subject to the rights of any person to which a bill issued by the freight forwarder is duly negotiated. However, delivery by the carrier in accordance with §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-7-401"><span class="s2073574DefaultParagraphFont">57A-7-401</span></a><span xml:space="preserve" class="s2073574DefaultParagraphFont"> to </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-7-404"><span class="s2073574DefaultParagraphFont">57A-7-404</span></a><span class="s2073574DefaultParagraphFont">, inclusive, pursuant to its own bill of lading discharges the carrier's obligation to deliver.</span></p><p dir="ltr" class="s2073574Normal"><span xml:space="preserve" class="s2073574000003"> </span></p><p dir="ltr" class="s2073574Normal"><span class="s2073574SCL">Source:</span><span xml:space="preserve" class="s2073574SCL-000004"> SL 2009, ch 254, § 7-503.</span></p></div></body></html>