ACT NO. 2137 - THE WAREHOUSE RECEIPTS LAW I THE ISSUE OF WAREHOUSE RECEIPTS SE C T IO N 1. P e r s on s wh o m ay i s su e r e c e i pts. Wa r eh ou s e r e c ei pts m ay b e i ssu ed b y an y warehouseman.

n. SE C T IO N 2. F o rm of r ec ei pt s; e s s en ti al te rm s . Wa r eh ou s e re c ei pt s n e e d n ot be i n an y particular form but every such receipt must embody within its written or printed terms:(a) The location of the warehouse where the goods are stored,(b) The date of the issue of the receipt,(c) The consecutive number of the receipt,(d) A sta t e men t wh eth e r th e g o od s r e c ei v ed wi l l be del i ve r ed t o th e b ea r e r, t o a sp e ci fi ed person or to a specified person or his order,(e) The rate of storage charges,(f) A description of the goods or of the packages containing them,(g) The signature of the warehouseman which may be made by his authorized agent,( h ) If th e r e c ei pt i s i s su ed f or g o od s of wh i ch t h e w a re h o u s e man i s own e r , ei th e r s ol el y o r jointly or in common with others, the fact of such ownership, and(i ) A st at em en t of th e a m o u n t o f adv an c es m a de an d o f l i abi li ti es i n cu rr e d fo r wh i ch th e warehouseman claims a lien. If the precise amount of such advances made or of such liabilities i n cu r r ed i s, a t th e ti m e o f th e i ssu e o f, u n kn own t o th e wa r eh ou s eman o r t o h i s ag en t wh o issues it, a statement of the fact that advances have been made or liabilities incurred and the purpose thereof is sufficient. A wa r eh ou s em an sh al l b e li abl e to an y p e rs on i n j u r e d th e r eb y f o r al l da mag e s c au s e d by th e omission from a negotiable receipt of any of the terms herein required. SECTION 3. Form of receipts. What terms may be inserted. A warehouseman may insert n a receipt issued by him any other terms and conditions provided that such t e r m s a n d conditions shall not:(a) Be contrary to the provisions of this Act.(b) In any wise impair his obligation to exercise that degree of care in the safe-keeping of the go od s en t ru st ed t o h i m wh i ch i s r ea s on a bl y ca r e fu l man w ou l d e x e rci s e i n r ega rd t o si mi l ar goods of his own. SE C T IO N 4. D e fi n i tion of n on - n eg oti a bl e re c ei pt . A r e c ei pt i n wh i ch i t i s stat ed th at th e g o od s r e c ei v ed wi ll be d el i ve r ed t o th e d ep o si to r o r t o an y oth e r sp e ci fi ed pe r s on , i s a n on - negotiable receipt. SECTION 5. 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. No provision shall be inserted in a negotiable receipt that it is non-negotiable. Such provision, if inserted shall be void. SECTION 6. Duplicate receipts must be so marked. When more than one negotiable receipt i s i ssu ed f o r th e s am e go od s , th e w o rd "du pl i cate " sh al l b e pl ai nl y pl ac e d u po n th e f ac e of e v e r y s u c h r e c e i p t , e x c e p t t h e f i r s t o n e i s s u e d . A w a r e h o u s e m a n s h a l l b e l i a b l e f o r a l l damag e s cau s ed b y h i s f ai l u re s o t o d o t o an y on e wh o pu r ch as ed th e su b s equ en t r e ce i pt f o r val u e su p p os i n g i t to b e an o ri gin al , e v en t h o u gh th e pu r ch a s e b e a ft e r th e d el i ve ry o f t h e goods by the warehouseman to the holder of the original receipt. SE C T IO N 7. Fai l u r e to m ar k "n on - n eg oti abl e. " A n on - n eg oti abl e r ec ei pt sh al l h a v e pl ai nl y placed upon its face by the warehouseman issuing it "non-negotiable," or "not negotiable." In case of the warehouseman's failure so to do, a holder of the receipt who purchased it for value su pp o si n g i t t o b e n eg oti abl e , ma y , at h i s opti on , tr e at su ch r ec ei pt a s i mp o si n g u p on th e warehouseman the same liabilities he would have incurred had the receipt been negotiable. This section shall not apply, however, to letters, memoranda, or written acknowledgment of an informal character. II OBLIGATIONS AND RIGHTS OF WAREHOUSEMEN UPON THEIR RECEIPTS SE C T IO N 8. Obl i gation of w a r eh ou s e m e n t o d el i ve r. A wa r eh ou s ema n , i n th e abs en c e of s om e l awfu l e xc u s e p r o vi de d b y th i s A c t, i s b ou n d t o d el i ve r th e g o od s u pon a d e man d m ad e e i t h e r b y t h e h o l d e r o f a r e c e i p t f o r t h e g o o d s o r b y t h e d e p o s i t o r ; i f s u c h d e m a n d i s accompanied with:(a) An offer to satisfy the warehouseman's lien;(b) An of f e r t o su r r en d e r th e r e c ei pt, i f n e go ti abl e, wi th s u ch i n dor s em e n ts a s w o u l d be necessary for the negotiation of the receipt; and(c) A r eadi n e ss an d wi ll i n gn es s t o si gn , wh en th e g o od s ar e d el i ve r ed , an a c kn owl e dgm en t that they have been delivered, if such signature is requested by the warehouseman .In case the warehouseman refuses or fails to deliver the goods in compliance with a demand by t h e h o l d e r o r d e p o s i t o r s o a c c o m p a n i e d , t h e b u r d e n s h a l l b e u p o n t h e w a r e h o u s e m a n t o establish the existence of a lawful excuse for such refusal.

SE C T IO N 9. Ju sti fi c ati on o f wa r eh ou s e man i n d el i ve ri n g. A wa r eh ou s em an i s j u sti fi ed i n delivering the goods, subject to the provisions of the three following sections, to one who is:(a) The person lawfully entitled to the possession of the goods, or his agent;(b) A p e r s on wh o i s ei th e r h i ms el f en ti tl ed t o d el i ve r y by th e t e rm s o f a n on - n e go ti abl e r e c e i pt i ssu ed f o r th e g o od s , o r wh o h a s w ri tt en au th o ri ty f r o m t h e pe r s on s o en ti tl ed e i th er indorsed upon the receipt or written upon another paper; or( c ) A p e r s o n i n p o s s e s s i o n o f a n e g o t i a b l e r e c e i p t b y t h e t e r m s o f w h i c h t h e g o o d s a r e deliverable to him or order, or to bearer, or which has been indorsed to him or in blank by the p e r s o n t o w h o m delivery was promised by the terms of the receipt or by his mediate or immediate indorser. SECTION 10. Warehouseman's liability for misdelivery. Where a warehouseman delivers the goods to one who is not in fact lawfully entitled to the possession of them, the warehouseman sh al l be li abl e a s f o r c on v e r s i on t o al l h avi n g a ri gh t o f pr o p e rty o r p o ss e s si on i n th e g o o ds i f he delivered the goods otherwise than as authorized by subdivisions (b) a n d ( c ) o f t h e pre c edi n g s e cti on , an d th ou g h h e d el i ve r ed th e g o od s as au th o ri z ed by s ai d su bdi vi si on s , h e shall be so liable, if prior to such delivery he had either:(a ) B e e n r equ e st ed , b y o r on beh al f o f th e p e r s on l awfu l l y en ti tl ed t o a ri gh t o f p r op e rty o r possession in the goods, not to make such deliver; or(b) Had i n f o rm ati on th at th e d el i ve r y ab ou t t o b e m ad e w as t o on e n ot l aw fu l l y e n ti tl ed t o the possession of the goods. SECTION 11. Negotiable receipt must be cancelled when goods delivered. E x c e p t a s provided in section thirty-six, where a warehouseman delivers goods for which he had issued a n eg oti abl e re c ei pt , th e n eg ot i ati on of wh i ch wo u l d t ran s f e r t h e ri gh t to th e po s s es si on o f th e goods, and fails to take up and cancel the receipt, he shall be liable to any one who purchases f or val u e i n g o od f ai th s u c h r ec ei pt , f o r fai l u r e t o d el i ve r th e g o od s to h i m, w h eth e r su ch p u r c h a s e r a c q u i r e d t i t l e t o t h e r e c e i p t b e f o r e o r a f t e r t h e d e l i v e r y o f t h e g o o d s b y t h e warehouseman. SECTION 12. Negotiable receipts must be cancelled or marked when part of goods delivered. E xc e pt a s pr o vi de d i n s e cti o n th i rty - si x , wh e r e a w a r eh ou s e man d el i ve rs p a rt o f th e go od s for which he had issued a negotiable receipt and fails either to take up and cancel such receipt or to place plainly upon it a statement of what goods or packages have been delivered, he shall be liable to any one who purchases for value in good faith such receipt, for failure to deliver all the goods specified in the receipt, whether such purchaser acquired title to the receipt before or after the delivery of any portion of the goods by the warehouseman. SECTION 13. Altered receipts. The alteration of a receipt s h a l l n o t e x c u s e t h e warehouseman who issued it from any liability if such alteration was:(a) Immaterial,(b) Authorized, or(c) Made without fraudulent intent. If th e al t e rati on w as au th o ri z ed , th e wa r eh ou s em an sh al l b e li abl e a c c o rdi n g t o t h e t e rm s o f the receipt as altered. If the alteration was unauthorized but made without fraudulent intent, th e wa r eh ou s em an sh al l be l i abl e a c c o r di n g t o th e t e rm s of th e r e c ei pt a s th e y w er e b e f o r e alteration. Material and fraudulent alteration of a receipt shall not excuse the warehouseman who issued it from liability to deliver according to the terms of the receipt as originally issued, the goods f o r wh i ch i t wa s i s su ed bu t sh al l ex cu s e h i m f r o m an y oth e r l i abil i ty to t h e p e r so n wh o mad e the alteration and to any person who took with notice of the alteration. Any purchaser of the r e c ei pt f o r val u e wi th ou t n oti c e of th e al te r ati on s h al l acqu i r e th e s am e ri gh ts ag ai n st th e warehouseman which such purchaser would have acquired if the receipt had not been altered at the time of purchase. SECTION 14. Lost or destroyed receipts. Where a negotiable receipt has been lost or destroyed, a court of competent jurisdiction may order t h e d e l i v e r y o f t h e g o o d s u p o n satisf a ct o ry p r o of o f su ch l os s o r d e st ru cti o n an d u pon th e gi vi n g o f a b on d wi th su ffi ci en t s u r e t i e s t o b e a p p r o v e d b y t h e c o u r t t o p r o t e c t t h e w a r e h o u s e m a n f r o m a n y l i a b i l i t y o r exp en s e, wh i ch h e o r an y pe r s on i n j u r ed b y s u ch d el i ve ry m ay i n cu r by r ea s on o f th e ori gi n al receipt remaining outstanding. The court may also in its discretion order the payment of the warehouseman's reasonable costs and counsel fees. Th e d el i ve r y o f th e g o o ds u n d e r an or d e r o f th e c ou rt a s pr o vi ded i n th i s s ect i on , sh al l n ot r el i ev e th e wa r eh ou s em a n f r o m l i abi li ty to a pe r s on to wh o m t h e n eg o ti abl e r e c ei pt h a s b e e n o r sh al l b e n e g oti at ed f o r v al u e wi th o u t n oti c e of th e p r o c e e di n gs o r of th e d el i ve r y o f th e goods. SECTION 15. Effect of duplicate receipts. A receipt upon the face of w h i c h t h e w o r d "du pl i cate " i s pl ai n l y pl ac ed i s a r ep r es e n tati on an d wa r ran t y by th e w a r eh ou s e man t h at su ch receipt is an accurate copy of an original receipt properly issued and uncanceled at the date of the issue of the duplicate, but shall impose upon him no other liability.

SECTION 16. Warehouseman cannot set up title in himself . No title or r i g h t t o t h e possession of the goods, on the part of the warehouseman, unless such title or right is derived directly or indirectly from a transfer made by the depositor at the time of or subsequent to the d ep o si t f o r st o ra ge , o r f ro m th e wa r eh ou s em an ' s l i en , s h al l ex cu s e t h e wa r eh ou s eman f r om liability for refusing to deliver the goods according to the terms of the receipt. SECTION 17. Interpleader of adverse claimants. If more than one person claims the title or po s s es si on o f th e g o od s, th e wa r eh ou s em an ma y , ei th er a s a d ef en s e t o an a c ti on br ou gh t agai n s t h i m f o r n on - d el i ve r y o f th e g o od s or a s an o ri gi n al su i t, wh i ch e v e r i s app r op ri at e, require all known claimants to interplead. SECTION 18. Warehouseman has reasonable time to determine validity of c l a i m s . I f som e on e oth e r t h an th e dep o si to r o r p e rs on cl ai mi n g u n de r h i m h as a cl ai m t o t h e ti tl e o r possession of goods, and the warehouseman has information of such claim, the warehouseman sh a ll be e xcu s ed f ro m l i abi li ty f o r r efu si n g t o d el i ve r th e g o o ds , ei th e r t o th e d ep o si to r or p e r s o n c l a i m i n g u n d e r h i m o r t o t h e a d v e r s e c l a i m a n t u n t i l t h e w a r e h o u s e m a n h a s h a d a reasonable time to ascertain the validity of the adverse claim or to bring legal proceedings to compel claimants to interplead. SE C T IO N 19. A dv e r s e ti tl e i s n o d e f en s e ex c ept a s ab o v e p r o vi ded . E xc e pt as pr o vi ded i n the two preceding sections and in sections nine and thirty-six, no right or title of a third person shall be 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. SECTION 20. Liability for non-existence or misdescription of goods. A warehouseman shall be liable to the holder of a receipt for damages caused by the non-existence 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 b e g o od s o f a c e rtai n ki n d o r th at th e p ac ka g es c on tai n i n g th e g o od s a r e sai d t o c on tai n g o o d s o f a c e rtai n ki n d o r by w o rd s o f l i ke pu rp o rt, su ch stat e m en t s, i f t ru e, sh al l n ot m a k e 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. SE C T IO N 21. Li abi li ty f o r c ar e o f g o o ds . A w a r eh ou s e man sh al l be l i abl e f o r a n y l os s o r injury to the goods caused by his failure to exercise such care in regard to them as reasonably careful owner of similar goods would exercise, but he shall not be liable, in the absence of an a g r e e m e n t t o t h e c o n t r a r y , f o r a n y l o s s o r i n j u r y t o t h e g o o d s w h i c h c o u l d n o t h a v e b e e n avoided by the exercise of such care. SECTION 22. Goods must be kept separate. Except as provided in the following section, a wa r eh ou s eman sh al l k e e p th e g o od s s o f ar s epa r at e f r om g o od s o f oth e r d ep o si to r s an d f r om 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. SECTION 23. Fungible goods may be commingled if warehouseman authorized. If authorized by ag r e em en t o r b y cu st om , a wa r eh ou s e man ma y mi n gl e fu n gi bl e g o od s wi th oth e r go od s of the same kind and grade. In such case, the various depositors of the mingled goods shall own the entire mass in common and each depositor shall be entitled to such portion thereof as the amount deposited by him bears to the whole. SECTION 24. Liability of warehouseman to depositors of c o m m i n g l e d g o o d s . T h e wa r e h ou s em an sh al l b e s e v e ral l y l i abl e t o e a ch dep o si to r f or th e ca r e an d r ed el i ve r y o f h i s sh ar e o f su ch m as s t o th e sa m e e xt en t an d u n d e r t h e sa m e ci r cu ms tan c e s as i f th e g o od s h ad been kept separate. SECTION 25. Attachment or levy upon goods for which a negotiable receipt has been issued. I f goods are delivered to a warehouseman by the owner or by a p e r s o n w h o s e a c t i n conveying the title to them to a purchaser in good faith for value would bind the owner, and a n e g oti abl e r e c ei pt i s i ssu e d f o r th e m, th e y can n ot th e r ea ft e r , wh i l e i n th e p o s s es si on of th e w a r e h o u s e m a n , b e a t t a c h e d b y 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 shall in no case be compelled to deliver up the actual possession of the goods until the receipt is surrendered to him or impounded by the court. SECTION 26. Creditor's remedies to reach negotiable receipts. A creditor whose debtor is th e ow n er o f a n e go ti abl e r ec ei pt s h al l be e n ti tl ed t o su ch ai d f r om c ou r ts o f app r o pri at e jurisdiction, by injunction and otherwise, in attaching such receipt or in satisfying the claim by means

thereof as is allowed at law or in equity in these islands in regard to property which cannot readily be attached or levied upon by ordinary legal process. SECTION 27. What claims are included in the warehouseman's lien. S u b j e c t t o t h e pro vi si on s o f s e cti on t h i rty , a wa r eh ou s e man sh al l h av e a l i e n on go od s d ep o si te d o r on th e proceeds thereof in his hands, for all lawful charges for storage and preservation of the goods; al s o f o r al l l awfu l cl ai ms f o r m on ey a dvan c ed , i n te r e st , i n su ran c e , t ran sp o rt ati on , l ab o r, wei gh i n g, c o op e ri n g an d o th e r ch a rg e s an d e xp en s es i n r el ati on t o su ch g o od s, al s o f o r al l r ea s on abl e c h ar g es an d e xp en s e s f o r n oti c e , an d ad v e rti s em en ts o f sal e , an d f o r s al e of th e goods where default had been made in satisfying the warehouseman's lien. SECTION 28. Against what property the lien may be enforced. Subject to the provisions of section thirty, a warehouseman's lien may be enforced:(a) 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( b) Agai n st al l go o ds b e l on gi n g t o ot h e r s w h i ch h a v e b e en d ep o si ted at a n y ti m e b y t h e pe r s on wh o i s l i abl e a s d ebt o r f o r th e cl ai ms i n r eg a rd t o w h i ch th e l i en i s as s e rt ed i f su ch person had been so entrusted with the possession of goods that a pledge of the same by him at th e ti m e o f th e d ep o si t t o on e wh o t o o k t h e g o od s i n g o od f ai th f o r v al u e w ou l d h a v e be en valid. SECTION 29. How the lien may be lost. A warehouseman loses his lien upon goods:(a) By surrendering possession thereof, or( b ) B y r e f u s i n g t o d e l i v e r t h e g o o d s w h e n a d e m a n d i s m a d e w i t h w h i c h h e i s b o u n d t o comply under the provisions of this Act. SE C T IO N 30. N eg oti abl e r e c ei pt mu st st at e ch a r g es fo r wh i c h th e l i en i s cl ai med . If a negotiable receipt is issued for goods, the warehouseman shall have no lien thereon except for charges for storage of goods subsequent to the date of the receipt unless the receipt expressly en u me r at ed oth e r c h ar g es f or wh i ch a l i en i s cl ai me d. In su ch c as e , th e r e sh al l be a li en f o r th e ch a rg e s en u me r at ed s o fa r a s th ey a r e wi th i n th e t e rm s o f s e cti on tw en t y- s ev en al th ou gh the amount of the charges so enumerated is not stated in the receipt. SECTION 31. Warehouseman need not deliver until lien is satisfied. A warehouseman having a l i en val i d agai n s t th e p e r s on d eman di n g th e g o od s ma y r e fu s e t o d el i ve r th e g o o ds to h i m until the lien is satisfied. SECTION 32. Warehouseman's lien does not preclude other r e m e d i e s . W h e t h e r a w a r eh o u s em an h a s o r h a s n ot a l i en u p on th e go od s , h e i s en ti tl ed t o al l r em e di es al l ow e d b y l aw to a c r edi to r ag ai n st a de bt o r f o r th e c ol l ecti on f r o m t h e dep o si to r o f al l ch a r ge s an d advances which the depositor has expressly or impliedly contracted with the warehouseman to pay. SE C T IO N 33. S ati s fa cti on of l i en b y s al e . A wa r eh ou s e ma n ' s l i en f o r a cl ai m wh i ch h as become due may be satisfied as follows:(a) An itemized statement of the warehouseman's claim, showing the sum due at the time of the notice and the date or dates when it becomes due,(b) A brief description of the goods against which the lien exists,(c) A d e man d t h at t h e am ou n t of t h e cl ai m a s st at ed i n t h e n oti c e o f su ch fu rth e r cl ai m as s h a l l a c c r u e , s h a l l b e p a i d o n o r b e f o r e a d a y m e n t i o n e d , n o t l e s s t h a n t e n d a y s f r o m t h e delivery of the notice if it is personally delivered, or from the time when the notice shall reach its destination, according to the due course of post, if the notice is sent by mail,(d) A stat e m en t th a t u n l e s s th e cl ai m i s p ai d wi th i n th e ti m e sp e ci fi ed , t h e g o od s wi l l be advertised for sale and sold by auction at a specified time and place. In accordance with the terms of a notice so given, a sale of the goods by auction may be had to s ati s fy an y v al i d cl ai m o f th e wa r eh ou s ema n f o r wh i ch h e h as a l i en on th e g o od s . Th e s al e shall be had in the place where the lien was acquired, or, if such place is manifestly unsuitable f o r t h e p u r p o s e o f t h e c l a i m s p e c i f i e d i n t h e n o t i c e t o t h e d e p o s i t o r h a s e l a p s e d , a n d ad v er ti s em en t of th e sal e , d e sc ri bi n g th e go od s t o b e s ol d, an d stati n g th e n am e o f th e ow n er o r p e rs on on wh o s e a cc ou n t t h e g o od s a r e h el d, an d th e ti m e an d pl ac e of th e sal e , sh al l be published once a week for two consecutive weeks in a newspaper published in the place where su ch sal e i s t o b e h el d. T h e s al e sh al l n ot b e h el d l e s s th an fi ft e e n da y s f r om th e ti me of th e first publication. If there is no newspaper published in such place, the advertisement shall be posted at least ten days before such sale in not less than six conspicuous places therein. F r o m t h e proceeds of such sale, the warehouseman shall satisfy his lien including t h e rea s on abl e ch a rg e s o f n oti c e, a dv e rti s em en t an d s al e . Th e bal an c e , i f an y , of su ch pr o c e ed s shall be held by the warehouseman and delivered on demand to the person to whom he would have been bound to deliver or justified in delivering goods. At any time before the goods are so sold, any person claiming a right of property or possession th e r ei n may p ay th e wa r eh ou s eman th e am ou n t n ec e s sa r y t o s ati sf y h i s l i en an d t o pa y th e reasonable

expenses and liabilities incurred in serving notices and advertising and preparing for t h e sal e u p t o th e ti m e o f su ch pa ym en t . Th e w a r eh ou s em an sh al l d el i ve r th e g o od s t o t h e p e r s o n making payment if he is a person entitled, under the provision of this A c t , t o t h e pos s e s si on o f th e g o od s on pa ym en t o f ch ar g es th e r e on . Oth e r wi s e , t h e wa r eh ou s eman sh al l retain the possession of the goods according to the terms of the original contract of deposit. SE C T IO N 34. P e ri sh abl e an d h az a rd ou s go od s . If g oo ds a r e o f a p e ri sh a bl e n atu r e, o r by k e e p i n g w i l l d e t e r i o r a t e g r e a t l y i n v a l u e , o r , b y t h e i r o r d e r , l e a k a g e , i n f l a m m a b i l i t y , o r ex pl o si v e n atu r e , wi ll be l iabl e t o i n j u r e oth e r pr op e rt y , th e w a r e h ou s em an ma y gi ve su ch notice to the owner or to the person in whose names the goods are stored, as is reasonable and possible under the circumstances, to satisfy the lien upon such goods and to remove them from the warehouse and in the event of the failure of such person to satisfy the lien and to receive th e g o od s wi th i n th e ti m e s o sp e ci fi ed , th e wa r eh ou s eman m a y s el l th e g o od s at pu bl i c o r private sale without advertising. If the warehouseman, after a reasonable effort, is unable to s el l su ch g o o ds , h e m ay di s po s e o f th e m i n an y l aw fu l man n e r an d sh al l i ncu r n o l i abil i ty by reason thereof. The proceeds of any sale made under the terms of this section shall be disposed of in the same way as the proceeds of sales made under the terms of the preceding section. SE C T IO N 35. Oth e r me th od s o f en f o r ci n g l i en . Th e r e m ed y f o r en f o r ci n g a l i en h e r ei n p r o vi ded d o e s n o t p r e cl u d e an y oth e r r em edi e s al l ow ed by l aw f o r th e en f o rc e m en t o f a l i en against personal property nor bar the right to recover so much of the warehouseman's claim as shall not be paid by the proceeds of the sale of the property. SE C T IO N 36 . E ff e ct of sal e . A ft e r g o o ds h a v e b e en l a w f u l l y s o l d t o s a t i s f y a w ar eh ou s em an 's l i en , or h av e b e en l awf u l l y s ol d o r di s p os e d o f be cau s e of th ei r p e r i sh abl e o r h a z a rd ou s n atu r e , t h e wa r eh ou s eman sh al l n ot th e r ea ft e r b e l i abl e f o r f ai l u re t o d el i ve r th e goods to the depositor or owner of the goods or to a holder of the receipt given for the goods when they were deposited, even if such receipt be negotiable. III NEGOTIATION AND TRANSFER OF RECEIPTS SE C T IO N 37. N eg oti ati on o f n eg oti abl e r e c ei pt o f d el i ve r y . A n e go ti abl e r e c e i pt may b e negotiated by delivery:(a) Where, by terms of the receipt, the warehouseman undertakes to deliver the goods to the bearer, or(b) Where, by the terms of the receipt, the warehouseman undertakes to deliver the goods to th e o rd e r o f a sp e ci fi ed p e r s o n , an d s u ch p e r s on o r a su b s equ en t i n do r s e e of th e r ec ei pt h a s indorsed it in blank or to bearer. Wh e r e, b y t h e te rm s of a n eg oti abl e re c ei pt , th e g o od s a r e d el i ve rabl e t o b ea r e r o r wh e r e a negotiable receipt has been indorsed in blank or to bearer, any holder may indorse the same to h i msel f o r t o a n y ot h e r s p eci fi e d pe r s on , an d , i n su ch c as e , th e r ec ei pt s h al l th e r ea ft e r b e negotiated only by the indorsement of such indorsee. SE C T IO N 38. N eg oti ati on o f n eg oti abl e r e c ei pt b y i n do r s em e n t. A n eg oti abl e r e c ei pt m ay be negotiated by the indorsement of the person to whose order the goods are, by the terms of t h e r e c e i p t , d e l i v e r a b l e . S u c h i n d o r s e m e n t m a y b e i n b l a n k , t o b e a r e r o r t o a s p e c i f i e d per s on . If i n do r s ed t o a s p eci fi ed p e r s on , i t m ay b e ag ai n n eg oti at ed b y th e i n do r s em en t o f such person in blank, to bearer or to another specified person. Subsequent negotiation may be made in like manner. SECTION 39. Transfer of receipt. A receipt which is not in such form t h a t i t c a n b e negotiated by delivery may be transferred by the holder by delivery to a purchaser or donee. A n on - n e go ti abl e r e c e i pt can n o t b e n eg o ti at ed, a n d th e i n d o rs em en t o f su ch a r e c ei pt gi v es the transferee no additional right. SECTION 40. Who may negotiate a receipt. A negotiable receipt may be negotiated:(a) By the owner thereof, or(b) By any person to whom the possession or custody of the receipt has been entrusted by the own e r , i f , by th e t e rm s o f t h e r e c ei pt, th e w ar eh ou s em an u n d e rt ak e s to d el i ve r th e g oo ds t o the order of the person to whom the possession or custody of the receipt has been entrusted, o r i f, at t h e ti m e o f s u ch e n t ru s ti n g, th e r e c ei pt i s i n su ch f o r m th at i t may b e n eg oti at e d b y delivery. SECTION 41. Rights of person to whom a receipt has been negotiated. A person to whom a negotiable receipt has been duly negotiated acquires thereby:(a) Such title to the goods as the person negotiating the receipt to him had or had ability to convey to a purchaser in good faith for value, and also such title to the goods as the depositor or person to whose order the goods were to be delivered by the terms of the receipt had or had ability to convey to a purchaser in good faith for value, and( b ) The direct obligation of the warehouseman to hold possession of the

g o o d s f o r h i m according to the terms of the receipt as fully as if the warehouseman and contracted directly with him. SE C T IO N 42. Ri gh t s of p e r s on to wh om r e c ei pt h a s b e en t ra n sf e r r ed . A p e r s o n t o wh om a r e c ei pt h a s be en t ran s f e r r ed bu t n ot n eg oti at ed a cq u i re s th e r eb y, a s ag ai n st th e t ran s f e r or , the title of the goods subject to the terms of any agreement with the transferor.If the receipt is non-negotiable, such person also acquires the right to notify the warehousemano f t h e transfer to him of such receipt and thereby to acquire the direct o b l i g a t i o n o f t h e warehouseman to hold possession of the goods for him according to the terms of the receipt. P r i o r t o t h e n o t i f i c a t i o n o f t h e w a r e h o u s e m a n b y t h e t r a n s f e r o r or transferee of a non-negotiable receipt, the title of the transferee to t h e g o o d s a n d t h e r i g h t t o a c q u i r e t h e obl i gati on o f t h e w a re h o u s e man m ay b e de f eat e d by th e l e v y o f an att ac h m en t o r e x e c u ti on upon the goods by a creditor of the transferor or by a notification to the warehouseman by the transferor or a subsequent purchaser from the transferor of a subsequent sale of the goods by the transferor. SE C T IO N 43. T ran s f e r o f n eg oti abl e r ec ei pt wi th ou t i n do r s e men t. Wh e r e a n eg oti abl e r e c ei pt i s t ran s f er r e d f o r val u e b y d el i ve r y an d th e i n do r s em en t of th e tra n s f e r o r i s e ss en ti al for negotiation, the transferee acquires a right against the transferor to compel him to indorse t h e r ec ei pt u n l e ss a c on t ra r y i n t en ti on a ppe a r s. Th e n e go ti ati on sh al l tak e e ff e ct a s o f th e time when the indorsement is actually made. SECTION 44. Warranties of a sale of receipt. A person who, for value, n e g o t i a t e s o r tran sf e r s a r ec ei pt b y i n do r s em en t o r d el i ve r y, i n cl u di n g o n e wh o as si gn s f o r val u e a cl ai m secured by a receipt, unless a contrary intention appears, warrants:(a) That the receipt is genuine,(b) That he has a legal right to negotiate or transfer it,(c) That he has knowledge of no fact which would impair the validity or worth of the receipt, and(d) That he has a right to transfer the title to the goods and that the goods are merchantableo r fit for a particular purpose whenever such warranties would have been implied, if the contract of the parties had been to transfer without a r e c e i p t o f t h e g o o d s r e p r e s e n t e d thereby. SE C T IO N 45. In d o rs e r n ot a gu a ran to r . Th e i n do r s em en t o f a r e c ei pt sh al l n o t mak e th e i n do r s e r l iabl e f o r an y fai l u r e on th e pa rt of th e w ar eh ou s em an o r p r e vi ou s i n dor s e r s o f th e receipt to fulfill their respective obligations. SECTION 46. No warranty implied from accepting payment of a debt. A m o r t g a g e e , pledgee, or holder for security of a receipt who, in good faith, demands or receives payment of th e d eb t f o r wh i ch s u ch r e c ei pt i s s e cu ri ty , wh et h e r f r om a p a rty t o a d r aft dr awn f o r su c h d e bt or f r om an y oth e r p e r s on , sh al l n ot , b y s o doi n g , b e d e e m e d t o r ep r e s en t or t o w a r r an t the genuineness of such receipt or the quantity or quality of the goods therein described. SE C T IO N 47. Wh en n eg oti ati on n ot i mp ai re d by fr au d , mi st ak e or du r e s s. Th e val i di ty o f th e n e g ot i ati on of a r ec ei pt i s n ot i mp ai r ed b y th e f ac t th at su ch n eg oti ati on wa s a br ea ch of du ty on th e pa rt o f th e p e rs on maki n g th e n eg oti at i on o r by th e fa ct th at th e ow n er o f th e receipt was induced by fraud, mistake or duress or to entrust the possession or custody of the receipt to such person, if the person to whom the receipt was negotiated or a person to whom th e r ec ei pt w as su b s equ en tl y n eg oti at ed pai d v al u e th e r e f o r, wi th ou t n o ti ce of th e b r ea ch of duty, or fraud, mistake or duress. SECTION 48. Subsequent negotiation. Where a person having sold, mortgaged, or pledged go od s wh i ch a r e i n wa r eh o u s e an d f o r wh i c h a n eg oti abl e r e c ei pt h as b e en i ssu e d, o r h avi n g s ol d, m o rtga g ed , o r pl ed g ed th e n e g oti abl e r e c ei pt r ep r e s e n ti n g su ch g o od s, c on ti n u e s i n p os s e s si on o f th e n eg oti ab l e r ec ei pt , th e su b s equ en t n eg o ti ati on t h e r e of by th e p e rs on u n d e r any sale or other disposition thereof to any person receiving the same in good faith, for value an d wi th ou t n oti c e o f t h e p r evi ou s sal e , m o rtg ag e o r pl e dg e , s h al l h av e th e s am e ef f e c t a s i f t h e f i r s t p u r c h a s e r o f t h e g o o d s o r r e c e i p t h a d e x p r e s s l y a u t h o r i z e d t h e s u b s e q u e n t negotiation. SECTION 49. Negotiation defeats vendor's lien. Where a negotiable receipt has been issued f o r goods, no seller's lien or right of stoppage in transitu shall defeat the r i g h t s o f a n y pu rc h as e r f o r v al u e i n g o od f ai th t o wh om s u ch r e c ei pt h a s be e n n eg oti at ed , wh et h e r su ch n eg oti ati on b e p ri o r o r su b s equ en t t o th e n oti fi c ati on t o th e wa r eh ou s eman wh o i ssu ed su ch r e c e i p t o f t h e s e l l e r ' s c l a i m t o a l i e n o r r i g h t o f s t o p p a g e i n t r a n s i t u . N o r s h a l l t h e war eh ou s em an b e o bl i ge d to d el i ve r o r j u sti fi e d i n d el i ve ri n g th e g o od s t o an u n pai d s el l er unless the receipt is first surrendered for cancellation.

IV CRIMINAL OFFENSES SECTION 50. Issue of receipt for goods not received. A warehouseman, or an officer, agent, or servant of a warehouseman who issues or aids in issuing a receipt knowing that the goods for which such receipt is issued have not been actually received by such warehouseman, or are not u n d e r h i s actu al c on tr ol at th e ti me o f i s su i n g su c h r ec ei pt , sh al l b e g u il t y of a c ri me , an d , upon conviction, shall be punished for each offense by imprisonment not exceeding five years, or by a fine not exceeding ten thousand pesos, or both. SECTION 51. Issue of receipt containing false statement. A warehouseman, or any officer, a gen t o r s e r van t o f a wa r e h ou s em an wh o f rau du l en tl y i s su e s o r ai ds i n f ra u du l en tl y i s su i n g areceipt for goods knowing that it contains any false statement, shall be guilty of a crime, and u pon c on vi c ti on , sh al l be pu n i sh e d f o r e a ch o ff en s e b y i mp ri s on m en t n ot ex c e edi n g o n e y ea r , or by a fine not exceeding two thousand pesos, or by both. SECTION 52. Issue of duplicate receipt not so marked. A warehouse, or any officer, agent, or servant of a warehouseman who issues or aids in issuing a duplicate or additional negotiable r e c ei pt f or g o od s k n o wi n g t h at a f o rm e r n eg oti abl e r e c ei pt f o r th e sa m e g o od s o r an y pa rt o f th e m i s ou t stan di n g an d u n can c el e d, wi th ou t pl ai n l y pl aci n g u p on th e f ac e th e r e o f th e w o rd "duplicate" except in the case of a lost or destroyed receipt after proceedings are provided for in section fourteen, shall be guilty of a crime, and, upon conviction, shall be punished for each o ff en s e b y i mp ri s on men t n ot e xc e e di n g fi ve y ea r s, o r by a f i n e n ot ex c e edi n g t e n th ou san d pesos, or by both. SE C T IO N 53. Is su e f o r wa r eh ou s em an 's go od s o r r e c ei pts w h i ch d o n ot st at e th at fa ct . Where they are deposited with or held by a warehouseman goods of which he is owner, either solely or jointly or in common with others, such warehouseman, or any of his officers, agents, or servants who, knowing this ownership, issues or aids in issuing a negotiable receipt for such g o od s wh i ch do e s n ot s tat e su ch own e r sh i p, s h al l be gu i l ty o f a cr i me, an d, u p on c on vi c ti on , sh al l be pu n i sh e d f o r e a ch o ff en s e b y i mp ri s on m en t n ot ex c e edi n g o n e y ea r , o r b y a fi n e n ot exceeding two thousand pesos, or by both. SECTION 54. Delivery of goods without obtaining negotiable receipt. A warehouseman, or any officer, agent, or servant of a warehouseman, who delivers goods out of the possession of such warehouseman, knowing that a negotiable receipt the negotiation of which would transfer the right to the possession of such goods is outstanding and uncanceled, without obtaining the po ss e s si o n of su ch r e c ei pt at o r b e f or e th e ti m e o f su ch d el i ve ry , sh al l , e xc e pt i n th e ca s e s provided for in sections fourteen and thirty-six, be found guilty of a c r i m e , a n d , u p o n conviction, shall be punished for each offense by imprisonment not exceeding one year, or by a fine not exceeding two thousand pesos, or by both. SECTION 55. Negotiation of receipt for mortgaged goods. Any person who deposits goods to which he has no title, or upon which there is a lien or mortgage, and who takes for such goods a negotiable receipt which he afterwards negotiates for value with intent to d e c e i v e a n d without disclosing his want of title or the existence of the lien or mortgage, shall be guilty of a crime, and, upon conviction, shall be punished for each offense by imprisonment not exceeding one year, or by a fine not exceeding two thousand pesos, or by both. V INTERPRETATION SE C T IO N 56. Ca s e n ot p r ovi d ed f o r i n A ct . An y ca s e n ot pr o vi ded f o r i n th i s Act sh al l be governed by the provisions of existing legislation, or in default thereof, by the rule of the law merchant. SECTION 57. Name of Act. This Act may be cited as the Warehouse Receipts Act. SE C T IO N 58. D efi n i ti on s . (a) In th i s Act , u n l e ss th e c on t en t o r su bj e ct m att e r oth e r wi s e requires:"Action" includes counterclaim, set-off, and suits in equity as provided by law in these islands. "Delivery" means voluntary transfer of possession from one person to another. "Fu n gi bl e g o od s" m ean s g o od s o f wh i ch an y u n i t i s, f r o m i t s n atu r e b y m er c an t il e cu st om , treated as the equivalent of any other unit. "Goods" means chattels or merchandise in storage or which has been or is about to be stored. "Holder" of a receipt means a person who has both actual possession of such receipt and a right of property therein."Order" means an order by indorsement on the receipt.

"Owner" does not include mortgagee. "Person" includes a corporation or partnership or two or more persons having a joint or common interest. To "purchase" includes to take as mortgagee or as pledgee. "Receipt" means a warehouse receipt."Val u e " i s an y c on si de r ati on su f fi ci en t t o su pp o r t a si mpl e c on t r ac t. An an t ec e d en t o r p r e - existing obligation, whether for money or not, constitutes value where a receipt is taken either in satisfaction thereof or as security therefor. "Warehouseman" means a person lawfully engaged in the business of storing goods for profit.(b) A th i n g i s d on e "i n g o od f ai th " wi th i n th e me an i n g o f th i s A ct wh en i t i s i n f a ct d o n e honestly, whether it be done negligently or not. SE C T IO N 59. A ppl i cati on o f A ct. Th e pr o vi si on s o f th i s Ac t d o n ot appl y t o r e c ei pts mad e and delivered prior to the taking effect hereof. SE C T IO N 60. R e p eal s. Al l act s an d l aws an d pa rt s th e re o f i n c on si st en t wi th t h i s A ct ar e hereby repealed. SE C T IO N 61. Ti me wh en Ac t t ak e s ef f e ct . Th i s A ct s h al l tak e ef f e ct n i n et y d ay s aft e r i ts publication in the Official Gazette of the Philippines shall have been completed. Enacted: February 5, 1912