{"data":{"id":"us-nc/n.c.-gen.-stat.-25-7-503","jurisdiction":"us-nc","citation":"N.C. Gen. Stat. § 25-7-503","heading":"Document of title to goods defeated in certain cases.","body":"(a)\tA document of title confers no right in goods against a person that before issuance of the document had a legal interest or a perfected security interest in the goods and that did not:\n(1)\tDeliver or entrust the goods or any document of title covering the goods to the bailor or the bailor's nominee with:\na.\tActual or apparent authority to ship, store, or sell;\nb.\tPower to obtain delivery under G.S. 25-7-403; or\nc.\tPower of disposition under G.S. 25-2-403, 25-2A-304(b), 25-2A-305(b), 25-9-320, or 25-9-321(c) or other statute or rule of law; or\n(2)\tAcquiesce in the procurement by the bailor or its nominee of any document.\n(b)\tTitle to goods based upon an unaccepted delivery order is subject to the rights of any person to whom a negotiable warehouse receipt or bill of lading covering the goods has been duly negotiated. That title may be defeated under G.S. 25-7-504 to the same extent as the rights of the issuer or a transferee from the issuer.\n(c)\tTitle to goods based upon a bill of lading issued to a freight forwarder is subject to the rights of any person to which a bill issued by the freight forwarder is duly negotiated. However, delivery by the carrier in accordance with Part 4 of this Article pursuant to its own bill of lading discharges the carrier's obligation to deliver. (1917, c. 37, s. 41; 1919, c. 65, s. 31; C.S., ss. 313, 4081; 1965, c. 700, s. 1; 2000-169, s. 20; 2006-112, s. 25; 2025-25, s. 112.)","path":["Chapter 25. Uniform Commercial Code.","Article 7. Documents of Title.","Part 5. Warehouse Receipts and Bills of Lading: Negotiation and Transfer."],"source_url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_25/GS_25-7-503.html","current_through":"S.L. 2026-30","vintage":"","retrieved_at":"2026-08-27T17:58:47Z","sha256":"685eed162907f7fcf2d18baea83c6ee20056366034c5c2f20293a69f601c3f66","source_id":"us-nc","stale":false,"prev":"us-nc/n.c.-gen.-stat.-25-7-502","next":"us-nc/n.c.-gen.-stat.-25-7-504"},"notice":"GroundRules: Original legal text. Not legal advice."}