to whose order the goods were to be delivered 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 possession of the goods for him according to the terms of the receipt. as fully as if the warehouseman had contracted directly with him.

§ 42. RIGHTS OF TRANSFEREE, NON-NEGOTIABLE RECEIPT.] 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 according to the terms of the receipt.

Prior to the notification of the warehouseman by the transferor or transferee of a non-negotiable receipt, the title of the transferee to the goods and the right to acquire the obligation of the warehouseman may be defeated by the levy of an attachment or execution upon the goods by a creditor of the transferor, or by a notification to the warehouseman by the transferor, or a subsequent purchaser from the transferor of a subsequent sale of the goods by the transferor.

$43. INDORSEMENT.] Where a negotiable receipt is transferred for value by delivery, and the indorsement of the transferor is essential for negotiation, the transferee acquired a right against the transferor to compel him to indorse the receipt, unless a contrary intention appears. The negotiation shall take effect as of the time when the indorsement is actually made.

44. WARRANTY BY DELIVERY OR INDORSEMENT.] A person who for value negotiates or transfers a receipt by indorsement or delivery, including one who assigns for value a claim secured by a receipt, unless a contrary intention appears, warrants:

(a) That the receipt is genuine.

(b) That he has a legal right to negotiate or transfer it.

(c) That he had knowledge of no fact which would impair the validity or worth of the receipt, and

(d) That he has a right to transfer the title to the goods and that the goods are merchantable or fit for a particular purpose whenever such warranties would have been implied, if the contract of the parties had been to transfer without a receipt the goods represented thereby.

§ 45. INDORSEMENT. EXTENT OF LIABILITY. FORMER HOLDER.] The indorsement of a receipt shall not make the indorser liable for any failure on the part of the warehouseman or previous indorsers of the receipt to fulfill their respective obligations.

§ 46. LIABILITY. SECURITY HOLDER.] A mortgage, pledgee or holder for security of a receipt who in good faith demands or

receives payment of the debt for which such receipt is security whether from a party to a draft drawn for such debt or from any other person, shall not by so doing be deemed to represent or to warrant the genuineness of such receipt or the quantity or quality of the goods therein described.

§ 47. INNOCENT HOLDER.] The validity of the negotiation of a receipt is not impaired by the fact that such negotiation was a breach of duty on the part of the person making the negotiation, or by the fact that the owner of the receipt was induced by fraud, mistake, or duress to entrust the possession or custody of the receipt to such person, if the person to whom the receipt was negotiated, or a person to whom the receipt was subsequently negotiated, paid value therefor, without notice of the breach of duty, or fraud, mistake or duress.

1

§ 48. POSSESSION OF GOODS OR RECEIPT. NOTICE.] Where a person having sold, mortgaged, or pledged goods which are in a warehouse and for which a negotiable receipt has been issued, or having sold, mortgaged, or pledged the negotiable receipt representing such goods, continues in possession of the negotiable receipt, the subsequent negotiation thereof by that person under any sale, or other disposition thereof to any person receiving the same in good faith, for value and without notice of the previous sale, mortgage or pledge, shall have the same effect as if the first purchaser of the goods or receipt had expressly authorized the subsequent negotiation.

$49. STOPPAGE IN TRANSITU. SURRENDER OF RECEIPT.] Where a negotiable receipt has been issued for goods, no seller's lien or right or stoppage in transitu shall defeat the rights of any purchaser for value in good faith to whom such receipt has been negotiated, whether such negotiation be prior or subsequent to the notification of the warehouseman who issued such receipt of the seller's claim to a lien or right of stoppage in transitu. Nor shall the warehouseman be obliged to deliver or justified in delivering the goods to an unpaid seller unless the receipt is first surrendered for cancellation.

§ 50. ISSUING RECEIPT AND NO GOODS. PENALTY.] A warehouseman or any officer, agent, or servant of a warehouseman, who issues or aids in issuing a receipt knowing that the goods for which such receipt is issued have not been actually received by such warehouseman, or are not under his actual control at the time of issuing such receipt, shall be guilty of a crime, and upon conviction shall be punished for each effense by imprisonment not exceeding five years, or by a fine not exceeding five thousand dollars, or by both.

§ 51 FRAUDULENT RECEIPT. FALSE STATEMENT.] FALSE STATEMENT.] A warehouseman, who fraudulently issues or aids in fraudulently issuing, a receipt for goods knowing that it contains any false statement, shall be guilty of a crime, and upon conviction shall be punished

for each offense by imprisonment not exceeding one year, or by a fine not exceeding one thousand dollars, or by both.

§ 52. DUPLICATE RECEIPT. WHEN ISSUABLE.] A warehouseman, or any officer, agent, or servant of a warehouseman, who issues or aids in issuing a duplicate or additional negotiable receipt for the same goods or any part of them is outstanding and uncancelled, without plainly placing upon the face thereof the word "Duplicate," except in the case of a lost or destroyed receipt. after proceedings as provided for in Section 14, shall be guilty of a crime, and upon conviction shall be punished for each offense by imprisonment not exceeding five years or by a fine not exceeding five thousand dollars, or by both.

§ 53. RECEIPT WHERE WAREHOUSEMAN IS OWNER.] Where there are deposited with or held by a warehouseman goods of which he is owner, either solely or jointly or in common with others, such warehouseman, or any of his officers, agents, or servants who, knowing this ownership, issues or aids in issuing a negotiable receipt for such goods which does not state such ownership, shall be guilty of a crime, and upon conviction shall be punished for each offense by imprisonment not exceeding one year, or by a fine not exceeding one thousand dollars; or by both.

§ 54. DELIVERY WITHOUT RECEIPT.] A warehouseman or any officer, agent, or servant of a warehouseman who delivers goods out of the possession of such warehouseman, knowing that a negotiable receipt the negotiation of which would transfer the right to the possession of such goods is outstanding and uncancelled, without obtaining the possession of such receipt at or before the time of such delivery, shall, except in the cases provided for in Sections 14 and 36, be guilty of a crime, and upon conviction shall be punished for each offense by imprisonment not exceeding one year or by a fine not exceeding one thousand dollars, or by both.

§ 55. DELIVERY RECEIPT WITHOUT TITLE.] Any person who deposits goods to which he has not title, or upon which there is a lien or mortgage, and who takes for such goods a negotiable receipt which he afterwards negotiates for value with intent to deceive and without disclosing his want of title or the existence of the lien or mortgage shall be guilty of a crime, and upon conviction shall be punished for each offense by imprisonment not exceeding one year, or by a fine not exceeding one thousand dollars, or by both.

§ 56. LAW APPLICABLE.] In any case not provided for in this Act, the rule of law and equity, including the law of merchant, and in particular the rules relating to the law of principal and agent and to the effect of fraud, misrepresentation, duress or coercion, mistake, bankruptcy, or other invalidating cause, shall govern.

$57. CONSTRUCTION OF ACT. UNIFORMITY.] This Act shall be so interpreted and construed as to effectuate its general purpose to make uniform the law of those states which enact it.

§ 58. DEFINITIONS. CONSTRUCTION. BOND.]

1. In this Act, unless the context or subject-matter otherwise requires:

"Action" includes counter claim, set-off, and suit in equity. "Delivery" means voluntary transfer of possession from one person to another.

"Fungible goods" means goods of which any unit is, from its nature or by mercantile custom, treated as the equivalent of any other unit.

"Goods" means chattels or merchandise in storage, or which has been or is about to be stored.

"Holder" of a receipt means a person who has both actual possession of such receipt and a right of property therein.

"Order" means an order by indorsement on the receipt. "Owner" does not include mortgagee or pledgee.

"Person" includes a corporation or partnership or two or more persons having a joint or common interest.

To "purchase" includes to take as mortgagee or as a pledgee. "Purchaser" includes mortgagee and pledgee.

"Receipt" means a warehouse receipt.

"Value" is any consideration sufficient to support a simple contract. An antecedent or pre-existing obligation, whether for money or not, constitutes value where a receipt is taken in satisfaction or as security thereof.

"Warehouseman" means a person lawfully engaged in the business of storing goods for profit.

2. A thing is done "in good faith" within the meaning of this Act, when it is in fact done honestly, whether it be done negligently or not.

§ 59. ACT NOT RETROACTIVE.] The provisions of this Act do not apply to receipts made and delivered prior to the taking effect of this Act.

§ 60. REPEAL.] All acts or parts of Acts inconsistent with this Act are hereby repealed.

§ 61. ACT WHEN IN EFFECT.] This Act shall take effect on the.... .one thousand nine hun

dred and..

day of...

§ 62. ACT, HOW CITED.] This Act may be cited as the Uniform Warehouse Receipts Act.

Approved March 7, 1917.

WAREHOUSES

CHAPTER 251.

[S. B. No. 215-King.]

PUBLIC WAREHOUSES.

An Act to Amend and Re-enact Sections 3118, 3119, 3120, 3121, and 3122 of the Compiled Laws of North Dakota for 1913, relating to Public Warehouses; Penalty.

Be it Enacted by the Legislative Assembly of the State of North Dakota:

§ 1. AMENDMENT.] That Section 3118 of the Compiled Laws of North Dakota for 1913 is hereby amended and re-enacted to read as follows:

§ 3118. WAREHOUSE ON RAILROAD RIGHT OF WAY. APPLICATION.] Any person, firm or corporation desirous of erecting and operating at or contiguous to any railroad station or siding a warehouse or elevator for the purchase, sale, shipment or storage of grain for the public for hire may make application in writing containing a description of that portion of the right of way of said railroad on which said person, firm or corporation, desires to erect a warehouse, or elevator, and the size and capacity of the warehouse or elevator proposed to be erected and the time for which it is desired to maintain said warehouse or elevator, to the person, firm or corporation owning, leasing or operating the railway at such station or siding for the right, privilege and easement of erecting and maintaining for the time stated in said application, and for reasonable compensation such warehouse or elevator as aforesaid, upon the right of way appertaining to such railway at such siding or station, and within and between the outside switches of the yard of such railway station or siding and upon paying or tendering money which said person, firm or corporation deems to be reasonable compensation for the right, privilege and easement aforesaid, they shall immediately upon tendering said sum of money be entitled absolutely and unconditionally to erect their warehouse or elevator on such railroad right of way, and the said person, firm or corporation owning, leasing or operating said railway at such station or siding shall immediately render them the same service they would be entitled to had the said person, firm or corporation owning, leasing or operating said railway at such station or siding, sold or leased said site to the person, firm or corporation desirous of erecting and operating said warehouse or elevator; and said person, firm or corporation desirous of erecting such elevator or warehouse shall be entitled to the right, privilege and easement and shall be entitled to erect such elevator or warehouse and