The independent-reporter. [volume] (Skowhegan, Me.) 1909-1955, 1917-04-12

carrier owed to the TRANSFORM Of the
bill Immediately befors the notinoa-
ton.
Prior to the notification of the oar
rier by the transfsror or transfsrse of
q non-neGotiable bill, the title of tho
transferee to the goods and tho right
| to acquire the obligation OF the car
rier may be defeated by garnishment
or by attachment or execution upon
| the goods by a creditor of tho trans
feror, or by a notification to the oar
rier by the TRANSFORM or a subsequent
purchaser from the transferor of
subsequent sale of the goods by the
| transferor.
A carrier has not received notinca-
| ton within tho meaning OF this sec
ton unless an officer or agent OF the
carrier. the actual or apparent scope
of whose duties includes action upon
such notification. has been notified:
and no notification shall be effective
until the officer or agent to whom 1t
| Is given has had time with the exer-
else of reasonable diligence to COM
municate with the agent or agents
| having actual possession or control of
| the goods.
Section "a Where a negotiable bill
Is transferred for value by delivery.
and the Endorsement OF the transferor
Is essential for negotiation. the trans
fierce acquires right against the
| transferor to compel him to indorse
the bill. unless a contrary intention
appears. The negotiation shall take
effect as OF the time when the In
dorsement is actually made: This
obligation may be specifically en-
| forced.
Section S5. A person who nego-
| tiates or transfers for value bill by
| Endorsement or delivery, including
one who assigns for value claim Sc
cured by bill. unless q contrary In
tention appears. warrants:
(a) That the bill is genuine.
OBJ That he has legal right to
transfer 1t,
(o) That he has knowledge of no
fact which would impair the validity
or worth of the bill. and
(d) That he has right to trans
| fer the title to the goods and that
the goods are merchandise or mt Tor
particular purpose whenever SUCH
warranties would have been Implied.
| IL the contract of the parties had been
to transfer without u bill tho goods
represented thereby.
In the case of an assignment OF
claim secured by bill the liability OF
the assignor shall not exceed the
amount of the claim.
Section SO The Endorsement OF
bill shall not make the indorser liable
for any failure on the part of the car,
rier or previous indorsers of the bill
to fulfill their respective obligations
Section 81. mortgasee or
Pledge, or other holder of a bill for
security who In good faith demands
or receives payment OF the dept Tor
which such bill Is security. whether
! from a party to- a draft drawn for
| such debt or from any other person,
shall not be deemed by so doing to
represent or to warrant the genuine
ness of such bill or the quantity or
quality OF the goods therein described
Section SO. The validity of the nego-
| tation of a bill Is not impaired by the
fact that such negotiation was a breach
OF duty on the part of the person maxi
ing the negotiation. or by the fact
that the owner OF the bill was deprived
| Of the possession of the same by fraud.
accident. mistake. duress or conversion.
II the person to whom the bill was ne
gotiated. or a person to whom the bill
was subsequently negotiated, gave
value therefor In good faith. without
notice Of the breach of duty or fraud.
accident, mistake. dureSs or conversion.
Section 80 Where person having
sold, mortgaged. or pledged goods
which are In a carriers possession and
for which a negotiable bill has been Ia
| sued or having sold. mortgaged or
pledged the negotiable bin representing
such goods. continues In possession OF
the negotiable bill, the subsequent no
gotiation thereof by that person under
any sale. pledge. or other disposition
thereof to any person receiving the
| same In good faith, for value and with
out notice OF the previous sale. shhll
have the same effect as IL the first pur-
chaser of the goods or bin had express
ly authorized the subsequent negotia-
ton.
Section 40 Where goods are shipped
by the conslgnor In accordance with a
| contract or order for their purchase.
the form In which the bill is taken by
the consignor shall Indicate tho 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 tho buyer or
OF his agent. the consignor thereby
transfers the property In the goods to
tho 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, tho seller thereby reserves the
for the form of the bill. the property
would have passed to the buyer on
shipment OF the goods. the sellers prop
crty in the goods shall be deemed to
be only for the purpose of securing
| performance by the buyer of his obli
cations 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 retained by the seller or his agent,
the seller thereby reserves a right to
the possession OF the goods as against
the buyer.
I'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 II he does not honor the draft, and
IL he wrongfully retains the bill he ac-
quires no added right thereby. IT.
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 con
signee named therein. one who pur-
chascs in good faith. for value, the
bill or goods from the buyer, shall OBJ
| tain the title to the goods although
the draft has not been honored. II such
purchaser has received delivery Of the
bill Endorsed by the consgnee named
therein. or Of the goods. without notice
Of the facts making the transfer
| wrongful.
Section Al 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 bank
| or other agency unless a different in
tention on the part OF the seller ap-
| pears tho buyer and all other parties
interested shall be Justified In assum
ing:
(a) II the draft Is by It's terms or
legal effect payable on demand or pre-
| sentation or at sight or not moro 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) II the dyaft 10 by its terms pay
able on time. extending beyond three
days after demand. presentation or
sight whether such three days be
termed days OF grace or noO. that the
seller intended TO require acceptance.
but not payment OF tho draft before
the buyer should be entitled to receive
or retain the bill.
The provisions of this section are ap-
plicabls whether by the terms OF the
bin the goods are consig ned to the sell