Section 11-803 - Consignee holding possessory document considered owner of goods. - Maryland Statutes

§ 11-803. Consignee holding possessory document considered owner of goods.
 

(a)  Consignee considered owner.- Except as provided by subsection (b) of this section, a consignee entrusted with and in possession of a possessory document is considered the true owner of the goods described in the document for the purpose of any contract with a third person for: 

(1) The sale or disposal of the goods; or 

(2) The pledge or deposit of them as security for any money or negotiable instrument advanced or given on the faith of the possessory document. 

(b)  Exception.- A contract, pledge, or deposit described in subsection (a) of this section is not valid if the third person has notice that the consignee is not the true owner of the goods. 
 

[An. Code 1957, art. 2, § 3; 1975, ch. 49, § 3.]