Section 3

Section 3. Whenever any consignee or factor, having possession of merchandize, with authority to sell the same, or having possession of any bill of lading, permit, certificate, receipt or order, for the delivery of merchandize, with the like authority, shall deposit or pledge such merchandize, or any part thereof, with any other person, as a security for any money advanced or negotiable instrument given by him on the faith thereof; such other person shall acquire by virtue of such contract the same interest in and authority over the said merchandize, as he would have acquired thereby if such consignee or factor had been the actual owner thereof: Provided, That such person shall not have notice by such document or otherwise before the time of such advance or receipt, that the holder of such merchandize or document is not the actual owner of such merchandize.