BILLS OF LADING 507

An. Code, 1924, sec. 37. 1912, sec. 37. 1910, ch. 336, sec. 37 (p. 41).

37. A mortgagee or pledgee, or other holder of a bill for security, who
in good faith demands or receives payment of the debt for which 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 represent or to warrant
the genuineness of such bill or the quantity or quality of the goods therein

described.

Bank held pledgee. Consignee may negative implied warranties otherwise following
endorsement. This section applied. Johnson it. Western Md. Ry. Co., 151 Md. 427.

Cited but not construed in McLane v. State, 156 Md. 145.

An. Code, 1924, sec. 38. 1912, sec. 38. 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 person 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 therefor, in good faith, without
notice of the breach of duty, or fraud, accident, mistake, duress or con-
version.

Where a party took bills of lading in payment of an antecedent debt, he became
a bona fide purchaser for value under sec. 1 of this article as it stood prior to the
uniform bills of lading act. Tiedman v. Knox, 53 Md. 616. (See sec. 53.)

As to what amounted to notice under sec. 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. 14A, sec. 47.

An. Code, 1924, sec. 39. 1912, sec. 39. 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.

This section referred to in construing art. 83, sec. 25—see notes thereto. Stem v.
Crawford, 133 Md. 588.

See art. 83, sec. 33.

An. Code, 1924, sec. 40. 1912, sec. 40. 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 prop-
erty 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.