HRS 0490-0007-0602 ANNOTATIONS

Prior Uniform Statutory Provision: Section 25, Uniform Warehouse Receipts Act; Section 24, Uniform Bills of Lading Act.

Changes: Consolidated and rewritten.

Purposes of Changes:

1. The purpose of the section is to protect the bailee from conflicting claims of the document holder and the judgment creditors of the person who deposited the goods. The rights of the former prevail unless, in effect, the judgment creditors immobilize the negotiable document. However, if the document was issued upon deposit of the goods by a person who had no power to dispose of the goods so that the document is ineffective to pass title, judgment liens are valid to the extent of the debtor's interest in the goods.

2. The last sentence covers the possibility that the holder of a document who has been enjoined from negotiating it will violate the injunction by negotiating to an innocent purchaser for value. In such case the lien will be defeated.

Cross References:

Point 1: Section 7-503.

Definitional Cross References:

"Bailee". Section 7-102.

"Delivery". Section 1-201.

"Document". Section 7-102.

"Goods". Section 7-102.

"Notice". Section 1-201.

"Person". Section 1-201.

"Purchase". Section 1-201.

"Value". Section 1-201.