§12A-7-503.

§12A-7-503.
   
   (1) A document of title confers no right in goods against a person who
   before issuance of the document had a legal interest or a perfected
   security interest in them and who neither
   
   (a) delivered or entrusted them or any document of title covering them
   to the bailor or his nominee with actual or apparent authority to
   ship, store or sell or with power to obtain delivery under this
   article (Section 7-403) or with power of disposition under this act
   (Sections 2-403 and 9-307) or other statute or rule of law; nor
   
   (b) acquiesced in the procurement by the bailor or his nominee of any
   document of title.
   
   (2) Title to goods based upon an unaccepted delivery order is subject
   to the rights of anyone to whom a negotiable warehouse receipt or bill
   of lading covering the goods has been duly negotiated. Such a title
   may be defeated under the next section to the same extent as the
   rights of the issuer or a transferee from the issuer.
   
   (3) Title to goods based upon a bill of lading issued to a freight
   forwarder is subject to the rights of anyone to whom a bill issued by
   the freight forwarder is duly negotiated; but delivery by the carrier
   in accordance with Part 4 of this article pursuant to its own bill of
   lading discharges the carrier's obligation to deliver.