Ala. Code
Code of Alabama

Ala. Code § 7-7-601 (2026)

Lost, Stolen, or Destroyed Documents of Title.

✓ official Alabama Legislature (ALISON) text, current July 2026
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(a) 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 person comply with the order. If the document was negotiable, a court may not order delivery of the goods or issuance of a substitute document without the claimant’s posting security unless it finds that any person that may suffer loss as a result of nonsurrender of possession or control of the document is adequately protected against the loss. If the document was nonnegotiable, the court may require security. The court may also order payment of the bailee’s reasonable costs and attorney’s fees in any action under this subsection.

(b) 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 in good faith, the bailee is liable for conversion. Delivery in good faith is not conversion if the claimant posts security with the bailee in an amount at least double the value of the goods at the time of posting to indemnify any person injured by the delivery which files a notice of claim within one year after the delivery.

(Prior version of this section added by Acts 1965, No. 549, p. 811; repealed by Act 2004-315, p. 464, §1; current section added by Act 2004-315, p. 464, §1.)

Notes of Decisions
Cited in 1 case, 2017–2017 · leading case: Wells Fargo Bank, N.A. v. Nat'l Bank of Com., 240 So. 3d 541 (Ala. 2017).
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Wells Fargo Bank, N.A. v. Nat'l Bank of Com., 240 So. 3d 541 (Ala. 2017). “of "reasonable attorney's fees" upon failure to execute payment order); § 7-5-111(e) (noting that "reasonable attorney's fees and other expenses of litigation may be awarded" under Article 5 dealing with letters of credit); § 7-9A-607(d) (stating that a secured party may deduct…”
— Ala. Code § 7-7-601(a) — 1 case
Wells Fargo Bank, N.A. v. Nat'l Bank of Com., 240 So. 3d 541 (Ala. 2017). “of "reasonable attorney's fees" upon failure to execute payment order); § 7-5-111(e) (noting that "reasonable attorney's fees and other expenses of litigation may be awarded" under Article 5 dealing with letters of credit); § 7-9A-607(d) (stating that a secured party may deduct…”
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