.

THH
UIAREHOUSE RECEIPTS LAW

WI{O MAY I$}$UE WARffiI-IOUSE RECEIPT?

:r l\ vlarclr()t lsent2n is a prersrtl la\rfrtllyet)gaqed in tlte trLtsiltess (tf st{,liltq qot)(ls lor llltlfit.

>{ }111y :r vi;Arf-rItnt,!:elnat] ttl:ty is*tte 1 /arell(-)Llse recei[)1$

WI.IA-I- SI{OULI] BE NONH TO PU"T THM RHCHIPT WITHIN

.T[{H
FURVIHW SF VVAREHOUSE RHCEIFTS LAW?
:' ilre warell(.,\us+l re(:eil)l strorrltl lle issltetl l:y tite rnratetrt:rtsetttatl

r;OIlM oF RECtrlPTS; E$SENTIAL TERMS

L I lrc lor:alioti ol tlte rtrarelrrrt tse wltqre tlte ctortrls are sttlrerl
.
'n,
I i1c r.lale of issr rr-' o[ tlro r eceil:t
.1. ()onset:rrtirrr,. trrrnllrer of tlre tet--r-.tpt

4. r\stalerrrerrl'vvlretlrertlreqriocl-qrpceiverl vvill lre rlelivererllotllellr-:aler.toaslrer-lifierl pet'stittttrttlr-t

:;1ler.:ifierl llq!s()n nt ltis otrler
5 lire ra{rr o[ tlotaqe r:liat0es
fi 4 ol tlre goorls or rrf tlre pack;rges crttrtainirtr.l tltettt
r16:sr:ril.tinrr

i. Ilre SieliralLrre rrl tlre r.,,arpl).rrrseitrarr Wltir:lt nrlv lre tttarlr: Iry lris altltotizrlrl aqetrt
{l lf tlrrl rcr:ei11l is i-sqrretl {ot Uorrrls o[ wltir:lt tltn
r,vitrelrrltrsetrrarr is r)\/yrrrnr. oillrer qololy r11 ioitrtly {l ilr ()(}trttttntt tryitlt otlters. ttte fat:t rtf sttt:lt
o,,lrrtr:tsltilr
() A of lltrl antotrttt oI aritrattt:eS t]lA(Je;rtttl ltl
tt:rtaltt,a,11
liatrilili-^r irrr:r rrrr:rl {rr ra,lrir:lr the rvare!rr)use,}rarr r:lairrrs aslion. lf tlreprel:iseatttrrttttt{ot qttc}t

arlr.larrr:es tnarle rrf of crrr:lr liatlililies irrcrrtretl is, at tlr.: satttr: titrre of tlre issrta of tlre ter:ei1tt. ttttl<trrlurti lo

tlre \nratelroust)f ltan or tc his atlnttt

'1,1 ro iriiu(l-q it. a staieurerrt of tlre iar:t tlr:lt a(lvart(-'es ltarie l:eett nta(le trr liatlilities itte :t rrrerl att<l tlre
pirrpose ttrerea{ is st-tlficient

r.:r- FE'C I- OF $Ml$$lClN OF Tl-lE E$SEN"IIAL CONTENTS

> A warehcuserran shall lre liable ta any person injured
thereby all danrages caused by the rynission from a negr:tiable receipt of *ny af the lerms hereirt
r etlr riretl
> Valirlily o{ tlre receipt nol affected
> l'.legotiahility of the receipt not a{fected

IT,RMS TIIAI CANNO"TBE INCLUHtrP IT{ T}-IH WARtsFIOTISH

l{I-:c [:ll]"1
1" f hose contrary to any provision of the law
?-. In any wise i*rpair the warehouseman's obligation tc
exercise that degree of care in the safekeeping of the
gr-rr-rds er:trusled to him which a reasoratrly carefr:l rnan wculd exercise with regard to similar goocls
o[ lris oln

N {:-} N-NHG O'I'IA I.I L ]i WAR E I-I O U S E R E C E I I}T

> Receipt in which il is slatecl that the gr:ods received will be delivered to the depositor or to any specified

I)ers{]lr

Nr:{j}{} ['IAIJt-L; W,r\ltHl-lOuSH RH$Hlt}T

:- Rst-.eipt irr whir:h it is staied that the goods received will be

deliveted to tlre bearer or tn the order of any persorl narned in suclr receipt
> Nt: provisiotr slrall be insertetl irr a r:egoliable receipt tlrat it is non-rlegotiable, $uclr provision if insertetl

slrall he voirl.

I ll lrlL.lt;A"l"t: Itt-{:f:lf } I-{i nnUS'f' r}t: nnAR](Et-}

>When rrrore tharr orr* is issued {or tlre sanre goods, tlre
worcl "rluplicat*" shall be plainly placed upon the face of every such receipt, except the first ane
isstred

> A warehousenran shall be held liable for damages for {ailure to do so tr: anyone who purchased
tlre slbsequenl receipt {or vallre sr-rpposing it to be original, even ihough
tlre prrrr;lraser be after the delivery o{ the goods by the warehousernan to tlre holcler of tlre original
receiirt

()lll IGAII()l'lJi /\[.lli l]l(-ill!.! {)l \/V/\[tf:ll(){lsEtull\tl t]P()l'l lllFltl RtroFll)'lS

PITIhIL:II'AI - OBI "IGA TION$ OF TI-IH UUAREHOUSEMAN

L Io 1al<+ r:are of ll're gor.:tis errlrr:slerJ to his safekeeping

2_. I.o rjeliver tl'renr to the hcrlder cf lhe receipt ar ilre

rletrrosilor provitlerJ the follawing r-:onditions are fufilled-thereisdemandbytheclepositor
at:r:onrparrierl lry eitltcr
a. An ofler to satisfy the warehousernan's lisn
l:. Arr olfer to surrerrcler l]re receipt. if rregoti*ble with
sllch inrJnlsetnents as woukJ l:e necessary for the negotiatiorr of tl-re receipls
o. A rearJirress arrd willirrgrress tc sign. when tlre goocls are clelivered, ar acknowledgenrent that
tltoy ltave heen delivered. if strclr signature is requestecl by the warehorrsen:an

mftlAI litltltll-.t) AC{;OMPANY -l l-lE t}EIUIANII -l'l-lE

FCIR
E{f:: I-l f t?N ( }l- fl lI: G(}{:}f"}S?

l. Arr offer lo satisfy tl_re warehousernan's lien

7.. Art rlffer trr surrelu1er tlre receipt, if negotiable with suclr indorsernents as woulcl Lre necessary
fr:r llre rreqoliation of the receipls
ll A rearJiness and willirrgrress to sign, wlren the goods are
deli'rered. arr acknawledgement ihat llrey have been
rjelivererj. if srrr;h signalure is reqr-rested by tlre warehcruseulan
 A wAI"r[:l.f(]ll{il:MAN I$ -ltJSIll:ltrll ltU lltrl.lVERtNG Tt-il_
{:irx}t}fi I{} (}NL' wl l{} ls_ .

t Persorr law{r:lly errtitlerl ln lhe possession of ilre goods, or his agerrt

7. Persntl wlto eitlter himself ontitlerJ to deliver"y by the terrns of the nr:n-negotiable receipt issuerJ for ilre
gloods. ot wlto lras w'ritten authority lrorn the person so entitled eitlier endorsecl upon lhe receipt or

v'rrittetr oil arrr:tlrer palrer

li Persr:n irr ptssessior: of a negotiable recei;:t by lhe ternrs
oI inilrir;h llre qoods are deliveratrle to hinr or order. or to bearer, or which lras been irrclorsed
[o ltitl or in hlatlh hy the person to wlrcrrt delivery was prornisecl by the ternis of the receipt or by his
ttrecliate r:r irrrlrediate indorser

UVAI.T[..}'I{ }I |fiI:MAN'$ LIABILIT'Y T-OR MIST}EI-IVERY

'"
Wltere a wareholtsertrair delirrers lhe goods lo one wlro is rrot in fact lawfully entitled to the
pttssessiotl tlf thent. tlte warelrouse[ta!] shall be liable for conversionlestafa to all
fiaving a right of
Ir'oi:ertf or Fossessiotr in the oooejs if he delivered the goods othffrwiss tlmn as authorized
> Ailrl tltotrglh he rlelivered lhe goods as authorized he shall
be so liatrle if prrior to slrch delivery he lrarl
eitlrer*-

o Beett reriuested, l;y eir ott hehalf af the person lawfully entitled kr a right ol J:roperty or
Possessiorr irr llre uonrls. lrol to make srrch tjelivery

o i'iarl itr{ortttation lhat ll"re delivery ab0r-rt to be nracle was to oile not tawfully entitlecl to the
possession of tlre qoods

i't.fl trA I Iii {;{ }NVI'rt{:il{}N1}

> t.lrratltltr:rie.er.l
ass**lpti'n anrJ exercise of ilre riglrt of
rrrnrttetslrip r:ver gnods belonging to attother llrrough the alteration of lheir conrjitiorr
or lh* excl'sio,
of tlie owner's liglrt
Nl-{,i{} IIAt}l- I-" t{HCflPTS MIIST" BE CANCELLI:D
OR
r$/1i{}1r-1} wl IHN C;Ot}n$ I}HLIVEItHII Of{ WFIEN PAR"I OF I I
l:."i t lF l.ll'f.Rl:l)" [:All-tJRH T'(} nO S(] trylll" MIAKE I I lt
VYAIt L:l {{ }t I lil.]MAfU l-lAtl l-ff--

' f he warel!or.rssfnan is lial:le to arry t-rne who pr:rchases for

valtte irt qoed failh sLrr;h receipt, for failure to deliver tlre gaods tc hinr, wlretlter suclr purchaser
aq;r11.tirerl title to the receipt before or after the clelivery of the goorls by the wareh*usdrnan

J:. Jr[:f']:{: I { }[: Al I fr:RAT'lON oN l_lARtLt-rY {}rr

lfld/\l{ L I I (}t I l"i I: IVIAN

L Alteratiqrr irnrnaterial-vvheiher fraudr-llerrt or nol, wheilrer

au1|rr:tiz,etl t-,t nr:t. lhe watehouseriran is liable on the altered receipt according tr: its original ter:or

'2. Alleralirlrr rnaterial-if the alteraliorr is .rlaterial. br-lt

aulltr-rrized. tlte wareltouselnan is liable according to the ternrs of the receipt as altered

:t, Material alteraliort innocenlly rnade**the warehouselnan is liable orr the alterecl receipt accorrling to
ils rtt itJittal ret;ei1tl

4 tu{aterial alteration tibrrctutenity rnarle-warehor-lseman is

liahle ar:cctclirrg to tlre orioinal tetror nf the receipi to a purchaser of tlre receipt fer value urilrout
ryrtice. arxl everr to the alterer and suhsequent purchasers with rrotice
exr:epi that a$ regards to the last two, the
v'rareltotlsetnalr's liability is lirnited only to delivery as l"re is excused frorr any liability
t{{,}l A BEI'{F: it is clear that even a fraudulent alleraticn cannot
rlivest the title of lhe owner of stcred gr:ods arrd ilte
lvarel{rlrsernarr is. therefore, liable 1o relurn them lo the owner.
Brrt a hcla fide holder to the goocls LtnrJer a
acqrrires no right
Iteootiallle teceipt wltir:h ltas been lost r:r slolen or tn which t!re enrJgrsement of tlre 6epositor has
heerr fr:rgee1.
I tlti t { }lt I rl l.i I I{(}YFLI t{;::("}[:ll] fS
= Ilrr- t-rnurt rrray or-rler tlre rlelivery cf tlre goods upnnsatisfactoryproof of sttcltlossordestrr-rclir:n
ar-rrl Lr;rorr the oivinu tf a htnd wiih srr{ficieilt sureties tc lle approved by the coult to protect the

rr.,Arelrrurserrrarr {ronr any lialrility er exp€n$e, which he {.)r any persorl iniurecl by sttr:lr rlelirrerv

rlrilv irrr:rrr hy reast:tt cf tlre ariginal receipt renlainirtg nutstatrdirtg

:' lhe r:orrrl trlay al-so irr its discretiolr r:rder the payrnent of the wareltoltselnan's reasonable costs attd
crrr rt tsel fps,c

= I.lre r:rrJer of tlre t'r:r rrt strall rrr:t relieve the r,vareltotisertan

frurtrr lial.rility lo a J:erson to whonr ihe negotiable receipt as treert rlr shall he negctiated for valtre
witlrorrt rrrrtiq:e of tlre ;-rror:eer.lings or of tlre clelivery cf the g+otls

E I/\l.BIl Il Y ()t WAttl: *l()tJSEMAN A$ "l't) IltJPLl(lAI"[:--l-l[::

IruAITItAN T ii
t ilrat lhe rkr;:lir:al+ is an acr:r:rate copy of the original receipt
'2- Srrr:lr r:riglirral rer:ei;:t is r.rrrcancelled ai the date *:f the issue of tire duplicate

V\{11${F:l l{}Lf $|':MAN CANNOT SET UP Tl=rLE lN l-llMSIll*F

:. 'l lre warelrorrserrarr nannot refuse to rleliver the goods on
lhe grounrl tlral lre has acrlr:ired title or right to tl:e
pnssesskrrr of tlre sarne unless such title or right is rJeriverl-
o Direr:{ly or irrrJirer;lly fr*nr a transfer made by the depositor at tlre tinre of the deposit for str:rage
nr sr.lbserltrent lherett'r
o Frr:nr lh* warehot-rsernan's lien

lltl [ [ "H]'l "[:Al][:lt {t[: AI]V[.RS[: (.1-.AllvlA$'lTS

> lF nl()re lltan one [lers{}it r;lainis the title or posges$iorr q:f tlre gr:och. tlre warehorjser}lan may.
eill rer as a tl?[errs+ tr.r arr at;iior-r brouotrt against ]rinr for rrorr-ctelively of the
 interplead
Llr){r{Js. L1r as at1 r'}riqiflal sriit. }vhichever is applopliaie' reguire all l<nouqln claimants to

WAREHfiUSEFJIA HAS RHA$SNAMLE TIMH

TS PHTHRMINH
VALIDITY OF CLAIMS
llle or Fersot] clairning urrrJer ltitlr ltas a clainr to tlre title 0r
> lr s()ltreorre otlrer tlrart ciepleisitr:r
warehCrUserlarl Sltall tle
Irr.rssessiotl ,-,{ so,cls, atrrJ ttre
warellnLtgetllan haS infr:rrtnatiOn Of StlClt Clfliln' llte
tn rjeli,rer th* gaods, eitlrer lo the tlepositor oI person
nrt:rrse(l frrrtrr liat:ility fol reftrsinfl
llas lrad a teastlttatlle tinte
r:lairiliilrr ilrrrler hinr or to ttre adv*rse r:lainrant, r.rrrtil the warehousetnan
tr: corrtpel all clainrants to
to asr:qrlaitt llte rralirlily tlf tlte arlvetse claim cr to brin5l legal ;:rr:ceeclings
irrterl:learl

L'AMILII Y f,}F lryARffiI"t#USEMAN FMR TUSN-EXI$TENtrM ffiR

Mtsnffi$cRlPTt$hl 0r Gm$m$
. property stored with lrirn
As a qerreral rrrle. tire warehousernan is under obtigation ta deliver the iderttical
arrrl if lre lails lo rlo so. he is liable direr:tly to the cwner
- As aqairrsl a lrrrtta iirje holcler of a wateltotrse receipt, tlrc
i,ryarelrgrrserrran is estopJ:rerJ whether the receipt is negotiahle ot not, to rlerry that he ltas receiveri

tlre qr:rrtls drlqr:r'illed itt it

I lA[]lLI I Y t]lr WAI1[:l tf]ttSEfiUAN [::OH l-OS$ DIIE I {} LA{:l{

{ }l: {--\I{|

-'[ l]p lffarelror.rsenran is reqrired llr exercise ordinary ar

reasonabl* r:arn in llre r:ustocly of ttre gaods, that is, the
r:are is rr,rasorral.rly carefrrl owner wolld exercise over sitrtilar goods nf ltis own.
:- I h+ warelrousernar isn't liatrle for arry loss or injury to the
qorxls. wlrir:lr coukjn't have beetr avoid*d by the exercise
ol srrr:lr r:are. O{ r:orrrse. r'irlrat constitutes ordinary or
r.*.aqorralrle care rlepenrls trpon the eircrlrnstarrces such as the charar:ter attri vallte of the propertv
arrrl llre r:ltaracter
arrrl lor-'atiorr rrf llre warehottse.
C#MtulhlcLlr.{G*rpEF$$lTHpG00ns
belarrgirrg 1o depositors
-.As a <;erreral rrrle. a urarelrousenlall rnay not rningle goads
tlrenr v'ritlr tlte goo,s of tlre san.re kirrtl arrcl
:, lrr r::aFe.{ [rrrrQible 5;ar-rrls, tlte watehr,rLlselnall rnay,ritrg;le
ttr cu$tr:n:
{rarle ptrrvirJerl llrat lre atttltnrizecl by a-r;reernettt
* { )r:rrrrrrirro}ittrl is irrtetlr.letl for tlte trenefit ol the
urarf;lrrrusetttatt ll woukl. irrriesd be slrarlge if lhe
warerlrottserttatt r:ottl(l escape his liability lo the owtter r-rf
llrll qoor'{s trv tlre sirrrple flrocess r:{ r:onttningling tlrent withottt autltoriZatiolt

/\r i l\(;il[wl-],1'l {--}R l-l--vY ()F A NtrG{}',rlAr*LE RECb'll-*-I

> l he warelrotlselrtan tlas lhe rjirer:t obligation to lrr:ld
receipt of iitle
,ossessi', *f the gcods for ll.te original ownel ar for the person kttown the *egr:tiatrle
Iras lmett dttly ne{y,rtiated.
: lIllrile irr lxrssessiott of srtch warelrollsetlan, lhe goods
carrrrgl be attar:lted or leviecl uporr trt:clar all execution unless*
o I lte rlor:ttrrrettt is firsl st.rrlenclererJ
ri lts rregotiatiott is ertjoirrecl
c f he {locrrrrtetrt is intpror-rnried by the cor-lrt
:. 't tris shall rrct apply if tlre persorr rlepositing is not ttre owner of tlre gootls or one wfio ha$ no right
tr) c{-)nvey litle to the.rqonr,ls bitxling upr-rn ttre owner.
> lrleilirer slratl it apJrly 1o aclions lor recovery or rllarlual delivery af goods lty the real owner ttnr ln
{}e!es r,vlrere the attachmerrt is nrade belore the issuance r:f the negoliable receipt of title

{.i{[. lJl I t,][t':i Flt ]tUIEI-]lt:S TO HITACH fdf::(;{}'tlABl E

[{f:.{."1]ll'l 1l

> A r:rprjitor irylro*e r.lel:tor is the r:wtrer o{ rregotlable ret;eiJrt

shall he errlitlecl tr..l srrr:h aid from r:nrrrls of appropriate ir:risdictir.rrr, hy injrrnction and r:therurise, irr

all.aclri*q suclr teceil-rl ';r in satisfyirrq lhe clainr by rtreans tlrereaf as is

allrrwed hy larv tlr itt eqr-rity itt req*rlrl to property whiclr
canrtot lie r{}ar.lilv be attaclletl or leviecl uporr by ordhrary
leglal 1:rct-:ess

lqftu\tr rr! AtMl,i l\lil_ tN{}t_LfilED lN il{L:WArtr:H()t-lsLMAN-I.i

LIHN
1 All larrvfrrl cltarges fc,r str:rag1b arrr-l preservati*n rrf thegonrls

/ nll lawft rl t:laittts for lllolley arJvattced-lttterests'

alrd expenses in relati'r'r
l,sltrr,{-.e. Ira,spr.rrtatir:,. t abor, weighing, cooperatirrg atrrj otlmr charges
lrt tlrP Uor'tle

:1 nll reRsottaltle r:lratqes anr:l expelrSes for rratiCe Anrl advertiserlents of sale

,l Salc rrf qo{rr{s wlrere <lefar-tft has heen nrarJe in satis{yinO warehollselnan'S liell

AGF\INST \trI.IAT PRC}FERTY THH tIEN TVIAY BE HNFCIR*ffiP

! . Aclair rst all qootls. wherrever rleposited, belorrgino to the persolr who is liable to the debtor for tiie
r:lairrrs irr rr:qat rl tr: wlticlt il're lien is asserted
2 Aqairrs! all qor:rls helorrging to r:thers which have beerrdepcsitedatanytitnebVthe;rersr:ttwhrt
iq liat_rle a$ rlelrtor for clairrrs in re,qarr:l to which the lier: is asseried if such

l).1srlr! lrar,! leerr errllrsle6 r,vitlr the pr)ssession of the -qoods ttrat a pledge r:f tlte sante
by lrinr at the

tirrr*" of tlre rleposil lo one urlra tor.rlt lhe goorls in gor:cf iaith fcr valtte war-tld have besn valid

[!( ]1iif IAIAIEf :ll(]lIf il-.lVlAt{ I n$f:S Fllf* l"lF.hl

1 Bv srrrrerrrlerittt.t no$sessictt tltereof
't. l3y refrrsiru; lo rleliver the gooris wiren a demsnd is nracle with whicir he is btrt-ttrd to eontply uttder
llre prlvisir-rns o[ llte larnr

}"1- Nf:G(} I lA[.]l-"L:

x "{n -ilI Vlfl l!";ttt.- ftt,{.'L=ll
> i{/ilh flre o[ llre charges {or the storage t:r
+rxr:egrlion

;ucservatinn u[ qnorls fi:r urlticlt a rr*rgotiable receipt ltas

Ireen is=rretJ. tlre lien-exists orrly for llre other chartres
expf esslv pnurllerate(l in llre receipt so far as they are written altlrr:ugtt tlte amottnt cf the said
r;haroe istr't slated

{} i I lt .tt I Illf'l{.i:ri II{ t:{}NNEil'l ION I.("t WAREI l(llJ$LjlUlAN'l{

r tf_N
.l \;llarelruusernar r rreerl not dnliver liErr is satisfied
? irt/arelroLrser]rarI's lien cloesn't preclurle other remedies

:iAI!:il l\(;Il(-}hl tlt Il[:,hl BY SAI"['

L l{re wRrel rrusernarr slrall give a rsrilten notice to theperson r-rnwhose accclmtlhe
gr.){}dsare lrekJ. anrj lo any other person known by ttre warehouset'nan trl claim an
irrleresl irr lhe gnorls. Strch notice shall {:e given try
rlalir,rery in persorr or i:y registered nrail addressed to the
lact ktrr;rvtr ;tlace of busirress or abotle oI the persorr tr: be notified.
2 l'lre rrotir:o slrall cnrrtairr-
?. An iierrrizetl statenrenl of the clairrr, showing lhe
lfrra at tlre lirne of the nr:rtic+ and llte tlates wlren it hecarnetkre
"*,,,1
tr A trriel tlescription of the goods
(). A rlettranr.l l[tat stlch atttortnt of ttre claim as slated shall be paid on or before ttre rlay rlentionecl. not
lpqs lltarr 1t) rlays {ront the rlelivery.nf {he natice i{ it is persanallv clelivered, or {ronr the lirne when
-thq nrrtine slrall reaclt its clestir"rati*n, accordirrg to due cour$e of post. if the notice is serrt by nrail
rl. A staterrrerrt thal urrless tlre r:lainr is paid witl-rirr the tinre specified" the gor:ds will be advertisetj for
rale
arrrl sokl lry arrr-diorr at a spe<:ified tinre arrd place

f ilI[:{ }l-{t:l:nfll ltl I L}f' WAREI-lOtl{:l1=MAN'S I lf:N

1 Rv rellrsirxr to delir.rer tlre qnocls rrr-rtil the lien is saticfi*d
? Ry t:atrsirte tlre exlrairrdicial sale of the properiy ancl applying ttre prr:ceecis lo thevalrr* of tfue
licrr
l:l . Ry filirrr; a r.:ir,'il fftrtirrn fr-rr rxfllectiorr r:f lhe rrnpaid cltarrles
{tr hy r,r.,;ry of c(x!r}iex:lairn irr an a{ltion lo recover tlrep;rapertyfrotlr hitn

[]-llr['f .t; tr { }l' i:iAl f-: {.}l (}OOt"}$

I lrr rrase of salp of gnods. the warehotserllan is rrot liable
[r.rr rr4rrrrJelirrery even if tlre re<;eipl J;iven for the gocds when tlrey were depasitecl be rlegotiaterl
'). Wlretr llre sale was rnade withor-rt the L-rublication
1e,;r1il elrrerrf arrrl lrefore ilte titrte sl,ecitied by law, such
sale is vr:rirl arrtl lhe ;.rrrrr:haser of lhe goccls acqr.tires tro tille in tl-renr.

/\{ t:i I { }lt Wl ll{:ll Wl\ttf HO[}SI-:MAN lti I lA[1] t-

1. [raihrrr; {n slanr;r <luplicale on copies r:{ negotiabfe receipt
2 [:ailrrre 1o Jrlar:e rron-rret]t>lial,le or r.rot rregotiable on the nol rreqotiat]le receipt
3 lrlisrlelivery rrf 1l re qo*ds
,l [ailrrre lo effect r:ancei]aliorr tf a negotiable receipt upon rlelivery of tlre goorls
5. !ssuirrrJ ret:eiLrt for norr-exi$ling er:ods or mi$de$(;ribed qcr-:cls

f] [..aihrre lo lake care of the gr:crrJs

7 Faihrre k] qi1.re rrr:lhe irr case of sale of goorls to salisiy the lien or hecause the goorJs are perishat:le
or ltaznrrJntts

NI-t'l{ }I lAl lt}I{ ANt} fRANSFL:}? {)l; RECtrlt}TS

tr'iH:-t:;{} I ll\ l'l{}N (}[" NI;G$'[IABLL: RI.IC[:|Pf BY D]:LIVEItY

1 . Wher e by lhe lenrrs of the rer;eipt. lhe warehauselnan urxlerlakes to deliver the goods to the

ttearer.
7 lrYlrere hy llre terrns of the receipt, the warehousqman r-rrrderlakes to deliver the go*ds lo the orrier

of a sg.rer-:ifiecl perenrr. and suclr person or a subsequent irrrJorsee of the receil:t lras inckirseri it irr

lrlalri< or to lrearer.
 ;,r Wliere lry tlr* lrllrn$ t[ l]r* rer;eipt. the -qr:r-:rJs are rl*liverahle {r-r irearer or rzuhr+re a tregntiahle
r*r:+i!it !:as trc+ri ityjrr**ii i* l:ta*i,. *r ir*arer, arty i'lcirjet' rlpy irrdcrs* the satne t* hinrsell er tr any
ll[ltet'sp*r:ifietl l:etsr:'rn. arrrl irr sr:*[r case 1he receip{ shall lhereafter be neqotiateel only t:y lhe
itttJotr-:etttettl by sur:lt indr:t see

F,tt ..{ ;{. } I I/\ I It }N Or NFG()l-lAElLE ItECEIPI- [:iY

IhlI l{ }l{iil;MI;f{ I

l. lf itrrlrrrserl itt blank r-rr to Lrearer, the docun:ent becornesnegctiablettydelivery

? lf itttJrtts+rj lo a specifierl percnr], it mav be again negotiated try the intJorsenrent r:f sur:lr
lxarson irr hlall<. ln bearer r:r to arrother sf-leci{ied fierson" Delivery alone isn't sufficierrt

X fl t/\l{ iil r!--lt L}[ : N{}N-fUl..GO"flAE]l-f: RE("lL:lP-f'

'A norr-rreltoliable receipt r:f titte canrrol he negotiatecl.
- hlerrerlheless. it carr be transferred or assignerl by delivery
> I lre assiqltee Dr lransfetee nnly acqrrires lhe righls o{ the transferor r:r assignr:r

/\l)\IAN I /\(,i[. Ii { }l- A f'lt:.GOTIAI]Lti WAttE}"lOUSE RE(;Ell"'l

1 lt proter:is a ltrrn:haser for rralrre anrl in good faith

? 1.lte qloll* tlt.rv*rsrl l:y tlte rer:ei1rt cannot be garnished or leviecl upon under execution unless it is
srrrrerxlered. or irrrgrrrrrrJerl. q:r ils negr.rtiation errjoined

3 ln rase ttf neqc'ttiatiolt. tlte hr:ltler acqr rires {lre direct ohligatiorr o[ the warelrousernarl ta holcl possession
of llte qoorls fnr hitrr wiilrcut notice tr-r such warelrousenran.

tl . I lte qlrpds it envers aren't sr rhjecl to seller's lien or stoppage in transit.

WHC} MAY NHGfiTIATH A RECEIPT

1 Bv llre {}\ /rter lhereof"

;l B-v anvllersir)nto r;y11or,,

lhe;rossession r:r cr-rstotly of thereceiplhasheenentrusterJLlylheowner.
iI lry !lte tetttts of the recei;rt. the warelrouser]lan lrndertakes lc cleliver itre goorls to tlre grder Df lfue
!:rr!'l!ollrr!riiin(.'1. tlrc't"rretiIl is irrqttrlr lonrr llr;rl it trti.lv lre ttaq.1,:tiitl.orl lly rleli.,erv

lll{,il I I:i {}l l}f'rl{fi(.}N f () 1fVll{}lvl Rf:CEIPf HAli Bt*:[-"hl

f{[]"{i{ }'l'lA If '[]
1 I lre title n{ lhe llers(}n neqaliallng lh* receipt over the g{}erJ$ {:overed try tlte receit)t

'r)
. I lre litle of tlre lrer sorr io r,r.rlrose nrller Lry tlre ternrs r:rf the receipt llre goorls wel e 1{) lle deliverpd nrrer
st trlt etrrirJs

.1. Ilre rliter;l nhlioaliorr rf fhe rnrarehouseman to lrnld pcssessinn of llie gonds fr.rr hirr. as if
tlre r.ryarr+lrnrtsenlan direr:tlv r-:ontrar:terJ with hirn.

l-{l{ i! I I 1l ( I}t Hft{ }l }N 'l"o wIIOM Rt:"{:E:lt}T' l-lAs }3H[, lol

I ttAI!li[],t.1,{lil l}
'I I itle tlr tlre qor.rrJs as against ihe transferor
z- llre rirJlrt ln rrntify the warelrcLr$entIn r.lf fire transfertherer;f
3 Itrc tirtlrl lltet.eafter to acrlrrire the ohligation of tlrewarehrltt-qernarrtotrrrldtlregootlsfr:rlrint

Iilr;t I rii r.lr'' Il{ANlit.t,_ttI;tj (}[., NHGonABLE IttrcElt""l

1. 1'f 1s rlqlrl lo tlre goods as against the transferor

?-. I-lrc riqlrt lo r:ornpel the transferar to indorse the reeeipt

f iq II .l-- Wl Il"-ltl-: l*t-{-t- ll'f lS StlIISEQUIN I"LY lNt]ORSt:D

t Frlr tlre pttlp{}se of delerttrininr.l wlrelher the lransferee is a purchaser for valt:e irr gor"rri faitlr rrvithor.lt rlttir:e,
flte trecr:tiatit-rit slrall lahe effer:t as nf the tirle when the intlorsertrent is actually ma{le not at the tirrre the
rer:eilrl is rlelirrere<J"

> I?ea:crr for lhr. rirle: rreqrrt"iaiic-rrr befit*res cotrplete only at ltie time nf indotsenrent
li\fl\[t[{Ahl I Iri{i { lN I}AI I OF l?t;{"lllf ']
1. 1!ral llr+": rrceii;! ts qerririltc
7 I lr:+l lr$ lra$ a k:qal riqlrl to rregntiate nr [rarrsfer it
3 llr;lt lre lra$ [tttt:rn/letl{}e rrf nt., {*r:l wlrir:lrvrrr rkl irnpair ttre valirJity ilf tlrg.*.1*r1}i iire r*ceipt
'.ii
4 Ilral lrF lr$.c a riqlrl io lrarrsferilrn title t<; the g*orls anrl
llral the qr:octs als nrerclrarrtal:le or fil lnr a Ilarticr rtar
Dr lrflrlse. wllettcver st tch tryarrattlies would have Lreeninrplierl,ilthe{:r.rlrtlar:tof th{ipartiosharl hr+err
lo lrarrsfer rrritlrtrrt a recei;rt o[ tlre erlnrls represented ilrerebv

*r\ttr l{ u{:;t -t{. N{} I l\ { i{ tAI{AN I (}H

- Jlrs irrrlnrqerrrerrt n{ a receipt doesn't rnake the irrrJorssr liahle fr.rr any failuro olr ilre parl of the
urareltott$etllalr or1x'eviorts irrrjrrser srf the receipt to fr-rlfill their respecti,reobligations

hI{} IJVAITITAN I Y IMI}I Ir:I} I'R{}M ACCEP rIN(i PAYMEN T f }I

/\ Ill ltI
A trrrrllq2qpe.Pledcee r.:r hclrler for security nf a receipt who, in gor:d laith. cienranrls or rer:eives
Fayllrent c'f ll'le debt for tnrlticlr sltclt rer;eipt i* secrrrity, rqrlrelher {rnirt a pa(y tCI a dt€ft r-{rawn for suc:ii rlebt
{}r flottt arry otlret pers{}n. sliall trci. lry so rloing, be cleemerl to reitreserrt qr tcl warrarrt tlie genr-rirreles$ ,f
crrr:lr rer:eiPl or {lre rlrrarrlity +r qualitv n{ the gcods therein descrihecl

lrr other
uro[ls. tlie ho]r:ler of a ser:uriiy who in goocl faitlr accepls payrlen! of a clel;t {rorn a Ferso,
doestr't trratrartt tl'reraby the genttineness r:f the receipt nor tlre qualitV or quantity of the goods ilrereilr
desr:ril ror l.

wl lr-N hll-(;{} I lA I lot\t No'I lfftt}Alt{fit] [3y FRAL|D, ntJRr:$s.

nflti; r Attt.
> I-lre valirJity of tlre negotiati{rn o{ a receipt isrr't itnpaired by the fact that sLrch rregoiiatiorr was a breach
o[
rlttty orr the part of tlre Person nral<ing the negotiatiolr. or hry lhe fact that the owner af tfte receipt wa$
ittrltrt'erj l:y frarttl. ntisfake or dttress to ettlrust the possession or cust*rly of the receipt to s6clr persgrr. if
lltq Dplsfttl lo wltotll lhe receiJ:t was n*gntiaterJ, or ta * pers*n to whorr.t tfre receipt is subsequenly
leor,riiaterl Jrait:l r;altre llterefor. withorrt rtotice o{ the breaclr oI 11 rty, frarrrl, rlistage rrr citrress.
EFFECT" fiF $LIBSHQIJET-IT NffiGSTIATI*N BY SHILHR,
HT{;.
I lte rt tt cltaset. trtortr;agee. ar pledgee of gaods for which a neqo{iable receipt lras heerr icsr rarl. nr
rrl lltei lreqqtiat:le ter:eipt ilself. has the rhlty to require tlte negotiation r:f ttre receipt to hinr otlrerwise. his
failttte r,vill ltatre ltte sarte e{fect as an express authorization on lris part to ihe se}ler, morteagor, or plerlqor
irr lrossessiorr o[ srlr:h receipt to make suhsequetrt negr:tiation

I he sttbseqt-tetrl ;ltlrtltaser trttrsl have taken the receiprt in goorl faillr and fr:r value irt order kr
car:r.|l lir+ a l:elter riqltt.

lf\ll){ }[{l'il,.l.-"li HI{:il t, :il.t]'ERlOl? f() VtrNffOR'S l_ltIN

Att irrnocettt holder r:f a negr:tiable receipt lras a better right to tfie ggnrls {or whicfu ttre receipt is
uiverr {lrarr lhe venrlor who lras a venclor's lien upon such goods.

eltr:tlserlan istt't i:bligeri to tJeliver or jr-rstified in rJeliverirrg the goods to an urrpaicl seller rrnless
Wat

Itre ret':ei1:t is lirsl surrerriererJ lor canr:ellatiorr.

r r{}w r}(} y(}1t AT"rAr;I I ("}R tMI]O$ta A LItrN OVER (:;()(}(]t]ii

{;{ }vr.trr_t} r"ry l\ w/\1{Hlt{}tJsH ttrCr:t}}l't
lf il is rr()t rreqotiahle. the crlurl wcr:lcl issue a writ r:f attachrnent. tf it is negotiable, ltre
rrr.rtrtt slr*ttltl retlttit'e Ihe sr.rrrerr(ler r.rf the receipt and reslrir:tfr-rrthernegotiatiorrs.