Unless a document of title was originally issued upon delivery of the goods by a person that did not have power to dispose of them, a lien does not attach by virtue of any judicial process to goods in the possession of a bailee for which a negotiable document of title is outstanding unless possession or control of the document is first surrendered to the bailee or the document's negotiation is enjoined. The bailee may not be compelled to deliver the goods pursuant to process until possession or control of the document is surrendered to the bailee or to the court. A purchaser of the document for value without notice of the process or injunction takes free of the lien imposed by judicial process.
(Code 1933, § 109A-7 - 602, enacted by Ga. L. 1962, p. 156, § 1; Ga. L. 2010, p. 481, § 1-1/HB 451.)
The 2010 amendment, effective May 27, 2010, substituted "Judicial process against goods covered by negotiable document of title" for "Attachment of goods covered by a negotiable document" in the catchline; and rewrote this Code section. See the Editor's notes for applicability.
Cross references.- Attachment proceedings generally, Ch. 3, T. 18.
Editor's notes.- Ga. L. 2010, p. 481, § 3-1, not codified by the General Assembly, provides that: "This Act applies to a document of title that is issued or a bailment that arises on or after the effective date of this Act. This Act does not apply to a document of title that is issued or a bailment that arises before the effective date of this Act even if the document of title or bailment would be subject to this Act if the document of title had been issued or bailment had arisen on or after the effective date of this Act. This Act does not apply to a right of action that has accrued before the effective date of this Act." This Act became effective May 27, 2010.
Ga. L. 2010, p. 481, § 3-2, not codified by the General Assembly, provides that: "A document of title issued or a bailment that arises before the effective date of this Act and the rights, documents, and interests flowing from that document or bailment are governed by any statute or other rule amended or repealed by this Act as if such amendment or repeal had not occurred and may be terminated, completed, consummated, or enforced under that statute or other rule." This Act became effective May 27, 2010.
RESEARCH REFERENCES
Am. Jur. 2d.
- 6 Am. Jur. 2d, Attachment and Garnishment, § 90. 78 Am. Jur. 2d, Warehouses, § 107.
C.J.S.- 7 C.J.S., Attachment, § 273 et seq. 33 C.J.S., Executions, §§ 142, 143.
U.L.A.- Uniform Commercial Code (U.L.A.) § 7-602.
ALR.
- Character of bill of lading contemplated by a guaranty of payment of a draft with bill of lading attached, 13 A.L.R. 166.
Attachment or garnishment of goods covered by negotiable warehouse receipts, 40 A.L.R. 969.