ART. 14A] NEGOTIATION. 329

resent or to warrant the genuineness of such receipt or the quantity
or quality of the goods therein described.

1910. ch. 406, sec. 47 (p. 56).

47. The validity of the negotiation of a receipt is not impaired by
the fact that such negotiation was a breach of duty on the part of the
person making the negotiation, or by the fact that the owner of the
receipt was induced by fraud, mistake or duress to entrust the posses-
sion or custody of the receipt to such person, if the person to whom the
receipt was negotiated, or a person to whom the receipt was subse-
quently negotiated, paid value therefor, without notice of the breach
of duty, or fraud, mistake or duress.

Where the consignee of goods, clothed with indicia of title, stores them in
a warehouse, takes receipts for them, and assigns the receipt to a bona fide
purchaser for value, the latter will be protected, although the consignee was
not the owner of the goods. Farmers' Packing Co. v. Brown, 87 Md. 10.
(Rased on article 14, section 1, of the code of 1904).

If, however, the pledgee takes receipts upon the face of which the con-
signee is described as "agent." such description puts the pledgee on notice
that such consignee is not the actual and bona fide owner. Thurber v. Cecil
Nat'1 Bank, 52 Fed. 513. (Based on article 14, section 1. of the code of 1904).

See sec. 58.

See notes to art. 14, sec. 38.

1910, ch. 406. sec. 48 (p. 57).

48. Where a person having sold, mortgaged or pledged goods which
are in a warehouse and for which a negotiable receipt has been issued,
or having sold, mortgaged or pledged the negotiable receipt represent-
ing such goods, continues in possession of the negotiable receipt, the
subsequent negotiation thereof by that person under any sale, or other
disposition thereof to any person receiving the same in good faith, for
value and without notice of the previous sale, mortgage or pledge, shall
have the same effect as if the first purchaser of the goods or receipt has
expressly authorized the subsequent negotiation.
See art. 83. sec. 40.

1910, ch. 406, sec. 49 (p. 57).

49. Where a negotiable receipt has been issued for goods, no seller's
lien or right of stoppage in transitu shall defeat the rights of any pur-
chaser for value in good faith to whom such receipt has been nego-
tiated, whether such negotiation be prior or subsequent to the notifica-
tion to the warehouseman who issued such receipt of the seller's claim
to a lien or right of stoppage in transitu. Nor shall the warehouseman
be obliged to deliver or justified in delivering the goods to an unpaid
seller, unless the receipt is first surrendered for cancellation.
See art. S3. sec. 74.

1910. ch. 406. sec. 50 (p. 57).

50. A warehouseman, or any officer, agent or servant of a ware-
houseman, who issues or aids in issuing a receipt, knowing1 that the
goods for which such receipt is issued have not been actually received