HERBERT R. O'CONOR, GOVERNOR. 391

(c) A purchaser in. good faith and for value from an
entruster in possession takes free of the trustee's interest,
even in a case in which the entruster is liable to the trustee
for conversion.

(4) Surrender of the trustee's interest to the entruster
shall be valid, or any terms upon which the trustee and the
entruster may, after default, agree.

(5) As to articles manufactured by style or model, the
terms of the trust receipt may provide for forfeiture of
the trustee's interest, at the election of the entruster, in
the event of the trustee's default, against cancellation of
the trustee's then remaining indebtedness; provided that
in the case of the original maturity of such an indebtedness
there must be cancelled not less than 80% of the purchase
price to the trustee, or of the original indebtedness, which-
ever is greater; or, in the case of a first renewal, not less
than 70%, or, in the case of a second or further renewal,
not less than 60%.

7. (General Effect of Entruster's Filing or Taking Pos-
session. )

(1) (a) If the entruster within the period of thirty
days specified in sub-section (1) of Section 8 files as in
this Article provided, such filing shall be effective to pre-
serve his security interest in documents or goods against
all persons, save as otherwise provided by Sections 8, 9,
10, 11, 14 and 15 of this Article.

(b) Filing after the lapse of the said period shall be
valid; but in such event, save as provided in sub-division
(2) (b) of Section 9, the entruster's security interest
shall be deemed to be created by the trustee as of the time
of such filing, without relation back, as against all persons
not having notice of such interest.

(. 2) The taking of possession by the entruster shall,
so long as such possession is retained, have the effect of
filing, in the case of goods or documents; and of notice of
the entruster's security interest to all persons, in the case
of instruments.

8. (Validity Against Creditors. )

(1) The entruster's security interest in goods, docu-
ments or instruments under the written terms of a trust
receipt transaction, shall without any filing be valid as
against all creditors of the trustee, with or without notice,
for thirty days after delivery of the goods, documents or
instruments to the trustee, and thereafter except as in this
Article otherwise provided.