N.Y. Uniform Commercial Code Law § 7-403: Obligation of Bailee to Deliver; Excuse

Section 7--403. Obligation of Bailee to Deliver; Excuse.

(a) A bailee shall deliver the goods to a person entitled under a

document of title if the person complies with subsections (b) and (c),

unless and to the extent that the bailee establishes any of the

following:

(1) delivery of the goods to a person whose receipt was rightful as

against the claimant;

(2) damage to or delay, loss, or destruction of the goods for which

the bailee is not liable;

(3) previous sale or other disposition of the goods in lawful

enforcement of a lien or on a warehouse's lawful termination of storage;

(4) the exercise by a seller of its right to stop delivery pursuant to

Section 2--705 or by a lessor of its right to stop delivery pursuant to

Section 2-A--526;

(5) a diversion, reconsignment, or other disposition pursuant to

Section 7--303;

(6) release, satisfaction, or any other personal defense against the

claimant; or

(7) any other lawful excuse.

(b) A person claiming goods covered by a document of title shall

satisfy the bailee's lien if the bailee so requests or if the bailee is

prohibited by law from delivering the goods until the charges are paid.

(c) Unless a person claiming the goods is a person against which the

document of title does not confer a right under Section 7--503(a):

(1) the person claiming under a document shall surrender possession or

control of any outstanding negotiable document covering the goods for

cancellation or indication of partial deliveries; and

(2) the bailee shall cancel the document or conspicuously indicate in

the document the partial delivery or the bailee is liable to any person

to which the document is duly negotiated.