S ecured t ransaction l aw 209 section 9

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SECTION 9. Justification of warehouseman in delivering. — A warehouseman is justified in delivering the goods,
subject to the provisions of the three following sections, to one who is:
(a) The person lawfully entitled to the possession of the goods, or his agent;
(b) A person who is either himself entitled to delivery by the terms of a non-negotiable receipt issued for the goods, or
who has written authority from the person so entitled either indorsed upon the receipt or written upon another paper;
or
(c) A person in possession of a negotiable receipt by the terms of which the goods are deliverable to him or order, or to
bearer, or which has been indorsed to him or in blank by the person to whom delivery was promised by the terms of
the receipt or by his mediate or immediate indorser.
SECTION 10. Warehouseman's liability for misdelivery. — Where a warehouseman delivers the goods to one who is
not in fact lawfully entitled to the possession of them, the warehouseman shall be liable as for conversion to all having
a right of property or possession in the goods if he delivered the goods otherwise than as authorized by subdivisions
(b) and (c) of the preceding section, and though he delivered the goods as authorized by said subdivisions, he shall be
so liable, if prior to such delivery he had either:
(a) Been requested, by or on behalf of the person lawfully entitled to a right of property or possession in the goods, not
to make such deliver; or
(b) Had information that the delivery about to be made was to one not lawfully entitled to the possession of the goods.
SECTION 11. Negotiable receipt must be cancelled when goods delivered. — Except as provided in section thirty-six,
where a warehouseman delivers goods for which he had issued a negotiable receipt, the negotiation of which would
transfer the right to the possession of the goods, and fails to take up and cancel the receipt, he shall be liable to any
one who purchases for value in good faith such receipt, for failure to deliver the goods to him, whether such purchaser
acquired title to the receipt before or after the delivery of the goods by the warehouseman.
SECTION 12. Negotiable receipts must be cancelled or marked when part of goods delivered. — Except as provided in
section thirty-six, where a warehouseman delivers part of the goods for which he had issued a negotiable receipt and
fails either to take up and cancel such receipt or to place plainly upon it a statement of what goods or packages have
been delivered, he shall be liable to any one who purchases for value in good faith such receipt, for failure to deliver all
the goods specified in the receipt, whether such purchaser acquired title to the receipt before or after the delivery of
any portion of the goods by the warehouseman.