ART. 14] DRAFT ATTACHED TO BILL. 313

(c) Where by the bill the goods are deliverable to the order of the
buyer or of his agent, but possession of the bill is retained by the seller
or his agent, the seller thereby reserves a right to the possession of the
goods, as against the buyer.

(d) Where the seller draws on the buyer for the price and transmits
the draft and bill together to the buyer to secure acceptance or payment
of the draft, the buyer is bound to return the bill if he does not honor
the draft; and if he wrongfully retains the bill, he acquires no added
right thereby. If, however, the bill provides that the goods are deliver-
able to the buyer, or to the order of the buyer, or is endorsed in blank
or to the buyer by the consignee named therein, one who purchases in
good faith, for value, the bill or goods from the buyer, shall obtain the
title to the goods, although the draft has not been honored, if such pur-
chaser has received delivery of the bill, endorsed by the consignee named
therein, or of the goods, without notice of the facts making the trans-
fer wrongful.

1910, ch. 336, sec. 41 (p. 43).

41. Where the seller of goods draws on the buyer for the price of
the goods and transmits the draft and a bill of lading for the goods,
either directly to the buyer or through a bank or other agency, unless
a different intention on the part of the seller appears, the buyer and
all other parties interested shall be justified in assuming—

A. If the draft is by its terms or legal effect payable on demand or
presentation or at sight, or not more than three days thereafter (whether
such three days be termed days of grace or not), that the seller intended
to require payment of the dl'aft before the buyer should be entitled to
receive or retain the bill.

B. If the draft is by its terms payable on time, extending beyond
three days after demand, presentation or sight (whether such three
days be termed days of grace or not) that the seller intended to require
acceptance, but not payment of the draft before the buyer should be
entitled to receive or retain the bill.

The provisions of this section are applicable whether by the terms
of the bill the goods are consigned to the seller or to his order, or to the
buyer or to his order, or to a third person or to his order.
See art. S3, sec. 41.

1910. ch. 336. sec. 42 (p. 43).

42. Where a negotiable bill has been issued for goods, no seller's
lien or right of stoppage in transit shall defeat the rights of any pur-
chaser for value in good faith to whom such bill has been negotiated,
whether such negotiation be prior or subsequent to the notification to
the carrier who issued such bill of the seller's claim to a lien or right
of stoppage in transit. Nor shall the carrier be obliged to deliver or
justified in delivering the goods to an unpaid seller unless such bill
is first surrendered for cancellation.
See art. 83, sec. 74. et seq.