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chased the subsequent receipt for value, supposing it to
SEC. 7. FAILURE TO MARK "NOT NEGOTIABLE.”—A nonnegotiable receipt shall have plainly placed upon its face by the warehouseman issuing it "Nonnegotiable' or "Not negotiable." In case of the warehouseman's failure so to do, a holder of the receipt who purchased it for value supposing it to be negotiable, may, at his option, treat such receipt as imposing upon the warehouseman the same liabilities he would have incurred had the receipt been negotiable.
This section shall not apply, however, to letters, memoranda, or written acknowledgements of an informal character.
OBLIGATIONS AND RIGHTS OF WAREHOUSEMEN UPON THEIR
SEC. 8. OBLIGATION OF WAREHOUSEMAN TO DELIVER.
(a) An offer to satisfy the warehouseman's lien;
(b) An offer to surrender the receipt if negotiable, with such indorsements as would be necessary for the negotiation of the receipt; and
(c) A readiness and willingness to sign, when the goods are delivered, an acknowledgement that they have been delivered, if such signature is requested by the warehouseman.
In case the warehouseman refuses or fails to deliver the goods in compliance with a demand by the holder or depositor so accompanied, the burden shall be upon the warehouseman to establish the existence of a lawful excuse for such refusal.
SEC. 9. JUSTIFICATION OF WAREHOUSEMAN IN DELIVERING. A warehouseman is justified in delivering the goods, subject to the provisions of the three following sections, to one who is
(a) The person lawfully entitled to the possession of the goods or his agent;
(b) A person who is either himself entitled to delivery by the terms of a nonnegotiable receipt issued for the goods, or who has written authority from the person so entitled either indorsed upon the receipt or written upon another paper; or
(c) A person in possession of a negotiable receipt by the terms of which the goods are deliverable to him or order
or to bearer, or which has been indorsed to him or in blank by the person to whom delivery was promised by the terms of the receipt or by his mediate or immediate indorsee.
SEC. 10. WAREHOUSEMAN'S LIABILITY FOR MISDELIVERY.-Where a warehouseman delivers the goods to one who is not in fact lawfully entitled to the possession of them, the warehouseman shall be liable as for conversion to all having a right of property or possession in the goods if he delivered the goods otherwise than as authorized by subdivisions (b) and (c) of the preceding section, and though he delivered the goods as authorized by said subdivisions he shall be so liable, if prior to such delivery he had either
(a) Been requested, by or on behalf of the person lawfully entitled to a right of property or possession in the goods, not to make such delivery; or
(b) Had information that the delivery about to be made was to one not lawfully entitled to the possession of the goods.
SEC. 11. NEGOTIABLE RECEIPTS MUST BE CANCELED WHEN GOODS DELIVERED.-Except as provided in section thirty-six, where a warehouseman delivers goods for which he had issued a negotiable receipt, the negotiation of which would transfer the right to the possession of the goods, and fails to take up and cancel the receipt, he shall be liable to anyone who purchases for value in good faith such receipt for failure to deliver the goods to him, whether such purchaser acquired title to the receipt before or after the delivery of the goods by the warehouseman.
SEC. 12. NEGOTIABLE RECEIPTS MUST BE CANCELED OR MARKED WHEN PART OF GOODS DELIVERED.-Except as provided in section thirty-six, where a warehouseman delivers part of the goods for which he had issued a negotiable receipt and fails either to take up and cancel such receipt or to place plainly upon it a statement of what goods or packages have been delivered he shall be liable, to anyone who purchases for value in good faith such receipt, for failure to deliver all the goods specified in the receipt, whether such purchaser acquired title to the receipt before or after the delivery of any portion of the goods by the warehouseman.
SEC. 13. ALTERED RECEIPTS.-The alteration of a receipt shall not excuse the warehouseman who issued it from any liability if such alteration was
(b) Authorized, or
(c) Made without fraudulent intent.
If the alteration was authorized, the warehouseman shall be liable according to the terms of the receipt as altered. If the alteration was unauthorized, but made without fraudulent intent, the warehouseman shall be liable according to the terms of the receipt as they were before alteration.
Material and fraudulent alteration of a receipt shall not excuse the warehouseman who issued it from liability to deliver, according to the terms of the receipt as originally issued, the goods for which it was issued, but shall excuse him from any other liability to the person who made the alteration and to any person who took with notice of the alteration. Any purchaser of the receipt for value without notice of the alteration shall acquire the same rights against the warehouseman which such purchaser would have acquired if the receipt had not been altered at the time of the purchase.
SEC. 14. LOST OR DESTROYED RECEIPTS.-Where a negotiable receipt has been lost or destroyed, a court of competent jurisdiction may order the delivery of the goods upon satisfactory proof of such loss or destruction and upon the giving of a bond with sufficient sureties, to be approved by the court, to protect the warehouseman from any liability or expense which he or any person injured by such delivery may incur by reason of the original receipt remaining outstanding. The court may also in its discretion order the payment of the warehouseman's reasonable costs and counsel fees.
The delivery of the goods under an order of the court as provided in this section shall not relieve the warehouseman 'from liability to a person to whom the negotiable receipt has been or shall be negotiated for value without notice of the proceedings or of the delivery of the goods.
SEC. 15. EFFECT OF DUPLICATE RECEIPTS.-A receipt upon the face of which the word "duplicate" is plainly placed is a representation and warranty by the warehouseman that such receipt is an accurate copy of an original receipt properly issued and uncanceled at the date of the issue of the duplicate, but shall impose upon him no other liability.
SEC. 16. WAREHOUSEMAN CAN NOT SET UP TITLE IN HIMSELF. No title or right to the possession of the goods, on the part of the warehouseman, unless such title or right is derived directly or indirectly from a transfer made by the depositor at the time of or subsequent to the deposit for storage, or from the warehouseman's lien, shall excuse the warehouseman from liability for refusing to deliver the goods according to the terms of the receipt.
SEC. 17. INTERPLEADER OF ADVERSE CLAIMANTS.-If more than one person claim the title or possession of the goods, the warehouseman may, either as a defense to an action brought against him for nondelivery of the goods, or as an original suit, whichever is appropriate, require all known claimants to interplead.
SEC. 18. WAREHOUSEMAN HAS REASONABLE TIME TO DETERMINE VALIDITY OF CLAIMS.-If some one other than the depositor or person claiming under him has a claim. to the title or possession of the goods, and the warehouseman has information of such claim, the warehouseman shall be excused from liability for refusing to deliver
the goods, either to the depositor or person claiming under him or to the adverse claimant, until the warehouseman has had a reasonable time to ascertain the validity of the adverse claim or to bring legal proceedings to compel all claimants to interplead.
SEC. 19. ADVERSE TITLE IS NO DEFENSE, EXCEPT AS ABOVE PROVIDED. Except as provided in the two preceding sections and in sections nine and thirty-six, no right or title of a third person shall be a defense to an action brought by the depositor or person claiming under him against the warehouseman for failure to deliver the goods according to the terms of the receipt.
SEC. 20. LIABILITY FOR NONEXISTENCE OR MISDESCRIPTION OF GOODS.-A warehouseman shall be liable to the holder of a receipt for damages caused by the nonexistence of the goods or by the failure of the goods to correspond with the description thereof in the receipt at the time of its issue. If, however, the goods are described in a receipt merely by a statement of marks or labels upon them, or upon packages containing them, or by a statement that the goods are said to be goods of a certain kind, or that packages containing the goods are said to contain goods of a certain kind, or by words of like purport, such statements, if true, shall not make liable the warehouseman issuing the receipt, although the goods are not of the kind which the marks or labels upon them indicate or of the kind they were said to be by the depositor.
SEC. 21. LIABILITY FOR CARE OF GOODS.-A warehouseman shall be liable for any loss or injury to the goods caused by his failure to exercise such care in regard to them as a reasonably careful owner of similar goods would exercise, but he shall not be liable, in the absence of an agreement to the contrary, for any loss or injury to the goods which could not have been avoided by the exercise of such care.
SEC. 22. GOODS MUST BE KEPT SEPARATE.-Except as provided in the following section, a warehouseman shall keep the goods so far separate from goods of other depositors and from other goods of the same depositor for which a separate receipt has been issued as to permit at all times the identification and redelivery of the goods deposited.
SEC. 23. FUNGIBLE GOODS MAY BE COMMINGLED, IF WAREHOUSEMAN AUTHORIZED.-If authorized by agreement or by custom, a warehouseman may mingle fungible goods with other goods of the same kind and grade. In such case the various depositors of the mingled goods shall own the entire mass in common, and each depositor shall be entitled to such portion thereof as the amount deposited by him bears to the whole.
SEC. 24. LIABILITY OF WAREHOUSEMAN TO DEPOSITORS OF COMMINGLED GOODS.-The warehouseman shall be severally liable to each depositor for the care and redelivery of his share of such mass to the same extent and under the same circumstances as if the goods had been kept separate.
SEC. 25. ATTACHMENT OR LEVY UPON GOODS FOR WHICH A NEGOTIABLE RECEIPT HAS BEEN ISSUED.-If goods are delivered to a warehouseman by the owner or by a person whose act in conveying the title to them to a purchaser in good faith for value would bind the owner, and a negotiable receipt is issued for them, they can not thereafter, while in the possession of the warehouseman, be attached by garnishment or otherwise, or be levied upon under an execution, unless the receipt be first surrendered to the warehouseman or its negotiation enjoined. The warehouseman shall in no case be compelled to deliver up the actual possession of the goods until the receipt is surrendered to him or impounded by the court.
SEC. 26. CREDITORS' REMEDIES TO REACH NEGOTIABLE RECEIPTS.-A creditor whose debtor is the owner of a negotiable receipt shall be entitled to such aid from courts of appropriate jurisdiction, by injunction and otherwise, in attaching such receipt or in satisfying the claim by means thereof as is allowed at law or in equity, in regard to property which can not readily be attached or levied upon by ordinary legal process.
SEC. 27. WHAT CLAIMS ARE INCLUDED IN THE WAREHOUSEMAN'S LIEN.-Subject to the provisions of section thirty, a warehouseman shall have a lien on goods deposited or on proceeds thereof in his hands, for all lawful charges for storage and preservation of the goods; also for all lawful claims for money advanced, interest, insurance, transportation, labor, weighing, coopering, and other charges and expenses in relation to such goods; also for all reasonable charges and expenses for notice, and advertisements of sale, and for sale of the goods where default has been made in satisfying the warehouseman's lien.
SEC. 28. AGAINST WHAT PROPERTY THE LIEN MAY BE ENFORCED. Subject to the provisions of section thirty, a warehouseman's lien may be enforced
(a) Against all goods, whenever deposited, belonging to the person who is liable as debtor for the claims in regard to which the lien is asserted; and
(b) Against all goods belonging to others which have been deposited at any time by the person who is liable as debtor for the claims in regard to which the lien is asserted, if such person had been so intrusted with the possession of the goods that a pledge of the same by him at the time of the deposit to one who took the goods in good faith for value would have been valid.
SEC. 29. HOW THE LIEN MAY BE LOST.-A warehouseman loses his lien upon goods
(a) By surrendering possession thereof, or
(b) By refusing to deliver the goods when a demand is made with which he is bound to comply under the provisions of this Act.
SEC. 30. NEGOTIABLE RECEIPT MUST STATE CHARGES FOR WHICH LIEN IS CLAIMED.-If a negotiable receipt is issued for goods, the warehouseman shall have no lien thereon, except for charges for storage of those goods