N.Y. Uniform Commercial Code Law § 7-601: Lost, Stolen, or Destroyed Documents of Title

Section 7--601. Lost, Stolen, or Destroyed Documents of Title.

(a) If a document of title is lost, stolen, or destroyed, a court may

order delivery of the goods or issuance of a substitute document and the

bailee may without liability to any person comply with the order. If the

document was negotiable, a court may not order delivery of the goods or

issuance of a substitute document without the claimant's posting

security unless it finds that any person that may suffer loss as a

result of nonsurrender of possession or control of the document is

adequately protected against the loss. If the document was

nonnegotiable, the court may require security. The court may also order

payment of the bailee's reasonable costs and attorney's fees in any

action under this subsection.

(b) A bailee that, without a court order, delivers goods to a person

claiming under a missing negotiable document of title is liable to any

person injured thereby. If the delivery is not in good faith, the bailee

is liable for conversion. Delivery in good faith is not conversion if

the claimant posts security with the bailee in an amount at least double

the value of the goods at the time of posting to indemnify any person

injured by the delivery which files a notice of claim within one year

after the delivery.