House File 716 - Enrolled

PAG LIN

1	1	HOUSE FILE 716
1	2
1	3	AN ACT
1	4 RELATING TO REVISING THE UNIFORM COMMERCIAL CODE, BY PROVIDING
1	5	FOR WAREHOUSE RECEIPTS, BILLS OF LADING, AND OTHER
1	6	DOCUMENTS OF TITLE.
1	7
1	8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1	9
1 10	DIVISION I
1 11	REVISION TO UNIFORM COMMERCIAL CODE
1 12	ARTICLE 7
1 13	Section 1.	Section 554.7101, Code 2007, is amended to read
1 14 as follows:
1 15	554.7101	SHORT TITLE.
1 16	This Article shall be known and may be cited as Uniform
1 17 Commercial Code == Documents of Title.
1 18	Sec. 2.	Section 554.7102, Code 2007, is amended to read as
1 19 follows:
1 20	554.7102	DEFINITIONS AND INDEX OF DEFINITIONS.
1 21	1.	In this Article, unless the context otherwise requires:
1 22	a.	"Bailee" means the a person who that by a warehouse
1 23 receipt, bill of lading, or other document of title
1 24 acknowledges possession of goods and contracts to deliver
1 25 them.
1 26	b.	"Carrier" means a person that issues a bill of lading.
1 27	c.	"Consignee" means the a person named in a bill of
  1 28 lading to whom which or to whose order the bill promises
1 29 delivery.
1 30	c.	d.	"Consignor" means the a person named in a bill of
  1 31 lading as the person from whom which the goods have been
1 32 received for shipment.
1 33	d.	e.	"Delivery order" means a written record that
  1 34 contains an order to deliver goods directed to a warehouse
35 operator, carrier, or other person who that in the ordinary
1 course of business issues warehouse receipts or bills of
2	2 lading.
2	3	e.  "Document" means document of title as defined in the
  2  4 general definitions in Article 1 (section 554.1201).
2	5	f.	"Good faith" means honesty in fact and the observance
  2  6 of reasonable commercial standards of fair dealing.
2	7	g.	"Goods" means all things which that are treated as
2	8 movable for the purposes of a contract of for storage or
2	9 transportation.
2 10	g.	h.	"Issuer" means a bailee who that issues a document
2 11 except that in relation to of title or, in the case of an
2 12 unaccepted delivery order, it means the person who that orders
2 13 the possessor of goods to deliver.	Issuer The term includes
2 14 any a person for whom which an agent or employee purports to
2 15 act in issuing a document if the agent or employee has real or
2 16 apparent authority to issue documents, notwithstanding that

2 17 even if the issuer

received no did not receive any goods, or

  2 18 that the goods were misdescribed, or that in any other respect
2 19 the agent or employee violated that agent's or employee's the
  2 20 issuer's instructions.
2 21	i.  "Person entitled under the document" means the holder,
  2 22 in the case of a negotiable document of title, or the person
  2 23 to which delivery of the goods is to be made by the terms of,
  2 24 or pursuant to instructions in a record under, a nonnegotiable
  2 25 document of title.
2 26	j.  "Record" means information that is inscribed on a
  2 27 tangible medium or that is stored in an electronic or other
  2 28 medium and is retrievable in perceivable form.
2 29	k.  "Sign" means, with present intent to authenticate or
  2 30 adopt a record:
2 31	(1)  to execute or adopt a tangible symbol; or
2 32	(2)  to attach to or logically associate with the record an
  2 33 electronic sound, symbol, or process.
34	l.  "Shipper" means a person that enters into a contract of
  2 35 transportation with a carrier.
1	h.	m.	"Warehouse operator" is "Warehouse" means a person
3	2 engaged in the business of storing goods for hire.
3	3	2.	Other definitions applying to this Article or to

3	4 specified Parts thereof, and the sections in which they appear
  3  5 are:
3	6	"Duly negotiate"	Section 554.7501
3	7	"Person entitled under
  3  8 the document"	Section 554.7403(4)
3	9	3.	Definitions in other Articles applying to this Article
3 10 and the sections in which they appear are:
3 11	a.	"Contract for sale"	Section 554.2106
3 12	"Overseas"	Section 554.2323
3 13	b.  "Lessee in ordinary course
  3 14 of business"	Section 554.13103
3 15	c.	"Receipt" of goods	Section 554.2103
3 16	4.	3.	In addition, Article 1 contains general definitions
3 17 and principles of construction and interpretation applicable
3 18 throughout this Article.
3 19	Sec. 3.	Section 554.7103, Code 2007, is amended to read as
3 20 follows:
3 21	554.7103	RELATION OF ARTICLE TO TREATY, OR STATUTE,
  3 22 TARIFF, CLASSIFICATION OR REGULATION.
3 23	1.	To the extent that This Article is subject to any
3 24 treaty or statute of the United States, or regulatory statute
3 25 of this state or tariff, classification or regulation filed or
  3 26 issued pursuant thereto to the extent that the treaty,
  3 27 statute, or regulatory statute is applicable, the provisions
  3 28 of this Article are subject thereto.
29	2.  This Article does not modify or repeal any law
  3 30 prescribing the form or content of a document of title or the
  3 31 services or facilities to be afforded by a bailee, or
  3 32 otherwise regulating a bailee's business in respects not
  3 33 specifically treated in this Article.  However, violation of
  3 34 such a law does not affect the status of a document of title
  3 35 that otherwise is within the definition of a document of
  4  1 title.
2	3.  This Article modifies, limits, and supersedes the
  4  3 federal Electronic Signatures in Global and National Commerce
  4  4 Act (15 U.S.C. } 7001, et seq.) but does not modify, limit, or
  4  5 supersede } 101(c) of that Act (15 U.S.C. } 7001(c)) or
  4  6 authorize electronic delivery of any of the notices described
  4  7 in } 103(b) of that Act (15 U.S.C. } 7003(b)).
4	8	4.  To the extent there is a conflict between chapter 554D,
  4  9 the "Uniform Electronic Transactions Act", and this Article,
  4 10 this Article governs.
4 11	Sec. 4.	Section 554.7104, Code 2007, is amended to read as
4 12 follows:
4 13	554.7104	NEGOTIABLE AND NONNEGOTIABLE WAREHOUSE RECEIPT,
  4 14 BILL OF LADING OR OTHER DOCUMENT OF TITLE.
4 15	1.	A warehouse receipt, bill of lading or other Except as
  4 16 otherwise provided in subsection 3, a document of title is
4 17 negotiable
4 18	a.	if by its terms the goods are to be delivered to bearer
4 19 or to the order of a named person; or.
4 20	b.  where recognized in overseas trade, if it runs to a
  4 21 named person or assigns.
4 22	2.	Any other A document of title other than the one
  4 23 described in subsection 1 is nonnegotiable.	A bill of lading
4 24 in which it is stated that states that the goods are consigned
4 25 to a named person is not made negotiable by a provision that
4 26 the goods are to be delivered only against a written an order
4 27 in a record signed by the same or another named person.
4 28	3.  A document of title is nonnegotiable if, at the time it
  4 29 is issued, the document has a conspicuous legend, however
  4 30 expressed, that it is nonnegotiable.
4 31	Sec. 5.	Section 554.7105, Code 2007, is amended to read as
4 32 follows:
4 33	554.7105	CONSTRUCTION AGAINST NEGATIVE IMPLICATION
4 34 REISSUANCE IN ALTERNATIVE MEDIUM.
35	1.	The omission from either Part 2 or Part 3 of this
  5  1 Article of a provision corresponding to a provision made in
  5  2 the other Part does not imply that a corresponding rule of law
  5  3 is not applicable.	Upon request of a person entitled under an
  5  4 electronic document of title, the issuer of the electronic
  5  5 document may issue a tangible document of title as a
  5  6 substitute for the electronic document if:
7	a.  the person entitled under the electronic document
  5  8 surrenders control of the document to the issuer; and
5	9	b.  the tangible document when issued contains a statement
  5 10 that it is issued in substitution for the electronic document.
5 11	2.  Upon issuance of a tangible document of title in
  5 12 substitution for an electronic document of title in accordance
  5 13 with subsection 1:
5 14	a.  the electronic document ceases to have any effect or

  5 15 validity; and
5 16	b.  the person that procured issuance of the tangible
  5 17 document warrants to all subsequent persons entitled under the
  5 18 tangible document that the warrantor was a person entitled
  5 19 under the electronic document when the warrantor surrendered
  5 20 control of the electronic document to the issuer.
5 21	3.  Upon request of a person entitled under a tangible
  5 22 document of title, the issuer of the tangible document may
  5 23 issue an electronic document of title as a substitute for the
  5 24 tangible document if:
5 25	a.  the person entitled under the tangible document
  5 26 surrenders possession of the document to the issuer; and
5 27	b.  the electronic document when issued contains a
  5 28 statement that it is issued in substitution for the tangible
  5 29 document.
5 30	4.  Upon issuance of an electronic document of title in
  5 31 substitution for a tangible document of title in accordance
  5 32 with subsection 3:
5 33	a.  the tangible document ceases to have any effect or
  5 34 validity; and
35	b.  the person that procured issuance of the electronic
  6  1 document warrants to all subsequent persons entitled under the
  6  2 electronic document that the warrantor was a person entitled
  6  3 under the tangible document when the warrantor surrendered
  6  4 possession of the tangible document to the issuer.
5	Sec. 6.	NEW SECTION.	554.7106	CONTROL OF ELECTRONIC
6	6 DOCUMENT OF TITLE.
6	7	1.	A person has control of an electronic document of title
6	8 if a system employed for evidencing the transfer of interests
6	9 in the electronic document reliably establishes that person as
6 10 the person to which the electronic document was issued or
6 11 transferred.
6 12	2.	A system satisfies subsection 1, and a person is deemed
6 13 to have control of an electronic document of title, if the
6 14 document is created, stored, and assigned in such a manner
6 15 that:
6 16	a.	a single authoritative copy of the document exists
6 17 which is unique, identifiable, and, except as otherwise
6 18 provided in paragraphs "d", "e", and "f", unalterable;
6 19	b.	the authoritative copy identifies the person asserting
6 20 control as:
6 21	(1)	the person to which the document was issued; or
6 22	(2)	if the authoritative copy indicates that the document
6 23 has been transferred, the person to which the document was
6 24 most recently transferred;
6 25	c.	the authoritative copy is communicated to and
6 26 maintained by the person asserting control or its designated
6 27 custodian;
6 28	d.	copies or amendments that add or change an identified
6 29 assignee of the authoritative copy can be made only with the
6 30 consent of the person asserting control;
6 31	e.	each copy of the authoritative copy and any copy of a
6 32 copy is readily identifiable as a copy that is not the
6 33 authoritative copy; and
6 34	f.	any amendment of the authoritative copy is readily
35 identifiable as authorized or unauthorized.
1	Sec. 7.	Section 554.7201, Code 2007, is amended to read as
7	2 follows:
7	3	554.7201	WHO PERSON THAT MAY ISSUE A WAREHOUSE RECEIPT ==
7	4 STORAGE UNDER GOVERNMENT BOND.
7	5	1.	A warehouse receipt may be issued by any warehouse
7	6 operator.
7	7	2.	Where If goods, including distilled spirits and
7	8 agricultural commodities, are stored under a statute requiring
7	9 a bond against withdrawal or a license for the issuance of
7 10 receipts in the nature of warehouse receipts, a receipt issued
7 11 for the goods has like effect as is deemed to be a warehouse
7 12 receipt even though if issued by a person who that is the
7 13 owner of the goods and is not a warehouse operator.
7 14	Sec. 8.	Section 554.7202, Code 2007, is amended to read as
7 15 follows:
7 16	554.7202	FORM OF WAREHOUSE RECEIPT == ESSENTIAL TERMS ==
  7 17 OPTIONAL TERMS EFFECT OF OMISSION.
7 18	1.	A warehouse receipt need not be in any particular form.
7 19	2.	Unless a warehouse receipt embodies within its written
  7 20 or printed terms provides for each of the following, the
7 21 warehouse operator is liable for damages caused to a person

  7 22 injured by the

its

omission

to a person injured thereby:

7 23	a.	a statement of the location of the warehouse facility
7 24 where the goods are stored;
7 25	b.	the date of issue of the receipt;

7 26	c.	the consecutive number unique identification code of
7 27 the receipt;
7 28	d.	a statement whether the goods received will be
7 29 delivered to the bearer, to a specified named person, or to a
7 30 specified named person or that person's its order;
7 31	e.	the rate of storage and handling charges, except that
  7 32 where unless goods are stored under a field warehousing
7 33 arrangement, in which case a statement of that fact is
7 34 sufficient on a nonnegotiable receipt;
35	f.	a description of the goods or of the packages
1 containing them;
8	2	g.	the signature of the warehouse operator, which may be
  8  3 made by the warehouse operator's authorized or its agent;
8	4	h.	if the receipt is issued for goods of which that the
8	5 warehouse operator is owner owns, either solely, or jointly,
8	6 or in common with others, a statement of the fact of such that
8	7 ownership; and
8	8	i.	a statement of the amount of advances made and of
8	9 liabilities incurred for which the warehouse operator claims a
8 10 lien or security interest, (section 554.7209).  If unless the
8 11 precise amount of such advances made or of such liabilities
8 12 incurred is, at the time of the issue of the receipt, is
8 13 unknown to the warehouse operator or to the warehouse
  8 14 operator's its agent who issues it that issued the receipt, in
  8 15 which case a statement of the fact that advances have been
8 16 made or liabilities incurred and the purpose thereof of the
  8 17 advances or liabilities is sufficient.
8 18	3.	A warehouse operator may insert in the its receipt any
8 19 other terms which that are not contrary to the provisions of
8 20 this chapter and do not impair the warehouse operator's its
8 21 obligation of delivery (section 554.7403) under section

  8 22 554.7403 or its duty

of care (section 554.7204) under section

  8 23 554.7204.

Any

contrary provisions shall be provision is

8 24 ineffective.
8 25	Sec. 9.	Section 554.7203, Code 2007, is amended to read as
8 26 follows:
8 27	554.7203	LIABILITY FOR NONRECEIPT OR MISDESCRIPTION.
8 28	A party to or purchaser for value in good faith of a
8 29 document of title, other than a bill of lading relying in
  8 30 either case, that relies upon the description therein of the
8 31 goods in the document may recover from the issuer damages
8 32 caused by the nonreceipt or misdescription of the goods,
8 33 except to the extent that:
8 34	1.	the document conspicuously indicates that the issuer

35 does not know whether any all or part

or all of the goods in

1 fact were received or conform to the description, as where
9	2 such as the case in which the description is in terms of marks
9	3 or labels or kind, quantity, or condition, or the receipt or
9	4 description is qualified by "contents, condition, and quality
9	5 unknown", "said to contain", or the like, words of similar
  9  6 import, if such the indication be is true,; or
9	7	2.	the party or purchaser otherwise has notice of the
  9  8 nonreceipt or misdescription.
9	Sec. 10.	Section 554.7204, Code 2007, is amended to read
9 10 as follows:
9 11	554.7204	DUTY OF CARE == CONTRACTUAL LIMITATION OF
9 12 WAREHOUSE OPERATOR'S WAREHOUSE'S LIABILITY.
9 13	1.	A warehouse operator is liable for damages for loss of
9 14 or injury to the goods caused by the warehouse operator's its
9 15 failure to exercise such care in with regard to them as the
  9 16 goods that a reasonably careful person would exercise under
9 17 like similar circumstances but unless.  Unless otherwise
9 18 agreed, the warehouse operator is not liable for damages which
9 19 that could not have been avoided by the exercise of such that
9 20 care.
9 21	2.	Damages may be limited by a term in the warehouse
9 22 receipt or storage agreement limiting the amount of liability
9 23 in case of loss or damage, and setting forth a specific
  9 24 liability per article or item, or value per unit of weight,
9 25 beyond which the warehouse operator shall is not be liable;
  9 26 provided, however, that such liability may on written.  Such a
  9 27 limitation is not effective with respect to the warehouse's
  9 28 liability for conversion to its own use.  On request of the
9 29 bailor in a record at the time of signing such the storage
9 30 agreement or within a reasonable time after receipt of the
9 31 warehouse receipt, the warehouse's liability may be increased
9 32 on part or all of the goods thereunder, in which covered by
  9 33 the storage agreement or the warehouse receipt.  In this
9 34 event, increased rates may be charged based on such an
9 35 increased valuation, but that no such increase shall be
 10  1 permitted contrary to a lawful limitation of liability

 10  2 contained in the warehouse operator's tariff, if any of the

 10  3 goods.

No such limitation is effective with respect to the

 10  4 warehouse operator's liability for conversion to the warehouse
 10  5 operator's own use.
6	3.	Reasonable provisions as to the time and manner of
10	7 presenting claims and instituting commencing actions based on
10	8 the bailment may be included in the warehouse receipt or
10	9 tariff storage agreement.
10 10	4.  This section does not modify or repeal any provision
 10 11 under chapter 203, 203C, or 203D.
10 12	Sec. 11.	Section 554.7205, Code 2007, is amended to read
10 13 as follows:
10 14	554.7205	TITLE UNDER WAREHOUSE RECEIPT DEFEATED IN CERTAIN
10 15 CASES.
10 16	A buyer in the ordinary course of business of fungible
10 17 goods sold and delivered by a warehouse operator who that is
10 18 also in the business of buying and selling such goods takes
10 19 the goods free of any claim under a warehouse receipt even
10 20 though it if the receipt is negotiable and has been duly
10 21 negotiated.
10 22	Sec. 12.	Section 554.7206, Code 2007, is amended to read
10 23 as follows:
10 24	554.7206	TERMINATION OF STORAGE AT WAREHOUSE OPERATOR'S
10 25 WAREHOUSE'S OPTION.
10 26	1.	A warehouse operator may on notifying, by giving notice
 10 27 to the person on whose account the goods are held and any
10 28 other person known to claim an interest in the goods, may
10 29 require payment of any charges and removal of the goods from
10 30 the warehouse at the termination of the period of storage
10 31 fixed by the document, of title or, if no a period is not
10 32 fixed, within a stated period not less than thirty days after
10 33 the notification warehouse gives notice.	If the goods are not
10 34 removed before the date specified in the notification notice,
35 the warehouse operator may sell them in accordance with the

 11  1 provisions of the pursuant to section

on enforcement of a

 11  2 warehouse operator's lien (section 554.7210) 554.7210.
3	2.	If a warehouse operator in good faith believes that the
11	4 goods are about to deteriorate or decline in value to less
11	5 than the amount of the warehouse operator's its lien within
11	6 the time prescribed provided in subsection 1 for notification,
 11  7 advertisement and sale and section 554.7210, the warehouse
11	8 operator may specify in the notification notice given under
 11  9 subsection 1 any reasonable shorter time for removal of the
11 10 goods and in case, if the goods are not removed, may sell them
11 11 at public sale held not less than one week after a single
11 12 advertisement or posting.
11 13	3.	If, as a result of a quality or condition of the goods
11 14 of which the warehouse operator had no did not have notice at
11 15 the time of deposit, the goods are a hazard to other property,
11 16 or to the warehouse facilities, or to other persons, the
11 17 warehouse operator may sell the goods at public or private
11 18 sale without advertisement or posting on reasonable
11 19 notification to all persons known to claim an interest in the
11 20 goods.	If the warehouse, operator after a reasonable effort,
11 21 is unable to sell the goods the warehouse operator, it may
11 22 dispose of them in any lawful manner and shall does not incur
11 23 no liability by reason of such that disposition.
11 24	4.	The A warehouse operator must shall deliver the goods
11 25 to any person entitled to them under this Article upon due
11 26 demand made at any time prior to before sale or other
11 27 disposition under this section.
11 28	5.	The A warehouse operator may satisfy the warehouse
 11 29 operator's its lien from the proceeds of any sale or
11 30 disposition under this section but must shall hold the balance
11 31 for delivery on the demand of any person to whom which the
11 32 warehouse operator would have been bound to deliver the goods.
11 33	Sec. 13.	Section 554.7207, Code 2007, is amended to read
11 34 as follows:
35	554.7207	GOODS MUST BE KEPT SEPARATE == FUNGIBLE GOODS.
1	1.	Unless the warehouse receipt otherwise provides
12	2 otherwise, a warehouse operator must shall keep separate the
12	3 goods covered by each receipt so as to permit at all times
12	4 identification and delivery of those goods except that.
 12  5 However, different lots of fungible goods may be commingled.
12	6	2.	Fungible If different lots of fungible goods so are
12	7 commingled, the goods are owned in common by the persons
12	8 entitled thereto and the warehouse operator is severally
12	9 liable to each owner for that owner's share.	Where If,
12 10 because of overissue, a mass of fungible goods is insufficient
12 11 to meet all the receipts which the warehouse operator has
12 12 issued against it, the persons entitled include all holders to

12 13 whom which overissued receipts have been duly negotiated.
12 14	Sec. 14.	Section 554.7208, Code 2007, is amended to read
12 15 as follows:
12 16	554.7208	ALTERED WAREHOUSE RECEIPTS.
12 17	Where If a blank in a negotiable tangible warehouse receipt
12 18 has been filled in without authority, a good=faith purchaser
12 19 for value and without notice of the want lack of authority may
12 20 treat the insertion as authorized.	Any other unauthorized
12 21 alteration leaves any tangible or electronic warehouse receipt
12 22 enforceable against the issuer according to its original
12 23 tenor.
12 24	Sec. 15.	Section 554.7209, Code 2007, is amended to read
12 25 as follows:
12 26	554.7209	LIEN OF WAREHOUSE OPERATOR.
12 27	1.	A warehouse operator has a lien against the bailor on
12 28 the goods covered by a warehouse receipt or storage agreement
12 29 or on the proceeds thereof in the warehouse operator's its
12 30 possession for charges for storage or transportation
12 31 (including, including demurrage and terminal charges) charges,
12 32 insurance, labor, or other charges, present or future, in
12 33 relation to the goods, and for expenses necessary for
12 34 preservation of the goods or reasonably incurred in their sale
35 pursuant to law.	If the person on whose account the goods are
1 held is liable for like similar charges or expenses in
13	2 relation to other goods whenever deposited and it is stated in
13	3 the warehouse receipt or storage agreement that a lien is
13	4 claimed for charges and expenses in relation to other goods,
13	5 the warehouse operator also has a lien against that person the
 13  6 goods covered in the warehouse receipt or storage agreement or
 13  7 on the proceeds thereof in its possession for such those
13	8 charges and expenses, whether or not the other goods have been
13	9 delivered by the warehouse operator.	But However, as against
13 10 a person to whom which a negotiable warehouse receipt is duly
13 11 negotiated, a warehouse operator's warehouse's lien is limited
13 12 to charges in an amount or at a rate specified on in the
13 13 warehouse receipt or, if no charges are so specified, then to
13 14 a reasonable charge for storage of the specific goods covered
13 15 by the receipt subsequent to the date of the receipt.
13 16	2.	The A warehouse operator may also reserve a security
13 17 interest against the bailor for a the maximum amount specified
13 18 on the receipt for charges other than those specified in
13 19 subsection 1, such as for money advanced and interest.	Such a
13 20 The security interest is governed by the Article on Secured
 13 21 Transactions (Article 9) 9.
13 22	3.	a.	A warehouse operator's warehouse's lien for charges
13 23 and expenses under subsection 1 or a security interest under
13 24 subsection 2 is also effective against any person who that so
13 25 entrusted the bailor with possession of the goods that a
13 26 pledge of them by the bailor to a good faith good=faith
13 27 purchaser for value would have been valid but.  However, the
 13 28 lien or security interest is not effective against a person as
 13 29 to whom the that before issuance of a document confers no
 13 30 right of title had a legal interest or perfected security

 13 31 interest in

the

goods

covered by it under section 554.7503.

13 32 and that did not:
13 33	a.  deliver or entrust the goods or any document of title
 13 34 covering the goods to the bailor or the bailor's nominee with:
35	(1)  actual or apparent authority to ship, store, or sell;
1	(2)  power to obtain delivery under section 554.7403; or
14	2	(3)  power of disposition under sections 554.2403,
 14  3 554.13304, subsection 2, 554.13305, subsection 2, 554.9320, or
 14  4 554.9321, subsection 3, or other statute or rule of law; or
14	5	b.  acquiesce in the procurement by the bailor or its
 14  6 nominee of any document.
14	7	b.	4.	A warehouse operator's warehouse's lien on
14	8 household goods for charges and expenses in relation to the
14	9 goods under subsection 1 is also effective against all persons
14 10 if the depositor was the legal possessor of the goods at the
14 11 time of deposit.	"Household In this subsection, "household
14 12 goods" means furniture, furnishings and, or personal effects
14 13 used by the depositor in a dwelling.
14 14	4.	5.	A warehouse operator loses the warehouse operator's
14 15 its lien on any goods which the warehouse operator that it
14 16 voluntarily delivers or unjustifiably refuses to deliver.
14 17	Sec. 16.	Section 554.7210, Code 2007, is amended to read
14 18 as follows:
14 19	554.7210	ENFORCEMENT OF WAREHOUSE OPERATOR'S WAREHOUSE'S
14 20 LIEN.
14 21	1.	Except as otherwise provided in subsection 2, a
14 22 warehouse operator's warehouse's lien may be enforced by
14 23 public or private sale of the goods, in block bulk or in

14 24 parcels packages, at any time or place and on any terms which
14 25 that are commercially reasonable, after notifying all persons
14 26 known to claim an interest in the goods.	Such The
14 27 notification must include a statement of the amount due, the
14 28 nature of the proposed sale, and the time and place of any
14 29 public sale.	The fact that a better price could have been
14 30 obtained by a sale at a different time or in a different
14 31 method different from that selected by the warehouse operator
14 32 is not of itself sufficient to establish that the sale was not
14 33 made in a commercially reasonable manner.	If the The
34 warehouse operator either sells in a commercially reasonable
 14 35 manner if the warehouse sells the goods in the usual manner in
1 any recognized market therefor, or if the warehouse operator
15	2 sells at the price current in such that market at the time of
15	3 the warehouse operator's sale, or if the warehouse operator
 15  4 has otherwise sold sells in conformity with commercially
15	5 reasonable practices among dealers in the type of goods sold,
 15  6 the warehouse operator has sold in a commercially reasonable
 15  7 manner.	A sale of more goods than apparently necessary to be
15	8 offered to insure ensure satisfaction of the obligation is not
15	9 commercially reasonable, except in cases covered by the
15 10 preceding sentence.
15 11	2.	A warehouse operator's may enforce its lien on goods,
15 12 other than goods stored by a merchant in the course of the
 15 13 merchant's its business may be enforced only as follows, only
 15 14 if the following requirements are satisfied:
15 15	a.	All persons known to claim an interest in the goods
15 16 must be notified.
15 17	b.  The notification must be delivered in person or sent by
 15 18 registered or certified letter to the last known address of
 15 19 any person to be notified.
15 20	c.	b.	The notification must include an itemized statement
15 21 of the claim, a description of the goods subject to the lien,
15 22 a demand for payment within a specified time not less than ten
15 23 days after receipt of the notification, and a conspicuous
15 24 statement that unless the claim is paid within that time the
15 25 goods will be advertised for sale and sold by auction at a
15 26 specified time and place.
15 27	d.	c.	The sale must conform to the terms of the
15 28 notification.
15 29	e.	d.	The sale must be held at the nearest suitable place
15 30 to that where the goods are held or stored.
15 31	f.	e.	After the expiration of the time given in the
15 32 notification, an advertisement of the sale must be published
15 33 once a week for two weeks consecutively in a newspaper of
15 34 general circulation where the sale is to be held.	The
35 advertisement must include a description of the goods, the
1 name of the person on whose account they the goods are being
16	2 held, and the time and place of the sale.	The sale must take
16	3 place at least fifteen days after the first publication.	If
16	4 there is no newspaper of general circulation where the sale is
16	5 to be held, the advertisement must be posted at least ten days
16	6 before the sale in not less fewer than six conspicuous places
16	7 in the neighborhood of the proposed sale.
16	8	3.	Before any sale pursuant to this section, any person
16	9 claiming a right in the goods may pay the amount necessary to
16 10 satisfy the lien and the reasonable expenses incurred under in
 16 11 complying with this section.	In that event, the goods must
16 12 may not be sold, but must be retained by the warehouse
16 13 operator subject to the terms of the receipt and this Article.
16 14	4.	The A warehouse operator may buy at any public sale
16 15 held pursuant to this section.
16 16	5.	A purchaser in good faith of goods sold to enforce a
16 17 warehouse operator's warehouse's lien takes the goods free of
16 18 any rights of persons against whom which the lien was valid,

16 19 despite the warehouse's noncompliance

by the warehouse

 16 20 operator with the requirements of with this section.
16 21	6.	The A warehouse operator may satisfy the warehouse
 16 22 operator's its lien from the proceeds of any sale pursuant to
16 23 this section but must shall hold the balance, if any, for
16 24 delivery on demand to any person to whom which the warehouse
16 25 operator would have been bound to deliver the goods.
16 26	7.	The rights provided by this section shall be are in
16 27 addition to all other rights allowed by law to a creditor
16 28 against the creditor's a debtor.
16 29	8.	Where If a lien is on goods stored by a merchant in the
16 30 course of the merchant's its business, the lien may be
16 31 enforced in accordance with either subsection 1 or 2.
16 32	9.	The A warehouse operator is liable for damages caused
16 33 by failure to comply with the requirements for sale under this
16 34 section and, in case of willful violation, is liable for

35 conversion.
1	Sec. 17.	Section 554.7301, Code 2007, is amended to read
17	2 as follows:
17	3	554.7301	LIABILITY FOR NONRECEIPT OR MISDESCRIPTION ==
17	4 "SAID TO CONTAIN" == "SHIPPER'S WEIGHT, LOAD, AND COUNT" ==
17	5 IMPROPER HANDLING.
17	6	1.	A consignee of a nonnegotiable bill who of lading which
17	7 has given value in good faith, or a holder to whom which a
17	8 negotiable bill has been duly negotiated, relying in either
 17  9 case upon the description therein of the goods, in the bill or
17 10 upon the date therein shown in the bill, may recover from the
17 11 issuer damages caused by the misdating of the bill or the
17 12 nonreceipt or misdescription of the goods, except to the
17 13 extent that the document bill indicates that the issuer does
17 14 not know whether any part or all of the goods in fact were
17 15 received or conform to the description, as where such as in a
 17 16 case in which the description is in terms of marks or labels
17 17 or kind, quantity, or condition or the receipt or description
17 18 is qualified by "contents or condition of contents of packages
17 19 unknown", "said to contain", "shipper's weight, load, and
17 20 count", or the like words of similar import, if such that
17 21 indication be is true.
17 22	2.	When If goods are loaded by an the issuer who is a
 17 23 common carrier, the of a bill of lading;
17 24	a.  the issuer must shall count the packages of goods if
17 25 package freight shipped in packages and ascertain the kind and

17 26 quantity if shipped in bulk

freight.  In such cases; and

17 27	b.  words such as "shipper's weight, load, and count", or
17 28 other words of similar import indicating that the description
17 29 was made by the shipper are ineffective except as to freight
17 30 goods concealed by in packages.
17 31	3.	When If bulk freight is goods are loaded by a shipper
17 32 who that makes available to the issuer of a bill of lading
17 33 adequate facilities for weighing such freight those goods, an
17 34 the issuer who is a common carrier must shall ascertain the
35 kind and quantity within a reasonable time after receiving the
1 written shipper's request of the shipper in a record to do so.
18	2 In such cases that case, "shipper's weight" or other words of
18	3 like purport similar import are ineffective.
18	4	4.	The issuer may of a bill of lading, by inserting
18	5 including in the bill the words "shipper's weight, load, and
18	6 count", or other words of like purport similar import, may
18	7 indicate that the goods were loaded by the shipper;, and, if
18	8 such that statement be is true, the issuer shall is not be
18	9 liable for damages caused by the improper loading.	But their
18 10 However, omission of such words does not imply liability for
18 11 such damages caused by improper loading.
18 12	5.	The A shipper shall be deemed to have guaranteed
18 13 guarantees to the an issuer the accuracy at the time of
18 14 shipment of the description, marks, labels, number, kind,
18 15 quantity, condition, and weight, as furnished by the shipper;,
18 16 and the shipper shall indemnify the issuer against damage
18 17 caused by inaccuracies in such those particulars.	The This
18 18 right of the issuer to such indemnity shall in no way does not
18 19 limit the issuer's responsibility and or liability under the
18 20 contract of carriage to any person other than the shipper.
18 21	Sec. 18.	Section 554.7302, Code 2007, is amended to read
18 22 as follows:
18 23	554.7302	THROUGH BILLS OF LADING AND SIMILAR DOCUMENTS OF
 18 24 TITLE.
18 25	1.	The issuer of a through bill of lading, or other
18 26 document of title embodying an undertaking to be performed in
18 27 part by persons a person acting as its agents agent or by
18 28 connecting carriers a performing carrier, is liable to anyone
18 29 any person entitled to recover on the bill or other document
18 30 for any breach by such the other persons person or by a
 18 31 connecting the performing carrier of its obligation under the
18 32 bill or other document but.  However, to the extent that the
18 33 bill or other document covers an undertaking to be performed
18 34 overseas or in territory not contiguous to the continental
35 United States or an undertaking including matters other than
1 transportation, this liability for breach by the other person
 19  2 or the performing carrier may be varied by agreement of the
19	3 parties.
19	4	2.	Where If goods covered by a through bill of lading or
19	5 other document of title embodying an undertaking to be
19	6 performed in part by persons a person other than the issuer
19	7 are received by any such that person, that the person is
19	8 subject, with respect to that person's its own performance
19	9 while the goods are in that person's its possession, to the
19 10 obligation of the issuer.	That The person's obligation is

19 11 discharged by delivery of the goods to another such person
19 12 pursuant to the bill or other document, and does not include
19 13 liability for breach by any other such persons person or by
19 14 the issuer.
19 15	3.	The issuer of such a through bill of lading or other
19 16 document shall be of title described in subsection 1 is
19 17 entitled to recover from the connecting performing carrier, or
19 18 such other person in possession of the goods when the breach
19 19 of the obligation under the bill or other document occurred,
 19 20 the:
19 21	a.  the amount it may be required to pay to anyone any
 19 22 person entitled to recover on the bill or other document
19 23 therefor for the breach, as may be evidenced by any receipt,
19 24 judgment, or transcript thereof, of judgment; and
19 25	b.	the amount of any expense reasonably incurred by it the
 19 26 issuer in defending any action brought commenced by anyone any
 19 27 person entitled to recover on the bill or other document
19 28 therefor for the breach.
19 29	Sec. 19.	Section 554.7303, Code 2007, is amended to read
19 30 as follows:
19 31	554.7303	DIVERSION == RECONSIGNMENT == CHANGE OF
19 32 INSTRUCTIONS.
19 33	1.	Unless the bill of lading otherwise provides, the a
19 34 carrier may deliver the goods to a person or destination other
35 than that stated in the bill or may otherwise dispose of the
1 goods, without liability for misdelivery, on instructions
20	2 from:
20	3	a.	the holder of a negotiable bill; or
20	4	b.	the consignor on a nonnegotiable bill notwithstanding,
 20  5 even if the consignee has given contrary instructions from the
 20  6 consignee; or
20	7	c.	the consignee on a nonnegotiable bill in the absence of
20	8 contrary instructions from the consignor, if the goods have
20	9 arrived at the billed destination or if the consignee is in
20 10 possession of the tangible bill or in control of the
 20 11 electronic bill; or
20 12	d.	the consignee on a nonnegotiable bill if the consignee
20 13 is entitled as against the consignor to dispose of them the
 20 14 goods.
20 15	2.	Unless such instructions described in subsection 1 are
20 16 noted on included in a negotiable bill of lading, a person to
20 17 whom which the bill is duly negotiated can may hold the bailee
20 18 according to the original terms.
20 19	Sec. 20.	Section 554.7304, Code 2007, is amended to read
20 20 as follows:
20 21	554.7304	TANGIBLE BILLS OF LADING IN A SET.
20 22	1.	Except where as customary in overseas international
20 23 transportation, a tangible bill of lading must may not be
20 24 issued in a set of parts.	The issuer is liable for damages
20 25 caused by violation of this subsection.
20 26	2.	Where If a tangible bill of lading is lawfully drawn
20 27 issued in a set of parts, each of which is numbered contains
 20 28 an identification code and is expressed to be valid only if
20 29 the goods have not been delivered against any other part, the
20 30 whole of the parts constitute constitutes one bill.
20 31	3.	Where If a tangible negotiable bill of lading is
20 32 lawfully issued in a set of parts and different parts are
20 33 negotiated to different persons, the title of the holder to
20 34 whom which the first due negotiation is made prevails as to
35 both the document of title and the goods even though if any
1 later holder may have received the goods from the carrier in
21	2 good faith and discharged the carrier's obligation by
21	3 surrender of the later holder's surrendering its part.
21	4	4.	Any A person who that negotiates or transfers a single
21	5 part of a tangible bill of lading drawn issued in a set is
21	6 liable to holders of that part as if it were the whole set.
21	7	5.	The bailee is obliged to shall deliver in accordance
21	8 with Part 4 of this Article against the first presented part
21	9 of a tangible bill of lading lawfully drawn issued in a set.
21 10 Such delivery Delivery in this manner discharges the bailee's
21 11 obligation on the whole bill.
21 12	Sec. 21.	Section 554.7305, Code 2007, is amended to read
21 13 as follows:
21 14	554.7305	DESTINATION BILLS.
21 15	1.	Instead of issuing a bill of lading to the consignor at
21 16 the place of shipment, a carrier, may at the request of the
21 17 consignor, may procure the bill to be issued at destination or
21 18 at any other place designated in the request.
21 19	2.	Upon request of anyone any person entitled as against
21 20 the a carrier to control the goods while in transit and on
21 21 surrender of possession or control of any outstanding bill of

21 22 lading or other receipt covering such the goods, the issuer,
 21 23 subject to section 554.7105, may procure a substitute bill to
21 24 be issued at any place designated in the request.
21 25	Sec. 22.	Section 554.7307, Code 2007, is amended to read
21 26 as follows:
21 27	554.7307	LIEN OF CARRIER.
21 28	1.	A carrier has a lien on the goods covered by a bill of
21 29 lading or on the proceeds thereof in its possession for
21 30 charges subsequent to after the date of its the carrier's
21 31 receipt of the goods for storage or transportation (including,
 21 32 including demurrage and terminal charges) charges, and for
21 33 expenses necessary for preservation of the goods incident to
21 34 their transportation or reasonably incurred in their sale
35 pursuant to law.	But However, against a purchaser for value
1 of a negotiable bill of lading, a carrier's lien is limited to
22	2 charges stated in the bill or the applicable tariffs, or, if
22	3 no charges are stated, then to a reasonable charge.
22	4	2.	A lien for charges and expenses under subsection 1 on
22	5 goods which that the carrier was required by law to receive
22	6 for transportation is effective against the consignor or any
22	7 person entitled to the goods unless the carrier had notice
22	8 that the consignor lacked authority to subject the goods to
22	9 such those charges and expenses.	Any other lien under
22 10 subsection 1 is effective against the consignor and any person
22 11 who that permitted the bailor to have control or possession of
22 12 the goods unless the carrier had notice that the bailor lacked
22 13 such authority.
22 14	3.	A carrier loses the carrier's its lien on any goods

22 15 which the carrier that it voluntarily delivers or
 22 16 carrier unjustifiably refuses to deliver.

which the

22 17	Sec. 23.	Section 554.7308, Code 2007, is amended to read
22 18 as follows:
22 19	554.7308	ENFORCEMENT OF CARRIER'S LIEN.
22 20	1.	A carrier's lien on goods may be enforced by public or
22 21 private sale of the goods, in bloc bulk or in parcels
22 22 packages, at any time or place and on any terms which that are
22 23 commercially reasonable, after notifying all persons known to
22 24 claim an interest in the goods.	Such The notification must
22 25 include a statement of the amount due, the nature of the
22 26 proposed sale, and the time and place of any public sale.	The
22 27 fact that a better price could have been obtained by a sale at
22 28 a different time or in a different method different from that
22 29 selected by the carrier is not of itself sufficient to
22 30 establish that the sale was not made in a commercially
22 31 reasonable manner.	If The carrier sells goods in a
 22 32 commercially reasonable manner if the carrier either sells the
22 33 goods in the usual manner in any recognized market therefor,
22 34 or if the carrier sells at the price current in such that
35 market at the time of the carrier's sale, or if the carrier
 23  1 has otherwise sold sells in conformity with commercially
2 reasonable practices among dealers in the type of goods sold
23	3 the carrier has sold in a commercially reasonable manner.	A
23	4 sale of more goods than apparently necessary to be offered to
23	5 ensure satisfaction of the obligation is not commercially
23	6 reasonable, except in cases covered by the preceding sentence.
23	7	2.	Before any sale pursuant to this section, any person
23	8 claiming a right in the goods may pay the amount necessary to
23	9 satisfy the lien and the reasonable expenses incurred under in
 23 10 complying with this section.	In that event, the goods must
23 11 may not be sold, but must be retained by the carrier, subject
23 12 to the terms of the bill of lading and this Article.
23 13	3.	The A carrier may buy at any public sale pursuant to
23 14 this section.
23 15	4.	A purchaser in good faith of goods sold to enforce a
23 16 carrier's lien takes the goods free of any rights of persons
23 17 against whom which the lien was valid, despite the carrier's
23 18 noncompliance by the carrier with the requirements of with
23 19 this section.
23 20	5.	The A carrier may satisfy the carrier's its lien from
23 21 the proceeds of any sale pursuant to this section but must
23 22 shall hold the balance, if any, for delivery on demand to any
23 23 person to whom which the carrier would have been bound to
23 24 deliver the goods.
23 25	6.	The rights provided by this section shall be are in
23 26 addition to all other rights allowed by law to a creditor
23 27 against the creditor's a debtor.
23 28	7.	A carrier's lien may be enforced in accordance with
23 29 pursuant to either subsection 1 or the procedure set forth in
23 30 subsection 2 of section 554.7210, subsection 2.
23 31	8.	The A carrier is liable for damages caused by failure
23 32 to comply with the requirements for sale under this section

23 33 and, in case of willful violation, is liable for conversion.
23 34	Sec. 24.	Section 554.7309, Code 2007, is amended to read
35 as follows:
1	554.7309	DUTY OF CARE == CONTRACTUAL LIMITATION OF
24	2 CARRIER'S LIABILITY.
24	3	1.	A carrier who that issues a bill of lading, whether
24	4 negotiable or nonnegotiable must, shall exercise the degree of
24	5 care in relation to the goods which a reasonably careful
24	6 person would exercise under like similar circumstances.	This
24	7 subsection does not repeal or change affect any law or
24	8 statute, regulation, or rule of law which that imposes
24	9 liability upon a common carrier for damages not caused by its
24 10 negligence.
24 11	2.	Damages may be limited by a provision term in the bill
 24 12 of lading or in a transportation agreement that the carrier's
24 13 liability shall may not exceed a value stated in the document
24 14 bill or transportation agreement if the carrier's rates are
24 15 dependent upon value and the consignor by the carrier's tariff
24 16 is afforded an opportunity to declare a higher value or a
 24 17 value as lawfully provided in the tariff, or where no tariff
 24 18 is filed and the consignor is otherwise advised of such the
24 19 opportunity; but no.  However, such a limitation is not
24 20 effective with respect to the carrier's liability for
24 21 conversion to its own use.
24 22	3.	Reasonable provisions as to the time and manner of
24 23 presenting claims and instituting commencing actions based on
24 24 the shipment may be included in a bill of lading or tariff a
 24 25 transportation agreement.
24 26	Sec. 25.	Section 554.7401, Code 2007, is amended to read
24 27 as follows:
24 28	554.7401	IRREGULARITIES IN ISSUE OF RECEIPT OR BILL OR
24 29 CONDUCT OF ISSUER.
24 30	The obligations imposed by this Article on an issuer apply
24 31 to a document of title regardless of the fact that even if:
24 32	1.	the document may does not comply with the requirements
24 33 of this Article or of any other law statute, rule, or
24 34 regulation regarding its issue issuance, form, or content; or
35	2.	the issuer may have violated laws regulating the
1 conduct of the issuer's its business; or
25	2	3.	the goods covered by the document were owned by the
25	3 bailee at the time when the document was issued; or
25	4	4.	the person issuing the document does not come within

 25  5 the definition of is not a

warehouse

operator if it but the

 25  6 document purports to be a warehouse receipt.
25	7	Sec. 26.	Section 554.7402, Code 2007, is amended to read
25	8 as follows:
25	9	554.7402	DUPLICATE RECEIPT OR BILL DOCUMENT OF TITLE ==
25 10 OVERISSUE.
25 11	Neither a A duplicate nor or any other document of title
25 12 purporting to cover goods already represented by an
25 13 outstanding document of the same issuer confers does not
 25 14 confer any right in the goods, except as provided in the case
25 15 of tangible bills of lading in a set of parts, overissue of
25 16 documents for fungible goods, and substitutes for lost,
25 17 stolen, or destroyed documents, or substitute documents issued
 25 18 pursuant to section 554.7105.	But the The issuer is liable
25 19 for damages caused by the issuer's its overissue or failure to
25 20 identify a duplicate document as such by a conspicuous
25 21 notation on its face.
25 22	Sec. 27.	Section 554.7403, Code 2007, is amended to read
25 23 as follows:
25 24	554.7403	OBLIGATION OF WAREHOUSE OPERATOR OR CARRIER
25 25 BAILEE TO DELIVER == EXCUSE.
25 26	1.	The A bailee must shall deliver the goods to a person
25 27 entitled under the a document who of title if the person
25 28 complies with subsections 2 and 3, unless and to the extent
25 29 that the bailee establishes any of the following:
25 30	a.	delivery of the goods to a person whose receipt was
25 31 rightful as against the claimant;
25 32	b.	damage to or delay, loss, or destruction of the goods
33 for which the bailee is not liable, but the burden of
 25 34 establishing negligence in such cases is on the person
 25 35 entitled under the document;
1	c.	previous sale or other disposition of the goods in
26	2 lawful enforcement of a lien or on the warehouse operator's a
 26  3 warehouse's lawful termination of storage;
26	4	d.	the exercise by a seller of the seller's its right to
26	5 stop delivery pursuant to the provisions of the Article on
 26  6 Sales (section 554.2705) section 554.2705 or by a lessor of
 26  7 its right to stop delivery pursuant to section 554.13526;
26	8	e.	a diversion, reconsignment, or other disposition

26	9 pursuant to the provisions of this Article (section 554.7303)
 26 10 or tariff regulating such right section 554.7303;
26 11	f.	release, satisfaction or any other fact affording a
26 12 personal defense against the claimant; or
26 13	g.	any other lawful excuse.
26 14	2.	A person claiming goods covered by a document of title
26 15 must shall satisfy the bailee's lien where if the bailee so
26 16 requests or where if the bailee is prohibited by law from
26 17 delivering the goods until the charges are paid.
26 18	3.	Unless the a person claiming the goods is one a person
26 19 against whom which the document confers no of title does not

 26 20 confer a right under section

554.7503, subsection 1, that:

26 21	a.  the person must claiming under a document shall
26 22 surrender possession or control of any outstanding negotiable
 26 23 document covering the goods for cancellation or notation
26 24 indication of partial deliveries any outstanding negotiable
 26 25 document covering the goods, and the bailee must cancel the
 26 26 document or conspicuously note the partial delivery thereon or
 26 27 be liable to any person to whom the document is duly
 26 28 negotiated.; and
26 29	b.  the bailee shall cancel the document or conspicuously
 26 30 indicate in the document the partial delivery or the bailee is
 26 31 liable to any person to which the document is duly negotiated.
32	4.  "Person entitled under the document" means holder in
 26 33 the case of a negotiable document, or the person to whom
 26 34 delivery is to be made by the terms of or pursuant to written
 26 35 instructions under a nonnegotiable document.
1	Sec. 28.	Section 554.7404, Code 2007, is amended to read
27	2 as follows:
27	3	554.7404	NO LIABILITY FOR GOOD FAITH GOOD=FAITH DELIVERY
27	4 PURSUANT TO RECEIPT OR BILL DOCUMENT OF TITLE.
27	5	A bailee who that in good faith including observance of
 27  6 reasonable commercial standards has received goods and
27	7 delivered or otherwise disposed of them the goods according to
27	8 the terms of the a document of title or pursuant to this
27	9 Article is not liable therefor.  This rule applies even though
27 10 for the goods even if:
27 11	1.	the person from whom which the bailee received the
27 12 goods had no did not have authority to procure the document or
27 13 to dispose of the goods and even though; or
27 14	2.	the person to whom which the bailee delivered the goods
27 15 had no did not have authority to receive them the goods.
27 16	Sec. 29.	Section 554.7501, Code 2007, is amended to read
27 17 as follows:
27 18	554.7501	FORM OF NEGOTIATION AND REQUIREMENTS OF "DUE
 27 19 NEGOTIATION" DUE NEGOTIATION.
27 20	1.	A The following rules apply to a negotiable tangible
27 21 document of title running:
27 22	a.  If the document's original terms run to the order of a
27 23 named person, the document is negotiated by that the named
27 24 person's endorsement indorsement and delivery.	After that the
 27 25 named person's endorsement indorsement in blank or to bearer,
27 26 any person can may negotiate it the document by delivery
27 27 alone.
27 28	2.  a.	b.	A negotiable document of title is also
 27 29 negotiated by delivery alone when by its If the document's
27 30 original terms it runs run to bearer, it is negotiated by
 27 31 delivery alone.
27 32	b.	c.	When a document running If the document's original
 27 33 terms run to the order of a named person and it is delivered
27 34 to the named person, the effect is the same as if the document
35 had been negotiated.
1	3.	d.	Negotiation of a negotiable the document of title
28	2 after it has been endorsed indorsed to a specified named
28	3 person requires endorsement indorsement by the special
 28  4 endorsee as well as named person and delivery.
28	5	4.	e.	A negotiable document of title is "duly negotiated"
 28  6 when "duly negotiated" if it is negotiated in the manner
28	7 stated in this section subsection to a holder who that
28	8 purchases it in good faith, without notice of any defense
28	9 against or claim to it on the part of any person, and for
28 10 value, unless it is established that the negotiation is not in
28 11 the regular course of business or financing or involves
28 12 receiving the document in settlement or payment of a money
28 13 monetary obligation.
28 14	2.  The following rules apply to a negotiable electronic
 28 15 document of title:
28 16	a.  If the document's original terms run to the order of a
 28 17 named person or to bearer, the document is negotiated by
 28 18 delivery of the document to another person.  Indorsement by
 28 19 the named person is not required to negotiate the document.

28 20	b.  If the document's original terms run to the order of a
 28 21 named person and the named person has control of the document,
 28 22 the effect is the same as if the document had been negotiated.
28 23	c.  A document is duly negotiated if it is negotiated in
 28 24 the manner stated in this subsection to a holder that
 28 25 purchases it in good faith, without notice of any defense
 28 26 against or claim to it on the part of any person, and for
 28 27 value, unless it is established that the negotiation is not in
 28 28 the regular course of business or financing or involves taking
 28 29 delivery of the document in settlement or payment of a
 28 30 monetary obligation.
28 31	5.	3.	Endorsement Indorsement of a nonnegotiable document
28 32 of title neither makes it negotiable nor adds to the
28 33 transferee's rights.
28 34	6.	4.	The naming in a negotiable bill of lading of a
35 person to be notified of the arrival of the goods does not
1 limit the negotiability of the bill nor or constitute notice
29	2 to a purchaser thereof of the bill of any interest of such
29	3 that person in the goods.
29	4	Sec. 30.	Section 554.7502, subsection 1, unnumbered
29	5 paragraph 1, Code 2007, is amended to read as follows:
29	6	Subject to the following section and to the provisions of
 29  7 section sections 554.7205 on fungible goods and 554.7503, a
29	8 holder to whom which a negotiable document of title has been
29	9 duly negotiated acquires thereby:
29 10	Sec. 31.	Section 554.7502, subsection 1, paragraph d, Code
29 11 2007, is amended to read as follows:
29 12	d.	the direct obligation of the issuer to hold or deliver
29 13 the goods according to the terms of the document free of any
29 14 defense or claim by the issuer except those arising under the
29 15 terms of the document or under this Article.  In, but in the
29 16 case of a delivery order, the bailee's obligation accrues only
29 17 upon the bailee's acceptance of the delivery order and the
29 18 obligation acquired by the holder is that the issuer and any
29 19 endorser indorser will procure the acceptance of the bailee.
29 20	Sec. 32.	Section 554.7502, subsection 2, Code 2007, is
29 21 amended to read as follows:
29 22	2.	Subject to the following section 554.7503, title and
29 23 rights so acquired by due negotiation are not defeated by any
29 24 stoppage of the goods represented by the document of title or
29 25 by surrender of such the goods by the bailee, and are not
29 26 impaired even though if:
29 27	a.	the due negotiation or any prior due negotiation
29 28 constituted a breach of duty or even though;
29 29	b.	any person has been deprived of possession of the a
 29 30 negotiable tangible document or control of a negotiable
 29 31 electronic document by misrepresentation, fraud, accident,
29 32 mistake, duress, loss, theft, or conversion,; or even though
29 33	c.	a previous sale or other transfer of the goods or
29 34 document has been made to a third person.
35	Sec. 33.	Section 554.7503, Code 2007, is amended to read
1 as follows:
30	2	554.7503	DOCUMENT OF TITLE TO GOODS DEFEATED IN CERTAIN
30	3 CASES.
30	4	1.	A document of title confers no right in goods against a
30	5 person who that before issuance of the document had a legal
30	6 interest or a perfected security interest in them and who
 30  7 neither in the goods and that did not:
30	8	a.	delivered deliver or entrusted them entrust the goods
30	9 or any document of title covering them the goods to the bailor
30 10 or the bailor's nominee with:
30 11	(1)	actual or apparent authority to ship, store, or sell
30 12 or with;
30 13	(2)	power to obtain delivery under this Article (section
 30 14 554.7403) section 554.7403; or with
30 15	(3)	power of disposition under this chapter (sections
30 16 sections 554.2403 and 554.9320), 554.9320, 554.9321,
 30 17 subsection 3, 554.13304, subsection 2, or 554.13305,
 30 18 subsection 2, or other statute or rule of law; nor or
30 19	b.	acquiesced acquiesce in the procurement by the bailor
30 20 or the bailor's its nominee of any document of title.
30 21	2.	Title to goods based upon an unaccepted delivery order
30 22 is subject to the rights of anyone any person to whom which a
30 23 negotiable warehouse receipt or bill of lading covering the
30 24 goods has been duly negotiated.	Such a That title may be
30 25 defeated under the next section 554.7504 to the same extent as
30 26 the rights of the issuer or a transferee from the issuer.
30 27	3.	Title to goods based upon a bill of lading issued to a
30 28 freight forwarder is subject to the rights of anyone any
 30 29 person to whom which a bill issued by the freight forwarder is
30 30 duly negotiated; but.  However, delivery by the carrier in

30 31 accordance with Part 4 of this Article pursuant to its own
30 32 bill of lading discharges the carrier's obligation to deliver.
30 33	Sec. 34.	Section 554.7504, Code 2007, is amended to read
30 34 as follows:
35	554.7504	RIGHTS ACQUIRED IN THE ABSENCE OF DUE NEGOTIATION
1 == EFFECT OF DIVERSION == SELLER'S STOPPAGE OF DELIVERY.
31	2	1.	A transferee of a document of title, whether negotiable
31	3 or nonnegotiable, to whom which the document has been
31	4 delivered but not duly negotiated, acquires the title and
31	5 rights which the transferee's that its transferor had or had
31	6 actual authority to convey.
31	7	2.	In the case of a transfer of a nonnegotiable document
31	8 of title, until but not after the bailee receives notification
31	9 notice of the transfer, the rights of the transferee may be
31 10 defeated:
31 11	a.	by those creditors of the transferor who could treat
31 12 the sale transfer as void under section 554.2402 or 554.13308;
31 13 or
31 14	b.	by a buyer from the transferor in ordinary course of
31 15 business if the bailee has delivered the goods to the buyer or
31 16 received notification of the buyer's rights; or
31 17	c.	by a lessee from the transferor in ordinary course of
 31 18 business if the bailee has delivered the goods to the lessee
 31 19 or received notification of the lessee's rights; or
31 20	d.	as against the bailee, by good faith good=faith
31 21 dealings of the bailee with the transferor.
31 22	3.	A diversion or other change of shipping instructions by
31 23 the consignor in a nonnegotiable bill of lading which causes
31 24 the bailee not to deliver the goods to the consignee defeats
31 25 the consignee's title to the goods if they the goods have been
31 26 delivered to a buyer in ordinary course of business or a
 31 27 lessee in ordinary course of business and, in any event,
31 28 defeats the consignee's rights against the bailee.
31 29	4.	Delivery of the goods pursuant to a nonnegotiable
31 30 document of title may be stopped by a seller under section
31 31 554.2705, and or a lessor under section 554.13526, subject to
31 32 the requirement requirements of due notification there
 31 33 provided in those sections.	A bailee honoring that honors the
31 34 seller's or lessor's instructions is entitled to be
35 indemnified by the seller or lessor against any resulting loss
1 or expense.
32	2	Sec. 35.	Section 554.7505, Code 2007, is amended to read
32	3 as follows:
32	4	554.7505	ENDORSER INDORSER NOT A GUARANTOR FOR OTHER
32	5 PARTIES.
32	6	The endorsement indorsement of a tangible document of title
32	7 issued by a bailee does not make the endorser indorser liable
32	8 for any default by the bailee or by previous endorsers
32	9 indorsers.
32 10	Sec. 36.	Section 554.7506, Code 2007, is amended to read
32 11 as follows:
32 12	554.7506	DELIVERY WITHOUT ENDORSEMENT INDORSEMENT == RIGHT
32 13 TO COMPEL ENDORSEMENT INDORSEMENT.
32 14	The transferee of a negotiable tangible document of title
32 15 has a specifically enforceable right to have the transferee's
32 16 its transferor supply any necessary endorsement indorsement,
32 17 but the transfer becomes a negotiation only as of the time the
32 18 endorsement indorsement is supplied.
32 19	Sec. 37.	Section 554.7507, Code 2007, is amended to read
32 20 as follows:
32 21	554.7507	WARRANTIES ON NEGOTIATION OR TRANSFER DELIVERY OF
32 22 RECEIPT OR BILL DOCUMENT OF TITLE.
32 23	Where If a person negotiates or transfers delivers a
32 24 document of title for value otherwise than as a mere
32 25 intermediary under the next following section 554.7508, then
32 26 unless otherwise agreed that person, the transferor, in
 32 27 addition to any warranty made in selling or leasing the goods,
32 28 warrants to that person's its immediate purchaser only in
 32 29 addition to any warranty made in selling the goods that:
32 30	a.	1.	that the document is genuine; and
32 31	b.	2.	that that person has no the transferor does not
 32 32 have knowledge of any fact which that would impair its the
 32 33 document's validity or worth; and
32 34	c.	3.	that that person's the negotiation or transfer
35 delivery is rightful and fully effective with respect to the
1 title to the document and the goods it represents.
33	2	Sec. 38.	Section 554.7508, Code 2007, is amended to read
33	3 as follows:
33	4	554.7508	WARRANTIES OF COLLECTING BANK AS TO DOCUMENTS OF
 33  5 TITLE.
33	6	A collecting bank or other intermediary known to be

33	7 entrusted with documents of title on behalf of another or with
33	8 collection of a draft or other claim against delivery of
33	9 documents warrants by such the delivery of the documents only
33 10 its own good faith and authority.  This rule applies even
33 11 though if the collecting bank or other intermediary has
33 12 purchased or made advances against the claim or draft to be
33 13 collected.
33 14	Sec. 39.	Section 554.7509, Code 2007, is amended to read
33 15 as follows:
33 16	554.7509	RECEIPT OR BILL:  WHEN ADEQUATE COMPLIANCE WITH
33 17 COMMERCIAL CONTRACT.
33 18	The question whether Whether a document of title is
33 19 adequate to fulfill the obligations of a contract for sale, a
 33 20 contract for lease, or the conditions of a letter of credit is
33 21 governed determined by the Articles on Sales (Article 2) and
 33 22 on Letters of Credit (Article 5) Article 2, 5, or 13.
33 23	Sec. 40.	Section 554.7601, Code 2007, is amended to read
33 24 as follows:
33 25	554.7601	LOST AND MISSING, STOLEN, OR DESTROYED DOCUMENTS
33 26 OF TITLE.
33 27	1.	If a document has been of title is lost, stolen, or
33 28 destroyed, a court may order delivery of the goods or issuance
33 29 of a substitute document and the bailee may without liability
33 30 to any person comply with such the order.	If the document was
33 31 negotiable, a court may not order delivery of the goods or
 33 32 issuance of a substitute document without the claimant must

 33 33 post claimant's posting security

approved by the court to

 33 34 indemnify unless it finds that any person who that may suffer
35 loss as a result of nonsurrender of possession or control of
1 the document is adequately protected against the loss.	If the
34	2 document was not negotiable, such security the court may be
 34  3 required at the discretion of the court require security.	The
34	4 court may also in its discretion order payment of the bailee's
34	5 reasonable costs and counsel attorney's fees in any action
 34  6 under this subsection.
34	7	2.	A bailee who that, without a court order, delivers
34	8 goods to a person claiming under a missing negotiable document
34	9 of title is liable to any person injured thereby, and if.  If
34 10 the delivery is not in good faith becomes, the bailee is
34 11 liable for conversion.	Delivery in good faith is not
34 12 conversion if made in accordance with a filed classification
 34 13 or tariff or, where no classification or tariff is filed, if
34 14 the claimant posts security with the bailee in an amount at
34 15 least double the value of the goods at the time of posting to
34 16 indemnify any person injured by the delivery who which files a
34 17 notice of claim within one year after the delivery.
34 18	3.  If a warehouse receipt has been lost or destroyed, the
 34 19 warehouse operator shall issue a duplicate upon receipt of:
34 20	a.  An affidavit that the warehouse receipt has been lost
 34 21 or destroyed.
34 22	b.  A bond in an amount at least double the value of the
 34 23 goods at the time of posting the bond, to indemnify any person
 34 24 injured by issuance of the duplicate warehouse receipt who
 34 25 files a notice of claim within one year after delivery of the
 34 26 goods.
34 27	A duplicate warehouse receipt shall be plainly marked to
 34 28 indicate that it is a duplicate.  A receipt plainly marked as
 34 29 a duplicate is a representation and warranty by the warehouse
 34 30 operator that the duplicate receipt is an accurate copy of an
 34 31 original receipt properly issued and uncanceled at the date of
 34 32 the issue of the duplicate, but shall impose upon the
 34 33 warehouse operator no other liability.
34	A warehouse operator who in good faith delivers goods to
 34 35 the holder of a duplicate receipt issued in accordance with
 35  1 this subsection is liable to any person injured by the
 35  2 delivery, but only to the extent of the security posted in
 35  3 accordance with paragraph "b" of this subsection.
4	4.  If a warehouse receipt has been lost or destroyed, the
 35  5 depositor may either remove the goods from the warehouse or
 35  6 sell the goods to the warehouse operator after executing a
 35  7 lost warehouse receipt release on a form prescribed by the
 35  8 department of agriculture and land stewardship.  The form
 35  9 shall include an affidavit stating that the warehouse receipt
 35 10 has been lost or destroyed, and the depositor's undertaking to
 35 11 indemnify the warehouse operator for any loss incurred as a
 35 12 result of the loss or destruction of the warehouse receipt.
 35 13 The form shall be filed with the department of agriculture and
 35 14 land stewardship.
35 15	5.  If a warehouse receipt has been lost or destroyed by a
 35 16 warehouse operator after delivery of the goods or purchase of
 35 17 the goods by the warehouse operator, the warehouse operator

 35 18 shall execute and file with the department of agriculture and
 35 19 land stewardship a notarized affidavit stating that the
 35 20 warehouse receipt has been lost or destroyed by the warehouse
 35 21 operator after delivery or purchase of the goods by the
 35 22 warehouse operator.  The form of the affidavit shall be
 35 23 prescribed by the department of agriculture and land
 35 24 stewardship.
35 25	Sec. 41.	NEW SECTION.	554.7601A	LOST, STOLEN, OR
35 26 DESTROYED DOCUMENTS == ADDITIONAL REQUIREMENTS.
35 27	1.	a.	If a warehouse receipt has been lost, stolen, or
35 28 destroyed, the warehouse shall issue a duplicate upon receipt 35 29 of:
35 30	(1)	an affidavit that the warehouse receipt has been lost,
35 31 stolen, or destroyed.
35 32	(2)	a bond in an amount at least double the value of the
35 33 goods at the time of posting the bond, to indemnify any person
35 34 injured by issuance of the duplicate warehouse receipt who
35 files a notice of claim within one year after delivery of the
1 goods.
36	2	b.	A duplicate warehouse receipt shall be plainly marked
36	3 to indicate that it is a duplicate.	A receipt plainly marked
36	4 as a duplicate is a representation and warranty by the
36	5 warehouse that the duplicate receipt is an accurate copy of an
36	6 original receipt properly issued and uncanceled at the date of
36	7 the issue of the duplicate, but shall not impose upon the
36	8 warehouse other liability.
36	9	c.	A warehouse which in good faith delivers goods to the
36 10 holder of a duplicate receipt issued in accordance with this
36 11 subsection is liable to any person injured by the delivery,
36 12 but only to the extent of the security posted in accordance
36 13 with paragraph "b" of this subsection.
36 14	2.	If a warehouse receipt has been lost, stolen, or
36 15 destroyed, the depositor may either remove the goods from the
36 16 warehouse facility or sell the goods to the warehouse after
36 17 executing a lost warehouse receipt release on a form
36 18 prescribed by the department of agriculture and land
36 19 stewardship.	The form shall include an affidavit stating that
36 20 the warehouse receipt has been lost or destroyed, and the
36 21 depositor's undertaking to indemnify the warehouse for any
36 22 loss incurred as a result of the loss or destruction of the
36 23 warehouse receipt.	The form shall be filed with the
36 24 department of agriculture and land stewardship.
36 25	3.	If a warehouse receipt has been lost or destroyed by a
36 26 warehouse after delivery of the goods or purchase of the goods
36 27 by the warehouse, the warehouse shall execute and file with
36 28 the department of agriculture and land stewardship a notarized
36 29 affidavit stating that the warehouse receipt has been lost or
36 30 destroyed by the warehouse after delivery or purchase of the
36 31 goods by the warehouse.	The form of the affidavit shall be
36 32 prescribed by the department of agriculture and land
36 33 stewardship.
36 34	Sec. 42.	Section 554.7602, Code 2007, is amended to read
35 as follows:
1	554.7602	ATTACHMENT OF JUDICIAL PROCESS AGAINST GOODS
37	2 COVERED BY A NEGOTIABLE DOCUMENT OF TITLE.
37	3	Except where the Unless a document of title was originally
37	4 issued upon delivery of the goods by a person who had no that
 37  5 did not have power to dispose of them, no a lien attaches does
 37  6 not attach by virtue of any judicial process to goods in the
37	7 possession of a bailee for which a negotiable document of
37	8 title is outstanding unless possession or control of the
37	9 document be is first surrendered to the bailee or its the

 37 10 document's negotiation is

enjoined, and the.  The bailee shall

37 11 may not be compelled to deliver the goods pursuant to process
37 12 until possession or control of the document is surrendered to
37 13 the bailee or impounded by to the court.	One who purchases A
 37 14 purchaser of the document for value without notice of the
37 15 process or injunction takes free of the lien imposed by
37 16 judicial process.
37 17	Sec. 43.	Section 554.7603, Code 2007, is amended to read
37 18 as follows:
37 19	554.7603	CONFLICTING CLAIMS == INTERPLEADER.
37 20	If more than one person claims title to or possession of
37 21 the goods, the bailee is excused from delivery until the
37 22 bailee has had a reasonable time to ascertain the validity of
37 23 the adverse claims or to bring commence an action to compel
 37 24 all claimants to interplead and may compel such interpleader,
37 25 for interpleader.  The bailee may assert an interpleader
37 26 either in defending an action for nondelivery of the goods, or
37 27 by original action, whichever is appropriate.
37 28	Sec. 44.	Section 554.10104, Code 2007, is repealed.

37 29	Sec. 45.	APPLICABILITY.	This Act applies to a document of
37 30 title that is issued or a bailment that arises on or after the
37 31 effective date of this Act.	This Act does not apply to a
37 32 document of title that is issued or a bailment that arises
37 33 before the effective date of this Act even if the document of
37 34 title or bailment would be subject to this Act if the document
35 of title had been issued or bailment had arisen on or after
1 the effective date of this Act.	This Act does not apply to a
38	2 right of action that has accrued before the effective date of
38	3 this Act.
38	4	Sec. 46.	SAVINGS CLAUSE.	A document of title issued or a
38	5 bailment that arises before the effective date of this Act and
38	6 the rights, obligations, and interests flowing from that
38	7 document or bailment are governed by any statute or other rule
38	8 amended or repealed by this Act as if amendment or repeal had
38	9 not occurred and may be terminated, completed, consummated, or
38 10 enforced under that statute or other rule.
38 11	DIVISION II
38 12	COORDINATING AMENDMENTS
38 13	PART A
38 14	ARTICLE 1
38 15	Sec. 47.	Section 554.1201, subsections 5, 6, 10, 14, 15,
38 16 20, 25, 26, 27, 38, and 45, Code 2007, are amended to read as
38 17 follows:
38 18	5.	"Bearer" means the a person in control of a negotiable
 38 19 electronic document of title or a person in possession of an
38 20 instrument, a negotiable tangible document of title, or a
38 21 certificated security payable to bearer or endorsed in blank.
38 22	6.	"Bill of lading" means a document of title evidencing
38 23 the receipt of goods for shipment issued by a person engaged
38 24 in the business of directly or indirectly transporting or
38 25 forwarding goods, and includes an airbill.	"Airbill" means a
 38 26 document serving for air transportation as a bill of lading
 38 27 does for marine or rail transportation, and includes an air
 38 28 consignment note or air waybill.	The term does not include a
 38 29 warehouse receipt.
38 30	10.	"Conspicuous":  A, with reference to a term or clause
 38 31 is conspicuous when it is, means so written, displayed, or
 38 32 presented that a reasonable person against whom which it is to
33 operate ought to have noticed it.	Whether a term is
 38 34 "conspicuous" or not is a decision for the court.  Conspicuous
 38 35 terms include the following:
1	a.	A printed a heading in capitals (as:  "Nonnegotiable
 39  2 Bill of Lading") is conspicuous equal to or greater in size
 39  3 than the surrounding text, or in contrasting type, font, or
 39  4 color to the surrounding text of the same or lesser size; and
39	5	b.	Language language in the body of a form is

 39  6 "conspicuous" if it is record or display in

larger or other

 39  7 contrasting type than the surrounding text, or in contrasting
 39  8 type, font, or color to the surrounding text of the same size,
 39  9 or set off from surrounding text of the same size by symbols
 39 10 or other marks that call attention to the language.	But in a
 39 11 telegram any stated term is "conspicuous".  Whether a term or
 39 12 clause is "conspicuous" or not is for decision by the court.
39 13	14.	"Delivery" with respect to an electronic document of
 39 14 title means voluntary transfer of control and with respect to
39 15 instruments, tangible documents of title, chattel paper, or
39 16 certificated securities means voluntary transfer of
39 17 possession.
39 18	15.	"Document of title" includes bill of lading, dock
 39 19 warrant, dock receipt, warehouse receipt or order for the
 39 20 delivery of goods, and also any other document which means a
 39 21 record that
39 22	a.	in the regular course of business or financing is
39 23 treated as adequately evidencing that the person in possession
39 24 or control of it the record is entitled to receive, control,
39 25 hold, and dispose of the document record and the goods it the
 39 26 record covers and
39 27	b.  that purports to be issued by or addressed to a bailee
 39 28 and to cover goods in the bailee's possession which are either
 39 29 identified or are fungible portions of an identified mass.
 39 30 The term includes a bill of lading, transport document, dock
 39 31 warrant, dock receipt, warehouse receipt, and order for
 39 32 delivery of goods.
33	To be a An electronic document of title means a document of
 39 34 title evidenced by a record consisting of information stored
 39 35 in an electronic medium.  A tangible document of title means a
1 document must purport to be issued by or addressed to of title

 40  2 evidenced by

a bailee and purport to cover goods in the

 40  3 bailee's possession which are either identified or are
 40  4 fungible portions of an identified mass record consisting of

 40  5 information that is inscribed on a tangible medium.
40	6	20.	"Holder", with respect to a negotiable instrument,
40	7 means:
40	8	a.	the person in possession if the of a negotiable
40	9 instrument that is payable either to bearer or, in the case of
 40 10 an instrument payable to an identified person, if the
 40 11 identified that is the person is in possession.;
40 12	b.	"Holder" with respect to the person in possession of a

40 13 negotiable tangible document of title

means the person in

 40 14 possession if the goods are deliverable either to bearer or to
40 15 the order of the person in possession; or
40 16	c.  the person in control of a negotiable electronic
 40 17 document of title.
40 18	25.	A Subject to subsection 27, a person has "notice" of a
40 19 fact when if the person
40 20	a.	the person has actual knowledge of it; or
40 21	b.	the person has received a notice or notification of it;
40 22 or
40 23	c.	from all the facts and circumstances known to the
40 24 person at the time in question, the person has reason to know
40 25 that it exists.
40 26	PARAGRAPH DIVIDED.	A person "knows" or has "knowledge" of
40 27 a fact when that the person has actual knowledge of it.
40 28 "Discover" or "learn" or a word or phrase of similar import
40 29 refers to knowledge rather than to reason to know.	The time
40 30 and circumstances under which a notice or notification may
40 31 cease to be effective are not determined by this chapter.
40 32	26.	A person "notifies" or "gives" a notice or
40 33 notification to another person by taking such steps as may be
40 34 reasonably required to inform the other person in ordinary
35 course, whether or not such the other person actually comes to
1 know of it.	A Subject to subsection 27, a person "receives" a
41	2 notice or notification when
41	3	a.	it comes to that person's attention; or
41	4	b.	it is duly delivered in a form reasonable under the
 41  5 circumstances at the place of business through which the
41	6 contract was made or at any other place another location held
41	7 out by that person as the place for receipt of such
41	8 communications.
41	9	27.	Notice, knowledge, or a notice or notification
41 10 received by an organization is effective for a particular
41 11 transaction from the time when it is brought to the attention
41 12 of the individual conducting that transaction, and in any
41 13 event, from the time when it would have been brought to that
41 14 the individual's attention if the organization had exercised
41 15 due diligence.	An organization exercises due diligence if it
41 16 maintains reasonable routines for communicating significant
41 17 information to the person conducting the transaction and there
41 18 is reasonable compliance with the routines.	Due diligence
41 19 does not require an individual acting for the organization to
41 20 communicate information unless such communication is part of
41 21 that the individual's regular duties or unless the individual
41 22 has reason to know of the transaction and that the transaction
41 23 would be materially affected by the information.
41 24	38.	"Send" in connection with any writing, record, or
41 25 notice means:
41 26	a.	to deposit in the mail or deliver for transmission by
41 27 any other usual means of communication with postage or cost of
41 28 transmission provided for and properly addressed and, in the
41 29 case of an instrument, to an address specified thereon or
41 30 otherwise agreed, or if there be none to any address
41 31 reasonable under the circumstances.; or
41 32	b.	The receipt of in any writing other way to cause to be

 41 33 received any record or

notice within the time at which it

34 would have arrived if properly sent has the effect of a proper
 41 35 sending.
1	45.	"Warehouse receipt" means a receipt document of title
42	2 issued by a person engaged in the business of storing goods
42	3 for hire.
42	4	PART B
42	5	ARTICLE 2
42	6	Sec. 48.	Section 554.2103, subsection 3, Code 2007, is
42	7 amended to read as follows:
42	8	3.	The "Control" as provided in section 554.7106 and the
42	9 following definitions in other Articles apply to this Article:
42 10	"Check"	Section 554.3104
42 11	"Consignee"	Section 554.7102
42 12	"Consignor"	Section 554.7102
42 13	"Consumer goods"	Section 554.9102
42 14	"Dishonor"	Section 554.3502
42 15	"Draft"	Section 554.3104

42 16	Sec. 49.	Section 554.2104, subsection 2, Code 2007, is
42 17 amended to read as follows:
42 18	2.	"Financing agency" means a bank, finance company or
42 19 other person who in the ordinary course of business makes
42 20 advances against goods or documents of title or who by
42 21 arrangement with either the seller or the buyer intervenes in
42 22 ordinary course to make or collect payment due or claimed
42 23 under the contract for sale, as by purchasing or paying the
42 24 seller's draft or making advances against it or by merely
42 25 taking it for collection whether or not documents of title
42 26 accompany or are associated with the draft.	"Financing
42 27 agency" includes also a bank or other person who similarly
42 28 intervenes between persons who are in the position of seller
42 29 and buyer in respect to the goods (section 554.2707).
42 30	Sec. 50.	Section 554.2310, Code 2007, is amended to read
42 31 as follows:
42 32	554.2310	OPEN TIME FOR PAYMENT OR RUNNING OF CREDIT ==
42 33 AUTHORITY TO SHIP UNDER RESERVATION.
42 34	Unless otherwise agreed
35	a.	payment is due at the time and place at which the buyer
1 is to receive the goods even though the place of shipment is
43	2 the place of delivery; and
43	3	b.	if the seller is authorized to send the goods the
43	4 seller may ship them under reservation, and may tender the
43	5 documents of title, but the buyer may inspect the goods after
43	6 their arrival before payment is due unless such inspection is
43	7 inconsistent with the terms of the contract (section 43	8 554.2513); and
43	9	c.	if delivery is authorized and made by way of documents
43 10 of title otherwise than by subsection "b" then payment is due
43 11 regardless of where the goods are to be received (i) at the
43 12 time and place at which the buyer is to receive delivery of
43 13 the tangible documents regardless of where the goods are or
 43 14 (ii) at the time the buyer is to be received receive delivery
 43 15 of the electronic documents and at the seller's place of
 43 16 business or if none, the seller's residence; and
43 17	d.	where the seller is required or authorized to ship the
43 18 goods on credit the credit period runs from the time of
43 19 shipment but postdating post=dating the invoice or delaying
43 20 its dispatch will correspondingly delay the starting of the
43 21 credit period.
43 22	Sec. 51.	Section 554.2323, subsection 2, unnumbered
43 23 paragraph 1, Code 2007, is amended to read as follows:
43 24	Where in a case within subsection 1 a tangible bill of
43 25 lading has been issued in a set of parts, unless otherwise
43 26 agreed if the documents are not to be sent from abroad the
43 27 buyer may demand tender of the full set; otherwise only one
43 28 part of the bill of lading need be tendered.	Even if the
43 29 agreement expressly requires a full set
43 30	Sec. 52.	Section 554.2401, subsection 3, paragraphs a and
43 31 b, Code 2007, are amended to read as follows:
43 32	a.	if the seller is to deliver a tangible document of
43 33 title, title passes at the time when and the place where the
34 seller delivers such documents and if the seller is to deliver
 43 35 an electronic document of title, title passes when the seller
 44  1 delivers the document; or
2	b.	if the goods are at the time of contracting already
44	3 identified and no documents of title are to be delivered,
44	4 title passes at the time and place of contracting.
44	5	Sec. 53.	Section 554.2503, subsection 4, paragraph b, Code
44	6 2007, is amended to read as follows:
44	7	b.	tender to the buyer of a nonnegotiable document of
44	8 title or of a written direction to record directing the bailee
44	9 to deliver is sufficient tender unless the buyer seasonably
44 10 objects, and except as otherwise provided in Article 9 receipt
44 11 by the bailee of notification of the buyer's rights fixes
44 12 those rights as against the bailee and all third persons; but
44 13 risk of loss of the goods and of any failure by the bailee to
44 14 honor the nonnegotiable document of title or to obey the
44 15 direction remains on the seller until the buyer has had a
44 16 reasonable time to present the document or direction, and a
44 17 refusal by the bailee to honor the document or to obey the
44 18 direction defeats the tender.
44 19	Sec. 54.	Section 554.2503, subsection 5, paragraph b, Code
44 20 2007, is amended to read as follows:
44 21	b.	tender through customary banking channels is sufficient
44 22 and dishonor of a draft accompanying or associated with the
44 23 documents constitutes nonacceptance or rejection.
44 24	Sec. 55.	Section 554.2505, subsection 1, paragraph b, Code
44 25 2007, is amended to read as follows:
44 26	b.	a nonnegotiable bill of lading to the seller or the

44 27 seller's nominee reserves possession of the goods as security
44 28 but except in a case of conditional delivery (subsection 2 of
44 29 section 554.2507) a nonnegotiable bill of lading naming the
44 30 buyer as consignee reserves no security interest even though
44 31 the seller retains possession or control of the bill of
44 32 lading.
44 33	Sec. 56.	Section 554.2505, subsection 2, Code 2007, is
44 34 amended to read as follows:
35	2.	When shipment by the seller with reservation of a
1 security interest is in violation of the contract for sale it
45	2 constitutes an improper contract for transportation within the
45	3 preceding section but impairs neither the rights given to the
45	4 buyer by shipment and identification of the goods to the
45	5 contract nor the seller's powers as a holder of a negotiable
45	6 document of title.
45	7	Sec. 57.	Section 554.2506, subsection 2, Code 2007, is
45	8 amended to read as follows:
45	9	2.	The right to reimbursement of a financing agency which
45 10 has in good faith honored or purchased the draft under
45 11 commitment to or authority from the buyer is not impaired by
45 12 subsequent discovery of defects with reference to any relevant
45 13 document which was apparently regular on its face.
45 14	Sec. 58.	Section 554.2509, subsection 2, paragraphs a and
45 15 c, Code 2007, are amended to read as follows:
45 16	a.	on the buyer's receipt of possession or control of a
45 17 negotiable document of title covering the goods; or
45 18	c.	after the buyer's receipt of possession or control of a
45 19 nonnegotiable document of title or other written direction to

45 20 deliver in a record, as provided

in subsection 4 "b" of

45 21 section 554.2503, subsection 4, paragraph "b".
45 22	Sec. 59.	Section 554.2605, subsection 2, Code 2007, is
45 23 amended to read as follows:
45 24	2.	Payment against documents made without reservation of
45 25 rights precludes recovery of the payment for defects apparent
45 26 on the face of in the documents.
45 27	Sec. 60.	Section 554.2705, subsection 2, paragraph c, Code
45 28 2007, is amended to read as follows:
45 29	c.	such acknowledgment to the buyer by a carrier by
45 30 reshipment or as a warehouse operator; or
45 31	Sec. 61.	Section 554.2705, subsection 3, paragraph c, Code
45 32 2007, is amended to read as follows:
45 33	c.	If a negotiable document of title has been issued for
45 34 goods the bailee is not obliged to obey a notification to stop
35 until surrender of possession or control of the document.
1	PART C
46	2	ARTICLE 4
46	3	Sec. 62.	Section 554.4104, subsection 3, Code 2007, is
46	4 amended to read as follows:
46	5	3.	The "Control" as provided in section 554.7106 and the
46	6 following definitions in other Articles apply to this Article:
46	7	"Acceptance"	Section 554.3409
46	8	"Alteration"	Section 554.3407
46	9	"Cashier's check"	Section 554.3104
46 10	"Certificate of deposit"	Section 554.3104
46 11	"Certified check"	Section 554.3409
46 12	"Check"	Section 554.3104
46 13	"Good faith"	Section 554.3103
46 14	"Holder in due course"	Section 554.3302
46 15	"Instrument"	Section 554.3104
46 16	"Notice of dishonor"	Section 554.3503
46 17	"Order"	Section 554.3103
46 18	"Ordinary care"	Section 554.3103
46 19	"Person entitled
46 20 to enforce"	Section 554.3301
46 21	"Presentment"	Section 554.3501
46 22	"Promise"	Section 554.3103
46 23	"Prove"	Section 554.3103
46 24	"Teller's check"	Section 554.3104
46 25	"Unauthorized signature"	Section 554.3403
46 26	Sec. 63.	Section 554.4210, subsection 3, unnumbered
46 27 paragraph 1, Code 2007, is amended to read as follows:
46 28	Receipt by a collecting bank of a final settlement for an
46 29 item is a realization on its security interest in the item,
46 30 accompanying documents, and proceeds.	So long as the bank
46 31 does not receive final settlement for the item or give up
46 32 possession of the item or possession or control of the
46 33 accompanying documents for purposes other than collection, the
46 34 security interest continues to that extent and is subject to
35 Article 9, but:
1	PART D
47	2	ARTICLE 8

47	3	Sec. 64.	Section 554.8103, Code 2007, is amended by adding
47	4 the following new subsection:
47	5	NEW SUBSECTION.	7.	A document of title is not a financial
47	6 asset unless section 554.8102, subsection 1, paragraph "i",
47	7 subparagraph (3) applies.
47	8	PART E
47	9	ARTICLE 9
47 10	Sec. 65.	Section 554.9102, subsection 2, Code 2007, is
47 11 amended to read as follows:
47 12	2.	DEFINITIONS IN OTHER ARTICLES.	The "Control" as
 47 13 provided in section 554.7106 and the following definitions in
47 14 other Articles apply to this Article:
47 15	"Applicant"	Section 554.5102
47 16	"Beneficiary"	Section 554.5102
47 17	"Broker"	Section 554.8102
47 18	"Certificated security"	Section 554.8102
47 19	"Check"	Section 554.3104
47 20	"Clearing corporation"	Section 554.8102
47 21	"Contract for sale"	Section 554.2106
47 22	"Customer"	Section 554.4104
47 23	"Entitlement holder"	Section 554.8102
47 24	"Financial asset"	Section 554.8102
47 25	"Holder in due course"	Section 554.3302
47 26	"Issuer" (with respect
47 27 to a letter of credit or
47 28 letter=of=credit right)	Section 554.5102
47 29	"Issuer" (with respect
47 30 to a security)	Section 554.8201
31	"Issuer" (with respect

47	33	"Lease"	Section	554.13103	
47	34	"Lease agreement"	Section	554.13103	
47	35	"Lease contract"	Section	554.13103	
48	1	"Leasehold interest"	Section	554.13103	
48	2	"Lessee"	Section	554.13103	
48	3	"Lessee in ordinary			
48	4	course of business"	Section	554.13103	
48	5	"Lessor"	Section	554.13103	
48	6	"Lessor's residual			
48	7	interest"	Section	554.13103	
48	8	"Letter of credit"	Section	554.5102	
48	9	"Merchant"	Section	554.2104	
48	10	"Negotiable instrument"	Section	554.3104	
48	11	"Nominated person"	Section	554.5102	
48	12	"Note"	Section	554.3104	
48	13	"Proceeds of a letter			
48	14	of credit"	Section	554.5114	
48	15	"Prove"	Section	554.3103	

 47 32 to documents of title)	Section 554.7102

16	"Sale"	Section 554.2106
48 17	"Securities account"	Section 554.8501
48 18	"Securities intermediary"	Section 554.8102
48 19	"Security"	Section 554.8102
48 20	"Security certificate"	Section 554.8102
48 21	"Security entitlement"	Section 554.8102
48 22	"Uncertificated security"	Section 554.8102
48 23	Sec. 66.	Section 554.9203, subsection 2, paragraph c,
48 24 subparagraph (4), Code 2007, is amended to read as follows:
48 25	(4)	the collateral is deposit accounts, electronic chattel
48 26 paper, investment property, or letter=of=credit rights, or
 48 27 electronic documents, and the secured party has control under 48 28 section 554.7106, 554.9104, 554.9105, 554.9106, or 554.9107
48 29 pursuant to the debtor's security agreement.
48 30	Sec. 67.	Section 554.9207, subsection 3, unnumbered
48 31 paragraph 1, Code 2007, is amended to read as follows:
48 32	Except as otherwise provided in subsection 4, a secured
33 party having possession of collateral or control of collateral 48 34 under section 554.7106, 554.9104, 554.9105, 554.9106, or
48 35 554.9107:
1	Sec. 68.	Section 554.9208, subsection 2, paragraphs d and
49	2 e, Code 2007, are amended to read as follows:
49	3	d.	a secured party having control of investment property
49	4 under section 554.8106, subsection 4, paragraph "b", or
49	5 section 554.9106, subsection 2, shall send to the securities
49	6 intermediary or commodity intermediary with which the security
49	7 entitlement or commodity contract is maintained an
49	8 authenticated record that releases the securities intermediary
49	9 or commodity intermediary from any further obligation to
49 10 comply with entitlement orders or directions originated by the
49 11 secured party; and
49 12	e.	a secured party having control of a letter=of=credit
49 13 right under section 554.9107 shall send to each person having

49 14 an unfulfilled obligation to pay or deliver proceeds of the
49 15 letter of credit to the secured party an authenticated release
49 16 from any further obligation to pay or deliver proceeds of the
49 17 letter of credit to the secured party.; and
49 18	f.  a secured party having control of an electronic
 49 19 document shall:
49 20	(1)  give control of the electronic document to the debtor
 49 21 or its designated custodian;
49 22	(2)  if the debtor designates a custodian that is the
 49 23 designated custodian with which the authoritative copy of the
 49 24 electronic document is maintained for the secured party,
 49 25 communicate to the custodian an authenticated record releasing
 49 26 the designated custodian from any further obligation to comply
 49 27 with instructions originated by the secured party and
 49 28 instructing the custodian to comply with instructions
 49 29 originated by the debtor; and
49 30	(3)  take appropriate action to enable the debtor or its
 49 31 designated custodian to make copies of or revisions to the
 49 32 authoritative copy which add or change an identified assignee
 49 33 of the authoritative copy without the consent of the secured
 49 34 party.
35	Sec. 69.	Section 554.9301, subsection 3, unnumbered
1 paragraph 1, Code 2007, is amended to read as follows:
50	2	Except as otherwise provided in subsection 4, while
50	3 tangible negotiable documents, goods, instruments, money, or
50	4 tangible chattel paper is located in a jurisdiction, the local
50	5 law of that jurisdiction governs:
50	6	Sec. 70.	Section 554.9310, subsection 2, paragraphs e and
50	7 h, Code 2007, are amended to read as follows:
50	8	e.	in certificated securities, documents, goods, or
50	9 instruments which is perfected without filing, control, or
50 10 possession under section 554.9312, subsection 5, 6, or 7;
50 11	h.	in deposit accounts, electronic chattel paper,
50 12 electronic documents, investment property, or letter=of=credit
50 13 rights which is perfected by control under section 554.9314;
50 14	Sec. 71.	Section 554.9312, subsection 5, Code 2007, is
50 15 amended to read as follows:
50 16	5.	TEMPORARY PERFECTION == NEW VALUE.	A security interest
50 17 in certificated securities, negotiable documents, or
50 18 instruments is perfected without filing or the taking of
50 19 possession or control for a period of twenty days from the
50 20 time it attaches to the extent that it arises for new value
50 21 given under an authenticated security agreement.
50 22	Sec. 72.	Section 554.9313, subsection 1, Code 2007, is
50 23 amended to read as follows:
50 24	1.	PERFECTION BY POSSESSION OR DELIVERY.	Except as
50 25 otherwise provided in subsection 2, a secured party may
50 26 perfect a security interest in tangible negotiable documents,
50 27 goods, instruments, money, or tangible chattel paper by taking
50 28 possession of the collateral.	A secured party may perfect a
50 29 security interest in certificated securities by taking
50 30 delivery of the certificated securities under section 50 31 554.8301.
50 32	Sec. 73.	Section 554.9314, subsections 1 and 2, Code 2007,
50 33 are amended to read as follows:
50 34	1.	PERFECTION BY CONTROL.	A security interest in
35 investment property, deposit accounts, letter=of=credit
1 rights, or electronic chattel paper, or electronic documents
51	2 may be perfected by control of the collateral under section 51	3 554.7106, 554.9104, 554.9105, 554.9106, or 554.9107.
51	4	2.	SPECIFIED COLLATERAL == TIME OF PERFECTION BY CONTROL
51	5 == CONTINUATION OF PERFECTION.	A security interest in deposit
51	6 accounts, electronic chattel paper, or letter=of=credit
51	7 rights, or electronic documents is perfected by control under 51	8 section 554.7106, 554.9104, 554.9105, or 554.9107 when the
51	9 secured party obtains control and remains perfected by control
51 10 only while the secured party retains control.
51 11	Sec. 74.	Section 554.9317, subsections 2 and 4, Code 2007,
51 12 are amended to read as follows:
51 13	2.	BUYERS THAT RECEIVE DELIVERY.	Except as otherwise
51 14 provided in subsection 5, a buyer, other than a secured party,
51 15 of tangible chattel paper, tangible documents, goods,
51 16 instruments, or a security certificate takes free of a
51 17 security interest or agricultural lien if the buyer gives
51 18 value and receives delivery of the collateral without
51 19 knowledge of the security interest or agricultural lien and
51 20 before it is perfected.
51 21	4.	LICENSEES AND BUYERS OF CERTAIN COLLATERAL.	A licensee
51 22 of a general intangible or a buyer, other than a secured
51 23 party, of accounts, electronic chattel paper, electronic
 51 24 documents, general intangibles, or investment property other

51 25 than a certificated security takes free of a security interest
51 26 if the licensee or buyer gives value without knowledge of the
51 27 security interest and before it is perfected.
51 28	Sec. 75.	Section 554.9338, subsection 2, Code 2007, is
51 29 amended to read as follows:
51 30	2.	a purchaser, other than a secured party, of the
51 31 collateral takes free of the security interest or agricultural
51 32 lien to the extent that, in reasonable reliance upon the
51 33 incorrect information, the purchaser gives value and, in the
51 34 case of tangible chattel paper, tangible documents, goods,
35 instruments, or a security certificate, receives delivery of
1 the collateral.
52	2	Sec. 76.	Section 554.9601, subsection 2, Code 2007, is
52	3 amended to read as follows:
52	4	2.	RIGHTS AND DUTIES OF SECURED PARTY IN POSSESSION OR
52	5 CONTROL.	A secured party in possession of collateral or
52	6 control of collateral under section 554.7106, 554.9104,
52	7 554.9105, 554.9106, or 554.9107 has the rights and duties
52	8 provided in section 554.9207.
52	9	PART F
52 10	ARTICLE 13
52 11	Sec. 77.	Section 554.13103, subsection 1, paragraphs a and
52 12 o, Code 2007, are amended to read as follows:
52 13	a.	"Buyer in ordinary course of business" means a person
52 14 who in good faith and without knowledge that the sale to the
52 15 person is in violation of the ownership rights or security
52 16 interest or leasehold interest of a third party in the goods,
52 17 buys in ordinary course from a person in the business of
52 18 selling goods of that kind but does not include a pawnbroker.
52 19 "Buying" may be for cash or by exchange of other property or
52 20 on secured or unsecured credit and includes receiving
52 21 acquiring goods or documents of title under a preexisting
52 22 contract for sale but does not include a transfer in bulk or
52 23 as security for or in total or partial satisfaction of a money
52 24 debt.
52 25	o.	"Lessee in ordinary course of business" means a person
52 26 who in good faith and without knowledge that the lease to the
52 27 person is in violation of the ownership rights or security
52 28 interest or leasehold interest of a third party in the goods
52 29 leases in ordinary course from a person in the business of
52 30 selling or leasing goods of that kind but does not include a
52 31 pawnbroker.	"Leasing" may be for cash or by exchange of other
52 32 property or on secured or unsecured credit and includes
52 33 receiving acquiring goods or documents of title under a
52 34 preexisting lease contract but does not include a transfer in
35 bulk or as security for or in total or partial satisfaction of
1 a money debt.
53	2	Sec. 78.	Section 554.13514, subsection 2, Code 2007, is
53	3 amended to read as follows:
53	4	2.	A lessee's failure to reserve rights when paying rent
53	5 or other consideration against documents precludes recovery of
53	6 the payment for defects apparent on the face of in the
53	7 documents.
53	8	Sec. 79.	Section 554.13526, subsection 2, paragraph c,
53	9 Code 2007, is amended to read as follows:
53 10	c.	such an acknowledgment to the lessee by a carrier via
53 11 reshipment or as warehouser a warehouse.
53 12	PART G
53 13	MISCELLANEOUS
53 14	Sec. 80.	Section 203C.17, subsection 1, Code 2007, is
53 15 amended to read as follows:
53 16	1.	Any grain which has been received at any licensed
53 17 warehouse for which the actual sale price is not fixed and
53 18 proper documentation made or payment made shall be construed
53 19 to be grain held for storage within the meaning of this
53 20 chapter.	Grain may be held in open storage or placed on
53 21 warehouse receipt.	A warehouse receipt shall be issued for
53 22 all grain held in open storage within one year from the date
53 23 of delivery to the warehouse, unless the depositor has signed
53 24 a statement that the depositor does not desire a warehouse
53 25 receipt.	A warehouse receipt shall be issued upon request by
 53 26 the depositor.	The warehouse operator's tariff shall apply
53 27 for any grain that is retained in open storage or under
53 28 warehouse receipt.
53 29	Sec. 81.	Section 203C.18, Code 2007, is amended to read as
53 30 follows:
53 31	203C.18	ISSUANCE OF WAREHOUSE RECEIPTS == ISSUANCE,
 53 32 PRINTING, AND ELECTRONIC FILING.
53 33	1.	For all agricultural products that become storage in a
53 34 licensed warehouse, warehouse receipts signed by the licensed
35 warehouse operator or the operator's authorized agent shall be

1 issued by the licensed warehouse operator.	Such warehouse
54	2 receipts shall be in the form required or permitted by uniform
54	3 commercial code, sections 554.7202 and 554.7204, provided,
54	4 however, that each receipt issued for agricultural products,
54	5 in addition to the matters specified in uniform commercial
54	6 code, section 554.7202 shall embody in its written or printed
54	7 terms:
54	8	1.	a.	The receiving and loadout charges which will be
54	9 made by the warehouse operator.
54 10	2.	b.	The grade or other class of the agricultural
54 11 products received and the standard or description in
54 12 accordance with which such classification has been made;
54 13 provided that such grade or other class shall be stated
54 14 according to the official standard of the United States
54 15 applicable to such agricultural products as the same may be
54 16 fixed and promulgated; provided, further, that until such
54 17 official standards of the United States for any agricultural
54 18 product or products have been fixed and promulgated, the grade
54 19 or other class thereof may be stated in accordance with any
54 20 recognized standard or in accordance with such rules and
54 21 regulations not inconsistent herewith as may be prescribed by
54 22 the secretary of agriculture of the United States.
54 23	3.	c.	A statement that the receipt is issued subject to
54 24 the Iowa warehouse Act and the rules and regulations
54 25 prescribed pursuant to the Act.
54 26	4.	d.	Such other terms and conditions as may be required
54 27 by rules of the department.
54 28	2.	Warehouses that are not licensed pursuant to this
54 29 chapter or by the United States government shall not issue
54 30 warehouse receipts for agricultural products.
54 31	The original copy of every warehouse receipt shall be
 54 32 imprinted with the signature of the secretary of agriculture
 54 33 prior to issuance.
34	3.  Forms for warehouse receipts shall only be printed by a
 54 35 person approved by the department.  A form for a warehouse
 55  1 receipt shall be printed in accordance with specifications set
 55  2 forth by the department.  A form for a warehouse receipt that
 55  3 is unused at the time that a warehouse operator's license is
 55  4 canceled, suspended, revoked, or terminated shall be
 55  5 surrendered to the department.
6	4.  The department may adopt rules to allow for the
 55  7 issuance of electronic warehouse receipts by a provider who is
 55  8 a person approved by the department to maintain a secure
 55  9 electronic central filing system of electronic records
 55 10 including warehouse receipts and who is independent of an
 55 11 outside influence or bias in action or appearance.
55 12	Sec. 82.	Section 203C.19, Code 2007, is amended to read as
55 13 follows:
55 14	203C.19	RIGHTS AND OBLIGATIONS WITH RESPECT TO WAREHOUSE
55 15 RECEIPTS == LOST RECEIPTS.
55 16	1.	Insofar as not inconsistent with the provisions of this
55 17 chapter, original or duplicate receipts issued by licensed
55 18 warehouse operators shall be deemed to have been issued under
55 19 the provisions of uniform commercial code, chapter 554,
55 20 article 7.
55 21	2.	Duplicates and releases for lost, destroyed, or stolen
55 22 warehouse receipts may be issued only in accordance with the
55 23 provisions of section sections 554.7601 and 554.7601A.
55 24
55 25
55 26
55 27	PATRICK J. MURPHY
55 28	Speaker of the House
55 29
55 30
55 31
55 32	JOHN P. KIBBIE
55 33	President of the Senate
55 34
35	I hereby certify that this bill originated in the House and
1 is known as House File 716, Eighty=second General Assembly. 56	2
56	3
56	4
56	5	MARK BRANDSGARD
56	6	Chief Clerk of the House
56	7 Approved	, 2007
56	8
56	9
56 10  	
56 11 CHESTER J. CULVER

56 12 Governor