Page:United States Statutes at Large Volume 47 Part 1.djvu/1262

 1238 Transfer without In. dor sem ent. Warranties of trans- feror, etc.. Indorser not a guar- ant or. No warranty implied from accepting pay- ment of a debt. Effect of fraud, etc. ; on neg otiatio n. Subsequent negotia- tions. Negotiation defeats ='cndur's lien. 72d C ONGRESS. SESS. II. CH. 12 8. FEBR UARY 27, 1933. SEC. 768. TRANSFER OF NEGOTIABLE RECEIPT WITHOUT INDORSEMENT : Where a negotiable receipt is transferred for value by delivery, and the indorsement of the transferor is essential for negotiation, the transferee acquires a right against the transferor to compel him to indorse the rece ipt, unless a co ntrary intention appears. The nego- tiation shall take effect as of the time when the indorsement is actu- ally made. SEC. 769. WARRANTIES ON SATE OF RECEIPT .--A person who for value negotiates or tr ansfers a receip t by indorsement or delivery, inc lud- ing 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 r ight to negotiat e or transfer it ; (c) Th at he has knowledge of no f act which wou ld impair the validity or wort h of the receipt ; and (d) That he has a right to transfer the title to the goods, and that the goods are merchantable orfitfora particular purpose whenever such wa rranties would h ave been implied, if the contract of the parties had been to transfer without a receipt the goods represented thereby . SEC. 770 . INDORSER NOT A GUARANTOR.-The indor semen t of a re- ceipt 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. SEC. 771 . No WARRANTY IMPLIED FROM ACCEPTING PAYMENT OF A DEBT.-A mort gagee, p ledgee, or holde r for sec urity of a recei pt who in good faith demand s or recei ves pa yment of the debt for which .such receipt is security, whether from a party toa dra ft 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. SEC. 772. WHEN NEGO TIATION NOT IMPAIRED BY FRAUD, MISTAK E, OR DURESS .-The validity of the negotiation of a receipt is not im- paired 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 deprived of the possession of the same by loss, theft, fraud, accident, mistake, duress, or conversion, if the person to whom the receipt was negotiated, or a person to whom the receipt was subsequently negotiated paid value therefor, in good faith, without notice of the breach o duty, or loss, theft, fraud, accident, mistake, duress, or conversion. SEC. 773. SUBSEQUENT NEGOTIATION.-Where a person having sold, mortgaged, or pledged goods which are in a warehouse and for which a negotiab le recei pt has b een issu ed, or ha ving sol d, mort- gaged, o r pledge d the ne gotiable receipt represen ting suc h goods, continues in possession of the negotiable receipt, the subseq uent negotiation thereof by that person under any sale, or other disposi- tion 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 e xpressly authori zed the subseque nt negotiation. ,SEC. 771. NEGOTIATION DEFEATS VENDOR'S LIEN .-Where a negoti- able receipt has been issued for goods, no seller's lien or right of stoppage in tran situ sha ll defea t the ri ghts of a ny purch aser for value in goad faith to wh om su ch receipt has been negotiated, whether such negotiation be prior or subsequent to the notification to the warehouseman who issued such receipt of the seller's claim to a lien or right of stoppage in transitu. Nor shall the warehouse- man be obliged t o deliver or be justified in del ivering ; t he goods to