Documents of Title To Goods.Documents representing the title to certain goods are also accepted as security against loan. In this kind of security, the actual goods are not delivered to the creditor (Bankers). Only the documents, which show the rights of ownership of these goods, are deposited. Following are the main documents of title to goods.
What Are Main Documents of Title To Goods.
- Bill of Lading.
- Dock Warrant.
- Delivery Order.
Railway Receipt.
- Bill of Lading:
It is a receipt/acknowledgement issued and signed by the authority of ship’s captain. This receipt shows that the goods mentioned in it have been received duly on the board to deliver according to the agreed terms and conditions. When the goods reach the destination, the holder of bill of lading in due course can receive the goods by presenting this bill to the authority.
- Dock Warrant: «
This document is issued by a dock company stating that the goods mentioned in it have been duly received for the delivery to a particular destination or to the particular person mentioned their in or to whom it is endorsed. Goods are delivered to the holder or endorsee of this document.
- Delivery Order/Note:
This document is addressed to the owner of warehouse, where the owner for safety or storage purpose keeps the goods. Owner of the goods writes an authority letter as an order to deliver the goods to a particular person. Delivery order is also acceptable as security against loan.
- Railway Receipt:
If the goods are sent by railway then the railway authority issues a receipt in this regard, which shows that the goods written in it have been received to transfer to a particular destination according to the agreed terms & conditions. This receipt is also acceptable as security because by depositing it, rights of receiving the goods are transferred to the bank (creditor).
