Under this section banks are permitted to make advances:
To any wholesale purchaser or shipper of or dealer in products of agriculture, the forest, quarry and mine, or the sea, lakes and rivers, or to any wholesale purchaser or shipper of or dealer in live stock or dead stock or the products thereof upon the security of the same.
To a farmer upon the security of his threshed grain grown upon the farm.
To any wholesale manufacturer of goods upon the security of the goods actually manufactured by him or procured for such manufacture (a bank may not, however, lend to a manufacturer upon the security of any goods procured by him to be sold in substantially the same condition in which they were received). No definition of the term "wholesale" manufacturer, purchaser, shipper or dealer is given in the Act - in fact, it would not be possible to define the term - but no difficulty, probably, will arise in the majority of cases, as the dividing line is generally well defined.
A correct appreciation of the intention and legal effect of the forms used in this connection will be helpful. Only one form, the assignment or pledge (Schedule C), is given in the Bank Act. All forms, however, are based on a correct interpretation of the act, and vary but slightly in the different banks. Among the more important forms may be mentioned:
1. The pledge or assignment of goods (Figure 48)
2. The promise to give security (Figure 49)
3. The contract with the customer respecting sales, insurance of goods, etc. (Figure .50)
4. The declaration by the customer as to the quality and value of the produce assigned and also a statement as to wages and other privileged claims (Figure 51)
5. The note (Figures 52 and 53). To be used with all advances made under Sections 86-90.