554.7601 Lost, stolen, or destroyed documents of title. 1. If a document of title is lost, stolen, or destroyed, a court may order delivery of the goods or issuance of a substitute document and the bailee may without liability to any personcomply with the order. If the document was negotiable, a court may not order delivery of thegoods or issuance of a substitute document without the claimant’s posting security unless itfinds that any person that may suffer loss as a result of nonsurrender of possession or controlof the document is adequately protected against the loss. If the document was not negotiable,the court may require security. The court may also order payment of the bailee’s reasonablecosts and attorney’s fees in any action under this subsection. 2. A bailee that, without a court order, delivers goods to a person claiming under a missing negotiable document of title is liable to any person injured thereby. If the delivery is not ingood faith, the bailee is liable for conversion. Delivery in good faith is not conversion if theclaimant posts security with the bailee in an amount at least double the value of the goodsat the time of posting to indemnify any person injured by on. Delivery in good faith is not conversion if theclaimant posts security with the bailee in an amount at least double the value of the goodsat the time of posting to indemnify any person injured by the delivery which files a notice ofclaim within one year after the delivery. [S13, §3138-a14, -b16; C24, 27, 31, 35, 39, §8261, 9674; C46, 50, 54, 58, 62, §487.17, 542.14; C66, 71, 73, 75, 77, 79, 81, §554.7601] 2007 Acts, ch 30, §40, 45, 46Referred to in §203C.19 Sat Dec 23 01:58:04 2023 Iowa Code 2024, Section 554.7601 (24, 0)
Iowa Legal Code