The bank may acquire and hold warehouse receipts and bills of lading as collateral security for the payment of any debt incurred in its favor, but it is necessary that the warehouse re-ceipt be acquired at the time the advance is made or pursuant to a written promise to give security made prior to the time the advance is made. Loans may be made by the bank to any person upon any goods, wares or merchandise covered by warehouse receipts or bills of lading. In lending on the security of warehouse receipts or bills of lading, it is not necessary that a customer should be a manufacturer or wholesale shipper or dealer, as in the case of advances made under Section 88.

Warehouse Receipt

The undersigned acknowledges to have received from ..............................................

and to have stored in ......................................................................................

• •......• •••••••••••••.......•...........................................................•••.....••••••

••................•••••••••••...................................................•••••..... .....••••• to be delivered pursuant to the order of the said............................................................

to be indorsed hereon, and to be kept in store till delivered pursuant to such order.

This is intended as a Warehouse Receipt within the meaning of the Statute of Canada entitled "An Act respecting Banks and Banking," and any amendments thereto, and within the meaning of all other Acts and laws under which a bank in Canada may acuire a Warehouse Receipt as security.

Dated at ............................................

the ...................day of ...................191. . .

Figure 54

A definition of a warehouse receipt is given in Section 2 of the Bank Act. In making advances on warehouse receipts an ordinary note form or, preferably, the special form (Figure 53) can be used. Al-tho the delivery of a warehouse receipt constitutes a legal transfer, it is generally considered advisable to take an ordinary pledge or to use a special form (Figure 55). Immediately an advance is made on a warehouse receipt, the warehouseman should be notified and his acknowledgment received.