HERBERT R. O'CONOR, GOVERNOR. 393

the trustee negotiates to a purchaser in good faith and
for value.

(2) Where a purchaser from the trustee is not pro-
tected under sub-section (1) hereof, the following rules
shall govern:

(a) (1) Where the trustee, under the trust receipt
transaction, has liberty of sale and sells to a buyer in the
ordinary course of trade, whether before or after the
expiration of the thirty day period specified in sub-section
(1) of Section 8 of this Article, and whether or not filing
has taken place, such buyer takes free of the entruster's
security interest in the goods so sold, and no filing shall
constitute notice of the entruster's security interest to such
a buyer. (2) No limitation placed by the entruster on
the liberty of sale granted to the trustee shall affect a buyer
in the ordinary course of trade, unless the limitation is
actually known to the latter.

(b) In the absence of filing, the entruster's security
interest in goods shall be valid, as against purchasers,
save as provided in this section; but any purchaser, not a
buyer in the ordinary course of trade, who, in good faith
and without notice of the entruster's security interest and
before filing, either (1) gives new value before the expira-
tion of the thirty day period specified in sub-section (1)
of Section 8, or (2) gives value after said period, and who
in either event before filing also obtains delivery of. goods
from a trustee shall hold the subject matter of his pur-
chase f r ee of the entruster's security interest; but a trans-
feree in bulk can take only under (2) of this sub-divi-
sion (b).

(c) If the entruster consents to the placing of goods
subject to a trust receipt transaction in the trustee's stock
in trade or in his sales or exhibition rooms, or allows such
goods to be so placed or kept, such consent or allowance
shall have like effect as granting the trustee liberty of sale.

(3) As to all cases covered by this section, the purchase
of goods, documents or instruments on credit shall con-
stitute a purchase for new value, but the entruster shall be
entitled to any debt owing to the trustee and any security
therefor, by reason of such purchase; except that the en-
truster's right shall be subject to any set-off or defense
valid against the trustee and accruing before the purchaser
has actual notice of the entruster's interest.

10. (Entruster's Right to Proceeds. ) Where, under the
terms of the trust receipt transaction, the trustee has no
liberty of sale or other disposition, or, having liberty of
sale or other disposition, is to account to the entruster for