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Dock Warrant

act, document, person and warrants

DOCK WARRANT. A dock warrant is a document issued by a dock company stating that the goods as described therein are entered in their books, and are deliverable to the person mentioned or his assigns by indorsement.

The Factors Act. Section 1 s.s. 4, states that the expression " document of title " includes a dock warrant, and any warrant or order for the delivery of goods, and any document authori ing, either by indorsement or by delivery, the possessor of the document to transfer or receive the goods. (Sec FACTORS ACT.) Where goods have been sold and the war rants indorsed by the seller to the buyer, the goods are, as a rule, subject to the seller's lien for the purchase price. But if the warrants have been lawfully transferred to a purchaser and he sells or pledges them to a third person. and that third person receix es the same in good faith, NN ithout notice of any lien. the lien of the original vendor is thereby defeated. In such a case the third person (e.g. a banker) holds the warrants as " documents of title " to the goods. 1 f the warrants are pledged or sold by a mercantile agent acting in the ordinary course of business, the pledge or sale shall be as valid as if he were ex pressly authorised by the owner to make the same (see Sections 2 to 10 of the " Factors Act "). In reading the sections of that Act, Sections 2 to 7 refer only to dispositions by mercantile agents, and S to 10 to dispositions by sellers and buyers.

Warrants which arc not governed by that Act (or any Private Act) are not recognised legally as documents of title but simply as authorities to obtain possession of the goods.

Section 1 I of the same Act prescribes that the transfer of a warrant may be by indorse ment, or, where the document is by custom or by its express terms transferable by de livery, or makes the goods deliverable to the bearer, then by delivery.

The warrants when given as security should be indorsed by the person named, and be accompanied by a memorandum of deposit. The memorandum (which should create a continuing security) should give the bank authority, in the event of default of repayment, to sell the goods and out of the proceeds to repay the loan with interest, and all other moneys duc. The memorandum should also provide for insurance of the goods against fire, and for a sufficient margin in value to be preserved. The memorandum requires to be stamped sixpence.

\\There there is any uncertainty as to the nature of the document, the goods should be transferred into the banker's name in the books of the dock company or warehouse keeper.

The stamp duty on a dock warrant is three pence. (Sec WARRANT FOR GOODS.)