I THE ISSUE OF WAREHOUSE RECEIPTS (b) In any wise impair his obligation to

exercise that degree of care in the safe-

Section 1. Persons who may issue receipts. keeping of the goods entrusted to him which is
Warehouse receipts may be issued by any reasonably careful man would exercise in
warehouseman. regard to similar goods of his own.

Sec. 2. Form of receipts; essential terms. Sec. 4. Definition of non-negotiable receipt.

Warehouse receipts need not be in any A receipt in which it is stated that the goods
particular form but every such receipt must received will be delivered to the depositor or to
embody within its written or printed terms: any other specified person, is a non-negotiable
receipt.
(a) The location of the warehouse where the
goods are stored, Sec. 5. Definition of negotiable receipt. A
receipt in which it is stated that the goods
(b) The date of the issue of the receipt, received will be delivered to the bearer or to
the order of any person named in such receipt
(c) The consecutive number of the receipt, is a negotiable receipt.

(d) A statement whether the goods received No provision shall be inserted in a negotiable
will be delivered to the bearer, to a specified receipt that it is non-negotiable. Such
person or to a specified person or his order, provision, if inserted shall be void.

(e) The rate of storage charges,

(f) A description of the goods or of the II OBLIGATIONS AND RIGHTS OF

packages containing them, WAREHOUSEMEN UPON THEIR RECEIPTS

(g) The signature of the warehouseman which Sec. 8. Obligation of warehousemen to deliver.
may be made by his authorized agent, A warehouseman, in the absence of some
lawful excuse provided by this Act, is bound to
(h) If the receipt is issued for goods of which deliver the goods upon a demand made either
the warehouseman is owner, either solely or by the holder of a receipt for the goods or by
jointly or in common with others, the fact of the depositor; if such demand is accompanied
such ownership, and with:

(i) A statement of the amount of advances (a) An offer to satisfy the warehouseman's
made and of liabilities incurred for which the lien;
warehouseman claims a lien. If the precise
amount of such advances made or of such (b) An offer to surrender the receipt, if
liabilities incurred is, at the time of the issue negotiable, with such indorsements as would
of, unknown to the warehouseman or to his be necessary for the negotiation of the receipt;
agent who issues it, a statement of the fact and
that advances have been made or liabilities
incurred and the purpose thereof is sufficient. (c) A readiness and willingness to sign, when
the goods are delivered, an acknowledgment
A warehouseman shall be liable to any person that they have been delivered, if such
injured thereby for all damages caused by the signature is requested by the warehouseman.
omission from a negotiable receipt of any of
the terms herein required. In case the warehouseman refuses or fails to
deliver the goods in compliance with a demand
Sec. 3. Form of receipts. What terms may by the holder or depositor so accompanied, the
be inserted. A warehouseman may insert in burden shall be upon the warehouseman to
a receipt issued by him any other terms and establish the existence of a lawful excuse for
conditions provided that such terms and such refusal.
conditions shall not:
Sec. 9. Justification of warehouseman in
(a) Be contrary to the provisions of this Act. delivering. A warehouseman is justified in
delivering the goods, subject to the provisions
of the three following sections, to one who is:
 which he had issued a negotiable receipt and
(a) The person lawfully entitled to the fails either to take up and cancel such receipt
possession of the goods, or his agent; or to place plainly upon it a statement of what
goods or packages have been delivered, he
(b) A person who is either himself entitled to shall be liable to any one who purchases for
delivery by the terms of a non-negotiable value in good faith such receipt, for failure to
receipt issued for the goods, or who has deliver all the goods specified in the receipt,
written authority from the person so entitled whether such purchaser acquired title to the
either indorsed upon the receipt or written receipt before or after the delivery of any
upon another paper; or portion of the goods by the warehouseman.

(c) A person in possession of a negotiable Sec. 13. Altered receipts. The alteration of a
receipt by the terms of which the goods are receipt shall not excuse the warehouseman
deliverable to him or order, or to bearer, or who issued it from any liability if such
which has been indorsed to him or in blank by alteration was:
the person to whom delivery was promised by
the terms of the receipt or by his mediate or (a) Immaterial,
immediate indorser.
(b) Authorized, or
Sec. 10. Warehouseman's liability for
misdelivery. Where a warehouseman (c) Made without fraudulent intent.
delivers the goods to one who is not in fact
lawfully entitled to the possession of them, the If the alteration was authorized, the
warehouseman shall be liable as for conversion warehouseman shall be liable according to the
to all having a right of property or possession terms of the receipt as altered. If the
in the goods if he delivered the goods alteration was unauthorized but made without
otherwise than as authorized by subdivisions fraudulent intent, the warehouseman shall be
(b) and (c) of the preceding section, and liable according to the terms of the receipt as
though he delivered the goods as authorized they were before alteration.
by said subdivisions, he shall be so liable, if
prior to such delivery he had either: Material and fraudulent alteration of a receipt
shall not excuse the warehouseman who issued
(a) Been requested, by or on behalf of the it from liability to deliver according to the
person lawfully entitled to a right of property terms of the receipt as originally issued, the
or possession in the goods, not to make such goods for which it was issued but shall excuse
deliver; or him from any other liability to the person who
made the alteration and to any person who
(b) Had information that the delivery about to took with notice of the alteration. Any
be made was to one not lawfully entitled to the purchaser of the receipt for value without
possession of the goods. notice of the alteration shall acquire the same
rights against the warehouseman which such
Sec. 11. Negotiable receipt must be cancelled purchaser would have acquired if the receipt
when goods delivered. Except as provided in had not been altered at the time of purchase.
section thirty-six, where a warehouseman
delivers goods for which he had issued a Sec. 14. Lost or destroyed receipts. Where a
negotiable receipt, the negotiation of which negotiable receipt has been lost or destroyed,
would transfer the right to the possession of a court of competent jurisdiction may order the
the goods, and fails to take up and cancel the delivery of the goods upon satisfactory proof of
receipt, he shall be liable to any one who such loss or destruction and upon the giving of
purchases for value in good faith such receipt, a bond with sufficient sureties to be approved
for failure to deliver the goods to him, whether by the court to protect the warehouseman
such purchaser acquired title to the receipt from any liability or expense, which he or any
before or after the delivery of the goods by the person injured by such delivery may incur by
warehouseman. reason of the original receipt remaining
outstanding. The court may also in its
Sec. 12. Negotiable receipts must be cancelled discretion order the payment of the
or marked when part of goods delivered. warehouseman's reasonable costs and counsel
Except as provided in section thirty-six, where fees.
a warehouseman delivers part of the goods for
The delivery of the goods under an order of the
court as provided in this section, shall not Sec. 20. Liability for non-existence or
relieve the warehouseman from liability to a misdescription of goods. A warehouseman
person to whom the negotiable receipt has shall be liable to the holder of a receipt for
been or shall be negotiated for value without damages caused by the non-existence of the
notice of the proceedings or of the delivery of goods or by the failure of the goods to
the goods. correspond with the description thereof in the
receipt at the time of its issue. If, however,
Sec. 15. Effect of duplicate receipts. A the goods are described in a receipt merely by
receipt upon the face of which the word a statement of marks or labels upon them or
"duplicate" is plainly placed is a representation upon packages containing them or by a
and warranty by the warehouseman that such statement that the goods are said to be goods
receipt is an accurate copy of an original of a certain kind or that the packages
receipt properly issued and uncanceled at the containing the goods are said to contain goods
date of the issue of the duplicate, but shall of a certain kind or by words of like purport,
impose upon him no other liability. such statements, if true, shall not make liable
the warehouseman issuing the receipt,
Sec. 16. Warehouseman cannot set up title in although the goods are not of the kind which
himself . No title or right to the possession the marks or labels upon them indicate or of
of the goods, on the part of the the kind they were said to be by the depositor.
warehouseman, unless such title or right is
derived directly or indirectly from a transfer Sec. 21. Liability for care of goods. A
made by the depositor at the time of or warehouseman shall be liable for any loss or
subsequent to the deposit for storage, or from injury to the goods caused by his failure to
the warehouseman's lien, shall excuse the exercise such care in regard to them as
warehouseman from liability for refusing to reasonably careful owner of similar goods
deliver the goods according to the terms of the would exercise, but he shall not be liable, in
receipt. the absence of an agreement to the contrary,
for any loss or injury to the goods which could
Sec. 17. Interpleader of adverse claimants. not have been avoided by the exercise of such
If more than one person claims the title or care.
possession of the goods, the warehouseman
may, either as a defense to an action brought Sec. 22. Goods must be kept separate.
against him for non-delivery of the goods or as Except as provided in the following section, a
an original suit, whichever is appropriate, warehouseman shall keep the goods so far
require all known claimants to interplead. separate from goods of other depositors and
from other goods of the same depositor for
Sec. 18. Warehouseman has reasonable time which a separate receipt has been issued, as to
to determine validity of claims. If someone permit at all times the identification and
other than the depositor or person claiming redelivery of the goods deposited.
under him has a claim to the title or possession
of goods, and the warehouseman has Sec. 23. Fungible goods may be commingled if
information of such claim, the warehouseman warehouseman authorized. If authorized by
shall be excused from liability for refusing to agreement or by custom, a warehouseman
deliver the goods, either to the depositor or may mingle fungible goods with other goods of
person claiming under him or to the adverse the same kind and grade. In such case, the
claimant until the warehouseman has had a various depositors of the mingled goods shall
reasonable time to ascertain the validity of the own the entire mass in common and each
adverse claim or to bring legal proceedings to depositor shall be entitled to such portion
compel claimants to interplead. thereof as the amount deposited by him bears
to the whole.
Sec. 19. Adverse title is no defense except as
above provided. Except as provided in the Sec. 24. Liability of warehouseman to
two preceding sections and in sections nine depositors of commingled goods. The
and thirty-six, no right or title of a third person warehouseman shall be severally liable to each
shall be a defense to an action brought by the depositor for the care and redelivery of his
depositor or person claiming under him against share of such mass to the same extent and
the warehouseman for failure to deliver the under the same circumstances as if the goods
goods according to the terms of the receipt. had been kept separate.
 been so entrusted with the possession of goods
Sec. 25. Attachment or levy upon goods for that a pledge of the same by him at the time of
which a negotiable receipt has been issued. the deposit to one who took the goods in good
If goods are delivered to a warehouseman by faith for value would have been valid.
the owner or by a person whose act in
conveying the title to them to a purchaser in Sec. 29. How the lien may be lost. A
good faith for value would bind the owner, and warehouseman loses his lien upon goods:
a negotiable receipt is issued for them, they
can not thereafter, while in the possession of (a) By surrendering possession thereof, or
the warehouseman, be attached by
garnishment or otherwise, or be levied upon (b) By refusing to deliver the goods when a
under an execution unless the receipt be first demand is made with which he is bound to
surrendered to the warehouseman or its comply under the provisions of this Act.
negotiation enjoined. The warehouseman shall
in no case be compelled to deliver up the Sec. 30. Negotiable receipt must state charges
actual possession of the goods until the receipt for which the lien is claimed. If a negotiable
is surrendered to him or impounded by the receipt is issued for goods, the warehouseman
court. shall have no lien thereon except for charges
for storage of goods subsequent to the date of
Sec. 26. Creditor's remedies to reach the receipt unless the receipt expressly
negotiable receipts. A creditor whose debtor enumerated other charges for which a lien is
is the owner of a negotiable receipt shall be claimed. In such case, there shall be a lien for
entitled to such aid from courts of appropriate the charges enumerated so far as they are
jurisdiction, by injunction and otherwise, in within the terms of section twenty-seven
attaching such receipt or in satisfying the claim although the amount of the charges so
by means thereof as is allowed at law or in enumerated is not stated in the receipt.
equity in these islands in regard to property
which can not readily be attached or levied Sec. 31. Warehouseman need not deliver until
upon by ordinary legal process. lien is satisfied. A warehouseman having a
lien valid against the person demanding the
Sec. 27. What claims are included in the goods may refuse to deliver the goods to him
warehouseman's lien. Subject to the until the lien is satisfied.
provisions of section thirty, a warehouseman
shall have a lien on goods deposited or on the Sec. 32. Warehouseman's lien does not
proceeds thereof in his hands, for all lawful preclude other remedies. Whether a
charges for storage and preservation of the warehouseman has or has not a lien upon the
goods; also for all lawful claims for money goods, he is entitled to all remedies allowed by
advanced, interest, insurance, transportation, law to a creditor against a debtor for the
labor, weighing, coopering and other charges collection from the depositor of all charges and
and expenses in relation to such goods, also advances which the depositor has expressly or
for all reasonable charges and expenses for impliedly contracted with the warehouseman to
notice, and advertisements of sale, and for sale pay.
of the goods where default had been made in
satisfying the warehouseman's lien. Sec. 33. Satisfaction of lien by sale. A
warehouseman's lien for a claim which has
Sec. 28. Against what property the lien may be become due may be satisfied as follows:
enforced. Subject to the provisions of
section thirty, a warehouseman's lien may be (a) An itemized statement of the
enforced: warehouseman's claim, showing the sum due
at the time of the notice and the date or dates
(a) Against all goods, whenever deposited, when it becomes due,
belonging to the person who is liable as debtor
for the claims in regard to which the lien is (b) A brief description of the goods against
asserted, and which the lien exists,

(b) Against all goods belonging to others which (c) A demand that the amount of the claim as
have been deposited at any time by the person stated in the notice of such further claim as
who is liable as debtor for the claims in regard shall accrue, shall be paid on or before a day
to which the lien is asserted if such person had mentioned, not less than ten days from the
delivery of the notice if it is personally goods are of a perishable nature, or by keeping
delivered, or from the time when the notice will deteriorate greatly in value, or, by their
shall reach its destination, according to the due order, leakage, inflammability, or explosive
course of post, if the notice is sent by mail, nature, will be liable to injure other property ,
the warehouseman may give such notice to the
(d) A statement that unless the claim is paid owner or to the person in whose names the
within the time specified, the goods will be goods are stored, as is reasonable and possible
advertised for sale and sold by auction at a under the circumstances, to satisfy the lien
specified time and place. upon such goods and to remove them from the
warehouse and in the event of the failure of
In accordance with the terms of a notice so such person to satisfy the lien and to receive
given, a sale of the goods by auction may be the goods within the time so specified, the
had to satisfy any valid claim of the warehouseman may sell the goods at public or
warehouseman for which he has a lien on the private sale without advertising. If the
goods. The sale shall be had in the place warehouseman, after a reasonable effort, is
where the lien was acquired, or, if such place is unable to sell such goods, he may dispose of
manifestly unsuitable for the purpose of the them in any lawful manner and shall incur no
claim specified in the notice to the depositor liability by reason thereof.
has elapsed, and advertisement of the sale,
describing the goods to be sold, and stating The proceeds of any sale made under the
the name of the owner or person on whose terms of this section shall be disposed of in the
account the goods are held, and the time and same way as the proceeds of sales made under
place of the sale, shall be published once a the terms of the preceding section.
week for two consecutive weeks in a
newspaper published in the place where such Sec. 35. Other methods of enforcing lien.
sale is to be held. The sale shall not be held The remedy for enforcing a lien herein
less than fifteen days from the time of the first provided does not preclude any other remedies
publication. If there is no newspaper published allowed by law for the enforcement of a lien
in such place, the advertisement shall be against personal property nor bar the right to
posted at least ten days before such sale in not recover so much of the warehouseman's claim
less than six conspicuous places therein. as shall not be paid by the proceeds of the sale
of the property.
From the proceeds of such sale, the
warehouseman shall satisfy his lien including Sec. 36. Effect of sale. After goods have
the reasonable charges of notice, been lawfully sold to satisfy a warehouseman's
advertisement and sale. The balance, if any, lien, or have been lawfully sold or disposed of
of such proceeds shall be held by the because of their perishable or hazardous
warehouseman and delivered on demand to nature, the warehouseman shall not thereafter
the person to whom he would have been be liable for failure to deliver the goods to the
bound to deliver or justified in delivering depositor or owner of the goods or to a holder
goods. of the receipt given for the goods when they
were deposited, even if such receipt be
At any time before the goods are so sold, any negotiable.
person claiming a right of property or
possession therein may pay the warehouseman III NEGOTIATION AND TRANSFER OF
the amount necessary to satisfy his lien and to RECEIPTS
pay the reasonable expenses and liabilities
incurred in serving notices and advertising and Sec. 37. Negotiation of negotiable receipt of
preparing for the sale up to the time of such delivery. A negotiable receipt may be
payment. The warehouseman shall deliver the negotiated by delivery:
goods to the person making payment if he is a
person entitled, under the provision of this Act, (a) Where, by terms of the receipt, the
to the possession of the goods on payment of warehouseman undertakes to deliver the goods
charges thereon. Otherwise, the to the bearer, or
warehouseman shall retain the possession of
the goods according to the terms of the (b) Where, by the terms of the receipt, the
original contract of deposit. warehouseman undertakes to deliver the goods
to the order of a specified person, and such
Sec. 34. Perishable and hazardous goods. If
person or a subsequent indorsee of the receipt receipt had or had ability to convey to a
has indorsed it in blank or to bearer. purchaser in good faith for value, and

Where, by the terms of a negotiable receipt, (b) The direct obligation of the warehouseman
the goods are deliverable to bearer or where a to hold possession of the goods for him
negotiable receipt has been indorsed in blank according to the terms of the receipt as fully as
or to bearer, any holder may indorse the same if the warehouseman and contracted directly
to himself or to any other specified person, with him.
and, in such case, the receipt shall thereafter
be negotiated only by the indorsement of such Sec. 42. Rights of person to whom receipt has
indorsee. been transferred. A person to whom a
receipt has been transferred but not negotiated
Sec. 38. Negotiation of negotiable receipt by acquires thereby, as against the transferor, the
indorsement. A negotiable receipt may be title of the goods subject to the terms of any
negotiated by the indorsement of the person to agreement with the transferor.
whose order the goods are, by the terms of the
receipt, deliverable. Such indorsement may be If the receipt is non-negotiable, such person
in blank, to bearer or to a specified person. If also acquires the right to notify the
indorsed to a specified person, it may be again warehouseman of the transfer to him of such
negotiated by the indorsement of such person receipt and thereby to acquire the direct
in blank, to bearer or to another specified obligation of the warehouseman to hold
person. Subsequent negotiation may be made possession of the goods for him according to
in like manner. the terms of the receipt.

Sec. 39. Transfer of receipt. A receipt which Prior to the notification of the warehouseman
is not in such form that it can be negotiated by by the transferor or transferee of a non-
delivery may be transferred by the holder by negotiable receipt, the title of the transferee to
delivery to a purchaser or donee. the goods and the right to acquire the
obligation of the warehouseman may be
A non-negotiable receipt can not be defeated by the levy of an attachment or
negotiated, and the indorsement of such a execution upon the goods by a creditor of the
receipt gives the transferee no additional right. transferor or by a notification to the
warehouseman by the transferor or a
Sec. 40. Who may negotiate a receipt. A subsequent purchaser from the transferor of a
negotiable receipt may be negotiated: subsequent sale of the goods by the transferor.

(a) By the owner thereof, or Sec. 43. Transfer of negotiable receipt without
indorsement. Where a negotiable receipt is
(b) By any person to whom the possession or transferred for value by delivery and the
custody of the receipt has been entrusted by indorsement of the transferor is essential for
the owner, if, by the terms of the receipt, the negotiation, the transferee acquires a right
warehouseman undertakes to deliver the goods against the transferor to compel him to indorse
to the order of the person to whom the the receipt unless a contrary intention
possession or custody of the receipt has been appears. The negotiation shall take effect as of
entrusted, or if, at the time of such entrusting, the time when the indorsement is actually
the receipt is in such form that it may be made.
negotiated by delivery.
Sec. 44. Warranties of a sale of receipt. A
Sec. 41. Rights of person to whom a receipt person who, for value, negotiates or transfers
has been negotiated. A person to whom a a receipt by indorsement or delivery, including
negotiable receipt has been duly negotiated one who assigns for value a claim secured by a
acquires thereby: receipt, unless a contrary intention appears,
warrants:
(a) Such title to the goods as the person
negotiating the receipt to him had or had (a) That the receipt is genuine,
ability to convey to a purchaser in good faith
for value, and also such title to the goods as (b) That he has a legal right to negotiate or
the depositor or person to whose order the transfer it,
goods were to be delivered by the terms of the
(c) That he has knowledge of no fact which
would impair the validity or worth of the Sec. 49. Negotiation defeats vendor's lien.
receipt, and Where a negotiable receipt has been issued for
goods, no seller's lien or right of stoppage in
(d) That he has a right to transfer the title to transitu shall defeat the rights of any
the goods and that the goods are purchaser for value in good faith to whom such
merchantable or fit for a particular purpose receipt has been negotiated, whether such
whenever such warranties would have been negotiation be prior or subsequent to the
implied, if the contract of the parties had been notification to the warehouseman who issued
to transfer without a receipt of the goods such receipt of the seller's claim to a lien or
represented thereby. right of stoppage in transitu. Nor shall the
warehouseman be obliged to deliver or justified
Sec. 45. Indorser not a guarantor. The in delivering the goods to an unpaid seller
indorsement of a receipt shall not make the unless the receipt is first surrendered for
indorser liable for any failure on the part of the cancellation.
warehouseman or previous indorsers of the
receipt to fulfill their respective obligations. IV CRIMINAL OFFENSES

Sec. 46. No warranty implied from accepting Sec. 50. Issue of receipt for goods not
payment of a debt. A mortgagee, pledgee, received. A warehouseman, or an officer,
or holder for security of a receipt who, in good agent, or servant of a warehouseman who
faith, demands or receives payment of the debt issues or aids in issuing a receipt knowing that
for which such receipt is security, whether the goods for which such receipt is issued have
from a party to a draft drawn for such debt or not been actually received by such
from any other person, shall not, by so doing, warehouseman, or are not under his actual
be deemed to represent or to warrant the control at the time of issuing such receipt, shall
genuineness of such receipt or the quantity or be guilty of a crime, and, upon conviction, shall
quality of the goods therein described. be punished for each offense by imprisonment
not exceeding five years, or by a fine not
Sec. 47. When negotiation not impaired by exceeding ten thousand pesos, or both.
fraud, mistake or duress. The validity of the
negotiation of a receipt is not impaired by the Sec. 51. Issue of receipt containing false
fact that such negotiation was a breach of duty statement. A warehouseman, or any officer,
on the part of the person making the agent or servant of a warehouseman who
negotiation or by the fact that the owner of the fraudulently issues or aids in fraudulently
receipt was induced by fraud, mistake or issuing a receipt for goods knowing that it
duress or to entrust the possession or custody contains any false statement, shall be guilty of
of the receipt to such person, if the person to a crime, and upon conviction, shall be
whom the receipt was negotiated or a person punished for each offense by imprisonment not
to whom the receipt was subsequently exceeding one year, or by a fine not exceeding
negotiated paid value therefor, without notice two thousand pesos, or by both.
of the breach of duty, or fraud, mistake or
duress. Sec. 52. Issue of duplicate receipt not so
marked. A warehouse, or any officer, agent,
Sec. 48. Subsequent negotiation. Where a or servant of a warehouseman who issues or
person having sold, mortgaged, or pledged aids in issuing a duplicate or additional
goods which are in warehouse and for which a negotiable receipt for goods knowing that a
negotiable receipt has been issued, or having former negotiable receipt for the same goods
sold, mortgaged, or pledged the negotiable or any part of them is outstanding and
receipt representing such goods, continues in uncanceled, without plainly placing upon the
possession of the negotiable receipt, the face thereof the word "duplicate" except in the
subsequent negotiation thereof by the person case of a lost or destroyed receipt after
under any sale or other disposition thereof to proceedings are provided for in section
any person receiving the same in good faith, fourteen, shall be guilty of a crime, and, upon
for value and without notice of the previous conviction, shall be punished for each offense
sale, mortgage or pledge, shall have the same by imprisonment not exceeding five years, or
effect as if the first purchaser of the goods or by a fine not exceeding ten thousand pesos, or
receipt had expressly authorized the by both.
subsequent negotiation.
Sec. 53. Issue for warehouseman's goods or requires:
receipts which do not state that fact. Where
they are deposited with or held by a "Action" includes counterclaim, set-off, and
warehouseman goods of which he is owner, suits in equity as provided by law in these
either solely or jointly or in common with islands.
others, such warehouseman, or any of his
officers, agents, or servants who, knowing this "Delivery" means voluntary transfer of
ownership, issues or aids in issuing a possession from one person to another.
negotiable receipt for such goods which does
not state such ownership, shall be guilty of a "Fungible goods" means goods of which any
crime, and, upon conviction, shall be punished unit is, from its nature by mercantile custom,
for each offense by imprisonment not treated as the equivalent of any other unit.
exceeding one year, or by a fine not exceeding
two thousand pesos, or by both. "Goods" means chattels or merchandise in
storage or which has been or is about to be
Sec. 54. Delivery of goods without obtaining stored.
negotiable receipt. A warehouseman, or any
officer, agent, or servant of a warehouseman, "Holder" of a receipt means a person who has
who delivers goods out of the possession of both actual possession of such receipt and a
such warehouseman, knowing that a right of property therein.
negotiable receipt the negotiation of which
would transfer the right to the possession of "Order" means an order by indorsement on the
such goods is outstanding and uncanceled, receipt.
without obtaining the possession of such
receipt at or before the time of such delivery, "Owner" does not include mortgagee.
shall, except in the cases provided for in
sections fourteen and thirty-six, be found "Person" includes a corporation or partnership
guilty of a crime, and, upon conviction, shall be or two or more persons having a joint or
punished for each offense by imprisonment not common interest.
exceeding one year, or by a fine not exceeding
two thousand pesos, or by both. To "purchase" includes to take as mortgagee or
as pledgee.
Sec. 55. Negotiation of receipt for mortgaged
goods. Any person who deposits goods to "Receipt" means a warehouse receipt.
which he has no title, or upon which there is a
lien or mortgage, and who takes for such "Value" is any consideration sufficient to
goods a negotiable receipt which he afterwards support a simple contract. An antecedent or
negotiates for value with intent to deceive and pre-existing obligation, whether for money or
without disclosing his want of title or the not, constitutes value where a receipt is taken
existence of the lien or mortgage, shall be either in satisfaction thereof or as security
guilty of a crime, and, upon conviction, shall be therefor.
punished for each offense by imprisonment not
exceeding one year, or by a fine not exceeding "Warehouseman" means a person lawfully
two thousand pesos, or by both. engaged in the business of storing goods for
profit.
V INTERPRETATION
(b) A thing is done "in good faith" within the
Sec. 56. Case not provided for in Act. Any meaning of this Act when it is in fact done
case not provided for in this Act shall be
honestly, whether it be done negligently or
governed by the provisions of existing
legislation, or in default thereof, by the rule of not.
the law merchant.
Sec. 59. Application of Act. The provisions of
Sec. 57. Name of Act. This Act may be cited this Act do not apply to receipts made and
as the Warehouse Receipts Act. delivered prior to the taking effect hereof.

Sec. 58. Definitions. (a) In this Act, unless

Sec. 60. Repeals. All acts and laws and parts
the content or subject matter otherwise
thereof inconsistent with this Act are hereby
repealed.

Sec. 61. Time when Act takes effect. This

Act shall take effect ninety days after its
publication in the Official Gazette of the
Philippines shall have been completed.

Enacted: February 5, 1912