Section 786.- As long as the goods stored are not pledged, the warehouse receipt and the warrant may not be transferred separately.

 

Section 787.- The first indorsement on a warrant must mention the amount of the obligation for the security of which the goods are pledged, the interest to be paid and the day of maturity of the obligation.

 

Section 788.- The delivery of the goods stored may be obtained only on surrender of the warehouse receipt.

 

Section 789.- If a warrant has been separated and indorsed to a pledgee, the delivery of the goods may be obtained only on surrender of both the warehouse receipt and the warrant.

However, the holder of the warehouse receipt can at any time have the goods returned to him on depositing with the warehouseman the whole amount of the obligation entered in the warrant, with the interest up to the date when the obligation is due.

The amount so deposited must be paid by the warehouseman to the holder of the warrant upon surrender of such warrant.

 

Section 790.- If the obligation for which the goods have been pledged is not performed on the day of its maturity, the holder of the warrant is entitled after protest duly made to have the goods sold by public auction by the warehouseman, provided that the public auction shall not be held less than eight days after the day of protest.

 

Section 791.- The holder of the warrant must notify the depositor in writing of the time and place of the auction.

 

Section 792.- The warehouseman must deduct from the net proceeds of the public auction the sums due to him in connection with the storage, and out of the balance he must, on surrender of the warrant, pay to the holder thereof the amount due to him.

Any surplus must be paid to the second pledgee on surrender of the warehouse receipt or, if there is no second pledgee or after he has been satisfied, to the holder of the warehouse receipt.

 

Section 793.- If the net proceeds of the public auction are not sufficient to satisfy the holder of the warrant, the warehouseman must return the warrant to the holder stating thereon the amount paid, and make an entry thereof in his books.

 

Section 794.- The holder of the warrant has a right of recourse for the amount unpaid against all or any of the prior indorsers, provided that the public auction has been held within one month after the day of protest.

No action for recourse can be entered later than one year after the day of the auction.

 

Section 795.- The provisions of this Code concerning Bills apply to warrants and warehouse receipts indorsed as warrants in so far as they are not contrary to the provisions of this Title.