ART. 3.] PLEDGE—INSOLVENCY OP FACTORS. 5

pay him therefor; and such contract and payment shall be good
against the owner, notwithstanding such person shall have notice
that the person making such contract, or on whose behalf such

contract is made, is an agent or factor; provided, that such con-
tract and payment be made in the usual course of business, and
that when such contract is entered into or payment made, such
person or body corporate shall not have notice that such agent or
factor is not authorized to sell the goods, wares or merchandise,

or receive the purchase money for the same.
Levi v. Booth, 57 Md. 306.

P. G. L., (1860,) art. 3, sec 5. 1825, ch. 182, sec. 4.

5. If any person or body corporate shall take any goods, wares
or merchandise, or any document mentioned in section 3, in
deposit or pledge from any person so intrusted with the same, or
to whom the same may be consigned, or who may be intrusted
with and in possession of any such bill of lading, store keeper's

or inspector's certificate, order for the delivery of goods, or other
such document showing possession, without notice as aforesaid, as
a security for any debt or demand existing before the time of
such deposit or pledge, then such person shall acquire such right,
title or interest as was possessed and might have been enforced
by the person from whom he received the same, and no more.

Ibid sec. 6. 1825, ch. 182, sec 5.

6. Any person or body corporate may take any goods, wares

or merchandise, or any such document as aforesaid, in deposit or
pledge as a security for a pre-existing debt or demand from such
agent or factor, knowing him to be such, but with such notice
such person or body corporate shall only acquire the right or
interest therein which was possessed by such agent or factor at
the time of the deposit or pledge; but if such person or body

corporate shall have notice that such agent or factor had no
authority from his principal to pledge or deposit the same or to
part with the possession thereof, in such case such person or body

corporate shall acquire no right or interest therein.

Ibid. sec. 7. 1825, ch 182, sec. 7.

7. In all cases where an agent or factor shall have made a
contract for the sale of goods, wares or merchandise, or shall