Sec. 2. Bills of Lading and document or information which the Board deems requisite for the due performance of its duties. (d) "Association." The Act of incorporation of the Canadian Bankers' Association is printed in Chapter XXVII., infra. (d) "Curator." See sec. 117, Chapter XXI., infra. (e) "Circulation Fund." See sec. 64, infra. (f) Goods, Wares and Merchandise. See notes to sec. 76. This expression is used also in secs. 86-91. (g) "Warehouse Receipt." (h) "Bill of Lading." See notes to sec. 86. A warehouse receipt is in some respects like a bill of lading. Each is a receipt or acknowledgment that the goods of one person have been received by another, but the legal effects of these documents at common law were very different. A bill of lading, being an acknowledgment by a carrier that goods had been received for carriage, was an instrument well-known to commerce, and by the custom of merchants peculiar incidents were attached to it, the most important of which was that upon its transfer the property in the goods mentioned in it passed to the transferee. A warehouse receipt on the contrary has not by custom any peculiar incidents attached to it, and its mere transfer did not pass to the transferee the property in the goods (Bank of British North America v. Clarkson, 1869, 19 C.P. at p. 188). In England the Bills of Lading Act and the Factors Acts have largely extended the effect of bills of lading, and the rights of the holders of them. The former act confers upon the consignee of goods named in a bill of lading, and an endorsee of a bill of lading to whom the property in the goods pass upon or by reason of such consignment or endorsement the same rights of suit, and subjects him to the same liability, as if the contract contained in the bill of lading had been made with himself. The latter acts are intended to afford security to persons dealing with factors or agents entrusted with the possession of goods, or of the documents of title to goods. These or similar acts are in force in various parts of Canada, and like the subject of bills of lading generally are matters of provincial law; cf., however, R.S.C. c. 118. Sec. 2. The Bank Act does, however, deal with the subject of ware- Collateral house receipts and bills of lading (as defined in this section) security. to the extent of giving the banker special privileges in regard to taking such documents as collateral security. See secs. 86 et seq. The question of the power of Parliament to enact the provisions in question is discussed in the notes to sec. 88. A bill of lading is not negotiable in the special sense that a Bill of bill of exchange may be negotiable (cf. Chapter XXX., infra). lading not a The mere honest possession of a bill of lading endorsed in blank, negotiable or upon which the goods are made deliverable to bearer, is not such a title to the goods as the like possession of a bill of exchange would be to the money promised to be paid by the acceptor. The endorsement of a bill of lading gives no better right to the goods than the endorser himself had (except in cases where an agent entrusted with it may transfer it to a bonâ fide holder under the Factors Acts), so that if the owner should lose or have stolen from him a bill of lading endorsed in blank, the finder or the thief could confer no title upon an innocent third person. But the title of bonâ fide third persons will prevail against the seller who has actually transferred the bill of lading to the buyer, although he may have been induced by the buyer's fraud to do so, because a transfer obtained by fraud is only voidable, not void. Benjamin on Sales, 5th ed. 1906, p. 919. Pollard v. Vinton, 1881, 105 U.S. at p. 8. Absence of ment. The absence of the endorsement of a bill of lading by the consignee therein named is notice of an outstanding interest in endorsethe goods represented by the bill, and places a person who is asked to make an advance upon the security of the bill upon enquiry. The mere manual possession of the bill does not enable the possessor to make a pledge except subject to the rights of the consignee. (Gosselin v. Ontario Bank, 1905, 36 S.C.R. 406). (i) "Manufacturer." See notes to sec. 88. (j) "President." See secs. 24 and 28. To what banks this Act applies. Banks incorporated prior to 1st of January, 1905. Banks incor CHAPTER IV. APPLICATION OF THE ACT. General. 3. The provisions of this Act apply to the several banks enumerated in schedule A to this Act, and to every bank incorporated after the first day of January, one thousand nine hundred and five, whether this Act is specially mentioned in its Act of incorporation or not, but not to any other bank, except as hereinafter specially provided. 53 V., c. 31, s. 3. The first 27 banks named in Schedule A. to the present act were included in Schedule A. to the Bank Act, 1890, and obtained the usual ten years' extension of their charters under the Act of 1900. The last seven banks named in Schedule A. have commenced business since 1900. La Banque Provinciale du Canada was formerly named La Banque Jacques Cartier (63-64 Vict. c. 102), and the Royal Bank of Canada was formerly named the Merchants Bank of Halifax (63-64 Vict. c. 103). The Bank of British North America is specially provided for by sec. 6. The following banks not included in Schedule A. to the present Bank Act and incorporated prior to the 1st of January, 1905, have since that date obtained extensions of time for obtaining the certificate required by secs. 14 and 16. 1. Citizens Bank of Canada, incorporated by 3 Edw. VII., c. 106, time extended by 5 Edw. VII., c. 81 and 6 Edw. VII., c. 81. 2. Farmers Bank of Canada, incorporated by 4 Edw. VII., c. 77, time extended by 5 Edw. VII., c. 92 and by 6 Edw. VII., c. 94. Since the 1st of January, 1905, acts have been passed incorporated porating the following banks not included in Schedule A. to the since 1st of January, present Bank Act: 1905. 1. Monarch Bank of Canada, incorporated by 5 Edw. VII., c. 125, time extended by 6 Edw. VII., c. 127. 2. Chartered Bank of London & Canada, incorporated by 6 Edw. VII., c. 80. 3. Colonial Bank of Canada, incorporated by 6 Edw. VII., c. 83. Sec, 3. In October, 1906, the directors of the Ontario Bank, in con- Ontario sideration of the assumption of its liabilities by the Bank of Bank. Montreal, made over most of its assets to the latter bank. Subsequently a curator was appointed by the Canadian Bankers' Association and a petition for a winding-up order was presented, but not pressed. The corporate existence of the Ontario Bank would not appear to be affected. In January, 1907, the shareholders of the Peoples Bank of Peoples New Brunswick approved of the sale of the bank's assets to the Bank of Bank of Montreal. N. B. 4. The charters or Acts of incorporation, and any Acts in Bank charters continamendment thereof, of the several banks enumerated in schedule ued to July A to this Act are continued in force until the first day of July, 1st, 1911, as one thousand nine hundred and eleven, so far as regards, as to particulars. each of such banks, (a) the incorporation and corporate name; (b) the amount of the authorized capital stock; (c) the amount of each share of such stock; and, (d) the chief place of business; subject to the right of each of such banks to increase or reduce its authorized capital stock in the manner hereinafter provided. to some 2. As to all other particulars this Act shall form and be the As to other charter of each of the said banks until the first day of July, one particulars. thousand nine hundred and eleven. 3. Nothing in this section shall be deemed to continue in Forfeited force any charter or Act of incorporation, if, or in so far as it or void charters not is, under the terms thereof, or under the terms of this Act or of continued. any other Act passed or to be passed, forfeited or rendered void by reason of the non-performance of the conditions of such Sec. 4. Act contin up. charter or Act of incorporation, or by reason of insolvency, or for any other reason. 63-64 V., c. 26, s. 6. The date mentioned in this section, the first day of July, 1911, is the date set for the expiration of the charters of all the banks included in Schedule A. at the decennial renewal of 1900; see review of legislation in Chapter I., supra. The section does not apply to the Bank of B.N.A. (sec. 6). The right of a bank to increase or reduce its authorized capital stock is provided for by secs. 33 and 35. Banks in course of winding-up. 5. The provisions of this Act shall continue to apply to the ues to apply banks named in schedule A to the Bank Act, passed in the fiftyfor purposes of winding- third year of Her late Majesty's reign, chapter thirty-one, and not named in schedule A to this Act, but only in so far as may be necessary to wind up the business of the said banks respectively; and the charters or Acts of incorporation of the said banks, and any Acts in amendment thereof, or any Acts in relation to the said banks now in force, shall respectively continue in force for the purposes of winding-up, and for such purposes only. Bank of 2. The sections of this Act enumerated in the next following section shall continue to apply to the Bank of British Columbia, but only in so far as may be necessary to wind up the business of the bank. 63-64 V., c. 26, s. 5. Banks in Liquidation. The following banks, which are those named in Schedule A. to the Bank Act, 1890, and not named in Schedule A. to the present Bank Act, suspended payment or were absorbed by other banks and went into liquidation in the interval between 1890 and 1906: 1. Commercial Bank of Manitoba, suspended payment July 3, 1903. 2. Banque du Peuple, suspended payment July 16, 1895. 3. Banque Ville Marie, suspended payment July 25, 1899. |