Okla. Stat. tit. 12A § 7-401

Current through Laws 2024, c. 453.

Section 7-401 - Irregularities in issue of receipt or bill or conduct of issuer

The obligations imposed by this article on an issuer apply to a document of title even if:

(1) the document does not comply with the requirements of this article or of any other statute, rule, or regulation regarding its issue, form or content;

(2) the issuer violated laws regulating the conduct of its business;

(3) the goods covered by the document were owned by the bailee at the time the document was issued; or

(4) the person issuing the document is not a warehouse but the document purports to be a warehouse receipt.

Okla. Stat. tit. 12A, § 7-401

Laws 1961, p. 147, § 7-401; Amended by Laws 2005 , HB 2035, c. 140, § 24, eff. 1/1/2006.

Oklahoma Code Comment

Prior Statutory Provisions:

2 O.S. § 9-79.

Text and derivation of prior provisions, see Appendix at end of this title.

Comment:

Most of this section is new. It is to make it clear that all the obligations of the Commercial Code apply to one issuing a document of title, even though the issuer acted improperly. This section is of particular importance in Oklahoma because of the confusion under previous law as to who is a "warehouseman." As stated in reference to 7-202 the definition of "warehouseman" in the previous Oklahoma law was limited to those storing particular farm products, and there was no general law applicable to those who stored other commodities for hire. Oklahoma decisions had held, however, that any person in the warehousing business, although not within the statutory definition of a "warehouseman" could issue a warehouse receipt. Citizens' State Bank of Vici v. Gettig, 77 Okl. 48, 187 P. 217 (1920); Traders' Compress Co. v. Precure, 140 Okl. 40, 282 P. 165, 71 A.L.R. (1929); Joy v. Farmers National Bank, 158 Okl. 1, 11 P.2d 1074 (1932). This section of the Commercial Code makes it clear that any person who issues a warehouse receipt is bound by this Article, even though not a "public warehouseman" within the meaning of 2 O.S. §9-21.