Bill Text: FL S1366 | 2010 | Regular Session | Comm Sub

Florida Senate Bill 1366 (Prior Session Legislation)

Bill Title: Uniform Commercial Code [CPSC]

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2010-04-29 - Read 3rd time -SJ 01056; Substituted CS/HB 731 -SJ 01056; Laid on Table, companion bill(s) passed, see CS/HB 731 (Ch. 2010-131) -SJ 01056 [S1366 Detail]

Download: Florida-2010-S1366-Comm_Sub.html
 
Florida Senate - 2010                             CS for SB 1366 
 
By the Committee on Banking and Insurance; and Senator Wise 
597-04371-10                                          20101366c1 
1                        A bill to be entitled 
2         An act relating to the Uniform Commercial Code; 
3         revising and providing provisions of the Uniform 
4         Commercial Code relating to electronic documents of 
5         title, warehouse receipts, bills of lading, and other 
6         documents of title to conform to the revised Article 7 
7         of the Uniform Commercial Code as prepared by the 
8         National Conference of Commissioners on Uniform State 
9         Laws; amending ss. 668.50 and 671.304, F.S.; 
10         correcting cross-references; amending ss. 671.201, 
11         672.103, 672.104, 674.104, 677.102, and 679.1021, 
12         F.S.; revising and providing definitions; revising 
13         provisions pertaining to definitions applicable to 
14         certain provisions of the code, to conform cross 
15         references to revisions made by this act; amending s. 
16         672.310, F.S.; revising time when certain delivery 
17         payments are due; amending ss. 559.9232, 672.323, 
18         672.401, 672.503, 672.505, 672.506, 672.509, 672.605, 
19         672.705, 674.2101, 677.201, 677.202, 677.203, 677.205, 
20         677.206, 677.207, 677.208, 677.301, 677.302, 677.304, 
21         677.305, 677.401, 677.402, 677.403, 677.404, 677.502, 
22         677.503, 677.505, 677.506, 677.507, 677.508, 677.509, 
23         677.602, 677.603, 679.2031, 679.2071, 679.3011, 
24         679.3101, 679.3121, 679.3131, 679.3141, 679.3171, 
25         679.338, 680.1031, 680.514, and 680.526, F.S.; 
26         revising provisions to conform to changes made by this 
27         act; making editorial changes; amending s. 677.103, 
28         F.S.; revising and providing application in relation 
29         of chapter to treaty, statute, tariff, classification, 
30         or regulation; amending s. 677.104, F.S.; providing 
31         when certain documents of title are nonnegotiable; 
32         amending s. 677.105, F.S.; authorizing an issuer of 
33         the electronic document to issue a tangible document 
34         of title as a substitute for the electronic document 
35         under certain conditions; authorizing an issuer of a 
36         tangible document to issue an electronic document of 
37         title as a substitute for the tangible document under 
38         certain conditions; creating s. 677.106, F.S.; 
39         providing when certain persons have control of an 
40         electronic document of title; amending s. 677.204, 
41         F.S.; revising liability of certain damages; 
42         authorizing a warehouse receipt or storage agreement 
43         to provide certain requirements; amending s. 677.209, 
44         F.S.; revising conditions for a warehouse to establish 
45         a lien against a bailor; providing when and against 
46         whom the lien is effective; amending s. 677.210, F.S.; 
47         revising provisions relating to the enforcement of 
48         liens; amending s. 677.303, F.S.; prohibiting 
49         liability for certain carriers; amending s. 677.307, 
50         F.S.; revising conditions under which a carrier has a 
51         lien on goods covered by a bill of lading; amending s. 
52         677.308, F.S.; revising provisions relating to the 
53         enforcement of a carrier’s lien; amending s. 677.309, 
54         F.S.; revising provisions relating to the contractual 
55         limitation of a carrier’s liability; amending s. 
56         677.501, F.S.; providing requirements for negotiable 
57         tangible documents of title and negotiable electronic 
58         documents of title; amending s. 677.504, F.S.; 
59         providing condition under which the rights of the 
60         transferee may be defeated; amending s. 677.601, F.S.; 
61         revising provisions relating to lost, stolen, or 
62         destroyed documents of title; amending s. 678.1031, 
63         F.S.; providing that certain documents of title are 
64         not financial assets; amending s. 679.2081, F.S.; 
65         providing requirements for secured parties having 
66         control of an electronic document; providing an 
67         effective date. 
68 
69  Be It Enacted by the Legislature of the State of Florida: 
70 
71         Section 1. Paragraph (f) of subsection (2) of section 
72  559.9232, Florida Statutes, is amended to read: 
73         559.9232 Definitions; exclusion of rental-purchase 
74  agreements from certain regulations.— 
75         (2) A rental-purchase agreement that complies with this act 
76  shall not be construed to be, nor be governed by, any of the 
77  following: 
78         (f) A security interest as defined in s. 671.201(38)(35). 
79         Section 2. Present subsections (25) through (43) of section 
80  671.201, Florida Statutes, are renumbered as subsections (28) 
81  through (46), respectively, new subsections (25), (26), and (27) 
82  are added to that section, and present subsections (5), (6), 
83  (10), (15), (16), (21), and (42) are amended, to read: 
84         671.201 General definitions.—Unless the context otherwise 
85  requires, words or phrases defined in this section, or in the 
86  additional definitions contained in other chapters of this code 
87  which apply to particular chapters or parts thereof, have the 
88  meanings stated. Subject to definitions contained in other 
89  chapters of this code which apply to particular chapters or 
90  parts thereof, the term: 
91         (5) “Bearer” means a person in control of a negotiable 
92  electronic document of title or a person in possession of a 
93  negotiable instrument, a negotiable tangible document of title, 
94  or a certificated security that is payable to bearer or indorsed 
95  in blank. 
96         (6) “Bill of lading” means a document of title evidencing 
97  the receipt of goods for shipment issued by a person engaged in 
98  the business of directly or indirectly transporting or 
99  forwarding goods. The term does not include a warehouse receipt. 
100         (10) “Conspicuous,” with reference to a term, means so 
101  written, displayed, or presented that a reasonable person 
102  against which whom it is to operate ought to have noticed it. 
103  Whether a term is “conspicuous” is a decision for the court. 
104  Conspicuous terms include the following: 
105         (a) A heading in capitals in a size equal to or greater in 
106  size larger than that of the surrounding text, or in contrasting 
107  a type, font, or color in contrast to the surrounding text of 
108  the same or lesser size; and. 
109         (b) Language in the body of a record or display in larger 
110  type larger than that of the surrounding text; in a type, font, 
111  or color in contrast to the surrounding text of the same size; 
112  or set off from surrounding text of the same size by symbols or 
113  other marks that call attention to the language. 
114         (15) “Delivery,” with respect to an electronic document of 
115  title, means voluntary transfer of control and “delivery,” with 
116  respect to instruments instrument, tangible document of title, 
117  or chattel paper, or certificated securities, means voluntary 
118  transfer of possession. 
119         (16) “Document of title” means a record: 
120         (a) includes bill of lading, dock warrant, dock receipt, 
121  warehouse receipt or order for the delivery of goods, and any 
122  other document That in the regular course of business or 
123  financing is treated as adequately evidencing that the person in 
124  possession or control of the record it is entitled to receive, 
125  control, hold, and dispose of the record document and the goods 
126  the record it covers; and 
127         (b) That purports to be issued by or addressed to a bailee 
128  and to cover goods in the bailee’s possession which are either 
129  identified or are fungible portions of an identified mass. The 
130  term includes a bill of lading, transport document, dock 
131  warrant, dock receipt, warehouse receipt, and order for delivery 
132  of goods. An electronic document of title means a document of 
133  title evidenced by a record consisting of information stored in 
134  an electronic medium. A tangible document of title means a 
135  document of title evidenced by a record consisting of 
136  information that is inscribed on a tangible medium. To be a 
137  document of title, a document must purport to be issued by or 
138  addressed to a bailee and purport to cover goods in the bailee’s 
139  possession which are either identified or are fungible portions 
140  of an identified mass. 
141         (21) “Holder” means: 
142         (a) The person in possession of a negotiable instrument 
143  that is payable either to bearer or to an identified person that 
144  is the person in possession; or 
145         (b) The person in possession of a negotiable tangible 
146  document of title if the goods are deliverable either to bearer 
147  or to the order of the person in possession; or. 
148         (c) The person in control of a negotiable electronic 
149  document of title. 
150         (25) Subject to subsection (27), a person has “notice” of a 
151  fact if the person: 
152         (a) Has actual knowledge of it; 
153         (b) Has received a notice or notification of it; or 
154         (c) From all the facts and circumstances known to the 
155  person at the time in question, has reason to know that it 
156  exists. A person “knows” or has “knowledge” of a fact when the 
157  person has actual knowledge of it. “Discover” or “learn” or a 
158  word or phrase of similar import refers to knowledge rather than 
159  to reason to know. The time and circumstances under which a 
160  notice or notification may cease to be effective are not 
161  determined by this section. 
162         (26) A person “notifies” or “gives” a notice or 
163  notification to another person by taking such steps as may be 
164  reasonably required to inform the other person in ordinary 
165  course, whether or not the other person actually comes to know 
166  of it. Subject to subsection (27), a person “receives” a notice 
167  or notification when: 
168         (a) It comes to that person’s attention; or 
169         (b) It is duly delivered in a form reasonable under the 
170  circumstances at the place of business through which the 
171  contract was made or at another location held out by that person 
172  as the place for receipt of such communications. 
173         (27) Notice, knowledge, or a notice or notification 
174  received by an organization is effective for a particular 
175  transaction from the time when it is brought to the attention of 
176  the individual conducting that transaction, and, in any event, 
177  from the time when it would have been brought to the 
178  individual’s attention if the organization had exercised due 
179  diligence. An organization exercises due diligence if it 
180  maintains reasonable routines for communicating significant 
181  information to the person conducting the transaction and there 
182  is reasonable compliance with the routines. Due diligence does 
183  not require an individual acting for the organization to 
184  communicate information unless such communication is part of the 
185  individual’s regular duties or the individual has reason to know 
186  of the transaction and that the transaction would be materially 
187  affected by the information. 
188         (45)(42) “Warehouse receipt” means a document of title 
189  receipt issued by a person engaged in the business of storing 
190  goods for hire. 
191         Section 3. Paragraph (d) of subsection (16) of section 
192  668.50, Florida Statutes, is amended to read: 
193         668.50 Uniform Electronic Transaction Act.— 
194         (16) TRANSFERABLE RECORDS.— 
195         (d) Except as otherwise agreed, a person having control of 
196  a transferable record is the holder, as defined in s. 
197  671.201(21), of the transferable record and has the same rights 
198  and defenses as a holder of an equivalent record or writing 
199  under the Uniform Commercial Code, including, if the applicable 
200  statutory requirements under s. 673.3021, s. 677.501, or s. 
201  679.330 679.308 are satisfied, the rights and defenses of a 
202  holder in due course, a holder to which a negotiable document of 
203  title has been duly negotiated, or a purchaser, respectively. 
204  Delivery, possession, and indorsement are not required to obtain 
205  or exercise any of the rights under this paragraph. 
206         Section 4. Subsection (5) of section 671.304, Florida 
207  Statutes, is amended to read: 
208         671.304 Laws not repealed; precedence where code provisions 
209  in conflict with other laws; certain statutory remedies 
210  retained.— 
211         (5) The effectiveness of any financing statement or 
212  continuation statement filed before prior to January 1, 1980, or 
213  any continuation statement filed on or after October 1, 1984, 
214  which states that the debtor is a transmitting utility as 
215  provided in s. 679.515(6) continues 679.403(6) shall continue 
216  until a termination statement is filed, except that if this act 
217  requires a filing in an office where there was no previous 
218  financing statement, a new financing statement conforming to s. 
219  680.109(4), Florida Statutes 1979, shall be filed in that 
220  office. 
221         Section 5. Subsection (3) of section 672.103, Florida 
222  Statutes, is amended to read: 
223         672.103 Definitions and index of definitions.— 
224         (3) The following definitions in other chapters apply to 
225  this chapter: 
226         “Check,” s. 673.1041. 
227         “Consignee,” s. 677.102. 
228         “Consignor,” s. 677.102. 
229         “Consumer goods,” s. 679.1021. 
230         “Control,” s. 677.106. 
231         “Dishonor,” s. 673.5021. 
232         “Draft,” s. 673.1041. 
233         Section 6. Subsection (2) of section 672.104, Florida 
234  Statutes, is amended to read: 
235         672.104 Definitions: “merchant”; “between merchants”; 
236  “financing agency.”— 
237         (2) “Financing agency” means a bank, finance company or 
238  other person who in the ordinary course of business makes 
239  advances against goods or documents of title or who by 
240  arrangement with either the seller or the buyer intervenes in 
241  ordinary course to make or collect payment due or claimed under 
242  the contract for sale, as by purchasing or paying the seller’s 
243  draft or making advances against it or by merely taking it for 
244  collection whether or not documents of title accompany or are 
245  associated with the draft. “Financing agency” includes also a 
246  bank or other person who similarly intervenes between persons 
247  who are in the position of seller and buyer in respect to the 
248  goods (s. 672.707). 
249         Section 7. Subsection (3) of section 672.310, Florida 
250  Statutes, is amended to read: 
251         672.310 Open time for payment or running of credit; 
252  authority to ship under reservation.—Unless otherwise agreed: 
253         (3) If delivery is authorized and made by way of documents 
254  of title otherwise than by subsection (2) then payment is due 
255  regardless of where the goods are to be received at the time and 
256  place at which the buyer is to receive delivery of the tangible 
257  documents or at the time the buyer is to receive delivery of the 
258  electronic documents and at the seller’s place of business or, 
259  if none, the seller’s residence regardless of where the goods 
260  are to be received; and 
261         Section 8. Section 672.323, Florida Statutes, is amended to 
262  read: 
263         672.323 Form of bill of lading required in overseas 
264  shipment; “overseas.”— 
265         (1) Where the contract contemplates overseas shipment and 
266  contains a term “C.I.F.” or “C. & F. or F.O.B. vessel,” the 
267  seller unless otherwise agreed shall must obtain a negotiable 
268  bill of lading stating that the goods have been loaded in on 
269  board or, in the case of a term “C.I.F.” or “C. & F.,” received 
270  for shipment. 
271         (2) Where in a case within subsection (1) a tangible bill 
272  of lading has been issued in a set of parts, unless otherwise 
273  agreed if the documents are not to be sent from abroad the buyer 
274  may demand tender of the full set; otherwise only one part of 
275  the bill of lading need be tendered. Even if the agreement 
276  expressly requires a full set: 
277         (a) Due tender of a single part is acceptable within the 
278  provisions of this chapter on cure of improper delivery (s. 
279  672.508(1)); and 
280         (b) Even though the full set is demanded, if the documents 
281  are sent from abroad the person tendering an incomplete set may 
282  nevertheless require payment upon furnishing an indemnity which 
283  the buyer in good faith deems adequate. 
284         (3) A shipment by water or by air or a contract 
285  contemplating such shipment is “overseas” insofar as by usage of 
286  trade or agreement it is subject to the commercial, financing or 
287  shipping practices characteristic of international deepwater 
288  commerce. 
289         Section 9. Subsections (2) and (3) of section 672.401, 
290  Florida Statutes, are amended to read: 
291         672.401 Passing of title; reservation for security; limited 
292  application of this section.—Each provision of this chapter with 
293  regard to the rights, obligations and remedies of the seller, 
294  the buyer, purchasers or other third parties applies 
295  irrespective of title to the goods except where the provision 
296  refers to such title. Insofar as situations are not covered by 
297  the other provisions of this chapter and matters concerning 
298  title become material the following rules apply: 
299         (2) Unless otherwise explicitly agreed title passes to the 
300  buyer at the time and place at which the seller completes her or 
301  his performance with reference to the physical delivery of the 
302  goods, despite any reservation of a security interest and even 
303  though a document of title is to be delivered at a different 
304  time or place; and in particular and despite any reservation of 
305  a security interest by the bill of lading: 
306         (a) If the contract requires or authorizes the seller to 
307  send the goods to the buyer but does not require him or her the 
308  seller to deliver them at destination, title passes to the buyer 
309  at the time and place of shipment; but 
310         (b) If the contract requires delivery at destination, title 
311  passes on tender there. 
312         (3) Unless otherwise explicitly agreed where delivery is to 
313  be made without moving the goods: 
314         (a) If the seller is to deliver a tangible document of 
315  title, title passes at the time when and the place where he or 
316  she the seller delivers such documents and if the seller is to 
317  deliver an electronic document of title, title passes when the 
318  seller delivers the document; or 
319         (b) If the goods are at the time of contracting already 
320  identified and no documents of title are to be delivered, title 
321  passes at the time and place of contracting. 
322         Section 10. Subsections (4) and (5) of section 672.503, 
323  Florida Statutes, are amended to read: 
324         672.503 Manner of seller’s tender of delivery.— 
325         (4) Where goods are in the possession of a bailee and are 
326  to be delivered without being moved: 
327         (a) Tender requires that the seller either tender a 
328  negotiable document of title covering such goods or procure 
329  acknowledgment by the bailee of the buyer’s right to possession 
330  of the goods; but 
331         (b) Tender to the buyer of a nonnegotiable document of 
332  title or of a record directing written direction to the bailee 
333  to deliver is sufficient tender unless the buyer seasonably 
334  objects, and, except as otherwise provided in chapter 679, 
335  receipt by the bailee of notification of the buyer’s rights 
336  fixes those rights as against the bailee and all third persons; 
337  but risk of loss of the goods and of any failure by the bailee 
338  to honor the nonnegotiable document of title or to obey the 
339  direction remains on the seller until the buyer has had a 
340  reasonable time to present the document or direction, and a 
341  refusal by the bailee to honor the document or to obey the 
342  direction defeats the tender. 
343         (5) Where the contract requires the seller to deliver 
344  documents: 
345         (a) He or she shall must tender all such documents in 
346  correct form, except as provided in this chapter with respect to 
347  bills of lading in a set (s. 672.323(2)); and 
348         (b) Tender through customary banking channels is sufficient 
349  and dishonor of a draft accompanying or associated with the 
350  documents constitutes nonacceptance or rejection. 
351         Section 11. Section 672.505, Florida Statutes, is amended 
352  to read: 
353         672.505 Seller’s shipment under reservation.— 
354         (1) Where the seller has identified goods to the contract 
355  by or before shipment: 
356         (a) His or her The seller’s procurement of a negotiable 
357  bill of lading to his or her own order or otherwise reserves in 
358  him or her the seller a security interest in the goods. His or 
359  her procurement of the bill to the order of a financing agency 
360  or of the buyer indicates in addition only the seller’s 
361  expectation of transferring that interest to the person named. 
362         (b) A nonnegotiable bill of lading to himself or herself or 
363  his or her nominee reserves possession of the goods as security 
364  but except in a case of conditional delivery (s. 672.507(2)) a 
365  nonnegotiable bill of lading naming the buyer as consignee 
366  reserves no security interest even though the seller retains 
367  possession or control of the bill of lading. 
368         (2) When shipment by the seller with reservation of a 
369  security interest is in violation of the contract for sale it 
370  constitutes an improper contract for transportation within the 
371  preceding section but impairs neither the rights given to the 
372  buyer by shipment and identification of the goods to the 
373  contract nor the seller’s powers as a holder of a negotiable 
374  document of title. 
375         Section 12. Subsection (2) of section 672.506, Florida 
376  Statutes, is amended to read: 
377         672.506 Rights of financing agency.— 
378         (2) The right to reimbursement of a financing agency which 
379  has in good faith honored or purchased the draft under 
380  commitment to or authority from the buyer is not impaired by 
381  subsequent discovery of defects with reference to any relevant 
382  document which was apparently regular on its face. 
383         Section 13. Subsection (2) of section 672.509, Florida 
384  Statutes, is amended to read: 
385         672.509 Risk of loss in the absence of breach.— 
386         (2) Where the goods are held by a bailee to be delivered 
387  without being moved, the risk of loss passes to the buyer: 
388         (a) On her or his receipt of possession or control of a 
389  negotiable document of title covering the goods; or 
390         (b) On acknowledgment by the bailee of the buyer’s right to 
391  possession of the goods; or 
392         (c) After her or his receipt of possession or control of a 
393  nonnegotiable document of title or other written direction to 
394  deliver in a record, as provided in s. 672.503(4)(b). 
395         Section 14. Subsection (2) of section 672.605, Florida 
396  Statutes, is amended to read: 
397         672.605 Waiver of buyer’s objections by failure to 
398  particularize.— 
399         (2) Payment against documents made without reservation of 
400  rights precludes recovery of the payment for defects apparent in 
401  on the face of the documents. 
402         Section 15. Subsections (2) and (3) of section 672.705, 
403  Florida Statutes, are amended to read: 
404         672.705 Seller’s stoppage of delivery in transit or 
405  otherwise.— 
406         (2) As against such buyer the seller may stop delivery 
407  until: 
408         (a) Receipt of the goods by the buyer; or 
409         (b) Acknowledgment to the buyer by any bailee of the goods 
410  except a carrier that the bailee holds the goods for the buyer; 
411  or 
412         (c) Such acknowledgment to the buyer by a carrier by 
413  reshipment or as a warehouse warehouseman; or 
414         (d) Negotiation to the buyer of any negotiable document of 
415  title covering the goods. 
416         (3)(a) To stop delivery the seller shall must so notify as 
417  to enable the bailee by reasonable diligence to prevent delivery 
418  of the goods. 
419         (b) After such notification the bailee shall must hold and 
420  deliver the goods according to the directions of the seller but 
421  the seller is liable to the bailee for any ensuing charges or 
422  damages. 
423         (c) If a negotiable document of title has been issued for 
424  goods the bailee is not obliged to obey a notification to stop 
425  until surrender of possession or control of the document. 
426         (d) A carrier who has issued a nonnegotiable bill of lading 
427  is not obliged to obey a notification to stop received from a 
428  person other than the consignor. 
429         Section 16. Subsection (3) of section 674.104, Florida 
430  Statutes, is amended to read: 
431         674.104 Definitions and index of definitions.— 
432         (3) The following definitions in other chapters apply to 
433  this chapter: 
434         “Acceptance,” s. 673.4091. 
435         “Alteration,” s. 673.4071. 
436         “Cashier’s check,” s. 673.1041. 
437         “Certificate of deposit,” s. 673.1041. 
438         “Certified check,” s. 673.4091. 
439         “Check,” s. 673.1041. 
440         “Control,” s. 677.106. 
441         “Good faith,” s. 673.1031. 
442         “Holder in due course,” s. 673.3021. 
443         “Instrument,” s. 673.1041. 
444         “Notice of dishonor,” s. 673.5031. 
445         “Order,” s. 673.1031. 
446         “Ordinary care,” s. 673.1031. 
447         “Person entitled to enforce,” s. 673.3011. 
448         “Presentment,” s. 673.5011. 
449         “Promise,” s. 673.1031. 
450         “Prove,” s. 673.1031. 
451         “Teller’s check,” s. 673.1041. 
452         “Unauthorized signature,” s. 673.4031. 
453         Section 17. Subsection (3) of section 674.2101, Florida 
454  Statutes, is amended to read: 
455         674.2101 Security interest of collecting bank in items, 
456  accompanying documents, and proceeds.— 
457         (3) Receipt by a collecting bank of a final settlement for 
458  an item is a realization on its security interest in the item, 
459  accompanying documents, and proceeds. So long as the bank does 
460  not receive final settlement for the item or give up possession 
461  of the item or possession or control of the accompanying or 
462  associated documents for purposes other than collection, the 
463  security interest continues to that extent and is subject to 
464  chapter 679, but: 
465         (a) No security agreement is necessary to make the security 
466  interest enforceable (s. 679.2031(2)(c)1.); 
467         (b) No filing is required to perfect the security interest; 
468  and 
469         (c) The security interest has priority over conflicting 
470  perfected security interests in the item, accompanying 
471  documents, or proceeds. 
472         Section 18. Section 677.102, Florida Statutes, is amended 
473  to read: 
474         677.102 Definitions and index of definitions.— 
475         (1) In this chapter, unless the context otherwise requires: 
476         (a) “Bailee” means a the person that who by a warehouse 
477  receipt, bill of lading or other document of title acknowledges 
478  possession of goods and contracts to deliver them. 
479         (b) “Carrier” means a person that issues a bill of lading. 
480         (c)(b) “Consignee” means a the person named in a bill of 
481  lading to which whom or to whose order the bill promises 
482  delivery. 
483         (d)(c) “Consignor” means a the person named in a bill of 
484  lading as the person from which whom the goods have been 
485  received for shipment. 
486         (e)(d) “Delivery order” means a record that contains an 
487  written order to deliver goods directed to a warehouse 
488  warehouseman, carrier, or other person that who in the ordinary 
489  course of business issues warehouse receipts or bills of lading. 
490         (f) “Good faith” means honesty in fact and the observance 
491  of reasonable commercial standards of fair dealing. 
492         (e) “Document” means document of title as defined in the 
493  general definitions in chapter 671 (s. 671.201). 
494         (g)(f) “Goods” means all things that which are treated as 
495  movable for the purposes of a contract of storage or 
496  transportation. 
497         (h)(g) “Issuer” means a bailee who issues a document of 
498  title or, in the case of except that in relation to an 
499  unaccepted delivery order, it means the person who orders the 
500  possessor of goods to deliver. The term Issuer includes a any 
501  person for which whom an agent or employee purports to act in 
502  issuing a document if the agent or employee has real or apparent 
503  authority to issue documents, notwithstanding that the issuer 
504  received no goods or that the goods were misdescribed or that in 
505  any other respect the agent or employee violated his or her 
506  instructions. 
507         (i) “Person entitled under the document” means the holder, 
508  in the case of a negotiable document of title, or the person to 
509  which delivery of the goods is to be made by the terms of, or 
510  pursuant to instructions in a record under, a nonnegotiable 
511  document of title. 
512         (j) “Record” means information that is inscribed on a 
513  tangible medium or that is stored in an electronic or other 
514  medium and is retrievable in perceivable form. 
515         (k) “Shipper” means a person that enters into a contract of 
516  transportation with a carrier. 
517         (l) “Sign” means, with present intent to authenticate or 
518  adopt a record: 
519         1. To execute or adopt a tangible symbol; or 
520         2. To attach to or logically associate with the record an 
521  electronic sound, symbol, or process. 
522         (m)(h) “Warehouse” means “Warehouseman” is a person engaged 
523  in the business of storing goods for hire. 
524         (2) Other definitions applying to this chapter or to 
525  specified parts thereof, and the sections in which they appear 
526  are: 
527         “Duly negotiate,” s. 677.501. 
528         “Person entitled under the document,” s. 677.403(4). 
529         (3) Definitions in other chapters applying to this chapter 
530  and the sections in which they appear are: 
531         “Contract for sale,” s. 672.106. 
532         “Overseas,” s. 672.323. 
533         “Lessee in ordinary course of business,” s. 680.1031. 
534         “Receipt” of goods, s. 672.103. 
535         (3)(4) In addition, chapter 671 contains general 
536  definitions and principles of construction and interpretation 
537  applicable throughout this chapter. 
538         Section 19. Section 677.103, Florida Statutes, is amended 
539  to read: 
540         677.103 Relation of chapter to treaty, statute, tariff, 
541  classification, or regulation.— 
542         (1) Except as otherwise provided in this chapter, this 
543  chapter is subject to the extent that any treaty or statute of 
544  the United States to the extent the treaty or statute, 
545  regulatory statute of this state or tariff, classification or 
546  regulation filed or issued pursuant thereto is applicable, the 
547  provisions of this chapter are subject thereto. 
548         (2) This chapter does not modify or repeal any law 
549  prescribing the form or content of a document of title or the 
550  services or facilities to be afforded by a bailee, or otherwise 
551  regulating a bailee’s business in respects not specifically 
552  treated in this chapter. However, a violation of such a law does 
553  not affect the status of a document of title that otherwise is 
554  within the definition of a document of title. 
555         (3) This chapter modifies, limits, and supersedes the 
556  federal Electronic Signatures in Global and National Commerce 
557  Act, 15 U.S.C. ss. 7001, et seq., but does not modify, limit, or 
558  supersede s. 101(c) of that act, 15 U.S.C. s. 7001(c), or 
559  authorize electronic delivery of any of the notices described in 
560  s. 103(b) of that act, 15 U.S.C. s. 7003(b). 
561         (4) To the extent that there is a conflict between any 
562  provisions of the laws of this state regarding electronic 
563  transactions and this chapter, this chapter governs. 
564         Section 20. Section 677.104, Florida Statutes, is amended 
565  to read: 
566         677.104 Negotiable and nonnegotiable warehouse receipt, 
567  bill of lading or other document of title.— 
568         (1) Except as otherwise provided in subsection (3), a 
569  warehouse receipt, bill of lading or other document of title is 
570  negotiable: 
571         (a) if by its terms the goods are to be delivered to bearer 
572  or to the order of a named person; or 
573         (b) Where recognized in overseas trade, if it runs to a 
574  named person or assigns. 
575         (2) A document of title other than one described in 
576  subsection (1) Any other document is nonnegotiable. A bill of 
577  lading that states in which it is stated that the goods are 
578  consigned to a named person is not made negotiable by a 
579  provision that the goods are to be delivered only against an a 
580  written order in a record signed by the same or another named 
581  person. 
582         (3) A document of title is nonnegotiable if, at the time it 
583  is issued, the document has a conspicuous legend, however 
584  expressed, that it is nonnegotiable. 
585         Section 21. Section 677.105, Florida Statutes, is amended 
586  to read: 
587         677.105 Reissuance in alternative medium Construction 
588  against negative implication.— 
589         (1) Upon request of a person entitled under an electronic 
590  document of title, the issuer of the electronic document may 
591  issue a tangible document of title as a substitute for the 
592  electronic document if: 
593         (a) The person entitled under the electronic document 
594  surrenders control of the document to the issuer; and 
595         (b) The tangible document when issued contains a statement 
596  that it is issued in substitution for the electronic document. 
597         (2) Upon issuance of a tangible document of title in 
598  substitution for an electronic document of title in accordance 
599  with subsection (1): 
600         (a) The electronic document ceases to have any effect or 
601  validity; and 
602         (b) The person that procured issuance of the tangible 
603  document warrants to all subsequent persons entitled under the 
604  tangible document that the warrantor was a person entitled under 
605  the electronic document when the warrantor surrendered control 
606  of the electronic document to the issuer. 
607         (3) Upon request of a person entitled under a tangible 
608  document of title, the issuer of the tangible document may issue 
609  an electronic document of title as a substitute for the tangible 
610  document if: 
611         (a) The person entitled under the tangible document 
612  surrenders possession of the document to the issuer; and 
613         (b) The electronic document when issued contains a 
614  statement that it is issued in substitution for the tangible 
615  document. 
616         (4) Upon issuance of an electronic document of title in 
617  substitution for a tangible document of title is accordance with 
618  subsection (3): 
619         (a) The tangible document ceases to have any effect or 
620  validity; and 
621         (b) The person that procured issuance of the electronic 
622  document warrants to all subsequent persons entitled under the 
623  electronic document that the warrantor was a person entitled 
624  under the tangible document when the warrantor surrendered 
625  possession of the tangible document to the issuer. The omission 
626  from either part II or part III of this chapter of a provision 
627  corresponding to a provision made in the other part does not 
628  imply that a corresponding rule of law is not applicable. 
629         Section 22. Section 677.106, Florida Statutes, is created 
630  to read: 
631         677.106 Control of electronic document of title.— 
632         (1) A person has control of an electronic document of title 
633  if a system employed for evidencing the transfer of interests in 
634  the electronic document reliably establishes that person as the 
635  person to which the electronic document was issued or 
636  transferred. 
637         (2) A system satisfies subsection (1), and a person is 
638  deemed to have control of an electronic document of title, if 
639  the document is created, stored, and assigned in a manner that: 
640         (a) A single authoritative copy of the document exists 
641  which is unique, identifiable, and, except as otherwise provided 
642  in paragraphs (d), (e), and (f), unalterable; 
643         (b) The authoritative copy identifies the person asserting 
644  control as: 
645         1. The person to which the document was issued; or 
646         2. If the authoritative copy indicates that the document 
647  has been transferred, the person to which the document was most 
648  recently transferred; 
649         (c) The authoritative copy is communicated to and 
650  maintained by the person asserting control or its designated 
651  custodian; 
652         (d) Copies or amendments that add or change an identified 
653  assignee of the authoritative copy can be made only with the 
654  consent of the person asserting control; 
655         (e) Each copy of the authoritative copy and any copy of a 
656  copy is readily identifiable as a copy that is not the 
657  authoritative copy; and 
658         (f) Any amendment of the authoritative copy is readily 
659  identifiable as authorized or unauthorized. 
660         Section 23. Section 677.201, Florida Statutes, is amended 
661  to read: 
662         677.201 Persons that Who may issue a warehouse receipt; 
663  storage under government bond.— 
664         (1) A warehouse receipt may be issued by any warehouse 
665  warehouseman. 
666         (2) If Where goods, including distilled spirits and 
667  agricultural commodities, are stored under a statute requiring a 
668  bond against withdrawal or a license for the issuance of 
669  receipts in the nature of warehouse receipts, a receipt issued 
670  for the goods is deemed to be has like effect as a warehouse 
671  receipt even if though issued by a person that who is the owner 
672  of the goods and is not a warehouse warehouseman. 
673         Section 24. Section 677.202, Florida Statutes, is amended 
674  to read: 
675         677.202 Form of warehouse receipt; effect of omission 
676  essential terms; optional terms.— 
677         (1) A warehouse receipt need not be in any particular form. 
678         (2) Unless a warehouse receipt provides for embodies within 
679  its written or printed terms each of the following, the 
680  warehouse warehouseman is liable for damages caused to a person 
681  injured by its by the omission to a person injured thereby: 
682         (a) A statement of the location of the warehouse facility 
683  where the goods are stored; 
684         (b) The date of issue of the receipt; 
685         (c) The unique identification code consecutive number of 
686  the receipt; 
687         (d) A statement whether the goods received will be 
688  delivered to the bearer, to a named specified person, or to a 
689  named specified person or its his or her order; 
690         (e) The rate of storage and handling charges, unless except 
691  that where goods are stored under a field warehousing 
692  arrangement, in which case a statement of that fact is 
693  sufficient on a nonnegotiable receipt; 
694         (f) A description of the goods or of the packages 
695  containing them; 
696         (g) The signature of the warehouse or its warehouseman, 
697  which may be made by his or her authorized agent; 
698         (h) If the receipt is issued for goods that the warehouse 
699  owns of which the warehouseman is owner, either solely, or 
700  jointly, or in common with others, a statement of the fact of 
701  that such ownership; and 
702         (i) A statement of the amount of advances made and of 
703  liabilities incurred for which the warehouse warehouseman claims 
704  a lien or security interest, unless (s. 677.209). If the precise 
705  amount of such advances made or of such liabilities incurred is, 
706  at the time of the issue of the receipt is, unknown to the 
707  warehouse warehouseman or to its his or her agent that issued 
708  the receipt, in which case who issues it, a statement of the 
709  fact that advances have been made or liabilities incurred and 
710  the purpose of the advances or liabilities thereof is 
711  sufficient. 
712         (3) A warehouse warehouseman may insert in its his or her 
713  receipt any other terms that which are not contrary to the 
714  provisions of this code and do not impair its his or her 
715  obligation of delivery under s. 677.403 (s. 677.403) or its his 
716  or her duty of care under s. 677.204 (s. 677.204). Any contrary 
717  provision is provisions shall be ineffective. 
718         Section 25. Section 677.203, Florida Statutes, is amended 
719  to read: 
720         677.203 Liability of nonreceipt or misdescription.—A party 
721  to or purchaser for value in good faith of a document of title, 
722  other than a bill of lading, that relies relying in either case 
723  upon the description therein of the goods in the document may 
724  recover from the issuer damages caused by the nonreceipt or 
725  misdescription of the goods, except to the extent that: 
726         (1) The document conspicuously indicates that the issuer 
727  does not know whether all or any part or all of the goods in 
728  fact were received or conform to the description, such as a case 
729  in which as where the description is in terms of marks or labels 
730  or kind, quantity or condition, or the receipt or description is 
731  qualified by “contents, condition and quality unknown,” “said to 
732  contain,” or words of similar import the like, if such 
733  indication is be true;, or 
734         (2) The party or purchaser otherwise has notice of the 
735  nonreceipt or misdescription. 
736         Section 26. Section 677.204, Florida Statutes, is amended 
737  to read: 
738         677.204 Duty of care; contractual limitation of warehouse’s 
739  warehouseman’s liability.— 
740         (1) A warehouse warehouseman is liable for damages for loss 
741  of or injury to the goods caused by its his or her failure to 
742  exercise such care with in regard to the goods that them as a 
743  reasonably careful person would exercise under similar like 
744  circumstances. but Unless otherwise agreed, the warehouse he or 
745  she is not liable for damages that which could not have been 
746  avoided by the exercise of that such care. 
747         (2) Damages may be limited by a term in the warehouse 
748  receipt or storage agreement limiting the amount of liability in 
749  case of loss or damage, and setting forth a specific liability 
750  per article or item, or value per unit of weight, or any other 
751  negotiated limitation of damages as agreed between the parties 
752  beyond which the warehouse is warehouseman shall not be liable; 
753  provided, however, that such liability may on written. Such a 
754  limitation is not effective with respect to the warehouse’s 
755  liability for conversion to its own use. On request of the 
756  bailor in a record at the time of signing the such storage 
757  agreement or within a reasonable time after receipt of the 
758  warehouse receipt, the warehouse’s liability may be increased on 
759  part or all of the goods covered by the storage agreement or the 
760  warehouse receipt. In this event, thereunder, in which event 
761  increased rates may be charged based on an such increased 
762  valuation of the goods, but that no such increase shall be 
763  permitted contrary to a lawful limitation of liability contained 
764  in the warehouseman’s tariff, if any. No such limitation is 
765  effective with respect to the warehouseman’s liability for 
766  conversion to his or her own use. 
767         (3) Reasonable provisions as to the time and manner of 
768  presenting claims and commencing actions based on the bailment 
769  may be included in the warehouse receipt or storage agreement. 
770         (4)(3) This section does not impair or repeal any statute 
771  which imposes a higher responsibility upon the warehouse 
772  warehouseman or invalidates contractual limitations which would 
773  be permissible under this chapter. 
774         Section 27. Section 677.205, Florida Statutes, is amended 
775  to read: 
776         677.205 Title under warehouse receipt defeated in certain 
777  cases.—A buyer in the ordinary course of business of fungible 
778  goods sold and delivered by a warehouse that warehouseman who is 
779  also in the business of buying and selling such goods takes the 
780  goods free of any claim under a warehouse receipt even if the 
781  receipt is negotiable and though it has been duly negotiated. 
782         Section 28. Section 677.206, Florida Statutes, is amended 
783  to read: 
784         677.206 Termination of storage at warehouse’s 
785  warehouseman’s option.— 
786         (1) A warehouse, by giving notice to warehouseman may on 
787  notifying the person on whose account the goods are held and any 
788  other person known to claim an interest in the goods, may 
789  require payment of any charges and removal of the goods from the 
790  warehouse at the termination of the period of storage fixed by 
791  the document of title, including nonnegotiable warehouse 
792  receipt, or, if a no period is not fixed, within a stated period 
793  not less than 30 days after the warehouse gives notice 
794  notification. If the goods are not removed before the date 
795  specified in the notice notification, the warehouse warehouseman 
796  may sell them pursuant to s. 677.210 in accordance with the 
797  provisions of the section on enforcement of a warehouseman’s 
798  lien (s. 677.210). 
799         (2) If a warehouse warehouseman in good faith believes that 
800  the goods are about to deteriorate or decline in value to less 
801  than the amount of its his or her lien within the time provided 
802  prescribed in subsection (1) and s. 677.210 for notification, 
803  advertisement and sale, the warehouse warehouseman may specify 
804  in the notice given under subsection (1) notification any 
805  reasonable shorter time for removal of the goods and, if in case 
806  the goods are not removed, may sell them at public sale held not 
807  less than 1 week after a single advertisement or posting. 
808         (3) If, as a result of a quality or condition of the goods 
809  of which the warehouse did not have warehouseman had no notice 
810  at the time of deposit, the goods are a hazard to other 
811  property, or to the warehouse facilities, or other to persons, 
812  the warehouse warehouseman may sell the goods at public or 
813  private sale without advertisement or posting on reasonable 
814  notification to all persons known to claim an interest in the 
815  goods. If the warehouse, warehouseman after a reasonable effort, 
816  is unable to sell the goods, it he or she may dispose of them in 
817  any lawful manner and does not shall incur no liability by 
818  reason of that such disposition. 
819         (4) A warehouse shall The warehouseman must deliver the 
820  goods to any person entitled to them under this chapter upon due 
821  demand made at any time before prior to sale or other 
822  disposition under this section. 
823         (5) A warehouse The warehouseman may satisfy its his or her 
824  lien from the proceeds of any sale or disposition under this 
825  section but shall must hold the balance for delivery on the 
826  demand of any person to which the warehouse whom he or she would 
827  have been bound to deliver the goods. 
828         Section 29. Section 677.207, Florida Statutes, is amended 
829  to read: 
830         677.207 Goods shall must be kept separate; fungible goods.— 
831         (1) Unless the warehouse receipt otherwise provides 
832  otherwise, a warehouse shall warehouseman must keep separate the 
833  goods covered by each receipt so as to permit at all times 
834  identification and delivery of those goods. However, except that 
835  different lots of fungible goods may be commingled. 
836         (2) If different lots of fungible goods are so commingled, 
837  the goods are owned in common by the persons entitled thereto 
838  and the warehouse warehouseman is severally liable to each owner 
839  for that owner’s share. If, Where because of overissue, a mass 
840  of fungible goods is insufficient to meet all the receipts which 
841  the warehouse warehouseman has issued against it, the persons 
842  entitled include all holders to whom overissued receipts have 
843  been duly negotiated. 
844         Section 30. Section 677.208, Florida Statutes, is amended 
845  to read: 
846         677.208 Altered warehouse receipts.—If Where a blank in a 
847  negotiable warehouse receipt has been filled in without 
848  authority, a good faith purchaser for value and without notice 
849  of the lack want of authority may treat the insertion as 
850  authorized. Any other unauthorized alteration leaves any 
851  tangible or electronic warehouse receipt enforceable against the 
852  issuer according to its original tenor. 
853         Section 31. Section 677.209, Florida Statutes, is amended 
854  to read: 
855         677.209 Lien of warehouse warehouseman.— 
856         (1) A warehouse warehouseman has a lien against the bailor 
857  on the goods covered by a warehouse receipt or storage agreement 
858  or on the proceeds thereof in its his or her possession for 
859  charges for storage or transportation, including demurrage and 
860  terminal charges (including demurrage and terminal charges), 
861  insurance, labor, or other charges, present or future, in 
862  relation to the goods, and for expenses necessary for 
863  preservation of the goods or reasonably incurred in their sale 
864  pursuant to law. If the person on whose account the goods are 
865  held is liable for similar like charges or expenses in relation 
866  to other goods whenever deposited and it is stated in the 
867  warehouse receipt or storage agreement that a lien is claimed 
868  for charges and expenses in relation to other goods, the 
869  warehouse warehouseman also has a lien against the goods covered 
870  by the warehouse receipt or storage agreement or on the proceeds 
871  thereof in its possession him or her for those such charges and 
872  expenses, whether or not the other goods have been delivered by 
873  the warehouse warehouseman. However, as But against a person to 
874  which whom a negotiable warehouse receipt is duly negotiated, a 
875  warehouse’s warehouseman’s lien is limited to charges in an 
876  amount or at a rate specified in on the warehouse receipt or, if 
877  no charges are so specified, then to a reasonable charge for 
878  storage of the specific goods covered by the receipt subsequent 
879  to the date of the receipt. 
880         (2) A warehouse The warehouseman may also reserve a 
881  security interest against the bailor for the a maximum amount 
882  specified on the receipt for charges other than those specified 
883  in subsection (1), such as for money advanced and interest. The 
884  Such a security interest is governed by chapter 679 the chapter 
885  on secured transactions (chapter 679). 
886         (3) A warehouse’s warehouseman’s lien for charges and 
887  expenses under subsection (1) or a security interest under 
888  subsection (2) is also effective against any person that who so 
889  entrusted the bailor with possession of the goods that a pledge 
890  of them by the bailor him or her to a good faith good faith 
891  purchaser for value would have been valid. However, the lien or 
892  security interest but is not effective against a person that 
893  before issuance of a document of title had a legal interest or a 
894  perfected security interest in the goods and that did not: 
895         (a) Deliver or entrust the goods or any document of title 
896  covering the goods to the bailor or the bailor’s nominee with: 
897         1. Actual or apparent authority to ship, store, or sell; 
898         2. Power to obtain delivery under s. 677.403; or 
899         3. Power of disposition under s. 672.403, s. 680.304(2), s. 
900  680.305(2), s. 679.320, or s. 679.321(3) or other statute or 
901  rule of law; or 
902         (b) Acquiesce in the procurement by the bailor or its 
903  nominee of any document as to whom the document confers no right 
904  in the goods covered by it under s. 677.503. 
905         (4) A warehouse’s lien on household goods for charges and 
906  expenses in relation to the goods under subsection (1) is also 
907  effective against all persons if the depositor was the legal 
908  possessor of the goods at the time of deposit. In this 
909  subsection, the term “household goods” means furniture, 
910  furnishings, or personal effects used by the depositor in a 
911  dwelling. 
912         (5)(4) A warehouse warehouseman loses its his or her lien 
913  on any goods that it which he or she voluntarily delivers or 
914  which he or she unjustifiably refuses to deliver. 
915         Section 32. Section 677.210, Florida Statutes, is amended 
916  to read: 
917         677.210 Enforcement of warehouse’s warehouseman’s lien.— 
918         (1) Except as provided in subsection (2), a warehouse’s 
919  warehouseman’s lien may be enforced by public or private sale of 
920  the goods, in bulk or in packages in block or in parcels, at any 
921  time or place and on any terms that which are commercially 
922  reasonable, after notifying all persons known to claim an 
923  interest in the goods. The Such notification shall must include 
924  a statement of the amount due, the nature of the proposed sale, 
925  and the time and place of any public sale. The fact that a 
926  better price could have been obtained by a sale at a different 
927  time or in a different method from that selected by the 
928  warehouse warehouseman is not of itself sufficient to establish 
929  that the sale was not made in a commercially reasonable manner. 
930  The warehouse sells in a commercially reasonable manner if the 
931  warehouse If the warehouseman either sells the goods in the 
932  usual manner in any recognized market therefor, or if he or she 
933  sells at the price current in that such market at the time of 
934  the his or her sale, or if he or she has otherwise sells sold in 
935  conformity with commercially reasonable practices among dealers 
936  in the type of goods sold, he or she has sold in a commercially 
937  reasonable manner. A sale of more goods than apparently 
938  necessary to be offered to ensure satisfaction of the obligation 
939  is not commercially reasonable except in cases covered by the 
940  preceding sentence. 
941         (2) A warehouse may enforce its warehouseman’s lien on 
942  goods, other than goods stored by a merchant in the course of 
943  its his or her business, only if the following requirements are 
944  satisfied may be enforced only as follows: 
945         (a) All persons known to claim an interest in the goods 
946  shall must be notified. 
947         (b) The notification must be delivered in person or sent by 
948  registered or certified letter to the last known address of any 
949  person to be notified. 
950         (c) The notification must include an itemized statement of 
951  the claim, a description of the goods subject to the lien, a 
952  demand for payment within a specified time not less than 10 days 
953  after receipt of the notification, and a conspicuous statement 
954  that unless the claim is paid within that time the goods will be 
955  advertised for sale and sold by auction at a specified time and 
956  place. 
957         (d) The sale must conform to the terms of the notification. 
958         (e) The sale must be held at the nearest suitable place to 
959  that where the goods are held or stored. 
960         (f) After the expiration of the time given in the 
961  notification, an advertisement of the sale shall must be 
962  published once a week for 2 weeks consecutively in a newspaper 
963  of general circulation where the sale is to be held. The 
964  advertisement shall must include a description of the goods, the 
965  name of the person on whose account they are being held, and the 
966  time and place of the sale. The sale shall must take place at 
967  least 15 days after the first publication. If there is no 
968  newspaper of general circulation where the sale is to be held, 
969  the advertisement shall must be posted at least 10 days before 
970  the sale in not fewer less than 6 conspicuous places in the 
971  neighborhood of the proposed sale. 
972         (3) Before any sale pursuant to this section any person 
973  claiming a right in the goods may pay the amount necessary to 
974  satisfy the lien and the reasonable expenses incurred in 
975  complying with under this section. In that event, the goods may 
976  must not be sold, but shall must be retained by the warehouse 
977  warehouseman subject to the terms of the receipt and this 
978  chapter. 
979         (4) A warehouse The warehouseman may buy at any public sale 
980  held pursuant to this section. 
981         (5) A purchaser in good faith of goods sold to enforce a 
982  warehouse’s warehouseman’s lien takes the goods free of any 
983  rights of persons against which whom the lien was valid, despite 
984  the warehouse’s noncompliance by the warehouseman with the 
985  requirements of this section. 
986         (6) A warehouse The warehouseman may satisfy its his or her 
987  lien from the proceeds of any sale pursuant to this section but 
988  shall must hold the balance, if any, for delivery on demand to 
989  any person to which the warehouse whom he or she would have been 
990  bound to deliver the goods. 
991         (7) The rights provided by this section shall be in 
992  addition to all other rights allowed by law to a creditor 
993  against a his or her debtor. 
994         (8) If Where a lien is on goods stored by a merchant in the 
995  course of its his or her business, the lien may be enforced in 
996  accordance with either subsection (1) or subsection (2). 
997         (9) A warehouse The warehouseman is liable for damages 
998  caused by failure to comply with the requirements for sale under 
999  this section, and in case of willful violation, is liable for 
1000  conversion. 
1001         Section 33. Section 677.301, Florida Statutes, is amended 
1002  to read: 
1003         677.301 Liability for nonreceipt or misdescription; “said 
1004  to contain”; “shipper’s weight, load, and count”; improper 
1005  handling.— 
1006         (1) A consignee of a nonnegotiable bill of lading which who 
1007  has given value in good faith, or a holder to which whom a 
1008  negotiable bill has been duly negotiated, relying in either case 
1009  upon the description therein of the goods in the bill, or upon 
1010  the date therein shown in the bill, may recover from the issuer 
1011  damages caused by the misdating of the bill or the nonreceipt or 
1012  misdescription of the goods, except to the extent that the bill 
1013  document indicates that the issuer does not know whether any 
1014  part or all of the goods in fact were received or conform to the 
1015  description, such as in the case in which where the description 
1016  is in terms of marks or labels or kind, quantity, or condition 
1017  or the receipt or description is qualified by “contents or 
1018  condition of contents of packages unknown,” “said to contain,” 
1019  “shipper’s weight, load, and count” or words of similar import 
1020  the like, if that such indication is be true. 
1021         (2) If When goods are loaded by the an issuer of a bill of 
1022  lading: who is a common carrier, 
1023         (a) The issuer shall must count the packages of goods if 
1024  shipped in packages package freight and ascertain the kind and 
1025  quantity if shipped in bulk; and freight. 
1026         (b) Words In such as cases “shipper’s weight, load, and 
1027  count” or other words of similar import indicating that the 
1028  description was made by the shipper are ineffective except as to 
1029  goods freight concealed in by packages. 
1030         (3) If When bulk goods are freight is loaded by a shipper 
1031  that who makes available to the issuer of a bill of lading 
1032  adequate facilities for weighing those goods, the such freight, 
1033  an issuer shall who is a common carrier must ascertain the kind 
1034  and quantity within a reasonable time after receiving the 
1035  shipper’s written request of the shipper to do so. In that case 
1036  such cases “shipper’s weight, load, and count” or other words of 
1037  similar import like purport are ineffective. 
1038         (4) The issuer of a bill of lading, may by including 
1039  inserting in the bill the words “shipper’s weight, load, and 
1040  count” or other words of similar import, may like purport 
1041  indicate that the goods were loaded by the shipper,; and if that 
1042  such statement is be true, the issuer is shall not be liable for 
1043  damages caused by the improper loading. However, But their 
1044  omission of such words does not imply liability for such damages 
1045  caused by improper loading. 
1046         (5) A The shipper guarantees shall be deemed to have 
1047  guaranteed to an the issuer the accuracy at the time of shipment 
1048  of the description, marks, labels, number, kind, quantity, 
1049  condition and weight, as furnished by the shipper, him or her; 
1050  and the shipper shall indemnify the issuer against damage caused 
1051  by inaccuracies in those such particulars. This The right of the 
1052  issuer to such indemnity does not shall in no way limit the 
1053  issuer’s his or her responsibility or and liability under the 
1054  contract of carriage to any person other than the shipper. 
1055         Section 34. Section 677.302, Florida Statutes, is amended 
1056  to read: 
1057         677.302 Through bills of lading and similar documents of 
1058  title.— 
1059         (1) The issuer of a through bill of lading, or other 
1060  document of title embodying an undertaking to be performed in 
1061  part by a person persons acting as its agent agents or by a 
1062  performing carrier, connecting carriers is liable to any person 
1063  anyone entitled to recover on the bill or other document for any 
1064  breach by the such other person persons or the performing by a 
1065  connecting carrier of its obligation under the bill or other 
1066  document. However, but to the extent that the bill or other 
1067  document covers an undertaking to be performed overseas or in 
1068  territory not contiguous to the continental United States or an 
1069  undertaking including matters other than transportation, this 
1070  liability for breach by the other person or the performing 
1071  carrier may be varied by agreement of the parties. 
1072         (2) If Where goods covered by a through bill of lading or 
1073  other document of title embodying an undertaking to be performed 
1074  in part by a person persons other than the issuer are received 
1075  by that any such person, the person he or she is subject, with 
1076  respect to its his or her own performance while the goods are in 
1077  its his or her possession, to the obligation of the issuer. The 
1078  person’s His or her obligation is discharged by delivery of the 
1079  goods to another such person pursuant to the bill or other 
1080  document, and does not include liability for breach by any other 
1081  person such persons or by the issuer. 
1082         (3) The issuer of a such through bill of lading or other 
1083  document of title described in subsection (1) is shall be 
1084  entitled to recover from the performing connecting carrier, or 
1085  such other person in possession of the goods when the breach of 
1086  the obligation under the bill or other document occurred:, 
1087         (a) The amount it may be required to pay to any person 
1088  anyone entitled to recover on the bill or other document for the 
1089  breach therefor, as may be evidenced by any receipt, judgment, 
1090  or transcript of judgment; thereof, and 
1091         (b) The amount of any expense reasonably incurred by the 
1092  insurer it in defending any action commenced brought by any 
1093  person anyone entitled to recover on the bill or other document 
1094  for the breach therefor. 
1095         Section 35. Section 677.303, Florida Statutes, is amended 
1096  to read: 
1097         677.303 Diversion; reconsignment; change of instructions.— 
1098         (1) Unless the bill of lading otherwise provides, a the 
1099  carrier may deliver the goods to a person or destination other 
1100  than that stated in the bill or may otherwise dispose of the 
1101  goods, without liability for misdelivery, on instructions from: 
1102         (a) The holder of a negotiable bill; or 
1103         (b) The consignor on a nonnegotiable bill, even if the 
1104  consignee has given notwithstanding contrary instructions from 
1105  the consignee; or 
1106         (c) The consignee on a nonnegotiable bill in the absence of 
1107  contrary instructions from the consignor, if the goods have 
1108  arrived at the billed destination or if the consignee is in 
1109  possession of the tangible bill or in control of the electronic 
1110  bill; or 
1111         (d) The consignee on a nonnegotiable bill, if the consignee 
1112  he or she is entitled as against the consignor to dispose of the 
1113  goods them. 
1114         (2) Unless such instructions described in subsection (1) 
1115  are included in noted on a negotiable bill of lading, a person 
1116  to which whom the bill is duly negotiated may can hold the 
1117  bailee according to the original terms. 
1118         Section 36. Section 677.304, Florida Statutes, is amended 
1119  to read: 
1120         677.304 Tangible bills of lading in a set.— 
1121         (1) Except as where customary in international overseas 
1122  transportation, a tangible bill of lading may must not be issued 
1123  in a set of parts. The issuer is liable for damages caused by 
1124  violation of this subsection. 
1125         (2) If Where a tangible bill of lading is lawfully issued 
1126  drawn in a set of parts, each of which contains an 
1127  identification code is numbered and is expressed to be valid 
1128  only if the goods have not been delivered against any other 
1129  part, the whole of the parts constitutes constitute one bill. 
1130         (3) If Where a tangible negotiable bill of lading is 
1131  lawfully issued in a set of parts and different parts are 
1132  negotiated to different persons, the title of the holder to 
1133  which whom the first due negotiation is made prevails as to both 
1134  the document of title and the goods even if though any later 
1135  holder may have received the goods from the carrier in good 
1136  faith and discharged the carrier’s obligation by surrendering 
1137  its surrender of his or her part. 
1138         (4) A Any person that who negotiates or transfers a single 
1139  part of a tangible bill of lading issued drawn in a set is 
1140  liable to holders of that part as if it were the whole set. 
1141         (5) The bailee shall is obliged to deliver in accordance 
1142  with part IV of this chapter against the first presented part of 
1143  a tangible bill of lading lawfully drawn in a set. Such Delivery 
1144  in this manner discharges the bailee’s obligation on the whole 
1145  bill. 
1146         Section 37. Section 677.305, Florida Statutes, is amended 
1147  to read: 
1148         677.305 Destination bills.— 
1149         (1) Instead of issuing a bill of lading to the consignor at 
1150  the place of shipment, a carrier, may at the request of the 
1151  consignor, may procure the bill to be issued at destination or 
1152  at any other place designated in the request. 
1153         (2) Upon request of any person anyone entitled as against 
1154  the carrier to control the goods while in transit and on 
1155  surrender of possession or control of any outstanding bill of 
1156  lading or other receipt covering such goods, the issuer, subject 
1157  to s. 677.105, may procure a substitute bill to be issued at any 
1158  place designated in the request. 
1159         Section 38. Section 677.307, Florida Statutes, is amended 
1160  to read: 
1161         677.307 Lien of carrier.— 
1162         (1) A carrier has a lien on the goods covered by a bill of 
1163  lading or on the proceeds thereof in its possession for charges 
1164  after subsequent to the date of the carrier’s its receipt of the 
1165  goods for storage or transportation, including demurrage and 
1166  terminal charges, (including demurrage and terminal charges) and 
1167  for expenses necessary for preservation of the goods incident to 
1168  their transportation or reasonably incurred in their sale 
1169  pursuant to law. However, But against a purchaser for value of a 
1170  negotiable bill of lading, a carrier’s lien is limited to 
1171  charges stated in the bill or the applicable tariffs, or, if no 
1172  charges are stated, then to a reasonable charge. 
1173         (2) A lien for charges and expenses under subsection (1) on 
1174  goods that which the carrier was required by law to receive for 
1175  transportation is effective against the consignor or any person 
1176  entitled to the goods unless the carrier had notice that the 
1177  consignor lacked authority to subject the goods to those such 
1178  charges and expenses. Any other lien under subsection (1) is 
1179  effective against the consignor and any person that who 
1180  permitted the bailor to have control or possession of the goods 
1181  unless the carrier had notice that the bailor lacked such 
1182  authority. 
1183         (3) A carrier loses its his or her lien on any goods that 
1184  it which the carrier voluntarily delivers or which he or she 
1185  unjustifiably refuses to deliver. 
1186         Section 39. Section 677.308, Florida Statutes, is amended 
1187  to read: 
1188         677.308 Enforcement of carrier’s lien.— 
1189         (1) A carrier’s lien on goods may be enforced by public or 
1190  private sale of the goods, in bulk block or in packages parcels, 
1191  at any time or place and on any terms that which are 
1192  commercially reasonable, after notifying all persons known to 
1193  claim an interest in the goods. The Such notification shall must 
1194  include a statement of the amount due, the nature of the 
1195  proposed sale, and the time and place of any public sale. The 
1196  fact that a better price could have been obtained by a sale at a 
1197  different time or in a method different method from that 
1198  selected by the carrier is not of itself sufficient to establish 
1199  that the sale was not made in a commercially reasonable manner. 
1200  If The carrier either sells the goods in a commercially 
1201  reasonable the usual manner in any recognized market therefor or 
1202  if the carrier he or she sells the goods in the usual manner in 
1203  any recognized market therefor, sells at the price current in 
1204  that such market at the time of the his or her sale, or if the 
1205  carrier has otherwise sells sold in conformity with commercially 
1206  reasonable practices among dealers in the type of goods sold he 
1207  or she has sold in a commercially reasonable manner. A sale of 
1208  more goods than apparently necessary to be offered to ensure 
1209  satisfaction of the obligation is not commercially reasonable, 
1210  except in cases covered by the preceding sentence. 
1211         (2) Before any sale pursuant to this section, any person 
1212  claiming a right in the goods may pay the amount necessary to 
1213  satisfy the lien and the reasonable expenses incurred in 
1214  complying with under this section. In that event, the goods may 
1215  must not be sold, but shall must be retained by the carrier, 
1216  subject to the terms of the bill of lading and this chapter. 
1217         (3) The carrier may buy at any public sale pursuant to this 
1218  section. 
1219         (4) A purchaser in good faith of goods sold to enforce a 
1220  carrier’s lien takes the goods free of any rights of persons 
1221  against which whom the lien was valid, despite the carrier’s 
1222  noncompliance by the carrier with the requirements of this 
1223  section. 
1224         (5) A The carrier may satisfy its his or her lien from the 
1225  proceeds of any sale pursuant to this section but shall must 
1226  hold the balance, if any, for delivery on demand to any person 
1227  to which whom the carrier would have been bound to deliver the 
1228  goods. 
1229         (6) The rights provided by this section are shall be in 
1230  addition to all other rights allowed by law to a creditor 
1231  against a his or her debtor. 
1232         (7) A carrier’s lien may be enforced pursuant to in 
1233  accordance with either subsection (1) or the procedure set forth 
1234  in s. 677.210(2). 
1235         (8) A The carrier is liable for damages caused by failure 
1236  to comply with the requirements for sale under this section and, 
1237  in case of willful violation, is liable for conversion. 
1238         Section 40. Section 677.309, Florida Statutes, is amended 
1239  to read: 
1240         677.309 Duty of care; contractual limitation of carrier’s 
1241  liability.— 
1242         (1) A carrier that who issues a bill of lading, whether 
1243  negotiable or nonnegotiable, shall must exercise the degree of 
1244  care in relation to the goods which a reasonably careful person 
1245  would exercise under similar like circumstances. This subsection 
1246  does not affect repeal or change any statute, regulation, law or 
1247  rule of law that which imposes liability upon a common carrier 
1248  for damages not caused by its negligence. 
1249         (2) Damages may be limited by a term in the bill of lading 
1250  or in a transportation agreement provision that the carrier’s 
1251  liability may shall not exceed a value stated in the bill or 
1252  transportation agreement document if the carrier’s rates are 
1253  dependent upon value and the consignor by the carrier’s tariff 
1254  is afforded an opportunity to declare a higher value and the 
1255  consignor or a value as lawfully provided in the tariff, or 
1256  where no tariff is filed he or she is otherwise advised of the 
1257  such opportunity. However,; but no such a limitation is not 
1258  effective with respect to the carrier’s liability for conversion 
1259  to its own use. 
1260         (3) Reasonable provisions as to the time and manner of 
1261  presenting claims and commencing instituting actions based on 
1262  the shipment may be included in the bill of lading or a 
1263  transportation agreement tariff. 
1264         Section 41. Section 677.401, Florida Statutes, is amended 
1265  to read: 
1266         677.401 Irregularities in issue of receipt or bill or 
1267  conduct of issuer.—The obligations imposed by this chapter on an 
1268  issuer apply to a document of title even if regardless of the 
1269  fact that: 
1270         (1) The document does may not comply with the requirements 
1271  of this chapter or of any other statute, rule of law, law or 
1272  regulation regarding its issuance issue, form, or content; or 
1273         (2) The issuer may have violated laws regulating the 
1274  conduct of its his or her business; or 
1275         (3) The goods covered by the document were owned by the 
1276  bailee when at the time the document was issued; or 
1277         (4) The person issuing the document is not a warehouse but 
1278  the document does not come within the definition of warehouseman 
1279  if it purports to be a warehouse receipt. 
1280         Section 42. Section 677.402, Florida Statutes, is amended 
1281  to read: 
1282         677.402 Duplicate document of title receipt or bill; 
1283  overissue.—Neither A duplicate or nor any other document of 
1284  title purporting to cover goods already represented by an 
1285  outstanding document of the same issuer does not confer confers 
1286  any right in the goods, except as provided in the case of 
1287  tangible bills of lading in a set of parts, overissue of 
1288  documents for fungible goods, and substitutes for lost, stolen 
1289  or destroyed documents, or substitute documents issued pursuant 
1290  to s. 677.105. But The issuer is liable for damages caused by 
1291  its his or her overissue or failure to identify a duplicate 
1292  document as such by a conspicuous notation on its face. 
1293         Section 43. Section 677.403, Florida Statutes, is amended 
1294  to read: 
1295         677.403 Obligation of bailee warehouseman or carrier to 
1296  deliver; excuse.— 
1297         (1) A The bailee shall must deliver the goods to a person 
1298  entitled under a the document of title if the person who 
1299  complies with subsections (2) and (3), unless and to the extent 
1300  that the bailee establishes any of the following: 
1301         (a) Delivery of the goods to a person whose receipt was 
1302  rightful as against the claimant; 
1303         (b) Damage to or delay, loss or destruction of the goods 
1304  for which the bailee is not liable, but the burden of 
1305  establishing negligence in such cases when value of such damage, 
1306  delay, loss, or destruction exceeds $10,000 is on the person 
1307  entitled under the document;. 
1308         (c) Previous sale or other disposition of the goods in 
1309  lawful enforcement of a lien or on a warehouse’s warehouseman’s 
1310  lawful termination of storage; 
1311         (d) The exercise by a seller of its his or her right to 
1312  stop delivery pursuant to s. 672.705 or by a lessor of its right 
1313  to stop delivery pursuant to s. 680.526 the provisions of the 
1314  chapter on sales (s. 672.705); 
1315         (e) A diversion, reconsignment, or other disposition 
1316  pursuant to s. 677.303 the provisions of this chapter (s. 
1317  677.303) or tariff regulating such right; 
1318         (f) Release, satisfaction, or any other fact affording a 
1319  personal defense against the claimant; or 
1320         (g) Any other lawful excuse. 
1321         (2) A person claiming goods covered by a document of title 
1322  shall must satisfy the bailee’s lien if where the bailee so 
1323  requests or if where the bailee is prohibited by law from 
1324  delivering the goods until the charges are paid. 
1325         (3) Unless a the person claiming the goods is a person one 
1326  against which whom the document of title does not confer a 
1327  confers no right under s. 677.503(1):, 
1328         (a) The person claiming under a document shall he or she 
1329  must surrender possession or control of any outstanding 
1330  negotiable document covering the goods for cancellation or 
1331  indication of partial deliveries; and 
1332         (b) for cancellation or notation of partial deliveries any 
1333  outstanding negotiable document covering the goods, and The 
1334  bailee shall must cancel the document or conspicuously indicate 
1335  in the document note the partial delivery thereon or the bailee 
1336  is be liable to any person to which whom the document is duly 
1337  negotiated. 
1338         (4) “Person entitled under the document” means holder in 
1339  the case of a negotiable document, or the person to whom 
1340  delivery is to be made by the terms of or pursuant to written 
1341  instructions under a nonnegotiable document. 
1342         Section 44. Section 677.404, Florida Statutes, is amended 
1343  to read: 
1344         677.404 No liability for good faith delivery pursuant to 
1345  document of title receipt or bill.—A bailee that who in good 
1346  faith including observance of reasonable commercial standards 
1347  has received goods and delivered or otherwise disposed of the 
1348  goods them according to the terms of the document of title or 
1349  pursuant to this chapter is not liable for the goods therefor. 
1350  This rule applies even if: 
1351         (1) though The person from which the bailee whom he or she 
1352  received the goods did not have had no authority to procure the 
1353  document or to dispose of the goods; or 
1354         (2) The and even though the person to which the bailee whom 
1355  he or she delivered the goods did not have had no authority to 
1356  receive the goods them. 
1357         Section 45. Section 677.501, Florida Statutes, is amended 
1358  to read: 
1359         677.501 Form of negotiation and requirements of “due 
1360  negotiation.”— 
1361         (1) The following rules apply to a negotiable tangible 
1362  document of title: 
1363         (a) If the document’s original terms run running to the 
1364  order of a named person, the document is negotiated by the named 
1365  person’s indorsement and delivery. After the named person’s his 
1366  or her indorsement in blank or to bearer, any person may can 
1367  negotiate the document it by delivery alone. 
1368         (b) If the document’s original 
1369         (2)(a) A negotiable document of title is also negotiated by 
1370  delivery alone when by its original terms run it runs to bearer, 
1371  it is negotiated by delivery alone. 
1372         (c) If the document’s original terms run 
1373         (b) When a document running to the order of a named person 
1374  and it is delivered to the named person, him or her the effect 
1375  is the same as if the document had been negotiated. 
1376         (d)(3) Negotiation of the a negotiable document of title 
1377  after it has been indorsed to a named specified person requires 
1378  indorsement by the named person and special indorsee as well as 
1379  delivery. 
1380         (e)(4) A negotiable document of title is duly negotiated if 
1381  “duly negotiated” when it is negotiated in the manner stated in 
1382  this subsection section to a holder that who purchases it in 
1383  good faith, without notice of any defense against or claim to it 
1384  on the part of any person, and for value, unless it is 
1385  established that the negotiation is not in the regular course of 
1386  business or financing or involves receiving the document in 
1387  settlement or payment of a money obligation. 
1388         (2) The following rules apply to a negotiable electronic 
1389  document of title: 
1390         (a) If the document’s original terms run to the order of a 
1391  named person or to bearer, the document is negotiated by 
1392  delivery of the document to another person. Indorsement by the 
1393  named person is not required to negotiate the document. 
1394         (b) If the document’s original terms run to the order of a 
1395  named person and the named person has control of the document, 
1396  the effect is the same as if the document had been negotiated. 
1397         (c) A document is duly negotiated if it is negotiated in 
1398  the manner stated in this subsection to a holder that purchases 
1399  it in good faith, without notice of any defense against or claim 
1400  to it on the part of any person, and for value, unless it is 
1401  established that the negotiation is not in the regular course of 
1402  business or financing or involves taking delivery of the 
1403  document in settlement or payment of a monetary obligation. 
1404         (3)(5) Indorsement of a nonnegotiable document of title 
1405  neither makes it negotiable nor adds to the transferee’s rights. 
1406         (4)(6) The naming in a negotiable bill of lading of a 
1407  person to be notified of the arrival of the goods does not limit 
1408  the negotiability of the bill or nor constitute notice to a 
1409  purchaser of the bill thereof of any interest of that such 
1410  person in the goods. 
1411         Section 46. Section 677.502, Florida Statutes, is amended 
1412  to read: 
1413         677.502 Rights acquired by due negotiation.— 
1414         (1) Subject to ss. the following section and to the 
1415  provisions of s. 677.205 and 677.503 on fungible goods, a holder 
1416  to which whom a negotiable document of title has been duly 
1417  negotiated acquires thereby: 
1418         (a) Title to the document; 
1419         (b) Title to the goods; 
1420         (c) All rights accruing under the law of agency or 
1421  estoppel, including rights to goods delivered to the bailee 
1422  after the document was issued; and 
1423         (d) The direct obligation of the issuer to hold or deliver 
1424  the goods according to the terms of the document free of any 
1425  defense or claim by the issuer him or her except those arising 
1426  under the terms of the document or under this chapter, but. in 
1427  the case of a delivery order, the bailee’s obligation accrues 
1428  only upon the bailee’s acceptance of the delivery order and the 
1429  obligation acquired by the holder is that the issuer and any 
1430  indorser will procure the acceptance of the bailee. 
1431         (2) Subject to the following section, title and rights so 
1432  acquired by due negotiation are not defeated by any stoppage of 
1433  the goods represented by the document of title or by surrender 
1434  of the such goods by the bailee, and are not impaired even if: 
1435         (a) though The due negotiation or any prior due negotiation 
1436  constituted a breach of duty; or even though 
1437         (b) Any person has been deprived of possession of a 
1438  negotiable tangible the document or control of a negotiable 
1439  electronic document by misrepresentation, fraud, accident, 
1440  mistake, duress, loss, theft, or conversion;, or even though 
1441         (c) A previous sale or other transfer of the goods or 
1442  document has been made to a third person. 
1443         Section 47. Section 677.503, Florida Statutes, is amended 
1444  to read: 
1445         677.503 Document of title to goods defeated in certain 
1446  cases.— 
1447         (1) A document of title confers no right in goods against a 
1448  person that who before issuance of the document had a legal 
1449  interest or a perfected security interest in the goods them and 
1450  that did not who neither: 
1451         (a) Deliver or entrust the goods Delivered or entrusted 
1452  them or any document of title covering the goods them to the 
1453  bailor or the bailor’s nominee with: 
1454         1. Actual or apparent authority to ship, store, or sell; or 
1455  with 
1456         2. Power to obtain delivery under s. 677.403; this chapter 
1457  (s. 677.403) or with 
1458         3. Power of disposition under s. 672.403, s. 680.304(2), s. 
1459  680.305(2), s. 679.320, or s. 679.321(3) this code (ss. 672.403 
1460  and 679.320) or other statute or rule of law; or nor 
1461         (b) Acquiesce Acquiesced in the procurement by the bailor 
1462  or its the bailor’s nominee of any document of title. 
1463         (2) Title to goods based upon an unaccepted delivery order 
1464  is subject to the rights of any person anyone to which whom a 
1465  negotiable warehouse receipt or bill of lading covering the 
1466  goods has been duly negotiated. That Such a title may be 
1467  defeated under the next section to the same extent as the rights 
1468  of the issuer or a transferee from the issuer. 
1469         (3) Title to goods based upon a bill of lading issued to a 
1470  freight forwarder is subject to the rights of any person anyone 
1471  to which whom a bill issued by the freight forwarder is duly 
1472  negotiated. However,; but delivery by the carrier in accordance 
1473  with part IV of this chapter pursuant to its own bill of lading 
1474  discharges the carrier’s obligation to deliver. 
1475         Section 48. Section 677.504, Florida Statutes, is amended 
1476  to read: 
1477         677.504 Rights acquired in the absence of due negotiation; 
1478  effect of diversion; seller’s stoppage of delivery.— 
1479         (1) A transferee of a document of title, whether negotiable 
1480  or nonnegotiable, to which whom the document has been delivered 
1481  but not duly negotiated, acquires the title and rights that its 
1482  which his or her transferor had or had actual authority to 
1483  convey. 
1484         (2) In the case of a transfer of a nonnegotiable document 
1485  of title, until but not after the bailee receives notice 
1486  notification of the transfer, the rights of the transferee may 
1487  be defeated: 
1488         (a) By those creditors of the transferor which who could 
1489  treat the transfer sale as void under s. 672.402 or s. 680.308; 
1490  or 
1491         (b) By a buyer from the transferor in ordinary course of 
1492  business if the bailee has delivered the goods to the buyer or 
1493  received notification of the buyer’s his or her rights; or 
1494         (c) By a lessee from the transferor in ordinary course of 
1495  business if the bailee has delivered the goods to the lessee or 
1496  received notification of the lessee’s rights; or 
1497         (d)(c) As against the bailee, by good-faith good faith 
1498  dealings of the bailee with the transferor. 
1499         (3) A diversion or other change of shipping instructions by 
1500  the consignor in a nonnegotiable bill of lading which causes the 
1501  bailee not to deliver to the consignee defeats the consignee’s 
1502  title to the goods if the goods they have been delivered to a 
1503  buyer or a lessee in ordinary course of business and, in any 
1504  event, defeats the consignee’s rights against the bailee. 
1505         (4) Delivery of the goods pursuant to a nonnegotiable 
1506  document of title may be stopped by a seller under s. 672.705 or 
1507  by a lessor under s. 680.526, and subject to the requirements 
1508  requirement of due notification there provided. A bailee that 
1509  honors honoring the seller’s or lessor’s instructions is 
1510  entitled to be indemnified by the seller or lessor against any 
1511  resulting loss or expense. 
1512         Section 49. Section 677.505, Florida Statutes, is amended 
1513  to read: 
1514         677.505 Indorser not a guarantor for other parties.—The 
1515  indorsement of a tangible document of title issued by a bailee 
1516  does not make the indorser liable for any default by the bailee 
1517  or by previous indorsers. 
1518         Section 50. Section 677.506, Florida Statutes, is amended 
1519  to read: 
1520         677.506 Delivery without indorsement; right to compel 
1521  indorsement.—The transferee of a negotiable tangible document of 
1522  title has a specifically enforceable right to have its his or 
1523  her transferor supply any necessary indorsement but the transfer 
1524  becomes a negotiation only as of the time the indorsement is 
1525  supplied. 
1526         Section 51. Section 677.507, Florida Statutes, is amended 
1527  to read: 
1528         677.507 Warranties on negotiation or delivery of document 
1529  of title transfer of receipt or bill.—If Where a person 
1530  negotiates or delivers transfers a document of title for value, 
1531  otherwise than as a mere intermediary under the next following 
1532  section, then unless otherwise agreed, the transferor, in 
1533  addition to any warranty made in selling or leasing the goods, 
1534  person warrants to its his or her immediate purchaser only that 
1535  in addition to any warranty made in selling the goods: 
1536         (1) That The document is genuine; and 
1537         (2) The transferor does not have That he or she has no 
1538  knowledge of any fact that which would impair the document’s its 
1539  validity or worth; and 
1540         (3) The That his or her negotiation or delivery transfer is 
1541  rightful and fully effective with respect to the title to the 
1542  document and the goods it represents. 
1543         Section 52. Section 677.508, Florida Statutes, is amended 
1544  to read: 
1545         677.508 Warranties of collecting bank as to documents of 
1546  title.—A collecting bank or other intermediary known to be 
1547  entrusted with documents of title on behalf of another or with 
1548  collection of a draft or other claim against delivery of 
1549  documents warrants by the such delivery of the documents only 
1550  its own good faith and authority. This rule applies even if 
1551  though the collecting bank or other intermediary has purchased 
1552  or made advances against the claim or draft to be collected. 
1553         Section 53. Section 677.509, Florida Statutes, is amended 
1554  to read: 
1555         677.509 Receipt or bill; when Adequate compliance with 
1556  commercial contract.—The question Whether a document of title is 
1557  adequate to fulfill the obligations of a contract for sale, or 
1558  the conditions of a letter of credit, or a contract for lease is 
1559  determined governed by chapter 672, chapter 675, or chapter 680 
1560  the chapters on sales (chapter 672) and on letters of credit 
1561  (chapter 675). 
1562         Section 54. Section 677.601, Florida Statutes, is amended 
1563  to read: 
1564         677.601 Lost, stolen, or destroyed and missing documents of 
1565  title.— 
1566         (1) If a document of title is has been lost, stolen, or 
1567  destroyed, a court may order delivery of the goods or issuance 
1568  of a substitute document and the bailee may without liability to 
1569  any person comply with the such order. If the document was 
1570  negotiable, a court may not order delivery of the goods or the 
1571  issuance of a substitute document without the claimant’s posting 
1572  claimant must post security unless it finds that approved by the 
1573  court to indemnify any person that who may suffer loss as a 
1574  result of nonsurrender of possession or control of the document 
1575  is adequately protected against the loss. If the document was 
1576  nonnegotiable not negotiable, the court such security may 
1577  require security be required at the discretion of the court. The 
1578  court may also in its discretion order payment of the bailee’s 
1579  reasonable costs and attorney’s counsel fees in any action under 
1580  this subsection. 
1581         (2) A bailee that, who without a court order, delivers 
1582  goods to a person claiming under a missing negotiable document 
1583  of title is liable to any person injured thereby., and If the 
1584  delivery is not in good faith, the bailee is becomes liable for 
1585  conversion. Delivery in good faith is not conversion if made in 
1586  accordance with a filed classification or tariff or, where no 
1587  classification or tariff is filed, if the claimant posts 
1588  security with the bailee in an amount at least double the value 
1589  of the goods at the time of posting to indemnify any person 
1590  injured by the delivery which who files a notice of claim within 
1591  1 year after the delivery. 
1592         Section 55. Section 677.602, Florida Statutes, is amended 
1593  to read: 
1594         677.602 Judicial process against Attachment of goods 
1595  covered by a negotiable document of title.—Unless a Except where 
1596  the document of title was originally issued upon delivery of the 
1597  goods by a person that did not have who had no power to dispose 
1598  of them, a no lien does not attach attaches by virtue of any 
1599  judicial process to goods in the possession of a bailee for 
1600  which a negotiable document of title is outstanding unless 
1601  possession or control of the document is be first surrendered to 
1602  the bailee or the document’s its negotiation is enjoined., and 
1603  The bailee may shall not be compelled to deliver the goods 
1604  pursuant to process until possession or control of the document 
1605  is surrendered to the bailee or to him or her or impounded by 
1606  the court. A purchaser of One who purchases the document for 
1607  value without notice of the process or injunction takes free of 
1608  the lien imposed by judicial process. 
1609         Section 56. Section 677.603, Florida Statutes, is amended 
1610  to read: 
1611         677.603 Conflicting claims; interpleader.—If more than one 
1612  person claims title to or possession of the goods, the bailee is 
1613  excused from delivery until the bailee he or she has had a 
1614  reasonable time to ascertain the validity of the adverse claims 
1615  or to commence bring an action for to compel all claimants to 
1616  interplead and may compel such interpleader. The bailee may 
1617  assert an interpleader, either in defending an action for 
1618  nondelivery of the goods, or by original action, whichever is 
1619  appropriate. 
1620         Section 57. Subsection (7) is added to section 678.1031, 
1621  Florida Statutes, to read: 
1622         678.1031 Rules for determining whether certain obligations 
1623  and interests are securities or financial assets.— 
1624         (7) A document of title is not a financial asset unless s. 
1625  678.1021(1)(i)2. applies. 
1626         Section 58. Subsection (2) of section 679.1021, Florida 
1627  Statutes, is amended to read: 
1628         679.1021 Definitions and index of definitions.— 
1629         (2) The following definitions in other chapters apply to 
1630  this chapter: 
1631         “Applicant”	s. 675.103. 
1632         “Beneficiary”	s. 675.103. 
1633         “Broker”	s. 678.1021. 
1634         “Certificated security”	s. 678.1021. 
1635         “Check”	s. 673.1041. 
1636         “Clearing corporation”	s. 678.1021. 
1637         “Contract for sale”	s. 672.106. 
1638         “Control”	 s. 677.106. 
1639         “Customer”	s. 674.104. 
1640         “Entitlement holder”	s. 678.1021. 
1641         “Financial asset”	s. 678.1021. 
1642         “Holder in due course”	s. 673.3021. 
1643         “Issuer” (with respect to a letter of credit 
1644  or letter-of-credit right)	s. 675.103. 
1645         “Issuer” (with respect to a security)	s. 678.2011. 
1646         “Issuer” (with respect to documents of title) s. 677.102. 
1647         “Lease”	s. 680.1031. 
1648         “Lease agreement”	s. 680.1031. 
1649         “Lease contract”	s. 680.1031. 
1650         “Leasehold interest”	s. 680.1031. 
1651         “Lessee”	s. 680.1031. 
1652         “Lessee in ordinary course of 
1653  business”	s. 680.1031. 
1654         “Lessor”	s. 680.1031. 
1655         “Lessor’s residual interest”	s. 680.1031. 
1656         “Letter of credit”	s. 675.103. 
1657         “Merchant”	s. 672.104. 
1658         “Negotiable instrument”	s. 673.1041. 
1659         “Nominated person”	s. 675.103. 
1660         “Note”	s. 673.1041. 
1661         “Proceeds of a letter of credit”	s. 675.114. 
1662         “Prove”	s. 673.1031. 
1663         “Sale”	s. 672.106. 
1664         “Securities account”	s. 678.5011. 
1665         “Securities intermediary”	s. 678.1021. 
1666         “Security”	s. 678.1021. 
1667         “Security certificate”	s. 678.1021. 
1668         “Security entitlement”	s. 678.1021. 
1669         “Uncertificated security”	s. 678.1021. 
1670         Section 59. Subsection (2) of section 679.2031, Florida 
1671  Statutes, is amended to read: 
1672         679.2031 Attachment and enforceability of security 
1673  interest; proceeds; supporting obligations; formal requisites.— 
1674         (2) Except as otherwise provided in subsections (3) through 
1675  (10), a security interest is enforceable against the debtor and 
1676  third parties with respect to the collateral only if: 
1677         (a) Value has been given; 
1678         (b) The debtor has rights in the collateral or the power to 
1679  transfer rights in the collateral to a secured party; and 
1680         (c) One of the following conditions is met: 
1681         1. The debtor has authenticated a security agreement that 
1682  provides a description of the collateral and, if the security 
1683  interest covers timber to be cut, a description of the land 
1684  concerned; 
1685         2. The collateral is not a certificated security and is in 
1686  the possession of the secured party under s. 679.3131 pursuant 
1687  to the debtor’s security agreement; 
1688         3. The collateral is a certificated security in registered 
1689  form and the security certificate has been delivered to the 
1690  secured party under s. 678.3011 pursuant to the debtor’s 
1691  security agreement; or 
1692         4. The collateral is deposit accounts, electronic chattel 
1693  paper, investment property, or letter-of-credit rights, or 
1694  electronic documents, and the secured party has control under s. 
1695  677.106, s. 679.1041, s. 679.1051, s. 679.1061, or s. 679.1071 
1696  pursuant to the debtor’s security agreement. 
1697         Section 60. Subsection (3) of section 679.2071, Florida 
1698  Statutes, is amended to read: 
1699         679.2071 Rights and duties of secured party having 
1700  possession or control of collateral.— 
1701         (3) Except as otherwise provided in subsection (4), a 
1702  secured party having possession of collateral or control of 
1703  collateral under s. 677.106, s. 679.1041, s. 679.1051, s. 
1704  679.1061, or s. 679.1071: 
1705         (a) May hold as additional security any proceeds, except 
1706  money or funds, received from the collateral; 
1707         (b) Shall apply money or funds received from the collateral 
1708  to reduce the secured obligation, unless remitted to the debtor; 
1709  and 
1710         (c) May create a security interest in the collateral. 
1711         Section 61. Subsection (2) of section 679.2081, Florida 
1712  Statutes, is amended to read: 
1713         679.2081 Additional duties of secured party having control 
1714  of collateral.— 
1715         (2) Within 10 days after receiving an authenticated demand 
1716  by the debtor: 
1717         (a) A secured party having control of a deposit account 
1718  under s. 679.1041(1)(b) shall send to the bank with which the 
1719  deposit account is maintained an authenticated statement that 
1720  releases the bank from any further obligation to comply with 
1721  instructions originated by the secured party; 
1722         (b) A secured party having control of a deposit account 
1723  under s. 679.1041(1)(c) shall: 
1724         1. Pay the debtor the balance on deposit in the deposit 
1725  account; or 
1726         2. Transfer the balance on deposit into a deposit account 
1727  in the debtor’s name; 
1728         (c) A secured party, other than a buyer, having control of 
1729  electronic chattel paper under s. 679.1051 shall: 
1730         1. Communicate the authoritative copy of the electronic 
1731  chattel paper to the debtor or its designated custodian; 
1732         2. If the debtor designates a custodian that is the 
1733  designated custodian with which the authoritative copy of the 
1734  electronic chattel paper is maintained for the secured party, 
1735  communicate to the custodian an authenticated record releasing 
1736  the designated custodian from any further obligation to comply 
1737  with instructions originated by the secured party and 
1738  instructing the custodian to comply with instructions originated 
1739  by the debtor; and 
1740         3. Take appropriate action to enable the debtor or the 
1741  debtor’s designated custodian to make copies of or revisions to 
1742  the authoritative copy which add or change an identified 
1743  assignee of the authoritative copy without the consent of the 
1744  secured party; 
1745         (d) A secured party having control of investment property 
1746  under s. 678.1061(4)(b) or s. 679.1061(2) shall send to the 
1747  securities intermediary or commodity intermediary with which the 
1748  security entitlement or commodity contract is maintained an 
1749  authenticated record that releases the securities intermediary 
1750  or commodity intermediary from any further obligation to comply 
1751  with entitlement orders or directions originated by the secured 
1752  party; and 
1753         (e) A secured party having control of a letter-of-credit 
1754  right under s. 679.1071 shall send to each person having an 
1755  unfulfilled obligation to pay or deliver proceeds of the letter 
1756  of credit to the secured party an authenticated release from any 
1757  further obligation to pay or deliver proceeds of the letter of 
1758  credit to the secured party; and. 
1759         (f) A secured party having control of an electronic 
1760  document shall: 
1761         1. Give control of the electronic document to the debtor or 
1762  its designated custodian; 
1763         2. If the debtor designates a custodian that is the 
1764  designated custodian with which the authoritative copy of the 
1765  electronic document is maintained for the secured party, 
1766  communicate to the custodian an authenticated record releasing 
1767  the designated custodian from any further obligation to comply 
1768  with instructions originated by the secured party and 
1769  instructing the custodian to comply with instructions originated 
1770  by the debtor; and 
1771         3. Take appropriate action to enable the debtor or its 
1772  designated custodian to make copies of or revisions to the 
1773  authenticated copy which add or change an identified assignee of 
1774  the authoritative copy without the consent of the secured party. 
1775         Section 62. Subsection (3) of section 679.3011, Florida 
1776  Statutes, is amended to read: 
1777         679.3011 Law governing perfection and priority of security 
1778  interests.—Except as otherwise provided in ss. 679.1091, 
1779  679.3031, 679.3041, 679.3051, and 679.3061, the following rules 
1780  determine the law governing perfection, the effect of perfection 
1781  or nonperfection, and the priority of a security interest in 
1782  collateral: 
1783         (3) Except as otherwise provided in subsections (4) and 
1784  (5), while tangible negotiable documents, goods, instruments, 
1785  money, or tangible chattel paper is located in a jurisdiction, 
1786  the local law of that jurisdiction governs: 
1787         (a) Perfection of a security interest in the goods by 
1788  filing a fixture filing; 
1789         (b) Perfection of a security interest in timber to be cut; 
1790  and 
1791         (c) The effect of perfection or nonperfection and the 
1792  priority of a nonpossessory security interest in the collateral. 
1793         Section 63. Subsection (2) of section 679.3101, Florida 
1794  Statutes, is amended to read: 
1795         679.3101 When filing required to perfect security interest 
1796  or agricultural lien; security interests and agricultural liens 
1797  to which filing provisions do not apply.— 
1798         (2) The filing of a financing statement is not necessary to 
1799  perfect a security interest: 
1800         (a) That is perfected under s. 679.3081(4), (5), (6), or 
1801  (7); 
1802         (b) That is perfected under s. 679.3091 when it attaches; 
1803         (c) In property subject to a statute, regulation, or treaty 
1804  described in s. 679.3111(1); 
1805         (d) In goods in possession of a bailee which is perfected 
1806  under s. 679.3121(4)(a) or (b); 
1807         (e) In certificated securities, documents, goods, or 
1808  instruments which is perfected without filing, control, or 
1809  possession under s. 679.3121(5), (6), or (7); 
1810         (f) In collateral in the secured party’s possession under 
1811  s. 679.3131; 
1812         (g) In a certificated security which is perfected by 
1813  delivery of the security certificate to the secured party under 
1814  s. 679.3131; 
1815         (h) In deposit accounts, electronic chattel paper, 
1816  electronic documents, investment property, or letter-of-credit 
1817  rights which is perfected by control under s. 679.3141; 
1818         (i) In proceeds which is perfected under s. 679.3151; or 
1819         (j) That is perfected under s. 679.3161. 
1820         Section 64. Subsection (5) of section 679.3121, Florida 
1821  Statutes, is amended to read: 
1822         679.3121 Perfection of security interests in chattel paper, 
1823  deposit accounts, documents, goods covered by documents, 
1824  instruments, investment property, letter-of-credit rights, and 
1825  money; perfection by permissive filing; temporary perfection 
1826  without filing or transfer of possession.— 
1827         (5) A security interest in certificated securities, 
1828  negotiable documents, or instruments is perfected without filing 
1829  or the taking of possession or control for a period of 20 days 
1830  from the time it attaches to the extent that it arises for new 
1831  value given under an authenticated security agreement. 
1832         Section 65. Subsection (1) of section 679.3131, Florida 
1833  Statutes, is amended to read: 
1834         679.3131 When possession by or delivery to secured party 
1835  perfects security interest without filing.— 
1836         (1) Except as otherwise provided in subsection (2), a 
1837  secured party may perfect a security interest in tangible 
1838  negotiable documents, goods, instruments, money, or tangible 
1839  chattel paper by taking possession of the collateral. A secured 
1840  party may perfect a security interest in certificated securities 
1841  by taking delivery of the certificated securities under s. 
1842  678.3011. 
1843         Section 66. Subsections (1) and (2) of section 679.3141, 
1844  Florida Statutes, are amended to read: 
1845         679.3141 Perfection by control.— 
1846         (1) A security interest in investment property, deposit 
1847  accounts, letter-of-credit rights, or electronic chattel paper, 
1848  or electronic documents may be perfected by control of the 
1849  collateral under s. 677.106, s. 679.1041, s. 679.1051, s. 
1850  679.1061, or s. 679.1071. 
1851         (2) A security interest in deposit accounts, electronic 
1852  chattel paper, or letter-of-credit rights, or electronic 
1853  documents is perfected by control under s. 677.106, s. 679.1041, 
1854  s. 679.1051, or s. 679.1071 when the secured party obtains 
1855  control and remains perfected by control only while the secured 
1856  party retains control. 
1857         Section 67. Subsections (2) and (4) of section 679.3171, 
1858  Florida Statutes, are amended to read: 
1859         679.3171 Interests that take priority over or take free of 
1860  security interest or agricultural lien.— 
1861         (2) Except as otherwise provided in subsection (5), a 
1862  buyer, other than a secured party, of tangible chattel paper, 
1863  tangible documents, goods, instruments, or a security 
1864  certificate takes free of a security interest or agricultural 
1865  lien if the buyer gives value and receives delivery of the 
1866  collateral without knowledge of the security interest or 
1867  agricultural lien and before it is perfected. 
1868         (4) A licensee of a general intangible or a buyer, other 
1869  than a secured party, of accounts, electronic chattel paper, 
1870  electronic documents, general intangibles, or investment 
1871  property other than a certificated security takes free of a 
1872  security interest if the licensee or buyer gives value without 
1873  knowledge of the security interest and before it is perfected. 
1874         Section 68. Subsection (2) of section 679.338, Florida 
1875  Statutes, is amended to read: 
1876         679.338 Priority of security interest or agricultural lien 
1877  perfected by filed financing statement providing certain 
1878  incorrect information.—If a security interest or agricultural 
1879  lien is perfected by a filed financing statement providing 
1880  information described in s. 679.516(2)(d) which is incorrect at 
1881  the time the financing statement is filed: 
1882         (2) A purchaser, other than a secured party, of the 
1883  collateral takes free of the security interest or agricultural 
1884  lien to the extent that, in reasonable reliance upon the 
1885  incorrect information, the purchaser gives value and, in the 
1886  case of tangible chattel paper, tangible documents, goods, 
1887  instruments, or a security certificate, receives delivery of the 
1888  collateral. 
1889         Section 69. Paragraphs (a) and (o) of subsection (1) of 
1890  section 680.1031, Florida Statutes, are amended to read: 
1891         680.1031 Definitions and index of definitions.— 
1892         (1) In this chapter, unless the context otherwise requires: 
1893         (a) “Buyer in ordinary course of business” means a person 
1894  who in good faith and without knowledge that the sale to him or 
1895  her is in violation of the ownership rights or security interest 
1896  or leasehold interest of a third party in the goods buys in 
1897  ordinary course from a person in the business of selling goods 
1898  of that kind but does not include a pawnbroker. Buying may be 
1899  for cash or by exchange of other property or on secured or 
1900  unsecured credit and includes acquiring receiving goods or 
1901  documents of title under a preexisting contract for sale but 
1902  does not include a transfer in bulk or as security for or in 
1903  total or partial satisfaction of a money debt. 
1904         (o) “Lessee in ordinary course of business” means a person 
1905  who in good faith and without knowledge that the lease to him or 
1906  her is in violation of the ownership rights or security interest 
1907  or leasehold interest of a third party in the goods leases in 
1908  ordinary course from a person in the business of selling or 
1909  leasing goods of that kind but does not include a pawnbroker. 
1910  Leasing may be for cash or by exchange of other property or on 
1911  secured or unsecured credit and includes acquiring receiving 
1912  goods or documents of title under a preexisting lease contract 
1913  but does not include a transfer in bulk or as security for or in 
1914  total or partial satisfaction of a money debt. 
1915         Section 70. Subsection (2) of section 680.514, Florida 
1916  Statutes, is amended to read: 
1917         680.514 Waiver of lessee’s objections.— 
1918         (2) A lessee’s failure to reserve rights when paying rent 
1919  or other consideration against documents precludes recovery of 
1920  the payment for defects apparent in on the face of the 
1921  documents. 
1922         Section 71. Subsection (2) of section 680.526, Florida 
1923  Statutes, is amended to read: 
1924         680.526 Lessor’s stoppage of delivery in transit or 
1925  otherwise.— 
1926         (2) In pursuing her or his remedies under subsection (1), 
1927  the lessor may stop delivery until: 
1928         (a) Receipt of the goods by the lessee; 
1929         (b) Acknowledgment to the lessee by any bailee of the 
1930  goods, except a carrier, that the bailee holds the goods for the 
1931  lessee; or 
1932         (c) Such an acknowledgment to the lessee by a carrier via 
1933  reshipment or as a warehouse warehouseman. 
1934         Section 72. This act shall take effect July 1, 2010.
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Bill Text: FL S1366 | 2010 | Regular Session | Comm Sub

Florida Senate Bill 1366 (Prior Session Legislation)

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