Question 565. - 1. Can a bank hold automobiles under security receipt, or must an independent warehouse receipt be taken? Would it be necessary to take the numbers on the machines? Suppose the maker had a lien note?

2. Can an agent selling automobiles give a valid security receipt to the bank?

Answer. - 1. For the purpose of this answer it is assumed that by "security receipt" is meant security under section 88 of the Bank Act in Form Schedule C A bank could under section 88 loan on such security to any wholesale manufacturer of automobiles and to others upon independent warehouse receipts under section 86. In describing the security such a description should be given as to identify the automobiles with reasonable certainty. The numbers would not be essential, but would assist in identification. It is only the wholesale manufacturer of goods, wares and merchandise who can borrow upon such goods under section 88.

2. A mere agent could not give a valid security to a bank, unless he is authorized by the owner to do so.