Sec. 4. Definition of non-negotiable receipt.

– A receipt in which it is stated that the

ACT NO. 2137 – THE WAREHOUSE RECEIPTS LAW
goods received will be delivered to the depositor or to any other specified person, is
I – THE ISSUE OF WAREHOUSE RECEIPTS a non-negotiable receipt.

Section 1. Persons who may issue receipts. – Warehouse receipts may be issued by Sec. 5. Definition of negotiable receipt. – A receipt in which it is stated that the goods
any warehouseman. received will be delivered to the bearer or to the order of any person named in such
receipt is a negotiable receipt.
Sec. 2. Form of receipts; essential terms. – Warehouse receipts need not be in any
particular form but every such receipt must embody within its written or printed terms: No provision shall be inserted in a negotiable receipt that it is non-negotiable. Such
provision, if inserted shall be void.
(a) The location of the warehouse where the goods are stored,
Sec. 6. Duplicate receipts must be so marked. – When more than one negotiable
(b) The date of the issue of the receipt, receipt is issued for the same goods, the word “duplicate” shall be plainly placed
(c) The consecutive number of the receipt, upon the face of every such receipt, except the first one issued. A warehouseman
shall be liable for all damages caused by his failure so to do to any one who
(d) A statement whether the goods received will be delivered to the bearer, to a purchased the subsequent receipt for value supposing it to be an original, even
specified person or to a specified person or his order, though the purchase be after the delivery of the goods by the warehouseman to the
holder of the original receipt.
(e) The rate of storage charges,
Sec. 7. Failure to mark “non-negotiable.” – A non-negotiable receipt shall have
(f) A description of the goods or of the packages containing them,
plainly placed upon its face by the warehouseman issuing it “non-negotiable,” or “not
(g) The signature of the warehouseman which may be made by his authorized agent, negotiable.” In case of the warehouseman’s failure so to do, a holder of the receipt
who purchased it for value supposing it to be negotiable, may, at his option, treat
(h) If the receipt is issued for goods of which the warehouseman is owner, either
such receipt as imposing upon the warehouseman the same liabilities he would have
solely or jointly or in common with others, the fact of such ownership, and
incurred had the receipt been negotiable.
(i) A statement of the amount of advances made and of liabilities incurred for which
This section shall not apply, however, to letters, memoranda, or written
the warehouseman claims a lien. If the precise amount of such advances made or of
acknowledgment of an informal character.
such liabilities incurred is, at the time of the issue of, unknown to the warehouseman
or to his agent who issues it, a statement of the fact that advances have been made II – OBLIGATIONS AND RIGHTS OF WAREHOUSEMEN UPON THEIR RECEIPTS
or liabilities incurred and the purpose thereof is sufficient.
Sec. 8. Obligation of warehousemen to deliver. – A warehouseman, in the absence
A warehouseman shall be liable to any person injured thereby for all damages of some lawful excuse provided by this Act, is bound to deliver the goods upon a
caused by the omission from a negotiable receipt of any of the terms herein required. demand made either by the holder of a receipt for the goods or by the depositor; if
such demand is accompanied with:
Sec. 3. Form of receipts. – What terms may be inserted. – A warehouseman may
insert in a receipt issued by him any other terms and conditions provided that such (a) An offer to satisfy the warehouseman’s lien;
terms and conditions shall not:
(b) An offer to surrender the receipt, if negotiable, with such indorsements as would
(a) Be contrary to the provisions of this Act. be necessary for the negotiation of the receipt; and

(b) In any wise impair his obligation to exercise that degree of care in the safe-
keeping of the goods entrusted to him which is reasonably careful man would
exercise in regard to similar goods of his own.
(c) A readiness and willingness to sign, when the goods are delivered, an deliver the goods to him, whether such purchaser acquired title to the receipt before
acknowledgment that they have been delivered, if such signature is requested by the or after the delivery of the goods by the warehouseman.
warehouseman.
Sec. 12. Negotiable receipts must be cancelled or marked when part of goods
In case the warehouseman refuses or fails to deliver the goods in compliance with a delivered. – Except as provided in section thirty-six, where a warehouseman delivers
demand by the holder or depositor so accompanied, the burden shall be upon the part of the goods for which he had issued a negotiable receipt and fails either to take
warehouseman to establish the existence of a lawful excuse for such refusal. up and cancel such receipt or to place plainly upon it a statement of what goods or
packages have been delivered, he shall be liable to any one who purchases for value
Sec. 9. Justification of warehouseman in delivering. – A warehouseman is justified in
in good faith such receipt, for failure to deliver all the goods specified in the receipt,
delivering the goods, subject to the provisions of the three following sections, to one
whether such purchaser acquired title to the receipt before or after the delivery of any
who is:
portion of the goods by the warehouseman.
(a) The person lawfully entitled to the possession of the goods, or his agent;
Sec. 13. Altered receipts. – The alteration of a receipt shall not excuse the
(b) A person who is either himself entitled to delivery by the terms of a non- warehouseman who issued it from any liability if such alteration was:
negotiable receipt issued for the goods, or who has written authority from the person
(a) Immaterial,
so entitled either indorsed upon the receipt or written upon another paper; or
(b) Authorized, or
(c) A person in possession of a negotiable receipt by the terms of which the goods
are deliverable to him or order, or to bearer, or which has been indorsed to him or in (c) Made without fraudulent intent.
blank by the person to whom delivery was promised by the terms of the receipt or by
If the alteration was authorized, the warehouseman shall be liable according to the
his mediate or immediate indorser.
terms of the receipt as altered. If the alteration was unauthorized but made without
Sec. 10. Warehouseman’s liability for misdelivery. – Where a warehouseman fraudulent intent, the warehouseman shall be liable according to the terms of the
delivers the goods to one who is not in fact lawfully entitled to the possession of receipt as they were before alteration.
them, the warehouseman shall be liable as for conversion to all having a right of
Material and fraudulent alteration of a receipt shall not excuse the warehouseman
property or possession in the goods if he delivered the goods otherwise than as
who issued it from liability to deliver according to the terms of the receipt as originally
authorized by subdivisions (b) and (c) of the preceding section, and though he
issued, the goods for which it was issued but shall excuse him from any other liability
delivered the goods as authorized by said subdivisions, he shall be so liable, if prior
to the person who made the alteration and to any person who took with notice of the
to such delivery he had either:
alteration. Any purchaser of the receipt for value without notice of the alteration shall
(a) Been requested, by or on behalf of the person lawfully entitled to a right of acquire the same rights against the warehouseman which such purchaser would
property or possession in the goods, not to make such deliver; or have acquired if the receipt had not been altered at the time of purchase.

(b) Had information that the delivery about to be made was to one not lawfully Sec. 14. Lost or destroyed receipts. – Where a negotiable receipt has been lost or
entitled to the possession of the goods. destroyed, a court of competent jurisdiction may order the delivery of the goods upon
satisfactory proof of such loss or destruction and upon the giving of a bond with
Sec. 11. Negotiable receipt must be cancelled when goods delivered. – Except as
sufficient sureties to be approved by the court to protect the warehouseman from any
provided in section thirty-six, where a warehouseman delivers goods for which he
liability or expense, which he or any person injured by such delivery may incur by
had issued a negotiable receipt, the negotiation of which would transfer the right to
reason of the original receipt remaining outstanding. The court may also in its
the possession of the goods, and fails to take up and cancel the receipt, he shall be
discretion order the payment of the warehouseman’s reasonable costs and counsel
liable to any one who purchases for value in good faith such receipt, for failure to
fees.
The delivery of the goods under an order of the court as provided in this section, them or by a statement that the goods are said to be goods of a certain kind or that
shall not relieve the warehouseman from liability to a person to whom the negotiable the packages containing the goods are said to contain goods of a certain kind or by
receipt has been or shall be negotiated for value without notice of the proceedings or words of like purport, such statements, if true, shall not make liable the
of the delivery of the goods. warehouseman issuing the receipt, although the goods are not of the kind which the
marks or labels upon them indicate or of the kind they were said to be by the
Sec. 15. Effect of duplicate receipts. – A receipt upon the face of which the word
depositor.
“duplicate” is plainly placed is a representation and warranty by the warehouseman
that such receipt is an accurate copy of an original receipt properly issued and Sec. 21. Liability for care of goods. – A warehouseman shall be liable for any loss or
uncanceled at the date of the issue of the duplicate, but shall impose upon him no injury to the goods caused by his failure to exercise such care in regard to them as
other liability. reasonably careful owner of similar goods would exercise, but he shall not be liable,
in the absence of an agreement to the contrary, for any loss or injury to the goods
Sec. 16. Warehouseman cannot set up title in himself . – No title or right to the
which could not have been avoided by the exercise of such care.
possession of the goods, on the part of the warehouseman, unless such title or right
is derived directly or indirectly from a transfer made by the depositor at the time of or Sec. 22. Goods must be kept separate. – Except as provided in the following section,
subsequent to the deposit for storage, or from the warehouseman’s lien, shall excuse a warehouseman shall keep the goods so far separate from goods of other
the warehouseman from liability for refusing to deliver the goods according to the depositors and from other goods of the same depositor for which a separate receipt
terms of the receipt. has been issued, as to permit at all times the identification and redelivery of the
goods deposited.
Sec. 17. Interpleader of adverse claimants. – If more than one person claims the title
or possession of the goods, the warehouseman may, either as a defense to an Sec. 23. Fungible goods may be commingled if warehouseman authorized. – If
action brought against him for non-delivery of the goods or as an original suit, authorized by agreement or by custom, a warehouseman may mingle fungible goods
whichever is appropriate, require all known claimants to interplead. with other goods of the same kind and grade. In such case, the various depositors of
the mingled goods shall own the entire mass in common and each depositor shall be
Sec. 18. Warehouseman has reasonable time to determine validity of claims. – If
entitled to such portion thereof as the amount deposited by him bears to the whole.
someone other than the depositor or person claiming under him has a claim to the
title or possession of goods, and the warehouseman has information of such claim, Sec. 24. Liability of warehouseman to depositors of commingled goods. – The
the warehouseman shall be excused from liability for refusing to deliver the goods, warehouseman shall be severally liable to each depositor for the care and redelivery
either to the depositor or person claiming under him or to the adverse claimant until of his share of such mass to the same extent and under the same circumstances as
the warehouseman has had a reasonable time to ascertain the validity of the adverse if the goods had been kept separate.
claim or to bring legal proceedings to compel claimants to interplead.
Sec. 25. Attachment or levy upon goods for which a negotiable receipt has been
Sec. 19. Adverse title is no defense except as above provided. – Except as provided issued. – If goods are delivered to a warehouseman by the owner or by a person
in the two preceding sections and in sections nine and thirty-six, no right or title of a whose act in conveying the title to them to a purchaser in good faith for value would
third person shall be a defense to an action brought by the depositor or person bind the owner, and a negotiable receipt is issued for them, they can not thereafter,
claiming under him against the warehouseman for failure to deliver the goods while in the possession of the warehouseman, be attached by garnishment or
according to the terms of the receipt. otherwise, or be levied upon under an execution unless the receipt be first
surrendered to the warehouseman or its negotiation enjoined. The warehouseman
Sec. 20. Liability for non-existence or misdescription of goods. – A warehouseman
shall in no case be compelled to deliver up the actual possession of the goods until
shall be liable to the holder of a receipt for damages caused by the non-existence of
the receipt is surrendered to him or impounded by the court.
the goods or by the failure of the goods to correspond with the description thereof in
the receipt at the time of its issue. If, however, the goods are described in a receipt Sec. 26. Creditor’s remedies to reach negotiable receipts. – A creditor whose debtor
merely by a statement of marks or labels upon them or upon packages containing is the owner of a negotiable receipt shall be entitled to such aid from courts of
appropriate jurisdiction, by injunction and otherwise, in attaching such receipt or in Sec. 31. Warehouseman need not deliver until lien is satisfied. – A warehouseman
satisfying the claim by means thereof as is allowed at law or in equity in these having a lien valid against the person demanding the goods may refuse to deliver the
islands in regard to property which can not readily be attached or levied upon by goods to him until the lien is satisfied.
ordinary legal process.
Sec. 32. Warehouseman’s lien does not preclude other remedies. – Whether a
Sec. 27. What claims are included in the warehouseman’s lien. – Subject to the warehouseman has or has not a lien upon the goods, he is entitled to all remedies
provisions of section thirty, a warehouseman shall have a lien on goods deposited or allowed by law to a creditor against a debtor for the collection from the depositor of
on the proceeds thereof in his hands, for all lawful charges for storage and all charges and advances which the depositor has expressly or impliedly contracted
preservation of the goods; also for all lawful claims for money advanced, interest, with the warehouseman to pay.
insurance, transportation, labor, weighing, coopering and other charges and
Sec. 33. Satisfaction of lien by sale. – A warehouseman’s lien for a claim which has
expenses in relation to such goods, also for all reasonable charges and expenses for
become due may be satisfied as follows:
notice, and advertisements of sale, and for sale of the goods where default had been
made in satisfying the warehouseman’s lien. (a) An itemized statement of the warehouseman’s claim, showing the sum due at the
time of the notice and the date or dates when it becomes due,
Sec. 28. Against what property the lien may be enforced. – Subject to the provisions
of section thirty, a warehouseman’s lien may be enforced: (b) A brief description of the goods against which the lien exists,

(a) Against all goods, whenever deposited, belonging to the person who is liable as (c) A demand that the amount of the claim as stated in the notice of such further
debtor for the claims in regard to which the lien is asserted, and claim as shall accrue, shall be paid on or before a day mentioned, not less than ten
days from the delivery of the notice if it is personally delivered, or from the time when
(b) Against all goods belonging to others which have been deposited at any time by
the notice shall reach its destination, according to the due course of post, if the
the person who is liable as debtor for the claims in regard to which the lien is
notice is sent by mail,
asserted if such person had been so entrusted with the possession of goods that a
pledge of the same by him at the time of the deposit to one who took the goods in (d) A statement that unless the claim is paid within the time specified, the goods will
good faith for value would have been valid. be advertised for sale and sold by auction at a specified time and place.

Sec. 29. How the lien may be lost. – A warehouseman loses his lien upon goods: In accordance with the terms of a notice so given, a sale of the goods by auction
may be had to satisfy any valid claim of the warehouseman for which he has a lien
(a) By surrendering possession thereof, or
on the goods. The sale shall be had in the place where the lien was acquired, or, if
(b) By refusing to deliver the goods when a demand is made with which he is bound such place is manifestly unsuitable for the purpose of the claim specified in the
to comply under the provisions of this Act. notice to the depositor has elapsed, and advertisement of the sale, describing the
goods to be sold, and stating the name of the owner or person on whose account the
Sec. 30. Negotiable receipt must state charges for which the lien is claimed. – If a
goods are held, and the time and place of the sale, shall be published once a week
negotiable receipt is issued for goods, the warehouseman shall have no lien thereon
for two consecutive weeks in a newspaper published in the place where such sale is
except for charges for storage of goods subsequent to the date of the receipt unless
to be held. The sale shall not be held less than fifteen days from the time of the first
the receipt expressly enumerated other charges for which a lien is claimed. In such
publication. If there is no newspaper published in such place, the advertisement shall
case, there shall be a lien for the charges enumerated so far as they are within the
be posted at least ten days before such sale in not less than six conspicuous places
terms of section twenty-seven although the amount of the charges so enumerated is
therein.
not stated in the receipt.
From the proceeds of such sale, the warehouseman shall satisfy his lien including
the reasonable charges of notice, advertisement and sale. The balance, if any, of
such proceeds shall be held by the warehouseman and delivered on demand to the Sec. 37. Negotiation of negotiable receipt of delivery. – A negotiable receipt may be
person to whom he would have been bound to deliver or justified in delivering goods. negotiated by delivery:

At any time before the goods are so sold, any person claiming a right of property or (a) Where, by terms of the receipt, the warehouseman undertakes to deliver the
possession therein may pay the warehouseman the amount necessary to satisfy his goods to the bearer, or
lien and to pay the reasonable expenses and liabilities incurred in serving notices
(b) Where, by the terms of the receipt, the warehouseman undertakes to deliver the
and advertising and preparing for the sale up to the time of such payment. The
goods to the order of a specified person, and such person or a subsequent indorsee
warehouseman shall deliver the goods to the person making payment if he is a
of the receipt has indorsed it in blank or to bearer.
person entitled, under the provision of this Act, to the possession of the goods on
payment of charges thereon. Otherwise, the warehouseman shall retain the Where, by the terms of a negotiable receipt, the goods are deliverable to bearer or
possession of the goods according to the terms of the original contract of deposit. where a negotiable receipt has been indorsed in blank or to bearer, any holder may
indorse the same to himself or to any other specified person, and, in such case, the
Sec. 34. Perishable and hazardous goods. – If goods are of a perishable nature, or
receipt shall thereafter be negotiated only by the indorsement of such indorsee.
by keeping will deteriorate greatly in value, or, by their order, leakage, inflammability,
or explosive nature, will be liable to injure other property , the warehouseman may Sec. 38. Negotiation of negotiable receipt by indorsement. – A negotiable receipt
give such notice to the owner or to the person in whose names the goods are stored, may be negotiated by the indorsement of the person to whose order the goods are,
as is reasonable and possible under the circumstances, to satisfy the lien upon such by the terms of the receipt, deliverable. Such indorsement may be in blank, to bearer
goods and to remove them from the warehouse and in the event of the failure of or to a specified person. If indorsed to a specified person, it may be again negotiated
such person to satisfy the lien and to receive the goods within the time so specified, by the indorsement of such person in blank, to bearer or to another specified person.
the warehouseman may sell the goods at public or private sale without advertising. If Subsequent negotiation may be made in like manner.
the warehouseman, after a reasonable effort, is unable to sell such goods, he may
dispose of them in any lawful manner and shall incur no liability by reason thereof. Sec. 39. Transfer of receipt. – A receipt which is not in such form that it can be
negotiated by delivery may be transferred by the holder by delivery to a purchaser or
The proceeds of any sale made under the terms of this section shall be disposed of donee.
in the same way as the proceeds of sales made under the terms of the preceding
section. A non-negotiable receipt can not be negotiated, and the indorsement of such a
receipt gives the transferee no additional right.
Sec. 35. Other methods of enforcing lien. – The remedy for enforcing a lien herein
provided does not preclude any other remedies allowed by law for the enforcement Sec. 40. Who may negotiate a receipt. – A negotiable receipt may be negotiated:

of a lien against personal property nor bar the right to recover so much of the (a) By the owner thereof, or
warehouseman’s claim as shall not be paid by the proceeds of the sale of the
property. (b) By any person to whom the possession or custody of the receipt has been
entrusted by the owner, if, by the terms of the receipt, the warehouseman undertakes
Sec. 36. Effect of sale. – After goods have been lawfully sold to satisfy a to deliver the goods to the order of the person to whom the possession or custody of
warehouseman’s lien, or have been lawfully sold or disposed of because of their the receipt has been entrusted, or if, at the time of such entrusting, the receipt is in
perishable or hazardous nature, the warehouseman shall not thereafter be liable for such form that it may be negotiated by delivery.
failure to deliver the goods to the depositor or owner of the goods or to a holder of
the receipt given for the goods when they were deposited, even if such receipt be Sec. 41. Rights of person to whom a receipt has been negotiated. – A person to
negotiable. whom a negotiable receipt has been duly negotiated acquires thereby:

III – NEGOTIATION AND TRANSFER OF RECEIPTS (a) Such title to the goods as the person negotiating the receipt to him had or had
ability to convey to a purchaser in good faith for value, and also such title to the
goods as the depositor or person to whose order the goods were to be delivered by (d) That he has a right to transfer the title to the goods and that the goods are
the terms of the receipt had or had ability to convey to a purchaser in good faith for merchantable or fit for a particular purpose whenever such warranties would have
value, and been implied, if the contract of the parties had been to transfer without a receipt of
the goods represented thereby.
(b) The direct obligation of the warehouseman to hold possession of the goods for
him according to the terms of the receipt as fully as if the warehouseman and Sec. 45. Indorser not a guarantor. – The indorsement of a receipt shall not make the
contracted directly with him. indorser liable for any failure on the part of the warehouseman or previous indorsers
of the receipt to fulfill their respective obligations.
Sec. 42. Rights of person to whom receipt has been transferred. – A person to whom
a receipt has been transferred but not negotiated acquires thereby, as against the Sec. 46. No warranty implied from accepting payment of a debt. – A mortgagee,
transferor, the title of the goods subject to the terms of any agreement with the pledgee, or holder for security of a receipt who, in good faith, demands or receives
transferor. payment of the debt for which such receipt is security, whether from a party to a draft
drawn for such debt or from any other person, shall not, by so doing, be deemed to
If the receipt is non-negotiable, such person also acquires the right to notify the
represent or to warrant the genuineness of such receipt or the quantity or quality of
warehouseman of the transfer to him of such receipt and thereby to acquire the
the goods therein described.
direct obligation of the warehouseman to hold possession of the goods for him
according to the terms of the receipt. Sec. 47. When negotiation not impaired by fraud, mistake or duress. – The validity of
the negotiation of a receipt is not impaired by the fact that such negotiation was a
Prior to the notification of the warehouseman by the transferor or transferee of a non-
breach of duty on the part of the person making the negotiation or by the fact that the
negotiable receipt, the title of the transferee to the goods and the right to acquire the
owner of the receipt was induced by fraud, mistake or duress or to entrust the
obligation of the warehouseman may be defeated by the levy of an attachment or
possession or custody of the receipt to such person, if the person to whom the
execution upon the goods by a creditor of the transferor or by a notification to the
receipt was negotiated or a person to whom the receipt was subsequently negotiated
warehouseman by the transferor or a subsequent purchaser from the transferor of a
paid value therefor, without notice of the breach of duty, or fraud, mistake or duress.
subsequent sale of the goods by the transferor.
Sec. 48. Subsequent negotiation. – Where a person having sold, mortgaged, or
Sec. 43. Transfer of negotiable receipt without indorsement. – Where a negotiable
pledged goods which are in warehouse and for which a negotiable receipt has been
receipt is transferred for value by delivery and the indorsement of the transferor is
issued, or having sold, mortgaged, or pledged the negotiable receipt representing
essential for negotiation, the transferee acquires a right against the transferor to
such goods, continues in possession of the negotiable receipt, the subsequent
compel him to indorse the receipt unless a contrary intention appears. The
negotiation thereof by the person under any sale or other disposition thereof to any
negotiation shall take effect as of the time when the indorsement is actually made.
person receiving the same in good faith, for value and without notice of the previous
Sec. 44. Warranties of a sale of receipt. – A person who, for value, negotiates or sale, mortgage or pledge, shall have the same effect as if the first purchaser of the
transfers a receipt by indorsement or delivery, including one who assigns for value a goods or receipt had expressly authorized the subsequent negotiation.
claim secured by a receipt, unless a contrary intention appears, warrants:
Sec. 49. Negotiation defeats vendor’s lien. – Where a negotiable receipt has been
(a) That the receipt is genuine, issued for goods, no seller’s lien or right of stoppage in transitu shall defeat the rights
of any purchaser for value in good faith to whom such receipt has been negotiated,
(b) That he has a legal right to negotiate or transfer it, whether such negotiation be prior or subsequent to the notification to the
(c) That he has knowledge of no fact which would impair the validity or worth of the warehouseman who issued such receipt of the seller’s claim to a lien or right of
receipt, and stoppage in transitu. Nor shall the warehouseman be obliged to deliver or justified in
delivering the goods to an unpaid seller unless the receipt is first surrendered for
cancellation.
IV – CRIMINAL OFFENSES such delivery, shall, except in the cases provided for in sections fourteen and thirty-
six, be found guilty of a crime, and, upon conviction, shall be punished for each
Sec. 50. Issue of receipt for goods not received. – A warehouseman, or an officer,
offense by imprisonment not exceeding one year, or by a fine not exceeding two
agent, or servant of a warehouseman who issues or aids in issuing a receipt knowing
thousand pesos, or by both.
that the goods for which such receipt is issued have not been actually received by
such warehouseman, or are not under his actual control at the time of issuing such Sec. 55. Negotiation of receipt for mortgaged goods. – Any person who deposits
receipt, shall be guilty of a crime, and, upon conviction, shall be punished for each goods to which he has no title, or upon which there is a lien or mortgage, and who
offense by imprisonment not exceeding five years, or by a fine not exceeding ten takes for such goods a negotiable receipt which he afterwards negotiates for value
thousand pesos, or both. with intent to deceive and without disclosing his want of title or the existence of the
lien or mortgage, shall be guilty of a crime, and, upon conviction, shall be punished
Sec. 51. Issue of receipt containing false statement. – A warehouseman, or any
for each offense by imprisonment not exceeding one year, or by a fine not exceeding
officer, agent or servant of a warehouseman who fraudulently issues or aids in
two thousand pesos, or by both.
fraudulently issuing a receipt for goods knowing that it contains any false statement,
shall be guilty of a crime, and upon conviction, shall be punished for each offense by V – INTERPRETATION
imprisonment not exceeding one year, or by a fine not exceeding two thousand
Sec. 56. Case not provided for in Act. – Any case not provided for in this Act shall be
pesos, or by both.
governed by the provisions of existing legislation, or in default thereof, by the rule of
Sec. 52. Issue of duplicate receipt not so marked. – A warehouse, or any officer, the law merchant.
agent, or servant of a warehouseman who issues or aids in issuing a duplicate or
Sec. 57. Name of Act. – This Act may be cited as the Warehouse Receipts Act.
additional negotiable receipt for goods knowing that a former negotiable receipt for
the same goods or any part of them is outstanding and uncanceled, without plainly Sec. 58. Definitions. – (a) In this Act, unless the content or subject matter otherwise
placing upon the face thereof the word “duplicate” except in the case of a lost or requires:
destroyed receipt after proceedings are provided for in section fourteen, shall be
guilty of a crime, and, upon conviction, shall be punished for each offense by “Action” includes counterclaim, set-off, and suits in equity as provided by law in these
imprisonment not exceeding five years, or by a fine not exceeding ten thousand islands.

pesos, or by both. “Delivery” means voluntary transfer of possession from one person to another.

Sec. 53. Issue for warehouseman’s goods or receipts which do not state that fact. – “Fungible goods” means goods of which any unit is, from its nature by mercantile
Where they are deposited with or held by a warehouseman goods of which he is custom, treated as the equivalent of any other unit.
owner, either solely or jointly or in common with others, such warehouseman, or any
of his officers, agents, or servants who, knowing this ownership, issues or aids in “Goods” means chattels or merchandise in storage or which has been or is about to
issuing a negotiable receipt for such goods which does not state such ownership, be stored.
shall be guilty of a crime, and, upon conviction, shall be punished for each offense by
“Holder” of a receipt means a person who has both actual possession of such receipt
imprisonment not exceeding one year, or by a fine not exceeding two thousand and a right of property therein.
pesos, or by both.
“Order” means an order by indorsement on the receipt.
Sec. 54. Delivery of goods without obtaining negotiable receipt. – A warehouseman,
or any officer, agent, or servant of a warehouseman, who delivers goods out of the “Owner” does not include mortgagee.
possession of such warehouseman, knowing that a negotiable receipt the negotiation
“Person” includes a corporation or partnership or two or more persons having a joint
of which would transfer the right to the possession of such goods is outstanding and
or common interest.
uncanceled, without obtaining the possession of such receipt at or before the time of
To “purchase” includes to take as mortgagee or as pledgee.

“Receipt” means a warehouse receipt.

“Value” is any consideration sufficient to support a simple contract. An antecedent or

pre-existing obligation, whether for money or not, constitutes value where a receipt is
taken either in satisfaction thereof or as security therefor.

“Warehouseman” means a person lawfully engaged in the business of storing goods

for profit.

(b) A thing is done “in good faith” within the meaning of this Act when it is in fact
done honestly, whether it be done negligently or not.

Sec. 59. Application of Act. – The provisions of this Act do not apply to receipts made
and delivered prior to the taking effect hereof.

Sec. 60. Repeals. – All acts and laws and parts thereof inconsistent with this Act are
hereby repealed.

Sec. 61. Time when Act takes effect. – This Act shall take effect ninety days after its
publication in the Official Gazette of the Philippines shall have been completed.

Enacted: February 5, 1912

ACT NO. 3893 – AN ACT TO REGULATE THE BUSINESS OF RECEIVING RICE license under this Act, to satisfy himself concerning the sufficiency of such bond, and
FOR STORAGE, GIVING THE DIRECTOR OF COMMERCE AND INDUSTRY THE to determine whether the warehouse for which such license is applied for is suitable
DUTY TO ENFORCE IF, PROVIDING PENALTIES FOR VIOLATION OF THE for the proper storage of rice.
PROVISIONS, EXEMPTING COOPERATIVE MARKETING ASSOCIATIONS OF
Sec. 5. Whenever the Director of the Bureau of Commerce and Industry shall
RICE PRODUCERS FROM APPLICATION THEREOF, REPEALING ACT
determine that a bond approved by him, is or any cause, has become insufficient, he
NUMBERED THIRTY-FOUR HUNDRED AND SIXTY-NINE AND FOR OTHER
may require an additional bond or bonds to be given by the warehouseman
PURPOSES
concerned, conforming with the requirements of the preceding section, and unless
Section 1. This Act shall be known by the short title of “BONDED WAREHOUSE the same be given within the time fixed by a written demand therefor the license of
ACT.” such warehouse may be suspended or revoked.

Sec. 2. As used in this Act, the term “warehouse” shall be deemed to mean every Sec. 6. Every person licensed under this Act to engage in the business of receiving
building, structure, or other protected inclosure in which rice is kept for storage. The rice for storage shall insure the rice so received and stored against fire.
term “rice” shall be deemed to mean either palay in bundles, or in grains, or clean
Sec. 7. Any person injured by the breach of any obligation to secure which a bond is
rice, or both. “Person” including corporation or partnership or two or more persons
given, under the provisions of this Act, shall be entitled to sue on the bond in his own
having joint or common interest; “warehouseman” means a person engaged in the
name in any court of competent jurisdiction to recover the damages he may have
business receiving rice for storage; and “receipt” means any receipt issued by a
sustained by such breach. Nothing contained herein shall except any property of
warehouseman for rice delivered to him. For the purpose of this Act, the business of
assets of any warehouseman from being sued on in case the bond given is not
receiving rice for storage shall include (1) any contract or transaction wherein the
sufficient to respond for the full market value of the rice received by such
warehouseman is obligated to return the very same rice delivered to him or pay its
warehouseman.
value;(2) any contract or transaction wherein the rice delivered is to be milled for and
on account of the owner thereof; (3) any contract or transaction wherein the rice Sec. 8. Every warehouseman licensed under this Act shall receive for storage, so far
delivered is commingled with the rice delivered by or belonging to other persons and as his license and the capacity of his warehouse permit, any rice, of the kind
the warehouseman is obligated to return the rice of the same kind or pay its value. customarily stored therein by him, which may be tendered to him in a suitable
condition for warehousing, in the usual manner and in the ordinary and usual course
Sec. 3. No person shall engage in the business of receiving rice for storage without
of business, without making any discrimination between persons desiring to avail
first securing a license therefore from the Director of the Bureau of Commerce and
themselves of warehouse facilities.
Industry. Said license shall be annual and shall expire on the thirty-first day of
December. Sec. 9. Every warehouseman licensed under this Act shall keep a complete record of
the rice received by him, of the receipts issued therefor of the withdrawals, of the
Sec. 4. Any person applying for a license to engage in the business of receiving rice
liquidations and of all receipts returned to and cancelled by him. He shall make
for storage shall set forth in the application the place or places where the business
reports to the Director of Bureau of Commerce and Industry concerning his
and warehouse are to be established or located and the maximum quantity of rice to
warehouse and the conditions, contents, operations, and business thereof in such
be received. The application shall be accompanied by a cash bond or a bond
form and at such time as the said Director may require, and shall conduct said
secured by real estate or signed by a duly authorized bonding company, the amount
warehouse in all other respects in compliance with this Act and the rules and
of which shall be fixed by the Director of the Bureau of Commerce and Industry at
regulations made in accordance therewith.
not less than thirty-three and one third percent of the market value of the maximum
quantity or rice to be received. Said bond shall be so conditioned as to respond for Sec. 10. The Director of Bureau of Commerce and Industry shall from time to time
the market value of the rice actually delivered and received at any time the make such rules and regulations as he may deem necessary for the efficient
warehouseman is unable to return the rice or to pay its value. The bond shall be execution of the provisions of this Act.
approved by the Director of the Bureau of Commerce and Industry before issuing a
Sec. 11. Any person engaging in the business of receiving rice for storage in
violation of Section three of this Act shall be deemed guilty of misdemeanor, and
upon conviction thereof shall be punished by imprisonment of not less than one
month or by a fine of not more than five thousand pesos, or both, in the discretion of
the court.

Sec. 12. Any warehouseman licensed under this Act receiving a quantity of rice
greater than that specified in his application and license, shall, upon conviction, be
fined double the market value of the rice so received in excess of the quantity of rice
he is authorized to receive.

Sec. 13. Any person entering into connivance or combination with any
warehouseman that is not licensed under this Act, with the purpose of evading the
provisions of section three of this Act, shall be deemed guilty of misdemeanor, and
upon conviction thereof, shall be fined not more than two hundred pesos or
imprisonment for not more than one months, or both, in the discretion of the court.

Sec. 14. The Director of the Bureau of Commerce and Industry may, after
opportunity for hearing has been afforded to the license concerned, suspend or
revoke any license issued to any warehouseman, conducting a warehouse under this
Act, for any violation or failure to comply with any provision of this Act or of the rules
and regulations made by virtue thereof.

Sec. 15. This Act shall not be applicable to cooperative marketing associations of
rice producers organized under Act Numbered Three Thousand Four Hundred and
Twenty-five known as the “Cooperative Marketing Law,” provided such associations
shall not receive, for storage, rice from non-members which is greater in quantity
than one-half of the total quantity of rice received from members, at any time.

Sec. 16. If any clause, sentence, or paragraph, or part of this Act shall, for any
reason, be adjusted by any court of competent jurisdiction to be invalid, such
judgment shall not affect, impair, or invalidate the remainder thereof, but shall be
confined in his operation to the clause, sentence, paragraph or part thereof directly
involved in the controversy in which such judgment shall have been rendered.

Sec. 17. This Act shall take effect on January First, nineteen hundred and thirty-two.