A document of title is not sufficient for a creditor to take an interest in goods.

Name: A document of title is not sufficient for a creditor to take an interest in goods.
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Question

Quizplus · Accepted Answer

A document of title, such as a bill of lading or warehouse receipt, can serve as proof of ownership or possession of goods, but it does not grant security interest to a creditor. A separate security agreement or UCC filing is required for a creditor to have a legal claim on the goods.

A Document of Title Is Not Sufficient for a Creditor