New York Uniform Commercial Code Code § 7-403

Obligation of Bailee to Deliver; Excuse
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Section 7--403. Obligation of Bailee to Deliver; Excuse.\n  (a) A bailee shall deliver the goods to a person entitled under a\ndocument of title if the person complies with subsections (b) and (c),\nunless and to the extent that the bailee establishes any of the\nfollowing:\n  (1) delivery of the goods to a person whose receipt was rightful as\nagainst the claimant;\n  (2) damage to or delay, loss, or destruction of the goods for which\nthe bailee is not liable;\n  (3) previous sale or other disposition of the goods in lawful\nenforcement of a lien or on a warehouse's lawful termination of storage;\n  (4) the exercise by a seller of its right to stop delivery pursuant to\nSection 2--705 or by a lessor of its right to stop delivery pursuant to\nSection 2-A--526;\n  (5) a diversion, reconsignment, or other disposition pursuant to\nSection 7--303;\n  (6) release, satisfaction, or any other personal defense against the\nclaimant; or\n  (7) any other lawful excuse.\n  (b) A person claiming goods covered by a document of title shall\nsatisfy the bailee's lien if the bailee so requests or if the bailee is\nprohibited by law from delivering the goods until the charges are paid.\n  (c) Unless a person claiming the goods is a person against which the\ndocument of title does not confer a right under Section 7--503(a):\n  (1) the person claiming under a document shall surrender possession or\ncontrol of any outstanding negotiable document covering the goods for\ncancellation or indication of partial deliveries; and\n  (2) the bailee shall cancel the document or conspicuously indicate in\nthe document the partial delivery or the bailee is liable to any person\nto which the document is duly negotiated.\n

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