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(810 ILCS 5/Art.
7 heading)
ARTICLE
7
WAREHOUSE
RECEIPTS, BILLS OF LADING
AND
OTHER DOCUMENTS OF TITLE
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(810 ILCS 5/Art.
7 Pt. 1 heading)
PART
1. GENERAL
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(810 ILCS 5/7-101) (from Ch. 26,
par. 7-101)
Sec. 7-101. Short title.
This Article shall be known and
may be cited as Uniform Commercial Code--Documents
of Title.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/7-102) (from Ch. 26,
par. 7-102)
Sec. 7-102. Definitions and
index of definitions. (1) In this Article, unless the context
otherwise requires:
(a) "Bailee" means the
person who by a warehouse receipt, bill of lading or other document
of title acknowledges possession of goods and contracts to deliver
them.
(b) "Consignee" means
the person named in a bill to whom or to whose order the bill
promises delivery.
(c) "Consignor" means
the person named in a bill as the person from whom the goods
have been received for shipment.
(d) "Delivery order" means
a written order to deliver goods directed to a warehouseman,
carrier or other person who in the ordinary course of business
issues warehouse receipts or bills of lading.
(e) "Document" means
document of title as defined in the general definitions in Article
1 (Section 1--201).
(f) "Goods" means all
things which are treated as movable for the purposes of a contract
of storage or transportation.
(g) "Issuer" means a
bailee who issues a document except that in relation to an unaccepted
delivery order it means the person who orders the possessor of
goods to deliver. Issuer includes any person for whom an agent
or employee purports to act in issuing a document if the agent
or employee has real or apparent authority to issue documents,
notwithstanding that the issuer received no goods or that the
goods were misdescribed or that in any other respect the agent
or employee violated his instructions.
(h) "Warehouseman" is
a person engaged in the business of storing goods for hire. The
owner of a self-service storage facility as defined in
the Self-Service Storage Facility Act, enacted by the Eighty-Third
General Assembly, is not a warehouseman for the purposes of this
Article.
(2) Other definitions applying
to this Article or to specified Parts thereof, and the Sections
in which they appear are:
"Duly negotiate". Section
7-501.
"Person entitled under the
document". Section 7-403(4).
(3) Definitions in other Articles
applying to this Article and the Sections in which they appear
are:
"Contract for sale".
Section 2-106.
"Overseas". Section 2-323.
"Receipt" of goods. Section
2-103.
(4) In addition Article 1 contains
general definitions and principles of construction and interpretation
applicable throughout this Article.
(Source: P.A. 83-800.)
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(810 ILCS 5/7-103) (from Ch. 26, par. 7-103)
Sec. 7-103. Relation of Article
to treaty, statute, tariff, classification or regulation.
To the extent that any treaty or
statute of the United States, regulatory statute of this State
or tariff, classification or regulation filed or issued pursuant
thereto is applicable, the provisions of this Article are subject
thereto.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/7-104) (from Ch. 26, par. 7-104)
Sec. 7-104. Negotiable and
non-negotiable warehouse receipt, bill of lading or other
document of title.
(1) A warehouse receipt, bill of
lading or other document of title is negotiable
(a) if
by its terms the goods are to be delivered to bearer or to the
order of a named person; or
(b) where
recognized in overseas trade, if it runs to a named person or
assigns.
(2) Any other document is non-negotiable.
A bill of lading in which it is stated that the goods are consigned
to a named person is not made negotiable by a provision that
the goods are to be delivered only against a written order signed
by the same or another named person.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/7-105) (from Ch. 26, par. 7-105)
Sec. 7-105. Construction
against negative implication. The omission from either Part
2 or Part 3 of this Article of a provision corresponding to
a provision made in the other Part does not imply that a corresponding
rule of law is not applicable.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/Art.
7 Pt. 2 heading)
PART
2. WAREHOUSE RECEIPTS: SPECIAL PROVISIONS
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(810 ILCS 5/7-201) (from Ch. 26, par. 7-201)
Sec. 7-201. Who may issue
a warehouse receipt; storage under government bond.
(1) A warehouse receipt may be
issued by any warehouseman.
(2) Where goods including distilled
spirits and agricultural commodities are stored under a statute
requiring a bond against withdrawal or a license for the issuance
of receipts in the nature of warehouse receipts, a receipt issued
for the goods has like effect as a warehouse receipt even though
issued by a person who is the owner of the goods and is not a
warehouseman.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/7-202) (from Ch. 26, par. 7-202)
Sec. 7-202. Form of warehouse
receipt; essential terms; optional terms.
(1) A warehouse receipt need not
be in any particular form.
(2) Unless a warehouse receipt
embodies within its written or printed terms each of the following,
the warehouseman is liable for damages caused by the omission
to a person injured thereby:
(a) the
location of the warehouse where the goods are stored;
(b) the
date of issue of the receipt;
(c) the
consecutive number of the receipt;
(d) a statement
whether the goods received will be delivered to the bearer, to
a specified person, or to a specified person or his order;
(e) the
rate of storage and handling charges, except that where goods
are stored under a field warehousing arrangement a statement
of that fact is sufficient on a non-negotiable receipt;
(f) a description
of the goods or of the packages containing them;
(g) the
signature of the warehouseman, which may be made by his authorized
agent;
(h) if
the receipt is issued for goods of which the warehouseman is
owner, either solely or jointly or in common with others, the
fact of such ownership; and
(i) a statement
of the amount of advances made and of liabilities incurred for
which the warehouseman claims a lien or security interest (Section
7--209). If the precise amount of such advances made
or of such liabilities incurred is, at the time of the issue
of the receipt, unknown to the warehouseman or to his agent who
issues it, a statement of the fact that advances have been made
or liabilities incurred and the purpose thereof is sufficient.
(3) A warehouseman may insert in
his receipt any other terms which are not contrary to the provisions
of this Act and do not impair his obligation of delivery (Section
7--403) or his duty of care (Section 7--204).
Any contrary provisions shall be ineffective.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/7-203) (from Ch. 26, par. 7-203)
Sec. 7-203. Liability for
non-receipt or misdescription.
A party to or purchaser for value
in good faith of a document of title other than a bill of lading
relying in either case upon the description therein of the goods
may recover from the issuer damages caused by the non-receipt
or misdescription of the goods, except to the extent that the
document conspicuously indicates that the issuer does not know
whether any part or all of the goods in fact were received or
conform to the description as where the description is in terms
of marks or labels or kind, quantity or condition, or the receipt
or description is qualified by "contents, condition and
quality unknown", "said to contain" or the like,
if such indication be true, or the party or purchaser otherwise
has notice.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/7-204) (from Ch. 26, par. 7-204)
Sec. 7-204. Duty of care;
contractual limitation of warehouseman's liability.
(1) A warehouseman is liable for
damages for loss of or injury to the goods caused by his failure
to exercise such care in regard to them as a reasonably careful
man would exercise under like circumstances but unless otherwise
agreed he is not liable for damages which could not have been
avoided by the exercise of such care.
(2) Damages may be limited by a
term in the warehouse receipt or storage agreement limiting the
amount of liability in case of loss or damage, and setting forth
a specific liability per article or item, or value per unit of
weight, beyond which the warehouseman shall not be liable; provided,
however, that such liability may on written request of the bailor
at the time of signing such storage agreement or within a reasonable
time after receipt of the warehouse receipt be increased on part
or all of the goods thereunder, in which event increased rates
may be charged based on such increased valuation, but that no
such increase shall be permitted contrary to a lawful limitation
of liability contained in the warehouseman's tariff, if any.
No such limitation is effective with respect to the warehouseman's
liability for conversion to his own use.
(3) Reasonable provisions as to
the time and manner of presenting claims and instituting actions
based on the bailment may be included in the warehouse receipt
or tariff.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/7-205) (from Ch. 26, par. 7-205)
Sec. 7-205. Title under warehouse
receipt defeated in certain cases.
A buyer in the ordinary course
of business of fungible goods sold and delivered by a warehouseman
who is also in the business of buying and selling such goods
takes free of any claim under a warehouse receipt even though
it has been duly negotiated.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/7-206) (from Ch. 26, par. 7-206)
Sec. 7-206. Termination of
storage at warehouseman's option.
(1) A warehouseman may on notifying
the person on whose account the goods are held and any other
person known to claim an interest in the goods require payment
of any charges and removal of the goods from the warehouse at
the termination of the period of storage fixed by the document,
or, if no period is fixed, within a stated period not less than
30 days after the notification. If the goods are not removed
before the date specified in the notification, the warehouseman
may sell them in accordance with the provisions of the Section
on enforcement of a warehouseman's lien (Section 7--210).
(2) If a warehouseman in good faith
believes that the goods are about to deteriorate or decline in
value to less than the amount of his lien within the time prescribed
in subsection (1) for notification, advertisement and sale, the
warehouseman may specify in the notification any reasonable shorter
time for removal of the goods and in case the goods are not removed,
may sell them at public sale held not less than one week after
a single advertisement or posting.
(3) If as a result of a quality
or condition of the goods of which the warehouseman had no notice
at the time of deposit the goods are a hazard to other property
or to the warehouse or to persons, the warehouseman may sell
the goods at public or private sale without advertisement on
reasonable notification to all persons known to claim an interest
in the goods. If the warehouseman after a reasonable effort is
unable to sell the goods he may dispose of them in any lawful
manner and shall incur no liability by reason of such disposition.
(4) The warehouseman must deliver
the goods to any person entitled to them under this Article upon
due demand made at any time prior to sale or other disposition
under this Section.
(5) The warehouseman may satisfy
his lien from the proceeds of any sale or disposition under this
Section but must hold the balance for delivery on the demand
of any person to whom he would have been bound to deliver the
goods.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/7-207) (from Ch. 26, par. 7-207)
Sec. 7-207. Goods must be
kept separate; fungible goods.
(1) Unless the warehouse receipt
otherwise provides, a warehouseman must keep separate the goods
covered by each receipt so as to permit at all times identification
and delivery of those goods except that different lots of fungible
goods may be commingled.
(2) Fungible goods so commingled
are owned in common by the persons entitled thereto and the warehouseman
is severally liable to each owner for that owner's share. Where
because of overissue a mass of fungible goods is insufficient
to meet all the receipts which the warehouseman has issued against
it, the persons entitled include all holders to whom overissued
receipts have been duly negotiated.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/7-208) (from Ch. 26, par. 7-208)
Sec. 7-208. Altered warehouse
receipts.
Where a blank in a negotiable warehouse
receipt has been filled in without authority, a purchaser for
value and without notice of the want of authority may treat the
insertion as authorized. Any other unauthorized alteration leaves
any receipt enforceable against the issuer according to its original
tenor.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/7-209) (from Ch. 26, par. 7-209)
Sec. 7-209. Lien of warehouseman.
(1) A warehouseman has a lien against
the bailor on the goods covered by a warehouse receipt or on
the proceeds thereof in his possession for charges for storage
or transportation (including demurrage and terminal charges),
insurance, labor, or charges present or future in relation to
the goods, and for expenses necessary for preservation of the
goods or reasonably incurred in their sale pursuant to law. If
the person on whose account the goods are held is liable for
like charges or expenses in relation to other goods whenever
deposited and it is stated in the receipt that a lien is claimed
for charges and expenses in relation to other goods, the warehouseman
also has a lien against him for such charges and expenses whether
or not the other goods have been delivered by the warehouseman.
But against a person to whom a negotiable warehouse receipt is
duly negotiated a warehouseman's lien is limited to charges in
an amount or at a rate specified on the receipt or if no charges
are so specified then to a reasonable charge for storage of the
goods covered by the receipt subsequent to the date of the receipt.
(2) The warehouseman may also reserve
a security interest against the bailor for a maximum amount specified
on the receipt for charges other than those specified in subsection
(1), such as for money advanced and interest. Such a security
interest is governed by the Article on Secured Transactions (Article
9).
(3) (a) A warehouseman's lien for
charges and expenses under subsection (1) or a security interest
under subsection (2) is also effective against any person who
so entrusted the bailor with possession of the goods that a pledge
of them by him to a good faith purchaser for value would have
been valid but is not effective against a person as to whom the
document confers no right in the goods covered by it under Section
7--503.
(b) A warehouseman's lien on household
goods for charges and expenses in relation to the goods under
subsection (1) is also effective against all persons if the depositor
was the legal possessor of the goods at the time of deposit. "Household
goods" means furniture, furnishings and personal effects
used by the depositor in a dwelling.
(4) A warehouseman loses his lien
on any goods which he voluntarily delivers or which he unjustifiably
refuses to deliver.
(Source: P. A. 77-2810.)
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(810 ILCS 5/7-210) (from Ch. 26, par. 7-210)
Sec. 7-210. Enforcement of
warehouseman's lien.
(1) Except as provided in subsection
(2), a warehouseman's lien may be enforced by public or private
sale of the goods in block or in parcels, at any time or place
and on any terms which are commercially reasonable, after notifying
all persons known to claim an interest in the goods. Such notification
must include a statement of the amount due, the nature of the
proposed sale and the time and place of any public sale. The
fact that a better price could have been obtained by a sale at
a different time or in a different method from that selected
by the warehouseman is not of itself sufficient to establish
that the sale was not made in a commercially reasonable manner.
If the warehouseman either sells the goods in the usual manner
in any recognized market therefor, or if he sells at the price
current in such market at the time of his sale, or if he has
otherwise sold in conformity with commercially reasonable practices
among dealers in the type of goods sold, he has sold in a commercially
reasonable manner. A sale of more goods than apparently necessary
to be offered to insure satisfaction of the obligation is not
commercially reasonable except in cases covered by the preceding
sentence.
(2) A warehouseman's lien on goods
other than goods stored by a merchant in the course of his business
may be enforced only as follows:
(a) All
persons known to claim an interest in the goods must be notified.
(b) The
notification must be delivered in person or sent by registered
or certified letter to the last known address of any person to
be notified.
(c) The
notification must include an itemized statement of the claim,
a description of the goods subject to the lien, a demand for
payment within a specified time not less than 10 days after receipt
of the notification, and a conspicuous statement that unless
the claim is paid within that time the goods will be advertised
for sale and sold by auction at a specified time and place.
(d) The
sale must conform to the terms of the notification.
(e) The
sale must be held at the nearest suitable place to that where
the goods are held or stored.
(f) After
the expiration of the time given in the notification, an advertisement
of the sale must be published once a week for 2 weeks consecutively
in a newspaper of general circulation where the sale is to be
held. The advertisement must include a description of the goods,
the name of the person on whose account they are being held,
and the time and place of the sale. The sale must take place
at least 15 days after the first publication. If there is no
newspaper of general circulation where the sale is to be held,
the advertisement must be posted at least 10 days before the
sale in not less than 6 conspicuous places in the neighborhood
of the proposed sale.
(3) Before any sale pursuant to
this Section any person claiming a right in the goods may pay
the amount necessary to satisfy the lien and the reasonable expenses
incurred under this Section. In that event the goods must not
be sold, but must be retained by the warehouseman subject to
the terms of the receipt and this Article.
(4) The warehouseman may buy at
any public sale pursuant to this Section.
(5) A purchaser in good faith of
goods sold to enforce a warehouseman's lien takes the goods free
of any rights of persons against whom the lien was valid, despite
noncompliance by the warehouseman with the requirements of this
Section.
(6) The warehouseman may satisfy
his lien from the proceeds of any sale pursuant to this Section
but must hold the balance, if any, for delivery on demand to
any person to whom he would have been bound to deliver the goods.
(7) The rights provided by this
Section shall be in addition to all other rights allowed by law
to a creditor against his debtor.
(8) Where a lien is on goods stored
by a merchant in the course of his business the lien may be enforced
in accordance with either subsection (1) or (2).
(9) The warehouseman is liable
for damages caused by failure to comply with the requirements
for sale under this Section and in case of willful violation
is liable for conversion.
(Source: Laws 1965, p. 803.)
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(810 ILCS 5/Art.
7 Pt. 3 heading)
PART
3. BILLS OF LADING: SPECIAL PROVISIONS
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(810 ILCS 5/7-301) (from Ch. 26, par. 7-301)
Sec. 7-301. Liability for
non-receipt or misdescription; "said to contain"; "shipper's
load and count"; improper handling.
(1) A consignee of a non-negotiable
bill who has given value in good faith or a holder to whom a
negotiable bill has been duly negotiated relying in either case
upon the description therein of the goods, or upon the date therein
shown, may recover from the issuer damages caused by the misdating
of the bill or the non-receipt or misdescription of the
goods, except to the extent that the document indicates that
the issuer does not know whether any part or all of the goods
in fact were received or conform to the description, as where
the description is in terms of marks or labels or kind, quantity,
or condition or the receipt or description is qualified by "contents
or condition of contents of packages unknown", "said
to contain", "shipper's weight, load and count" or
the like, if such indication be true.
(2) When goods are loaded by an
issuer who is a common carrier, the issuer must count the packages
of goods if package freight and ascertain the kind and quantity
if bulk freight. In such cases "shipper's weight, load and
count" or other words indicating that the description was
made by the shipper are ineffective except as to freight concealed
by packages.
(3) When bulk freight is loaded
by a shipper who makes available to the issuer adequate facilities
for weighing such freight, an issuer who is a common carrier
must ascertain the kind and quantity within a reasonable time
after receiving the written request of the shipper to do so.
In such cases "shipper's weight" or other words of
like purport are ineffective.
(4) The issuer may by inserting
in the bill the words "shipper's weight, load and count" or
other words of like purport indicate that the goods were loaded
by the shipper; and if such statement be true the issuer shall
not be liable for damages caused by the improper loading. But
their omission does not imply liability for such damages.
(5) The shipper shall be deemed
to have guaranteed to the issuer the accuracy at the time of
shipment of the description, marks, labels, number, kind, quantity,
condition and weight, as furnished by him; and the shipper shall
indemnify the issuer against damage caused by inaccuracies in
such particulars. The right of the issuer to such indemnity shall
in no way limit his responsibility and liability under the contract
of carriage to any person other than the shipper.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/7-302) (from Ch. 26, par. 7-302)
Sec. 7-302. Through bills
of lading and similar documents.
(1) The issuer of a through bill
of lading or other document embodying an undertaking to be performed
in part by persons acting as its agents or by connecting carriers
is liable to anyone entitled to recover on the document for any
breach by such other persons or by a connecting carrier of its
obligation under the document but 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 matters other than transportation this liability may
be varied by agreement of the parties.
(2) Where goods covered by a through
bill of lading or other document embodying an undertaking to
be performed in part by persons other than the issuer are received
by any such person, he is subject with respect to his own performance
while the goods are in his possession to the obligation of the
issuer. His obligation is discharged by delivery of the goods
to another such person pursuant to the document, and does not
include liability for breach by any other such persons or by
the issuer.
(3) The issuer of such through
bill of lading or other document shall be entitled to recover
from the connecting carrier or such other person in possession
of the goods when the breach of the obligation under the document
occurred, the amount it may be required to pay to anyone entitled
to recover on the document therefor, as may be evidenced by any
receipt, judgment, or transcript thereof, and the amount of any
expense reasonably incurred by it in defending any action brought
by anyone entitled to recover on the document therefor.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/7-303) (from Ch. 26, par. 7-303)
Sec. 7-303. Diversion; reconsignment;
change of instructions.
(1) Unless the bill of lading otherwise
provides, the carrier may deliver the goods to a person or destination
other than that stated in the bill or may otherwise dispose of
the goods on instructions from
(a) the
holder of a negotiable bill; or
(b) the
consignor on a non-negotiable bill notwithstanding contrary
instructions from the consignee; or
(c) the
consignee on a non-negotiable bill in the absence of contrary
instructions from the consignor, if the goods have arrived at
the billed destination or if the consignee is in possession of
the bill; or
(d) the
consignee on a non-negotiable bill if he is entitled as
against the consignor to dispose of them.
(2) Unless such instructions are
noted on a negotiable bill of lading, a person to whom the bill
is duly negotiated can hold the bailee according to the original
terms.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/7-304) (from Ch. 26, par. 7-304)
Sec. 7-304. Bills of lading
in a set.
(1) Except where customary in overseas
transportation, a bill of lading must not be issued in a set
of parts. The issuer is liable for damages caused by violation
of this subsection.
(2) Where a bill of lading is lawfully
drawn in a set of parts, each of which is numbered and expressed
to be valid only if the goods have not been delivered against
any other part, the whole of the parts constitute one bill.
(3) Where a bill of lading is lawfully
issued in a set of parts and different parts are negotiated to
different persons, the title of the holder to whom the first
due negotiation is made prevails as to both the document and
the goods even though any later holder may have received the
goods from the carrier in good faith and discharged the carrier's
obligation by surrender of his part.
(4) Any person who negotiates or
transfers a single part of a bill of lading drawn in a set is
liable to holders of that part as if it were the whole set.
(5) The bailee is obliged to deliver
in accordance with Part 4 of this Article against the first presented
part of a bill of lading lawfully drawn in a set. Such delivery
discharges the bailee's obligation on the whole bill.
(Source: Laws 1961, 1st S.S., p. 7.)
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(810 ILCS 5/7-305) (from Ch. 26, par. 7-305)
Sec. 7-305. Destination bills.
(1) Instead of issuing a bill of
lading to the consignor at the place of shipment a carrier may
at the request of the consignor procure the bill to be issued
at destination or at any other place designated in the request.
(2) Upon request of anyone entitled
as against the carrier to control the goods while in transit
and on surrender of any outstanding bill of lading or other receipt
covering such goods, the issuer may procure a substitute bill
to be issued at any place designated in the request.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/7-306) (from Ch. 26, par. 7-306)
Sec. 7-306. Altered bills
of lading.
An unauthorized alteration or filling
in of a blank in a bill of lading leaves the bill enforceable
according to its original tenor.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/7-307) (from Ch. 26, par. 7-307)
Sec. 7-307. Lien of carrier.
(1) A carrier has a lien on the
goods covered by a bill of lading for charges subsequent to the
date of its receipt of the goods for storage or transportation
(including demurrage and terminal charges) and for expenses necessary
for preservation of the goods incident to their transportation
or reasonably incurred in their sale pursuant to law. But against
a purchaser for value of a negotiable bill of lading a carrier's
lien is limited to charges stated in the bill or the applicable
tariffs, or if no charges are stated then to a reasonable charge.
(2) A lien for charges and expenses
under subsection (1) on goods which the carrier was required
by law to receive for transportation is effective against the
consignor or any person entitled to the goods unless the carrier
had notice that the consignor lacked authority to subject the
goods to such charges and expenses. Any other lien under subsection
(1) is effective against the consignor and any person who permitted
the bailor to have control or possession of the goods unless
the carrier had notice that the bailor lacked such authority.
(3) A carrier loses his lien on
any goods which he voluntarily delivers or which he unjustifiably
refuses to deliver.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/7-308) (from Ch. 26, par. 7-308)
Sec. 7-308. Enforcement of
carrier's lien.
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