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(4) a statement whether the goods received will be delivered to the bearer, to a specified person, or to a specified person or his order;

(5) the rate of storage charges;

(6) a description of the goods or of the packages containing them;

(7) the signature of the warehouseman, which may be made by his authorized agent;

(8) if the receipt is issued for goods of which the warehouseman is owner, either solely or jointly or in common with others, the fact of the ownership; and

(9) a statement of the amount of advances made and of liabilities incurred for which the warehouseman claims a lien; and if the precise amount of the advances made or of the liabilities incurred is, at the time of the issue of the receipt, unknown to the warehouseman or to his agent who issues it, a statement of the fact that advances have been made or liabilities incurred and the purpose thereof is sufficient.

A warehouseman is liable to any person injured thereby, for all damage caused by the omission from a negotiable receipt of any of the foregoing terms.

1773. Form of receipts; what terms may be inserted

A warehouseman may insert in a receipt, issued by him, any other terms and conditions, but the terms and conditions may not:

(1) be contrary to this subchapter; or

(2) in anywise impair his obligation to exercise that degree of care in the safe-keeping of the goods intrusted to him which a reasonably careful man would exercise in regard to similar goods of his own.

§ 1774. Definition of nonnegotiable receipt

A receipt in which it is stated that the goods received will be delivered to the depositor, or to any other specified person, is a nonnegotiable receipt.

§ 1775. Definition of negotiable receipt

A receipt in which it is stated that the goods received will be delivered to the bearer or to the order of any person named in such receipt is a negotiable receipt.

A nonnegotiable provision may not be inserted in a negotiable receipt. Such a provision, if inserted, is void.

§ 1776. Duplicate receipts must be so marked

When more than one negotiable receipt is issued for the same goods, the word "duplicate" shall be plainly placed upon the face of every such receipt except the one first issued. A warehouseman is liable for all damage caused by his failure so to do to any one who purchases the subsequent receipt for value supposing it to be an original, even though the purchase be after the delivery of the goods by the warehouseman to the holder of the original receipt.

§ 1777. 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 purchases it for value supposing it to be negotiable may, at his option, treat the receipt as imposing upon the warehouseman the same liabilities he would have incurred had the receipt been negotiable.

This section does not apply, however, to letters, memoranda, or written acknowledgments of an informal character.

Article B-Obligations and Rights of Warehousemen Upon Their Receipts

§ 1781. Obligation of warehouseman to deliver

A warehouseman, in the absence of a lawful excuse provided by this subchapter, is bound to deliver the goods upon a demand made either by the holder of a receipt for the goods or by the depositor, if the demand is accompanied with:

(1) an offer to satisfy the warehouseman's lien;

(2) an offer to surrender the receipt if negotiable, with such indorsement as would be necessary for the negotiation of the receipt; and

(3) a readiness and willingness to sign, when the goods are delivered, an acknowledgment that they have been delivered, if requested by the warehouseman.

If the warehouseman refuses or fails to deliver the goods in compliance with a demand by the holder or depositor so accompanied, the burden is upon him to establish the existence of a lawful excuse for his refusal.

§ 1782. Justification of warehouseman in delivering

A warehouseman is justified in delivering the goods, subject to sections 1783-1785 of this title, to one who is:

(1) the person lawfully entitled to the possession of the goods, or his agent;

(2) 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

(3) 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.

§ 1783. Warehouseman's liability for misdelivery

If a warehouseman delivers the goods to one who is not in fact lawfully entitled to the possession of them, the warehouseman is 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 paragraphs (2) and (3) of section 1782 of this title, and though he delivered the goods as authorized by those paragraphs he is so liable, if prior to the delivery he had either:

(1) been requested, by or on behalf of the person lawfully entitled to a right of property or possession in the goods, not to make delivery; or

(2) had information that the delivery about to be made was to one not lawfully entitled to the possession of the goods.

§ 1784. Negotiable receipts must be cancelled when goods delivered

Except as provided by section 1809 of this title, if 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 is liable to anyone who purchases the receipt for value in good faith, for failure to deliver the goods to him, whether the purchaser acquired title to the receipt before or after the delivery of the goods by the warehouse

man.

§ 1785. Negotiable receipts must be cancelled or marked when part of goods delivered

Except as provided by section 1809 of this title, if a warehouseman delivers part of the goods for which he had issued a negotiable receipt and fails either to take up and cancel the receipt, or to place plainly upon it a statement of what goods or packages have been delivered, he is liable, to anyone who purchases the receipt for value in good faith, for failure to deliver all the goods specified in the receipt, whether the purchaser acquired title to the receipt before or after the delivery of any portion of the goods by the warehouseman.

§ 1786. Altered receipts

The alteration of a receipt does not excuse the warehouseman who issued it from any liability if the alteration was:

(1) immaterial;

(2) authorized; or

(3) made without fraudulent intent.

If the alteration was authorized, the warehouseman is liable according to the terms of the receipt as altered. If the alteration was unauthorized, but made without fraudulent intent, the warehouseman is liable according to the terms of the receipt, as they were before alteration.

Material and fraudulent alteration of a receipt does 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 excuses him from any other liability to the person who made the alteration and to any person who took with notice of the alteration. A purchaser of the receipt for value without notice of the alteration acquires the same rights against the warehouseman which the purchaser would have acquired if the receipt had not been altered at the time of the purchase.

§ 1787. Lost or destroyed receipts

If a negotiable receipt has been lost or destroyed, a court of competent jurisdiction may order the delivery of the goods upon satisfactory proof of 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 the 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 by this section does 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. 81788. 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 the receipt is an accurate copy of an original receipt properly issued and uncancelled at the date of the issue of the duplicate, but imposes upon him no other liability.

§ 1789. Warehouseman cannot set up title in himself

Title or right to the possession of the goods on the part of the warehouseman, unless it 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, does not excuse the warehouseman from liability for refusing to deliver the goods according to the terms of the receipt.

81790. 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.

§ 1791. Warehouseman has reasonable time to determine validity of claim

If someone 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 the claim, the warehouseman is 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.

§ 1792. Adverse title is no defense except as above provided

Except as provided by sections 1790 and 1791 of this title and by sections 1782 and 1809 of this title, a right or title of a third person is not 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.

§ 1793. Liability for nonexistence or misdescription of goods

A warehouseman is liable to the holder of a receipt, issued by him or on his behalf by an agent or employee the scope of whose actual or apparent authority includes the issuing of warehouse receipts, 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 the packages containing the goods are said to contain goods of a certain kind, or by words of like purport, the statements, if true, do 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.

81794. Liability for care of goods

A warehouseman is 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.

81795. Goods must be kept separate

Except as provided by section 1796 of this title, a warehouseman shall keep the goods as 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.

§ 1796. 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 a case the various depositors of the mingled goods own the entire mass in common, and each depositor is entitled to such portion thereof as the amount deposited by him bears to the whole.

§ 1797. Liability of warehouseman to depositors of commingled

goods

The warehouseman is severally liable to each depositor for the care and redelivery of his share of the mass to the same extent and under the same circumstances as if the goods had been kept separate.

§ 1798. 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 may 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 may not be compelled to deliver up the actual possession of the goods until the receipt is surrendered to him or impounded by the court. § 1799. 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 the 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.

§ 1800. What claims are included in the warehouseman's lien Subject to section 1803 of this title, a warehouseman has a lien on goods deposited or on the 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 the 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.

§ 1801. Against what property the lien may be enforced Subject to section 1803 of this title, a warehouseman's lien may be enforced:

(1) 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

(2) 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 the 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.

§ 1802. How the lien may be lost

A warehouseman loses his lien upon goods:

(1) by surrendering possession thereof; or

(2) by refusing to deliver the goods when a demand is made with which he is bound to comply under this subchapter.

§ 1803. Negotiable receipt must state charges for which lien is claimed

If a negotiable receipt is issued for goods, the warehouseman does not have a lien thereon, except for charges for storage of those goods subsequent to the date of the receipt, unless the receipt expressly

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