BILLS OF LADING. 43

SEC. 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 inter-
ested 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 draft 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.

SEC. 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 purchaser 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 tran-
sit. 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.

SEC. 43. Except as provided in Section 42, nothing in tins
Act shall limit the rights and remedies of a mortgagee or lien-
holder whose mortgage or lien on goods would be valid apart
from this Act, as against one whom, for value and in good
faith, purchased from the owner, immediately prior to the
time of their delivery to the carrier, the goods which are subject
to the mortgage or lien and obtained possession of them.

SEC. 44. Any officer, agent or servant of a carrier, who with
intention to defraud issues or aids in issuing a bill, knowing
that all or any part of the goods for which such bill is issued
have not been received by such carrier, or by an agent of such
carrier, or by a connecting carrier, or are not under the car-
rier's control at the time of issuing such bill, shall be guilty of
such a crime, and upon conviction shall be punished for each