ART. 2] PLEDGE——INSOLVENCY OF FACTORS. 119

owner of the goods, wares or merchandise described therein, so far as
to give validity to any contract thereafter to be made by such person
with any other person or body corporate for the sale or disposal of the
said goods, wares or merchandise, or for the pledge or deposit thereof
as a security for any money or negotiable instrument advanced or given
on the faith of such documents, or any of them; provided, that such
person or body corporate shall not have notice by such document or
otherwise, that the person so intrusted is not the actual and bona fide
owner of such goods, wares and merchandise.

If a pledgee takes warehouse receipts upon the face of which the con-
signee is described as "agent," such description puts the pledgee on notice
that the consignee is not the actual and bona fide owner. Thurber v. Cecil
National Rank, 52 Fed. 513.

This section applied. Farmers, etc., Co. v. Brown, 87 Md. 1.

As to bills of lading, see art. 14. As to warehouse receipts, see art. 14 A.

1904, art. 2, sec. 4. 1888, art. 2, sec. 4. 1860, art. 3, sec. 4. 1825, ch. 182, sec. 3.

4. Any person or body corporate may contract with any agent or
factor intrusted with any goods, wares or merchandise, or to whom the
same may be consigned, for the purchase thereof, and may receive the
same from such agent, factor or consignee, and pay him therefor; and
such contract and payment shall be good against the owner, notwith-
standing 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 contract 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 mer-
chandise, or receive the purchase money for the same.

A Jewelry dealer who has no store but is entrusted by the owner with a
ring for the purpose of procuring a match therefor, and failing in that to
get an offer of purchase for it, is not an agent or factor within the meaning
of this section. This article has no application to other than mercantile
transactions. Levl. v. Booth, 58 Md. 305.

Ibid. sec. 1888, art. 2, sec. 5. 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 posses-
sion of any such bill of lading, storekeeper's or inspector's certificate,
order for the delivery of goods, or other such document showing pos-
session, 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
Fame, and no more.

Ibid. sec. 6. 1888. art. 2. sec. 6. 1800, art. 3. 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