BILLS OF LADING. 41

had time, with the exercise of reasonable diligence, to com-
municate with the agent or agents having actual possession or
control of the goods.

SEC. 34. Where a negotiable bill is transferred for value by
delivery, and the endorsement of the transfer is essential for
negotiation, the transferee acquires a right against the trans-
feror to compel him to endorse the bill, unless a contrary in-
tention appears. The negotiation shall take effect as of the
time when the endorsement is actually made. This obligation
may be specifically enforced.

SEC. 35. A person who negotiates or transfers for value a
bill by endorsement or delivery, including one who assigns for
value a claim secured by a bill, unless a contrary intention
appears, warrants—

(a) That the bill is genuine;

(b) That he has a legal right to transfer it;

(c) That he has knowledge of no fact which would impair
the validity or worth of the bill, and

(d) That he has a right to transfer the title to the goods,
and that the goods are merchantable or fit for a particular
purpose whenever such warranties would have been implied, if
the contract of the parties had been to transfer without a bill
the goods represented thereby.

In the case of an assignment of a claim secured by a bill,
the liability of the assignor shall not exceed the amount of
the claim.

SEC. 36. The endorsement of a bill shall not make the en-
dorser liable for any failure on the part of the carrier or pre-
vious endorsers of the bill to fulfill their respective obligations.

SEC. 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.

SEC. 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 pos-
session 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 conversion.