§12A-7-502.

§12A-7-502.
   
   (1) Subject to the following section and to the provisions of Section
   7-205 on fungible goods, a holder to whom a negotiable document of
   title has been duly negotiated acquires thereby:
   
   (a) title to the document;
   
   (b) title to the goods;
   
   (c) all rights accruing under the law of agency or estoppel, including
   rights to goods delivered to the bailee after the document was issued;
   and
   
   (d) the direct obligation of the issuer to hold or deliver the goods
   according to the terms of the document free of any defense or claim by
   him except those arising under the terms of the document or under this
   article. In the case of a delivery order the bailee's obligation
   accrues only upon acceptance and the obligation acquired by the holder
   is that the issuer and any endorser will procure the acceptance of the
   bailee.
   
   (2) Subject to the following section, title and rights so acquired are
   not defeated by any stoppage of the goods represented by the document
   or by surrender of such goods by the bailee, and are not impaired even
   though the negotiation or any prior negotiation constituted a breach
   of duty or even though any person has been deprived of possession of
   the document by misrepresentation, fraud, accident, mistake, duress,
   loss, theft or conversion, or even though a previous sale or other
   transfer of the goods or document has been made to a third person.