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CHAPTER 810 UNIFORM COMMERCIAL CODE
Warehouse Receipts, Bills of Lading and other Documents of Title

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    (810 ILCS 5/Art. 7 heading)

ARTICLE 7

WAREHOUSE RECEIPTS, BILLS OF LADING

AND OTHER DOCUMENTS OF TITLE




 
    (810 ILCS 5/Art. 7 Pt. 1 heading)

PART 1. GENERAL



    (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.)



    (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.)



    (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.)



    (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.)



    (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.)




 
    (810 ILCS 5/Art. 7 Pt. 2 heading)

PART 2. WAREHOUSE RECEIPTS: SPECIAL PROVISIONS



    (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.)



    (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.)



    (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.)



    (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.)



    (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.)



    (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.)



    (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.)



    (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.)



    (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.)



    (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.)




 
    (810 ILCS 5/Art. 7 Pt. 3 heading)

PART 3. BILLS OF LADING: SPECIAL PROVISIONS



    (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.)



    (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.)



    (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.)



    (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.)



    (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.)



    (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.)



    (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.)



    (810 ILCS 5/7-308) (from Ch. 26, par. 7-308)
    Sec. 7-308. Enforcement of carrier's lien.