312 BILLS OF LADING. [ART 14

such bill is security, whether from a party to a draft drawn for such
debt or from any other person, shall not be deemed by so doing to repre-
sent or to warrant the genuineness of such bill or the quantity or quality
of the goods therein described.

1910, ch. 336, sec. 38 (p. 41).

38. The validity of the negotiation of a bill is not impaired by the
fact that such negotiation was a breach of duty on the part of the per-
son making the negotiation, or by the fact that the owner of the bill
was deprived of the possession of the same by fraud, accident, mistake,
duress or conversion, if the person to whom the bill was negotiated, or
a person to whom the bill was subsequently negotiated, gave value there-
for, in good faith, without notice of the breach of duty, or fraud, acci-
dent, mistake, duress or conversion.

Where a party took bills of lading in payment of an antecedent debt, he
became a Bona fide purchaser for value under section 1 of this article as it
stood prior to the uniform bills of lading act. Tiedman v. Knox, 53 Md. 610.
(See section 53).

As to what amounted to notice under section 1 of this article, as it stood
prior to the adoption of the uniform bills of lading act, see Dold, etc., Co.
v. Ober, 71 Md. 163.

See notes to art. 14 A, sec. 47.

1910. ch. 336, sec. 39 (p. 42).

39. Where a person, having sold, mortgaged or pledged goods which
are in a carrier's possession and for which a negotiable bill has been
issued, or, having sold, mortgaged or pledged the negotiable bill repre-
senting such goods, continues in possession of the negotiable bill, the
subsequent negotiation thereof by that person under any sale, pledge
or other disposition thereof to any person receiving the same in good
faith, for value and without notice of the previous sale, shall have the
same effect as if the first purchaser of the goods or bill had expressly
authorized the subsequent negotiation.
See art. 83. sec. 46.

1910. ch. 336. sec. 40 (p. 42).

40. Where goods are shipped by the consignor in accordance with a
contract or order for their purchase, the form in which the bill is taken
by the consignor shall indicate the transfer or retention of the property
or right to the possession of the goods, as follows:

(a) Where by the bill the goods are deliverable to the buyer or to his
agent, or to the order of the buyer or of his agent, the consignor thereby
transfers the property in the goods to the buyer.

(b) Where by the bill the goods are deliverable to the seller or to his
agent, or to the order of the seller or of his agent, the seller thereby
reserves the property in the goods. But if, except for the form of the
bill, the property would have passed to the buyer on shipment of the
goods, the seller's property in the goods shall be deemed to be only for
the purpose of securing performance by the buyer of his obligation
under the contract.