WAREHOUSE RECEIPTS. 55

SEC. 38. A negotiable receipt may be negotiated by the in-
dorsement of the person to whose order the goods are, by the
terms of the receipt, deliverable. Such indorsement may be
in blank, to bearer or to a specified person. If indorsed to a
specified person, it may be again negotiated by the indorsement
of such person in blank, to bearer or to another specified per-
son. Subsequent negotiation may be made in like manner.

SEC. 30. A receipt which is not in such form that it can be
negotiated by delivery may be transferred by the holder by de-
livery to a purchaser or donee.

A non-negotiable receipt can not be negotiated, and the in-
dorsement of such. receipt gives the transferee no additional
right.

SEC. 40. A negotiable receipt may be negotiated:

(a) By the owner thereof; or

(b) By any person to whom the possession or custody of
the receipt has been entrusted by the owner, if, by the terms
of the receipt the warehouseman undertakes to deliver the
goods to the order of the person to whom the possession or cus-
tody of the receipt has been entrusted, or if at the time of such
entrusting the receipt is in such form that it may be negotiated
by delivery.

SEC. 41. A person to whom a negotiable receipt has been
duly negotiated acquires thereby:

(a) Such title to the goods as the person negotiating the
receipt to him had or had ability to convey to a purchaser in
good faith for value, and also such title to the goods as the
depositor or person to whose order the goods were to be de-
livered by the terms of the receipt had or had ability to convey
to a purchaser in good faith for value; and

(b) The direct obligation of the warehouseman to hold pos-
session of the goods for him according to the terms of the re-
ceipt as fully as if the warehouseman had contracted directly
with him.

SEC. 42. A person to whom a receipt has been transferred,
but not negotiated, acquires thereby, as against the transferor,
the title of the goods, subject to the terms of any agreement
with the transferor.

If the receipt is non-negotiable, such person also acquires
the right to notify the warehouseman of the transfer to him of
such receipt, and thereby to acquire the direct obligation of the
warehouseman to hold possession of the goods for him accord-
ing to the terms of the receipt.

Prior to the notification of the warehouseman by the trans-
feror or the transferee of a non-negotiable receipt, the title of