42 LAWS OF MARYLAND.

SEC. 39. Where a person, having sold, mortgaged or pledged
goods which are in a carrier's possession and for which a nego-
tiable bill has been issued, or, having sold, mortgaged or
pledged the negotiable bill representing such goods, continues
in possession of the negotiable bill, the subsequent negotiation
thereof by that person under any sale, pledge or other disposi-
tion 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.

SEC. 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 indi-
cate 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.

(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 re-
tained 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 wrong-
fully retains the bill, he acquires no added right thereby. If,
however, the bill provides that the goods are deliverable 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 pur-
chases 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 purchaser has received delivery
of the bill, endorsed by the consignee named therein, or of the
goods, without notice of the facts making the transfer wrong-
ful.