KRS 355.7-302: Through bills of lading and similar documents of title.

(1) The issuer of a through bill of lading or other document of title embodying an

undertaking to be performed in part by a person acting as its agent or by a

performing carrier is liable to any person entitled to recover on the document for

any breach by the other person or the performing carrier of its obligation under the

document. However, to the extent that the bill covers an undertaking to be

performed overseas or in territory not contiguous to the continental United States or

an undertaking including mat ters other than transportation, this liability for breach

by the other person or the performing carrier may be varied by agreement of the

parties.

(2) If goods covered by a through bill of lading or other document of title embodying an

undertaking to be performed in part by a person other than the issuer are received by

that person, the person is subject, with respect to its own performance while the

goods are in its possession, to the obligation of the issuer. The person's obligation is

discharged by delivery of the goods to another person pursuant to the document and

does not include liability for breach by any other person or by the issuer.

(3) The issuer of a through bill of lading or other document of title described in

subsection (1) of this section is entitled to recover from the performing carrier, or

other person in possession of the goods when the breach of the obligation under the

document occurred:

(a) The amount it may be required to pay to any person entitled to recover on the

document for the b reach, as may be evidenced by any receipt, judgment, or

transcript of judgment; and

(b) The amount of any expense reasonably incurred by the issuer in defending any

action commenced by any person entitled to recover on the document for the

breach.