OBLIGATIONS IN THE TRUST RECEIPTS (Section 4) For goods and documents 1. To sell them 2.
To manufacture or process the goods with the purpose of ultimate sale 3. To unload/ship or deal with them in a manner preliminary to their sale For instruments 1. To sell them 2. To deliver them to principal 3. To effect consummation of transaction involving delivery to a depositary or register 4. To effect their presentation, collection or renewal
RIGHTS OF THE PARTIES Entruster 1. Entitled to the proceeds of the sale 2. Entitled to the return of the goods/documents/instruments in case of non-sale 3. To enforce all other rights conferred to him under the Trust Receipts Law 4. The entruster may cancel the trust and take possession of the goods, documents or instruments or of the proceeds realized therefrom upon default or failure of the entrustee 5. To sell the goods upon notice to the entrustee in case of default 6. May become purchaser at the public sale Entrustee 1. To receive the surplus from the public sale but liable for deficiency To have possession of the goods as a condition for his liability under the trust receipts
OBLIGATIONS OF THE PARTIES Entruster 1. To give possession of the goods to the entrustee 2. To give at least 5 days notice to the entrustee of the intention to sell the subject of the trust receipt at the intended public sale Entrustee 1. To hold the subject of the trust receipt for the entruster 2. To receive the proceeds in trust for the entruster and turn over the same to the entruster to the extent of the amount owing to the entruster or as appears on the trust receipt 3. To insure the goods for their total value against casualties 4. To keep said goods or proceeds separate and capable of identification 5. To return the goods, documents or instruments in the event of non-sale or upon demand of the entruster 6. To observe all other terms and conditions of the
Loss of the subject of the trust receipt pending disposition: -borne by the entruteee whether or not due to his fault or negligence -will not extinguish obligation Purchaser for value and for good faith: -acquires the subject of the trust receipt free from the entruster's security interest Validity of entruster's claim against other creditors: -
.trust receipt not contrary to the provisions of this Decree.