Citation
Canal Zone code

Material Information

Title:
Canal Zone code an act of the Congress of the United States of America to establish a code of laws for the Canal Zone, approved June 19, 1934 : together with an appendix containing certain treaties and general laws of the United States applicable in or relating to the Canal Zone or the Panama Canal
Uniform Title:
Canal Zone code (1934)
Creator:
Canal Zone
United States
Place of Publication:
Washington, D.C.
Publisher:
U.S. G.P.O.
Publication Date:
Language:
English
Physical Description:
vii, 1237 p. : ; 24 cm.

Subjects

Subjects / Keywords:
Law -- Panama -- Canal Zone ( lcsh )
Genre:
federal government publication ( marcgt )
non-fiction ( marcgt )

Notes

General Note:
Includes index.

Record Information

Source Institution:
University of Florida
Rights Management:
This item is a work of the U.S. federal government and not protected by copyright pursuant to 17 U.S.C. §105.
Resource Identifier:
00422206 ( OCLC )
34028249 ( LCCN )
23320366 ( ALEPH )
Classification:
KGH9010.2 1934 ( lcc )

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CANAL


NE


DE


AN ACT OF THE CONGRESS OF THE UNITED STATES
OF AMERICA TO ESTABLISH A CODE OF LAWS
FOR THE CANAL ZONE, APPROVED
JUNE 19, 1934

TOGETHER WITH

AN APPENDIX CONTAINING CERTAIN TREATIES AND
GENERAL LAWS OF THE UNITED STATES APPLI-
CABLE IN OR RELATING TO THE CANAL
ZONE OR THE PANAMA CANAL





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CONTENTS


Table of titles:
Title 1. Personal andd Civil rights a--.-..-.a -- -.-----... -- ..--
2. Operation and Maintenance of the Canal and Government


of
The
The
The
The
The


the Canal Zone Generally.._- -
Civil Code ....--. .__ -..- ..
Code of Civil Procedure.. --a-
Criminal Code -- - - --- -
Code of Criminmal Procedure .
Judiciary_ ....-.. ------ ----


Appendix:
Treties _---- -- ----- -
General laWS.. ... -_
Parallel reference tables.-
Index_. a --_----- -_ ---


----------------------
----------------- - - a
a a ----- a a --- -- a a --
------- ---- ---- --- -
---------------- a a a a
---------------- a a a


a ------- ---------------- ----- a a - -----
- - - ----------- ----- a ----- ------- a a a -
- a ----- ---- ------ ------ -----------------
a - ---- ------ ------- ------------- --- -


Page
V

1

3
41
319
637
729
821

833
869
1017
1039


tfB3


1w


4



















































S








PREFACE


This Code of Laws for the Canal Zone embraces all the laws relat-
ing to or applying in the Canal Zone, except such general laws of
the United States as relate to or apply in the Canal Zone.
The preparation of the code was authorized by the act of Congress
approved May 17, 1928 (45 Stat. 596), which authorized the Presi-
dent to have all the laws in force in the Canal Zone revised and
codified, and to report the same to Congress for its approval. Under
authority of that act, the President placed the work of revision and
codification under the supervision of the Governor of the Panama
Canal, and ordered the appointment of Paul A. Bentz as codifier.
Mr. Bentz remained in active charge of the codification until its
completion.
The material included in the code has its source in acts of Congress,
in certain acts and ordinances of the former Isthmian Canal Com-
mission which were ratified and confirmed as valid and binding by
Congress in the Panama Canal Act of 1912, and, in a limited number
of sections, in Executive orders of the President which were likewise


ratified and confirmed by Congress.
The code embodies the existing laws without substantive change
except in the cases of 29 sections wherein alteration was found to be
desirable in the interests of uniformity and effectiveness. Twenty
of the changes consist in the elimination of minimum punishments
from the following sections of Title 5, The Criminal Code: Sections
92, 93, 103, 131, 175, 206, 293, 363, 644, 654, 737, 753, 789, 803, 823,
828, 830, 836, 839, and 843. The other sections embodying substan-
tive change are as follows: Title 2, sections 33, 158, and 159; title 4,
section 1706; and title 5, sections 257, 281, 401, 603, and 787.
Citations or "credits" are employed following the text of such
sections only as were enacted or amended by Congress prior to the
enactment of this code. In the cases of Title 3, The Civil Code, and
Title 4, The Code of Civil Procedure, citations have been restricted
to the first section in order to avoid unnecessary repetition.
The appendix is designed to afford a convenient means of refer-
ence to certain treaties and general laws of the United States ap-
plicable in or relating to the Canal Zone or the Panama Canal. An
attempt has been made to represent all general laws which are ap-
plicable, setting forth the text of the law in the cases wherein that
course is warranted by the extent of the practical application of
1, a m m-" ^ P t1









JUNE 19, 1934
[H.R. 8700]
(P PBLIC No.431]


Chapter 667


THE


CANAL


ZONE


CODE


SEVENTY-THIRD CONGRESS,


UNITED STATES OF


AMERICA


AN


ACT


To establish a Code of Laws for the Canal Zone
and for other purposes


Be it enacted by the Senate and


House


Representatives


United States of America in Congress assembled,


That the seven titles


hereinafter set forth shall constitute the Code of Laws for the Canal
Zone and shall, for all purposes, establish conclusively, and be deemed


embrace,


permanent


laws


relating


or applying in


Canal Zone in force on the date of enactment of this Act, except such


general laws of the


Zone.
shall


United States as relate to or apply in the Canal


Such code shall be designated as the "Canal Zone Code" and


take effect on the expiration


of ninety


days


after


the date


enactment of this Act.


Copies of such code


printed at the Govern-


ment


Printing


Office


and


bearing


imprint


shall


conclusive


evidence of the original of such code.


SEc.


The said


Canal Zone


Code


shall


published


Session Laws or Statutes at Large, and


there shall be


printed


and


bound, as may be directed by the Joint Committee on Printing, such


number


copies


thereof


as may


required


official


and


distribution, including


an index


and


any


other


explanatory


matter


.~ *













CANAL


ZONE


CODE


TITLE


1.-PERSONAL


AND


CIVIL RIGHTS


Section 1. Personal and civil rights and guarantees.-There are
certain great principles of government which have been made the
basis of an existence as a nation which are deemed essential to the
rule of law and the maintenance of order, and which shall have force
in the Canal Zone. The principles referred to may be generally
stated as follows:
a. That no person shall be deprived of life, liberty or property
without due process of law;
b. That private property shall not be taken for public use without
just compensation;
c. That in all criminal prosecutions the accused shall eniov the


C -


right:
(1 To a speedy and public trial;
(2 To be informed of the nature and cause of the accusation;
3) To be confronted with the witnesses against him;
4) To have compulsory process for obtaining witnesses in his
favor; and
(5) To have the assistance of counsel for his defense;
d. That excessive bail shall not be required nor excessive fines
imposed, nor cruel or unusual punishments inflicted;
e. That no person shall be put twice in jeopardy for the same
offense, or be compelled in any criminal case to be a witness against
himself;
f. That the right to be secure against unreasonable searches and
seizures shall not be violated;
g. That neither slavery nor involuntary servitude shall exist
except as a punishment for crime;
h. That no bill of attainder or ex post facto law shall be passed;
i. That no law shall be passed abridging the freedom of speech or
of the press, or of the rights of the people to peaceably assemble and
petition the government for a redress of grievances; and
j. That no law shall be made respecting the establishment of
religion or prohibiting the free exercise thereof.








OPERATION, MAINTENANCE, AID GOVERNMENT


[T,2j 2


%2

TITLE 2.--OPERATION D
CANAL AND GOVERNMENT


MAINTENANCE OF
OF TiHE CANAL


TIE
ZONE


Q0NERAILY

enei.i D Io .... .... .. a a-...
2. Aewoanting for fund 3 1
3. Ad nisternlx oaths and summonine wit-
-A ftllA **I:: il Att
:.e alanCm tirna .
5.Cu tnws ee ... .._....................,_,.. 81
5. Customs er e..... .......... ..... 61
44 R=e a-n--an--a O81
7. lusionand deportation of persons.-.... 141
8. Ispection of vesselsa.................---------------.- ..- 151
9. Intxieitug iiquIrs..I ........ -......... (note)
10. Keeping and mpuatndingef domntc ani
mIMls.. a......... ......._............ 2 1 -
11. Notar leeuh--.n... .- ..._...._.-._--.... 211
12. Panama Railr4oad Co.; railroad&es... 221


13. Pardons and reprieves and remission of
nes and O tur -. .- .- .-. .. ... . ...
14. Postal Wervice...-.......... ..... ..._.....
15. Protetion of birds and their nests.......
6I. Public Jlandto -: - - - - -a - -
17. Public roads and highways; vehicles; fer-
18. Purchase of supplies.....-.....---......----.-.
19. Radio equipment on ocean-going vemels
using ports. ..--- -- - -.........-----
20. Sanitation, health, and quarantine........
21 SOe. ......- -........------------ .----
&. Tax esand IIcese. ---.. -..... ---.. -...... .....
23. Tolef or use of Canal.....-...- -.........-.
24. Wireless tlegraphic installations.........


CHAPTER


L---GrENERAL


PROVISIONS


See.
1. Short title of organic act; reservation
of right to alter, amend or repeat,
2. Establishment of Canal Zone.
3. Acquisition of additional land; ex-
change of land.
4. Towns and subdivisions of Canal Zone.
5. Government and operation of Canal
and government of Canal Zone.
6. Appointment, term and salary of Gov-
ernor.
7. Control and Jurisdiction of Governor
over Canal Zone.


Section 1.
alter, amend
the opening,
Canal, and t
proved Augu
referred to a
reserved:
a. To alter
b. To exte
its authority.
title 48, sec. 1


8. Army control in time of war or when
war is imminent.
9, Regulations governing operation of
Canal, pilotage and navigation.
10. Damages for injuries to vessels, cargo
or passengers in passing through
locks.
11. Canal closed to violators of anti-trust
laws.
12. Regulation by Governor of anchorage
and movement of vessels in time of
national emergency.


Short title of organic act; reservation of right to
or repeal.-The Act entitled "An Act to provide for
maintenance, protection, and operation of the Panama
he sanitation and government of the Canal Zone," ap-
st 24, 1912 (ch. 890, 37 Stat. 560) shall be known and
is the Panama Canal Act, and the right is expressly


, amend or
id modify
(Aug. 24,
301].)


provisions; and
elation made under
at. 569 [U.S. Code,


2. Establishment of Canal Zone.--The zone of land and land
under water of the width of ten miles extending to the distance of
five miles on each side of the center line of the route of the canal
constructed thereon, which zone begins in the Caribbean Sea three
ltnn"a rnlo.a 1omrn mn n lnw-water mark and exrtends to and across


repeal any or all of its
or annul any rule or re
1912, oh. 390, sec. 14, 37





T.2, S8]


OPERATION, MAINTENANCE, AND


GOVERNMENT


which are necessary or convenient or from time to time may become
necessary or convenient for the construction, maintenance, operation,
sanitation or protection of the said canal or of any auxiliary tcanali,
lakes or other works necessary or convenient for the construction,
maintenance, operation, sanitation or protection of said canal, the
use, occupancy or control whereof were granted to the United States
by the treaty between the United States and the Republic of Panama,
the ratifications of which were exchanged on February 26, 1904,
shall be known and designated as the Canal Zone, and the canal con-
structed thereon shall be known and designated as the Panama
Canal. (Aug. 24, 1912, ch. 390, sec. 1, 37 Stat. 560 [U.S. Code, title
48, sec. 1302].)
3. Acquisition of additional land; exchange of land.-The Pres-
ident is authorized, by treaty with the Republic of Panama:
a. To acquire any additional land or land under water not already
granted, or which was excepted from the grant, that he may deem
necessary for the operation, maintenance, sanitation or protection
of the Panama Canal; and
b. To exchange any land or land under water not deemed neces-


sary for such purposes, for other 1
may be deemed necessary for such i
Which additional land or land
become part of the Canal Zone.
37 Stat. 560 [U.S. Code, title 48, sec.


and or land und
mrposes;
under water so
(Aug. 24, 1912,
1302].)


|er water


acquired
ch. 390,


which

shall
sec. 1,


CROSS-REFERENCE


For convention between United States and Panama
line of the Canal Zone, see appendix, p. 848.


defining


the boundary


4. Towns and
authorized to deth
exist in the Canal
divide the Canal
or number, so th
division, and the
defined. (Aug. 2
ch. 370, sec. 1, 42


subdivisions of Canal Zone.-The President is
Srmine or cause to be determined what towns shall
Zone, and subdivide and from time to time resub-
Zone into subdivisions, to be designated by name
at there shall be situated one town in each sub-
boundaries of each subdivision shall be clearly
4, 1912, ch. 390, sec. 7, 37 Stat. 564; Sept. 21, 1922,
Stat. 1004; Feb. 16, 1933, ch. 91, sec. 1, 47 Stat. 814


[U.S. Code, title 48, sec. 1341].)
OCBOSS-REFERENCES
Magistrate's court in each town, see title 7, section 1.
Revocable licenses for lots in town sites, see section 304 of this title.
5. Government and operation of Canal and government of Canal
Zone.--The President is authorized to govern and operate the
Tfl jCl 1v 1 tIj m y9 C




VI


OPERATION, MAINTENANCE, AND


GOVERNMENT


tW~2, 210


6. Appointment, term and salary of Governor.-The Govenor
of the Panama Canal shall be appointed by the President, by and
with the advice and consent of th Senate comssioned ra ai
of four years and uitil his successor i pointed and qualified. He
halbrecein'asalary of 0000ayean Au 24,2o1i.8S0 see.
[SStat. 661 [U.S. Code, title 48, sec. 1805])
, (ont and jisot of Goveinot over Cni Zoane.-The
0pvernor of .ePania.a shall, m connection ith theqpera-
toftlie6hziht
a. Have official control and jurisdiction over the Canal Zone; and
b. .Perform all duties in connection with the civil government of
the Canal Zone, which is to be held, treated and governed as an
ajdnet of the Canal (Mug+ .4, l91 yh1 390 sea ,sB Stat 564;
Sept 21, 192, oh. 370, see. 1, 42 Stat. 1004; Feb. 16, 1933, oh. 91
S69 47 Stat. 814 [US. Code, title 48, sec. 13 ] .)
8. Army aontol in time of war or when war is inmminent.--In
tine of war in which the United States is engge or when in the
nen, sch fflcerpof thee Army a
opin on of the President war is imminent, such o
the Presidet may' designate shall, upon the order of the Fred ,
issue and have exclusive authority and jurisdibtion over the opera-
tiol of the Panama Canal and all its adjuncts, apendants and ap-
purtenances, including the entire control and governmentofthe anal
Zone. During a continuance of such condition the Governor of the
Panama Canal shall be subject to the order and direction of sudh
officer of the Army in all respects and particulars as to the operation
of the Canal and all duties, mattersand anstioseti the
SanalZone. (Aug ,1912, ch. 90, sec.1 Stat5 U.S. Obde,
title 48, see. 1308].)


9I Regulations governing operation of Canl, pktage and naVi-
'gatlok ThePresident is authorized to make, and from time t tme
aend, regulaions goverung:
a. The operation of the Panama Canal;
b. The passage and control of vessels through the same or any
part thereof, including the locks and approaches thereto;
c Pilots and pilotage in the Canal or the approaches thereto
through the adjacent waters; and
d. The navigation of the harbors and other waters of the Canal
Zone, including the licensing of officers of vessels navigating such
waters.
Any person violating any of the provisions of the rules and regula-
tions, established hereunder shall be punished by a fine of not more
han100, or b imprisonment in jail for not more than thirt days,
or bv both. (Aur. 24. 1912. ch. 390, sec. 5, 37 Stat. 562: July 5,





T. 2, 11]


OPERATION, MAINTENANCE, AND GOVBRIMBNT


meant and immediate payment of claims for damages which may arise
from injury to vessels, cargo, or passengers from the passing of
vessels through the locks under the control of those operating them
under such rules and regulations. In case of disa ment action
may be brought in the district court against the Governor of the
Panama Canal. The hearing and disposition of such actions shall
be expedited and the judgment shall be paid immediately out of
any moneys appropriated or allotted for Canal operation. (Aug.
24, 1912, ch. 390, sec. 5, 37 Stat. 562 [U.S. Code, title 48, sec. 1319].)


Cuoea-Rn


Establishment and


designation


of district court, see


title 7, section 21.


11.
mitted
States
if such
son or
visions
of any
The qi
court (
pendin
parties
Genera
Stat. 5


Canal closed to violators of anti-trust Iaws.-N


to engage in the coastwise or foreign trade
shall be permitted to enter or pass through the
ship is owned, chartered, operated, or control
company which is doing business in violati
of the anti-trust laws (U.S. Code, title 15, se
other Act of Congress amending or suppleme
question of fact may be determined by the ju
of the United States of competent jurisdiction
g before it to which the owners or operators o
. Suit may be brought by any shipper or b
il of the United States. (Aug. 24, 1912, ch.


67 [U.S. C


ode, title 15, sec.


led
on
'Cs.


Vessel per-
the United
nama Canal
by any per-
of the pro-
1 to 27), or


noting the same.
dgment of any
n in any cause
f such ship are
y the Attorney
390, sec. 11, 37


31].)


12. Regulation by Governor of anchorage and movement of ves-
sels in time of national emergency.-Within the territory and
waters of the Canal Zone the Governor of the Panama Canal with
the approval of the President, shall exercise all the powers conferred
by section 1 of the Act of June 15, 1917 (ch. 30, title II, 40 Stat. 220
[U.S. Code, title 50, sec. 191]), on the Secretary of the Treasury.
(June 15, 1917, ch. 30, title II, sec. 1, 40 Stat. 220 [U.S. Code, title
50, sec. 191].)
OCoss-Rarmacts
Failure to observe regulations, see U.S. Code, title 50, section 192 (appendix,
p.1014).
Jurisdiction of district court and duties of district attorney in relation to
offenses, see U.S. Code, title 50, section 39 (appendix, p. 1012).
CHAPTER 2.-ACCOUNTING FOR FUNDS


Sec.
31. Consolidation of functions in
to the various funds.
32. Accounting by collecting of
X~n V M.~ r^f a k .


relation


Beers


Sec.
33. Examination of accounts by persons de-
tailed from General Accounting
Office.


I




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[T.2,f 42


each fund. (Aug. 1, 1914, 223 me 4, 38 S tt 679 [U.S. Code,
titi. 48, sec 1327J.)
32. Accounting by collecting oefficers of Panama CanaL-The
colSW, offers of the Panama Canal shall render their accounts in


such detil, and shall tr ansmit with
ALoountdi Oicee all such papers, rec
transactions as collectors, as shall b
pkis bythis rsident, and, i hisj
the methods of accounting prescribed
S191 (U.. Code, title 81, ch 1).
38 Stat. 679 [U.S. Code, title 48, sec.


their accounts to the General
)rds and copies relating to their
i prescribed in regulations ap-
idgment, not incompatible with
in the Budget and Accounting
(Aug. 1, 1914, ch. 223, sec. 5,
1328].)


33. Examination of accounts by persons detailed from General
Accounting OMice.-In prescribing regulations under the provisions
of the next preceding section, the President shall ,provide tat it lieu
ot furnishing th the General A counting O mffiindividail t"ddail
cdnlection vouchers two competent persons from the General' A-
counting Ofece, designated by the Comptroller General, shall be sent
at such time as may be designated by the Comptroller General, to
the Canal Zone to examine the accounts and vouchers and verify the
subiItted schedules of collections, and report in duplicate to the
Genrn Accounting Office and the Auditor of the Panama Canal;
and such persons shall make such other examination into the accounts
of the Panama Canal as may be directed by the Comptroller General
and for all such purposes they shall have access to all records and
papers pertaining thereto. Such persons shall be furnished tr ns-
portation and traveling expenses out of such appropriations for the
Panama Canal as may be desi ated by the Governor. (Mar. 3,
1915, ch. 75 sec. 8, 38 Stat. 886 U.S. Code, title 48, sec. 182)] 4

CHAPTER --ADMINISTERING OATHS AND SUMMONING
;WITNESSES


See.t x
41, Authority of certain officers to admin-
ister oaths for certification of papers.
42. Authority to summon witnesses and
require production of papers.


Sec.
43. Process to compel attendance of wit-
nesses and production of papers.


Section 41. Authority of certain officers to administer oaths for
certieati of papers.- Members of the board of local inspectors,
customs officers, quarantine officers, and admeasurers, appointed by
the Governor of the Panama Canal, may administer oaths for the
purpose of certifying the correctness of official papers. (July 5,
1932, ch. 422, sec. 1,47 Stat. 576.)


Cmos s-Bins utica


-:_ _


a - -


t - -. a t. - -- a ac U - a -- a .~ - .. S --


. S.t~. tN


m


m m i


i





T.2,543]


OPERATION, MAINTENANCE, AND


GOVERNMENT


43. Process to compel attendance of witnesses and pr
of papers.-The district court may:
a. Issue processes at the request of the designated Cana.
to compel the attendance of witnesses and the production
and papers; and
b. Punish for contempt of court any person who refuses
such processes, or who refuses to be sworn or to answer any
or proper question after being duly sworn. (July 5, 1932,
sec. 2, 47 Stat. 577 [U.S. Code, title 48, sec. 1345a].)


oduction


I officers
of books

to obey
material
ch. 422,


CHAPTER 4.-BUSINESS OPERATIONS


See.
51. Providing materials, supplies, and serv-
ices for vessels.


Sec.
52. Receipts from such business; appropria-
tion for expenditure and reinvest-
ment.


Section 51. Providing materials, supplies, and services for
vessels.-The President is authorized to establish, maintain and
operate, through the Panama Railroad Company or otherwise, dry
docks, repair shops, ards, docks, wharves, warehouses, storehouses
and other necessary facilities and appurtenances for the purpose of
providing coal and other materials, labor, repairs and supplies for
vessels of the Government of the United States and, incidentally,
for supplying such at reasonable prices to passing vessels, in accord-
ance with appropriations hereby authorized to be made from time
to time by Congress as a part of the maintenance and operation of
the Panama Canal. (Aug. 24, 1912, ch. 390, sec. 6, 37 Stat. 563
[U.S. Code, title 48, sec. 1323].)
52. Receipts from such business; appropriation for expenditure
and reinvestment.-Moneys received from the conduct of the busi-
ness referred to in the next preceding section, may be expended and
reinvested for such purposes without being covered into the Treasury


of the United States; and such moneys are
such purposes, but all deposits of such fun
provisions of existing law relating to the dep
of the United States, and any net profits acc:
shall annually be covered into the Treasur
Monthly reports of such receipts and exp
to the President by the persons in charge,
be made to the Congress. (Aug. 24, 1912,
563 [U.S. Code, title 48, sec. 1323].)


hereby appropriated for
Is shall be subject to the
osit of other public funds
ruing from such business
y of the United States.
enditures shall be made
and annual reports shall
ch. 390, sec. 6, 37 Stat.


CHAPTER 5.-CUSTOMS SERVICE


61. Control by Governor of importation of
articles or merchandise; regulations.
62. Offenses in relation to entryv or Imnor-


Sec.
65. Omission of sea stores from list; land-
ing of sea stores; penalty and for-
feiture.


I





OPERATION, MAINTENANCTE, AND GOVERNMENT


[T. 2, 85


iHave authority to establish, and to alter and amend from time
to time rules and regulations governing:
t he entry and importation of goods into the Canal Zone; and
S2) The disposition of goods brought into the Canal Zone in
violation of such regulations. (Feb. 16, 19338, ch. 90, sec. 1, 47 Stat.
818 [U.S. Code, title 48, see. 1825a].)
62. Offenses in relation to entry or importation of articles or
merchandise.--Any person who shall:
a. Enter or import, or attempt to enter or import, any articles
or merchandise into the Canal Zone before the entry or importation
of such articles or merchandise has been approved by the proper
officers of the Canal Zone;
b. Pass, or attempt to pass, any false, forged or fraudulent in-
voice, bill or other paper, for the purpose of securing the entry or
importation of any articles or merchandise into the Canal Zone in
violation of the rules and regulations established under the authority
of the next preceding section; or
c. Violate any of the rules and regulations established under the
authority of the next preceding section;
Shall e punished by a fine of not more than $100, or by imprison-
ment in jail for not more than ninety days, or by both. (Feb. 16,
1938, ch. 90, sec. 8, 47 Stat. 818 [U.S. Code, title 48, see. 1325c].)
83. Seizure and confiscation of articles illegally imported or
obtained.-Any article brought into or obtained in the Canal Zone
in violation of the rules and regulations established under the au-
thority of section 61 of this title may be seized and held, and, unless
entered in conformity with such rules and regulations within a
period of thirty days from the date of seizure, may be confiscated and
disposed of as provided in such rules and regulations. (Feb. 16,
1938, ch. 90, sec. 3, 47 Stat. 813 [U.S. Code, title 48, sec. 1325c].)


64. Omission of mere]
feiture.-If any vessel a


other than a port in the
found to have on board
such vessel shall be liable
of the merchandise not
longing to or consigned;
shall be forfeited: Provi
be imposed if it is made
court in which the trial i
unloaded except as accoi
the errors and omissions i
al iL,.^I1. ,.-.. ^ a a a *. n'-L a,.n...,.,1 --, .


handise from manifest; penalty and for-
rriving at the Canal Zone from any port,
Canal Zone or the Republic of Panama, is
merchandise not manifested, the master of
to a penalty equal in amount to the value
manifested, and all such merchandise be-
to or for the officers or crew of the vessel
ded, however, That such penalty shall not
to appear to the customs officers, or to the
is held, that no part of the cargo has been
mnted for in the master's report, and that
n the manifest were made without fraud or
-.. -la,.,,. a,. .n a -,.J- a', wn ,a, -il a .11,. ....... .. ..w 1 .. ...a.J.. .L.w -.^





T. 2, 66]


OPERATION, MAINTENANCE, AND GOVERNMENT


- -d


Panama, which
officer, or if a
specified in su
a permit being
pose, all of su
landed, shall
shall be liable
or landed. (F
48, sec. 1325e].


h i
g5
ch
rfi
ich
38
to
eb.
)


ire not specified in the list furnished the boarding
greater quantity of such articles is found than that
list, or if any of such articles are landed without
rst obtained from the customs officer for that pur-
Sarticles omitted from the list or manifest, or so
seized and forfeited, and the master of the vessel
a penalty treble the value of the articles so omitted
16, 1933, ch. 90, sec. 5, 47 Stat. 814 [U.S. Code, title


66. Powers of officers performing duties in relation to cus-
toms.-Customs officers in the Canal Zone, including deputy ship-
ping commissioners and boarding officers when performing duties in
relation to customs, shall have general powers of search, seizure, and
arrest. In the exercise of these powers such officers may:
a. Enter any building other than a dwelling house;
b. Stop vessels and vehicles;
c. Search vessels, vehicles, and their contents; and
d. Stop and search persons and any packages carried by them.
Such rights of entry, stopping, search, seizure, and arrest shall be
exercised only when there are reasonable grounds for suspecting
violations of the customs rules and regulations authorized under sec-
tion 61 of this title or of the United States applicable in the Canal
Zone. (Feb. 16, 1933, ch. 90, sec. 2, 47 Stat. 813 [U.S. Code, title
48, sec. 1325b].)
67. Fees of customs officers.-A customs officer of the Canal Zone
may collect a fee, equivalent to the fee prescribed by the United
States consular regulations for the same act or service when per-
formed by consular officials, whenever he shall:
a. Certify an invoice, landing certificate, or other similar docu-
ment;
b. Register a marine note of protest; or
c. Perform any notarial service. (Aug. 21, 1916, ch. 371, sec. 8,
39 Stat. 528 [U.S. Code, title 48, sec. 1326].)
COSs-REFlIREEN CE
Authority to certify invoices for merchandise shipped to United States from
Canal Zone, see U.S. Code, title 19, section 1482 (appendix, p. 957).
CHAPTER 6.-EMPLOYEES


1. Appointment and compensation in
general -.- .-----------------
2. Retirement of Canal and Railroad
employees on Isthmus who are
citizens - .-- ------------ -


Art. See.
3. Compensation for injuries to Canal
and Railroad employees........- 121





A MNTRNANON, AND 0 V ER NMBN T


fT. 2, 5 83


Canal, necessary for the care, management, maintenance, sanitation,
government, opei and protection of the Canal and Canal Zone
hall:
a Be appointed by te President or by his authority;
b. Be removable at the pleasure of the President; and
c. receivee such compensation as shall be fixed by the President
or y his authority until sch time as Congress may by law regulate
the same, but salaries or compensation fixed by the President here-
under shall in no instance exceed by more than 25 per centum the
salary or compensation paid for the same or similar services to per-
sons employed by the Government in continental United States.
(A g. 2, 1912, ch. 390, sec. 4, 37 Stat. 561 [U.S. Code, title 48,
1305 ].)
82. Deduction from compensation of persons in military or
naval service.-If any of the persons appointed or employed as pro-
vided in sections 6 and 81 of this title are in the military or naval
service of the United States, the amount of the official salary paid
to any such person shall be deducted from the amount of salary or
Sowpqnation provided by or which shall be fixed under the terms of
those sections, but this section shall not be construed as requiring the
deduction from the amount of such salary or compensation, of:
a. The retired pay or allowances of any retired warrant officer or
enlisted man of the Army, Navy, Marine Corps, or Coast Guard; or
Sb. The training pay, retainer pay or allowances of any warrant
officer or enlisted man of the reserve forces of the Army, Navy,
Marine Corps, or Coast Guard. (Aug. 24, 1912, ch. 390, sec. 4, 37
Stat. 561 [U.S. Code, title 48, sec. 1305]; Mar. 12, 1928, ch. 213,
45 Stat. 310 [U.S. Code, title 48, sec. 1305a].
Onoss-RImauNoKs
Double salaries, generally, see U.S. Code, title 5, sections 58 to 59a
(appendix, p. 870).
Holding other lucrative office, see U.S. Code, title 5, section 62 (appendix,
p. 80).
83. Deduction from compensation of amounts due for supplies
or serviwces.-All amounts due from employees, whether to the
Panama Canal, Panama Railroad Company, or contractor, for trans-
portation, board, supplies or any other service, are hereby authorized
to be deducted from the compensation otherwise payable to such
employees, and to be paid to the authorized parties or to be credited
to the appropriation out. of which the transportation, board, supplies,
or other service was originally paid. (Mar. 4, 1907, h. 2918, sec. 8,
34. Stat. 1371.)






OPERATION, MAINTENANCE, AND


GOVERNMENT


ARTICLE


2-RETIREMENT OF
ON ISTHMUS


CANAL 'AND RAILROAD
WHO ARE CITIZENS


EMPLOYEES


91. Employees to whom article applies.
92. Automatic retirement; optional ret
ment at 60 in certain cases.
93. Voluntary retirement.
94. Disability retirement; requirement
medical examination.
95. Involuntary separation from the s
ice.
96. Method of computing annuities.
97. Computation of accredited service.
98. Credit for past service.


ire-


erv-


See.
99. Deductions.
100. Investments and accounts.
101. Return of amounts deducted from
salaries.
102. Payment of annuities.
103. Benefits extended to those already re-
tired.
104. Board of actuaries.
105. Administration.
106. Moneys not assignable or subject to
legal process.
107. Effective date.


91. Employees to whom article applies.-All employees of the
Panama Canal on the Isthmus of Panama and all employees of
the Panama Railroad Company on the Isthmus of Panama, who are
citizens of the United States and whose tenure of employment is
not intermittent nor of uncertain duration, shall come within the
provisions of this article. (Mar. 2, 1931, ch. 375, sec. 1, 46 Stat. 1471
[U.S. Code, title 48, sec. 1371].)
92. Automatic retirement; optional retirement at 60 in certain
cases.-All employees to whom this article applies shall, after reach-
ing the age of sixty-two years and having rendered at least fifteen
years of service on the Isthmus of Panama, be automatically sep-
arated from the service and retired on the annuity provided for
herein; and all salary, pay, or compensation shall cease from that
date.
On and after July 1, 1932, no employee to whom this article ap-
plies who shall have reached the retirement age prescribed for auto-
matic separation from the service, shall be continued in such service,
notwithstanding any provision of law or regulation to the con-
trary: Provided, That the President may, by Executive order, exempt
from the provisions of this paragraph any person when, in his
judgment, the public interest so requires: Provided further, That no
such person heretofore or hereafter separated from the service under
any provision of law or regulation providing for such retirement on
account of age shall be eligible again to appointment to any appoin-
tive office, position, or employment to which this article applies:
Provided further, That this paragraph shall not apply to any person
named in any Act of Congress providing for the continuance of
such person in the service.
All employees to whom this article applies who would be eligible
for retirement from the service unon attaining the age of sixty-


two years shall, after att
rendered at least thirty


g the age of sty years and having
learning the age of simyutedars and having
vftra5service. conutedlf nrovided. in


T. 2, 91]





fl9AriONr MMT fANCB, AND (GO YBRNME2NT


[T.2,j 94


% Voluntary retiement.-(a) Any employee to whom this arti-
cle applies who shall have attained the age of fifty-five and rendered
at least twenty-five years of service, of which not less than fifteen
years shall have been rendered on the Isthmus of Panama, may vol-
untarily retire on an annuity equivalent in value to the present worth
of a deferred annuity beginning at the age at which the employee
would otherwise have become eligible for retirement, computed as
provided in section 96 of this title, the present worth of said deferred
anmuity to be determined on the basis of the American Experience


Table of Mortality and an interest rate of 4 per centum, compounded
ann uall .
(b) Any employee to whom this article applies may voluntarily
retire on an annuity computed as provided in section 96, who shall
have attained the age of fifty-five and rendered at least thirty
years of service on the Isthmus of Panama (inclusive of absences
while in the service of the United States during the World War), of
which not less than three years shall have been in the employment
of the Isthmian Canal Commission or the Panama Railroad Com-
pany between May 4, 1904, and April 1, 1914. (Mar. 2, 1931, ch.
875, sec. 3, 46 Stat. 1472 [U.S. Code, title 48, sec. 1871b].)


94. Disability retirement; requirement of medical examina-
tions.-(a) Any employee to whom this article applies who shall have
attained the age of fifty-five years and shall have rendered at least
fifteen years of service on the Isthmus of Panama, and who shall
have become physically or mentally disqualified to perform satis-
factorily and efficiently the duties of his position or of any other
position of approximately equal compensation to which he might be
assigned, because of the strenuous or hazardous nature of such posi.
tion, shall, upon the request or order of the Governor of the Panama
Canal, be retired on an annuity computed in accordance with the
provisions of section 96 of this title: Provided, That no such em-
ployee shall be so retired except after an examination and finding
as to his mental or physical disqualifications as hereinafter provided.
(b) Any employee to whom this article applies who shall have
served for a total period of not less than five years, and who, before
becoming eligible for retirement under the conditions defined in
section 92 of this title, shall have become totally disabled for useful
and efficient service in the grade or class of position occupied by the
employee, by reason of disease or injury not due to vicious habits,
intemperance, or willful misconduct on the part of the emplo ee,
shb a upon his own application or upon request or order of the Iov-
ernor of the Panama Canal, be retired on an annuity computed in
accordance with the provisions of section 96 of this title.





OPERATION, MAINTENANCE, AND


GOVERNMENT


Every annuitant retired under the provisions of this section, unless
the disability for which he was retired be permanent in character,
shall at the expiration of one year from the date of such retirement
and annually thereafter, until reaching retirement age as defined in
section 92 of this title, be examined under the direction of the
Administrator of Veterans' Affairs by a medical officer of the United
States, or a duly qualified physician or surgeon, or board of physi-
cians or surgeons designated by the Administrator of Veterans'
Affairs for that purpose, in order to determine the nature and degree
of the annuitant's disability, if any. If an annuitant shall recover
before reaching the age at which he would otherwise have become
eligible for retirement and be restored to an earning capacity which
would permit him to be appointed to some appropriate position
fairly comparable in compensation to the position occupied at the
time of retirement, payment of the annuity shall be continued tem-
porarily to afford the annuitant opportunity to seek such available
position, but not in any case exceeding ninety days from the date
of the medical examination showing such recovery.
If the annuitant shall fail to obtain reemployment through no fault
of his own within the ninety-day period in any position included
in the provisions of this article, he shall be considered as involun-
tarily separated from the service as of the date he shall have been
retired for disability, and if otherwise eligible, entitled to an annuity
under section 95 of this title to begin at the close of said ninety-day
period based on the service rendered prior to his retirement for
disability.
The Administrator of Veterans' Affairs may order or direct at
any time such medical or other examination as he shall deem neces-
sary to determine the facts relative to the nature and degree of
disability of any employee retired on an annuity under this section.
Should an annuitant fail to appear for any examination required
under this section, payment of the annuity shall be suspended until
the requirement shall have been met.
In all cases where the annuity is discontinued under the provisions


of this section before the
amount credited to his in
(a) of section 101 of this
per annum compounded
unless he shall become re
of this article, shall be p


annuitant has received a sum equal to the
dividual account as provided in paragraph
title, together with interest at 4 per centum
on June 30 of each year, the difference,
-4 S . S-* S .*


emplo
aid to


yed in
the reti


paragraph (b) of section 101 of this ti
in such form and manner as the Admi


may direct.
view of thi


In case of
article th.e


Position
[red empl
tle, upon
nistrator


within
oyee,
applic
of Ve


Sreemployment in position w
amount so refunded shall be


n the purview
as provided in
,ation therefore
terans' Affairs
within the pur-
redenosited as


T. 2 94]


.





OPSRAAiON, MAJNTBNANOBi AND


GOVERNMENT


[T.2ZI95


re for examinations made under the provisions of this section
y physicians or surgeons who are not medical officers of the United
Sates shall be fixed by the Administrator of Veterans' Affairs, and
such ees, together with the employee's reasonable traveling and
other expenses incurred in order to submit to such examinations,
Aa be paid out of the appropriations for the cost of administering
this article. (Mar. 2, 1931, ch. 375, sec. 4, 46 Stat. 1472 [U.S. Code,
title 48, sec. 18371Te].)
NoE.-A uniform retirement date for the authorized retirement of Federal
personnel is fixed by the Act of April 23, 1930 (ch. 209, sec. 1, 46 Stat. 253
[U.S. Code, title 5, see. 47a],); which reads as follows:
"Retirement authorized by law of Federal personnel of whatever class, civil,
military, naval, judicial, legislative, or otherwise, and for whatever cause retired,
shall take effect on the 1st day of the month following the month in which
said retirement would otherwise be effective, and said 1st day of the month for
retirements made after July 1, 1980, shall be for all purposes in lieu of such
date for retirement as was on April 23, 1980, authorized; except that the rate
of active or retired pay or allowance shall be computed as of the date retire-
ment would have occurred if this section had not been enacted."
Section 2 of the act (46 Stat. 253) provided as follows: "This Act shall
become effective July 1, 1930. All laws or parts of laws, insofar as in conflict
herewith, are repealed."


Involuntary


separation


from


service.-Should


ployee fifty-five years of age or over to whom this
after having served for a total period of not less tha
and before becoming eligible for retirement under
defined in section 92 of this title, become involuntarily


any


em-


article applies,
in fifteen years
the conditions
separated from


the service, not by removal for cause on charges of misconduct or
delinquency, such employee shall be paid as he may elect, either-
(a) The amount of the deductions from his basic salary, pay, or
compensation, including accrued interest thereon computed as pre-
scribed in paragraph (b) of section 101 of this title;
(b) An immediate life annuity beginning at the date of separation
from the service, having a value equal to the present worth of a
deferred annuity beginning at the age at which the employee would
otherwise have become eligible for retirement, computed as provided
in section 96 of this title, the present worth of said deferred annuity
to be determined on the basis of the American Experience Table of
Mortality and an interest rate of 4 per centum, compounded an-


nually; or
(n ) A deferred annuity beginning at the age at which the em-
ployee would otherwise become eligible for retirement compute as
provided in section 96 of this title.
Any employee who has served for a period of not less than fifteen
vsara and who iK fnrtv-fiv.a vanrc af a-rn tn' evar ani^ *. lncc +b0y,






OPERATION, MAINTENANCE, AND


GOVERNMENT


reemployment,


shall


and


allowed


unless such subsequ


an annuity based upon invol
I upon subsequent separation
ent separation shall be invol


1931, ch. 375, sec. 5, 46 Stat. 1474 [U.S.


Code, title


untary
from


separation
the service


untary. (Mar. 2,
Le 48, sec. 1371d].)


Non.---With


respect


to involuntary


separation


from


the service


June 16, 1933, and July 1, 1935, by a person having at least 30 years'


act of June 16, 1933 (ch. 101,


sec.


8, par. (b)


between
service,


48 Stat. 305 [U.S. Code, title 48, see.


1371 bb]), provides as follows:
"Whenever at any time hereafter prior to July 1, 1935, any person to whom


the Canal Zone Retirement Act, approved March 2, 1931


(Public, Numbered 781,


Seventy-first Congress), applies, who has an aggregate period of service of at
least thirty years computed as prescribed in section 7 of such Act (section 97


of this


title)


is involuntarily


separated


from


the service


reasons


than his misconduct, such employee shall be entitled to an annuity


as provided in section 6 of such Act sectiono
Canal Zone retirement and disability fund


of such annuity


at which


he wou


as provided in se


n 96 of this title)


less a


sum equal


other


computed


payable from the
to 5 per centum


Provided, That when an annuitant hereunder attains the age
ld have been entitled to retirement with annuity computed
tion 6 of such Act (section 96 of this title), such deduction


from the annuity shall cease. If


reemployed


in the service of


(including any cc
the United States)


corporation


the District


the majority


when


such


of Columbia
of the stock


annuitant


or the


which


United


shall


States


is owned


the right to the annuity provided by this section shall cease


and the subsequent annuity rights of such person shall be determined in accord-


ance with the applicable provisions of retirement


existing at the time of


the subsequent separation of such person from the service.


Method


computing


annuities.-The


annuity


an em-


ee retired under the provisions of this article shall be composed


A sum equal to $37.50 multiplied by the
not to exceed thirty years rendered


7


of Panama, or (b) in the
States in the Tropics; and


ployee
puted
accord


nhtary
military


number of years of
a) on the Isthmus


or naval service


United


The annuity purchasable with the sum to the credit of the em-
's individual account, including accrued interest thereon com-
as prescribed in paragraph (a) of section 101 of this title,
ing to the experience of the Canal Zone retirement and dis-


ability fund as may from time to tim
annuity values by the board of actuaries
(3) Thirty dollars multiplied by the
rendered and not allowable under para


That the
allowance
between t


number


unde
hirtv


years


r paragraph
and the numi


e


forth


and


number of


raph


of service to be


er of


shall not
allowable


(1)
used


tables


years of


hereof


service


Provided,


in computing the


exceed


difference


years of service


under


*J
paragraph (1); and
(4) Thirty-six dollars multi


ied by the number of years of serv-


96]


(1)
service


w-- v w v w


JSf,





OPERATION, MAINTENANE, AND GOV BNMENT


[T. 2, 97


mulMplied by the number of years of service used in comnp outing the
annuity under paragraph (1) hereof, and divided by forty; and
the average annual basie salary, pay, or compensation, not to exceed
$1,600 per annum, received by the employee during any five consecu-
tive years of allowable service at the option of te employee, mul-
tiplied by the number of years of service used in computing the
annuity under paragraph (3) hereof, and divided by forty: Pro-
vided. That the annuity paid a retiring employee of the Panama
Railroad Company in such service on June 80, 1931, shall be an
amount equal to 2 per centum of the average annual basic salary,
pay, or compensation, not to exceed $5,000 per annum, received by
the employee during any five consecutive years of allowable service
at the option of the employee, multiplied by the number of years
of allowable service rendered prior to July 1, 1931; plus the amount
to which the employee is entitled under the provisions of this section,
exclusive of paragraph (4), for service rendered subsequent to June
30, 1931: Provided, however, That the sum to be used in computing
the annuity purchasable under paragraph (2) of this section shall
include only contributions made subsequent to June 30, 1931: And
provided further, That the number of years of service to be used
in computing the annuity under paragraph (1) and (3) of this
section shall not exceed the difference between thirty and the num-
ber of years of allowable service rendered prior to July 1, 1931.
The annuity granted under paragraphs (1), (3), and (4) of this
section shall not exceed three fourths of the average annual basic
salary, pay, or compensation received by the employee during any
five consecutive years of allowable service at the option of the
employee.
Any employee at the time of his retirement may elect to receive, in
lieu of the life annuity herein described, an increased annuity of
equivalent value which shall carry with it a proviso that no unex-
pended part of the principal upon the annuitant's death shall be
returned. For the purposes of this article all periods of service shall
be computed in accordance with section 97 of this title, and the
annuity shall be fixed at the nearest multiple of twelve.
The term "basic salary, pay, or compensation ", wherever used in
this article, shall be so construed as to exclude from the operation of
the atiele all bonuses, allowances, overtime pay. or salary. ay. or


J


2


compensation given in addition to the base
fixed by law or regulation. (Mar. 2 1931,
1474 [U.S. Code, title 48, sec. 1371e].)


pay of the position as
ch. 375, sec. 6, 46 Stat.


97. Computation of accredited service.-Subject to the provisions
of section 98 of this title, the service which shall form the basis for
S*W 'a n. al -V.H-fk* -r ak .- S* *. - .>





T. 2, 98]


OPERATION, MAINTENANCE, AND


GOVERNMENT


States and periods of honorable service in the Army, Navy, Marine
Corps, or Coast Guard of the United States. In the case of an
employee, however, who is eligible for and elects to receive a pension
under any law, or retired pay on account of military or naval service,
or compensation under the War Risk Insurance Act, the period of his
military or naval service upon which such pension, retired pay, or
compensation is based shall not be included, but nothing in this
article shall be so construed as to affect in any manner his right to a
pension, or to retired pay, or to compensation under the War Risk
Insurance Act in addition to the annuity herein provided.
In computing length of service for the purposes of this article all
periods of separation from the service, and so much of any leaves of
absence without pay as may exceed six months in the aggregate in
any calendar year, shall be excluded.
In determining the total periods of service upon which the allow-
ances are to be computed under section 96 of this title, the fractional
part of a month, if any, shall be eliminated from each respective
total period. (Mar. 2, 1931, ch. 375, sec. 7, 46 Stat. 1476 [U.S. Code,
title 48, sec. 1371f].)


98. Credit
the provisions
deposit with
the Canal Zo:
tion 99 of this
of Veterans' A
basic salary,
after July 31
centum of th
dered subsequ
at the rate of
of each fiscal
period during
Upon making
for the perio
such deposit
the Panama I
further, That
employee of
required unde
sec. 8, 46 Stat


for past service.-All employees coming within
of this article after July 1, 1931, shall be required to
the Treasurer of the United States to the credit of
ne retirement and disability fund referred to in sec-
title, under rules to be prescribed by the Administrator
Lffairs, a sum equal to 2 per centum of the employee's
pay, or compensation received for services rendered
, 1920, and prior to July 1, 1926, and also 3 per
basic salary, pay, or compensation for services ren-
ent to June 30, 1926, together with interest computed
4 per centum per annum compounded on the last day
year, but such interest shall not be included for any
; which the employee was separated from the service.
Such deposit the employee shall be entitled to credit
d or periods of service involved: Provided, That no
shall be required on account of services rendered for
railroad Company prior to January 1, 1924: Provided
failure to make such deposit shall not deprive the
credit for any past service for which no deposit is
r the provisions of this section. (Mar. 2, 1931, ch. 375,


. 1476 [U.S. Code, title


99. Deductions.-Beginning
and withheld from the basic s


48, sec. 1371g].)


July 1, 1931,
alary, pay, or


there shall be deducted
: compensation of each





OPERATION, MAINTENANCE, AND


GOVERNMENT


[TI.2,11 l


pr atd for the paymentof the annuities, refunds, and allow-
andes proided in ths article.
Every employee coming within the provisions of this article shall
Be demed to consent and agree to the deductions from salary, pay,
or compensation as provided herein, and payment less such dedue-
tions ail be a full and complete discharge and acquittance of all
clais and demands whatsoever for all regular services rendered by
such employee during the period covered by such payment, except
the right to the benefits to which he shall be entitled under the
provisions of this article, notwithstanding the provisions of any
other law, rule, or regulation affecting the salary, pay, or compensa-
tion of any person or persons to whom this article applies. (Mar.
2, 1931, ch. 875, sec. 9,46 Stat. 1477 [U.S. Code, title 48, sec. 1371h].)
100, Investments and accounts.-The Secretary of the Treasury
shall invest from time to time in interest-bearing securities of the
United States or in Federal farm-loan bonds such portions of the
Canal Zone retirement and disability fund as in his judgment may
not be immediately required for the payment of the annuities, re-
funds, and allowances herein authorized, and the incomes derived
from such investments shall constitute a part of such fund. (Mar. 2,
1981, ch. 875, sec. 10, 46 Stat. 1477 [U.S. Code, title 48, sec. 1371i].)
S101. Return of amounts deducted from salaries.-(a) Under
such regulations as may be prescribed by the Civil Service Commis-
sion the amounts deducted and withheld from the basic salary, pay,
or compensation of each employee for credit to the civil-service
retirement and disability fund or the Panama Railroad pension fund,
covering service rendered prior to July 1, 1931, shall be credited to
an individual account of such employee to be maintained by the
Panama Canal and the amounts deducted and withheld from the
basic salary, pay, or compensation of each employee for credit to
th Canal Zone retirement and disability fund, covering service from
an afterJuly 1, 191, less the sum of $1 per month or major frac-
tion thereof, shall similarly be credited to such individual account.
(b) In the ease of any employee to whom this article applies who
shall be transferred to a position not within the purview of the
article, or who shall become absolutely separated from the service
befre becoming eligible for retirement on annuity, the amount
credited to his individual account shall be returned to such employee
together with interest at 4 per centum per annum compounded on
June 30 of each year: Provided, That when any employee becomes
involuntarily separated from the service, not by removal for cause
on charges of misconduct or delinquency, the total amount of his
deductions with interest thereon shall be naid to such emnlovee:





T. 2, 102]


OPERATION, MAINTENANCE CE, AND GOVERNMENT


his credit at time of retirement, the amount remaining to his credit
shall be paid in one sum to his legal representatives upon the estab-
lishment of a valid claim therefore, unless the annuitant shall have
elected to receive an increased annuity as provided in section 96 of
this title.
(d) In case an employee shall die without having attained eligi-
bility for retirement or without having established a valid claim for
annuity, the total amount of his deductions with interest thereon
shall be paid to the legal representatives of such employee.
(e) In case a former employee entitled to the return of the amount
credited to his individual account shall become legally incompetent,
the total amount due may be paid to a duly appointed guardian or
committee of such employee.
(f) If the amount of accrued annuity or of refund due a former
employee who is legally incompetent does not exceed $1,000, and if
there has been no demand upon the Administrator of Veterans'
Affairs by a duly appointed executor, administrator, guardian, or
committee, payment may be made, after the expiration of thirty days
from date of death or of separation from the service, as the case may
be, to such person or persons as may appear in the judgment of the
Administrator of Veterans' Affairs to be legally entitled thereto, and
such payment shall be a bar to recovery by any other person. (Mar.
2, 1931, ch. 375, sec. 11, 46 Stat. 1477 [U.S. Code, title 48, sec. 1371j].)


102. Payment of annuities.-Ai
of this article shall be due and pa'
the first business day of the month
period for which the annuity shal
all annuities, refunds, and allow
made by checks drawn and issued
payment of pensions in such form
guards as shall be prescribed by
Affairs in accordance with the laws
accounting that may be found apple
Applications for annuity shall be
of Veterans' Affairs may prescribe


annuities granted


under


terms


yable in monthly installments on
h following the month or other
1 have accrued; and payment of
nces granted hereunder shall be
by the disbursing clerk for the
and manner and with such safe-
the Administrator of Veterans'
, rules, and regulations governing
icable to such payments.
in such form as the Administrator
, and shall be supported by such


certificates from the heads of departments, branches, or independent
offices of the Government or the Panama Railroad Company in which
the applicant has been employed as may be necessary to the deter-
mination of the rights of the applicant. Upon receipt of satisfactory
evidence the Administrator of Veterans' Affairs shall forthwith adju-
dicate the claim of the applicant, and if title to annuity be estab-
lished, a proper certificate shall be issued to the annuitant under the
seal of the Veterans' Administration.





OPPR*TWNy MAI TENAY B, AND ao VERYMENT


[T. 2, 106


under the provisions of the Civil Service Retirement Act (U.S. Code,
title 5, ch. 14), or said Act as amended, or as extended by Executive
orders, or under the provisions of the Panama Railroad pension plan,
te annuity shall be computed, adjusted, and paid under the pro-
vibos i this article, h it this article shall not ibe so construed as to
irid the annuity of any person retired before its effective date,
nikhalltany increase in annuity commence before such effective date.
All those who were sepa rated from the service of either the Panama
Ca Or the Panama Railroad Company on the Isthmus of Panama,
d tqent to August 190, and before July 1, 1931, not by removal
6r us on charges of misconduct or delinquency, without having
bdeI anted retirement annuities due to the fact that all of their
serve which would be allowable under the provisions of this article
Wds not counted in arriving at their total service, and who are other-
wise eligible by having made the necessary contributions to the re-
tir eit and disability funds as herein provided, shall, from July 1,
193[, be paid annuities in accordance with the provisions of this
article. (Mar. 2, 1931, ch. 875, sec. 13, 46 Stat. 1479 [U.S. Code,
title 48, sec. 18711].)


104. Board of
Administrator of
16 of the Act of
make a valuation
Jof fi < '* *
at intervals of fi
Adiinistrator of
46 Stat. 1479 [U.


actuaries.-The board of actuaries selected by the
Veterans' Affairs under the provisions of section
July 3, 1926 (U.S. Code, title 5, sec. 706a), shall
of the Canal Zone retirement and disability fund
ve years, or oftener, if deemed necessary by the
Veterans' Affairs. (Mar. 2, 1931, ch. 375, sec. 14,
. Code, title 48, sec. 1371m].)


105. Administration.-For the purpose of administration, except
as otherwise provided herein, the Administrator of Veterans' Affairs,
is hereby authorized and directed to perform, or cause to be per-
formed, any and all acts and to make such rules and regulations as
may.e necessary and proper for the purpose of carrying the pro-
visions of this article into full force and effect. An appeal to the
Administrator of Veterans' Affairs shall lie from the final action or
order affecting the rights or interests of any person or of the United
States under this article, the procedure on appeal to be as prescribed
by the Administrator of Veterans' Affairs.
The Administrator of Veterans' Affairs shall make a detailed
comparative report annually, showing all receipts and disburse-
wpnp on account t annuities refunds, and allowances under this
article, together with the total number of persons receiving annuities
aad. thetotal amounts paid them; and he shall transmit to Congress
the reports and recommendations of the board of actuaries.
The Administrator of Veterans' Affairs shall submit annually to







law or equity, or be subject
meant, or other legal process.
1480 [U.S. Code, title 48, sec


107.


Effective


date.--Thi


and from and after that
Retirement Act (U.S. Cc
ployees of the Panama C
other employees coming
Provided, however, That
shall attain the age of
rendered sufficient service


to be retired on an ax
but whose aggregate e
sufficient in character
annuity under the pr
will be eligible to retire
of that Act and paya
ability fund; and in si
separation from the se
the Administrator of
in the deductions mad
the provisions of this
have been made at the
as amended; and the )
to the Secretary of th
of such employee in ti
and said amount shal


Departm
(Mar. 2,
sec. 1371
ARTICLE


ent to
1931,
p.].)


the c
ch. 37


to execution, levy,
(Mar. 2, 1931, ch.
. 137lo].)
s article shall take


Sdate tl
de, title
anal on
within
any em
eligibili
Son the


muity as
mploymei
and dur
Visions o
e and rec
ble from


p
It
a
f


tie provisions


GOVERNMENT


attachment, garnish-
375, sec. 16, 46 Stat.


effect July
of the Civil


1, 1981,
Service


S5, ch. 14), shall not apply to em-
the Isthmus of Panama or to any
Sthe provisions of this article:
iployee of the Panama Canal who
ty for retirement without having
Isthmus of Panama to entitle him
provided by section 92 of this title,
Sunder the United States would be
tion to entitle him to receive an
the Civil Service Retirement Act,


eive an annuity under the provisions
the civil service retirement and dis-


uch event the employee shall be entitled, upon
vice, to the refund, under such regulations as
Veterans' Affairs may prescribe, of any excess
e from his salary, pay, or compensation under
article, with interest, over those which would
rate fixed by the Civil Service Retirement Act
Administrator of Veterans' Affairs shall certify
e Treasury the amount remaining to the credit
hie Canal Zone retirement and disability fund,
l be transferred on the books of the Treasury
civil service retirement and disability fund.
5, sec. 17, 46 Stat. 1480 [U.S. Code, title 48,


3.-COMPENSATION FOR INJURIES
ROAD EMPLOYEES


TO CANAL


AND


RAIL-


See.
121. Application of Federal Employees'
Compensation Act to Canal and
Railroad employees.
122. Release or assignment of rights aris-
ing from liability of Panama Rail-
road Co.


121. Application
Canal and Railroad
used in the Act of
amended (U.S. Cod
T~flflflrh-ifl ( "onn 1l 0 o~A


Transfer of administration of act to
Governor; modifications of act in
respect to Canal and Railroad em-
ployees.


of Federal Employees' Compensation Act
I employees.-The term "employee" when
September 7, 1916 (ch. 458, 39 Stat. 742),
e, title 5, ch. 15), includes all employees of
n4f 4l-b PnnnrnyOYo "Rol^ rnoA fl {fmrwannon I Slan


A


T.2, 107]


OPERATION, MAINTENANCE, AND


i





OPERA lON, MMNTEZJANOB, AN)) GOVERNMENT


[T,2,5 128


39 Stat. 742), as mude(US. Code, title 5, eh. 15), is caused under
mtances creating a leg al liability in the Panama Railroad
Company to pay damgos th refor under the laws of any State,
Torrtbry, or possession of the United States or of the District of
bUn1r of any foregncountry, no compensation shall be pay-
intilthe person entitled to compensation releases to the Panama
Railroad Company any right of action which he may have to enforce
guAfliabiaty of the Panama Bail pad Company, or until he assigns
to the United States any right which he may have to share in any
mon o other property received in satisfaction of such liability
of ]P'anama Eailroad Company. (Sept. 7, 1916, ch. 458, sec. 41,
S9 St4 750 [U.S. Code, title 5, sec. 1911.)


123 Transfer of administration


of act to Governor; modificea-


tins t act in respect to Canal and Railroad employees.--The
President may, from time to time, transfer the administration of
the Act of September 7, 1916 (ch. 458, 39 Stat. 742), as amended
(U.S. Code, title 5, ch. 15), so far as employees of the Panama Canal
ad of the Panama Railroad Company are concerned to the Governor
of the Panama Canal, in which case the words "commission" and
'its" wherever they appear in said act shall, so far as necessary to
give eec to puch transfer, be read "Governor of the Panama Canal"
snd" his "; and the expenses of medical examinations under sections
21 and 22 of said act, as amended (U.S. Code, title 5, sees. 771 and
772), and the reasonable traveling and other expenses and loss of
wages payable to employees under section 21 of said act, as amended,
shall be paid out of appropriations for the Panama Canal or out of
funds of the Panama Railroad, as the case may be, instead of out
r T|r jiT^ T **'i ii1 o


of the appropriation for the
Compensation ommision.
In the case compensation
In casev / :'^


work (


)f the United States Employees'


to employees of the Panama Canal or


of the Panama Railroad Company for temporary disability, either
total or partial, the President may authorize the Governor of the
Panama Canal to waive, at his discretion, the making of the claim
required by section 18 of said act (U.S. Code, title 5, see. 768). In
the case of alien employees of the Panama Canal or of the Panama
Railroad Company, or of any class or classes of them, the President
mayr emove or modify the minimum limit established by section 6
of said act as amended U.S. Code, title 5, see. 756), on the monthly
m pesation for disabi ity and the minimum limit established by
lause (i) of sectin 10 of said act, as amended (U.S. Code, title 5,
8.0 on the monthly pay on which death compensation is to be
imputed. The President may authorize the Governor of the Pan-
sCanal to py the compensation provided by said act, including
It .i a2s na I an. -. z' - .. 1. -L .l a - 1- .. -a -





T. 2, 141] OPERATION, MAINT
CHAPTER 7.-EXCLUSION


ENANGE, AND


AND DEPORTATION


OF PERSONS


Sec. Sec.
141. Regulations as to right to enter or re- 142. Punishment of persons deported from
main upon Canal Zone. Canal Zone who return thereto.
Section 141. Regulations as to right to enter or remain upon
Canal Zone.-The President is authorized to make rules and regu-
lations, and to alter or amend the same from time to time:
a. Touching the right of any person to enter, remain upon or pass
over any part of the Canal Zone; and
b. For the detention of any person entering the Canal Zone in
violation of such rules and regulations, and the return of such per-
son to the country whence he came, on the vessel bringing the per-
son to the Canal Zone, or any other vessel belonging to the same
owner or interest, and at the expense of such owner or interest; and
in addition to the punishment prescribed by this section for viola-
tion of such rules and regulations, the authorities of the Canal Zone
may withhold the clearance of the vessel from any port in the Canal
Zone until any fine imposed and the cost of maintenance of the


person are paid.
Any person violating any of such
punished by a fine of not more than
jail for not more than one year or ]
371, sec. 10, 39 Stat. 529 [U.S. ode,


rules or
$500, or
by both.
title 48,


regulations shall
by imprisonment
(Aug. 21, 1916,
sec. 1321].)


CR08 8-REFEREN cm


Punishment
Extradition


for importing foreign criminals, see title 5, section
of persons accused of crime, see title 6, sections 861


184.
et seq.


142. Punishment of persons deported from Canal Zone
return thereto.-Any person who voluntarily returns to the C
Zone after having served a sentence of imprisonment therein
after being deported therefrom, shall:
a. Be punished by imprisonment in the penitentiary for not
than two years; and
b. Be removed from the Canal Zone upon the completion of
sentence, in accordance with the laws and orders relating to depc
tion.
A voluntary entry into the Canal Zone for any purpose shal
sufficient to constitute a return to the Zone within the meaning


this section, except that the
his discretion, in a case of
person to return to the Can
who remains in the Canal
specified in the permit shall
9 -**'a a -


Governor of the Panama C
necessity, grant a permit
al Zone temporarily. Any
Zone after the expiration
be deemed guilty of a viol


who
anal
and


nore


his
)rta-

1 be
Sof


g Q
anal may, in
to any such
such person
of the time
ation of this


GOVERNMENT


t





OPERATION, MAIMNTENAGE, AND


GOVERNMENT


[T. 2, 155


CHAPTER 8.--INSPECTION


OF VESSELS


151, Vessels
eral
152. Inspect
1Et ERsgulti
1$. ISeun6Tl
1pyIitaiit ^ J~E5 it


subject to inspection in


vessaIs.
I i eUpctiUon.
of certificate of


Inspection.
1554 Refusal of certificate of inspection.
150. Failure to have or display certificate;
receiving excess passengers; fines.


157. Revocation of certificate for changes
in condition of vessel.
15f. Small vessels propelled by machinery;
registration, certification, and num-
bering; licensing of operators; fines.
159. Small vessels not propelled by ma-
Schinery; registration and number-
i g: fines.


160. Sr


narl vessels carrying passengers;
certificate; inspection; fines.


Section


151.


Vessels subject to


inspection in general.-All


ves-


sels navigating the waters of the Canal Zone, except public vessels
of all nations, and private vessels merely transiting the Canal, shall
be stabject to an annual inspection of hulls, boilers, machinery, equip-


ment, and passenger accommodations.
47 Stat. 811 [U.S. Code, title 48, sec.


(Feb.
1336a].)


16, 1933, ch. 88, sec. 1,


OCoss-RrnmcEBs
Regulations governing the navigation of the harbors and other waters of the
Canal Zone, see section 9 of this title.


Radio equipment
362 of this title.


on ocean-going


vessels


using ports,


see sections


152.


Inspection of foreign vessels.-A foreign vessel of a country


which has inspection laws approximating those of the United States,


having an unexpired certificate of inspection duly issued by the
authorities of the said country, shall not be subjected to an inspec-


tion


other


than


that


necessary


determine


whi


boilers and life-saving equipment are as stated in


inspection;
as evidence
to vessels c
which such
811 [U.S. C


no such


lawful
le Unit


vessel


certificate


inspection
ed States


belongs.


ode, title 48, see.


unless
under


(Feb. 1(
1336b].)


inspection
s like priv


the
1933,


AL


laws
ch.


ether the vessel
the certificate o


shall
ileges
of th


sec.


'e accepted
re granted
country to
2. 47 Stat.


153. Regulations governing
Panama Canal is authorized to


inspection refer
regulations shall
regulations gov


med to in
conform


I


inspection.-The


Governor


prescribe regulations concerning the
bwo next preceding sections, which


as nearly a
, Ste@aot


~rning


United States. (Feb. 16, 4Spe4.
title 48, sec. 1336a].) ),v **


154.


Issuance


I flislay


t88>sed.:1s

certificatE


racticable


h


a,
the board of locarit4pectors of th !Pianta C
and its equipinmeA a certificate. f inspefion,
issued by the Canal authorities, two coDies (


o the laws


and


Octitn Service of the
: t7.t8 |U.S. Code,
*~~ ,(
"*| T^ .... -


of inspect n.-
anl approves 4
'in triplicate, si


When
Vessel
all be


)f which shall be dis-


s.f I A-,
* S S 4 S *S4 -
A. a 4.
A~w.. - a., a rt a an ,~ 'w a rrA. r~ a - a S U --


t


-f




T. 2, 156]


OPERATION, MAINTENANCE, AND


GOVERNMENT


to approve, filing such statement in the records of the board, and giv-
ing a copy thereof to the owner, agent or master of the vessel. (Feb.
16, 1933, ch. 88, sec. 4, 47 Stat. 811 [U.S. Code, title 48, sec. 1386d].)
156. Failure to have or display certificate; receiving excess
passengers; fines.-Any vessel, other than those excepted in section
151 of this title, that navigates the waters of the Canal Zone without
having an unexpired certificate of inspection issued by the Canal
authorities or by the Steamboat Inspection Service of the United
States, or an unexpired certificate accepted by the Canal authorities
under section 152 of this title, shall be subject to a fine of not more
than $1,000; and whenever any passenger is received on board a
vessel not having certified copies of the certificate of inspection placed
and kept as required by section 154 of this title, or whenever pas-
sengers are received on board a vessel in excess of the number au-
thorized by said certificate of inspection, such vessel shall be liable to
a fine of not more than $100 for each passenger so received.
Fines shall be recovered in the district court, and the amount so
recovered shall be a lien upon such vessel, and it may be seized and
sold to satisfy same, as well as the costs of the court proceedings.
(Feb. 16, 1933, ch. 88, sec. 5, 47 Stat. 811 [U.S. Code, title 48, sec.
1336e].)


157.


Revocation


vessel.-Ii


certificate


changes


i case a vessel holding an unexpired cer


in condition
tificate issued


of
by


the Canal authorities shall change its condition as to hull, boilers,
machinery, equipment or accommodations for passengers in such
manner as not to conform to the regulations under which such
certificate was issued, the board of local inspectors is authorized to
make an inspection and to recommend revocation of the certificate of
inspection, and upon approval of such recommendation by the marine
superintendent, or such other officer of the Panama Canal as may be
designated by the Governor, a notice of revocation will be issued to
the owner, agent or master of the vessel; and after such notice of
revocation the navigation of Canal Zone waters by such vessel shall
subject it to the penalty prescribed by section 156 of this title. Feb.
16, 1933, ch. 88, sec. 6,47 Stat. 811 [U.S. Code, title 48, sec. 1336f].)
158. Small vessels propeled by machinery; registration, certifi-
cation, and. numbering licensing b operators; fines.-Small ves-
sels .propellt ii whole or in part by machinery, other than public
vessels 6fthel United States or of the Rep tahi of Panama, shall be
registered; certificated and. n bered, and shall display the numbers
assigned in a conspgiuos '.plc. .Ai prescribed foin. Such vessels
shall hot be operated except by an operator holding a license to
operate, issued after examination by the board of local inspectors,
-. 'S 5 9 < .*3 9 S ,





O fflO~, MAlh CTENBANO AND


GOVSBNMENT


[T. 2, 10


by machinery shall be registered and numbered, and when numbers
have en assigned they shall be displayed in a conspicuous place in
prescribed form. Any vessel which is operated in Canal Zone waters
m tiiltIon of any of the requirements Of this section shall be liable
to a fine of not more than $100. (Feb. 16,1933, ch. 88 sec. 8,47 Stat.
812, U.S. Code, title 48, see. 18S6h .)
16 Smal vessels carrying passengers; certificate; inspection;
lnes.-Vessels under 65 feet in length, before carrying passengers
for ie in Canal Zone waters, shall obtain a certificate from the
Canal Zone authorities to engage in this business, and such certifi-
cate shall specify the number of passengers and life preservers and
the fire-fighting apparatus which the vessel must carry. Such vessels
shll be subject to annual inspection, and the certificate referred to
will be granted for one year only. Any such vessel which shall carry
passengers for hire without first having obtained the certificate re-
quired by this section, or which shall carry passengers in excess of
the number authorized by such certificate, shall be liable to a fine of
not more than $100 for each passenger so carried. (Feb. 16, 1933,
h. 88, sec. 9, 47 Stat. 812 [U.S. Code, title 48, sec. 1336i].)
CHAPTER 9.-INTOXICATING LIQUORS
NoE.--The chapter heading "Intoxicating Liquors" has been reserved here
in order to accommodate any special liquor legislation which may be enacted
for the Canal Zone, supplanting, in application to the Zone, the National
Prohibition Act and the acts amendatory thereof and supplemental thereto.





T.2, 201]


OPERATION, MAINTENANCE. AND GOVERNMENT


CHAPTER 10.-KEEPING AND IMPOUNDING OF DOMESTIC ANIMALS


Sec.
201. Regulations relative to keeping and
impounding of domestic animals.


Violation


of regulations; punishment.


201.


domestic


authorized
regulations:


a. Governing the


Zone
b. Prescribing


mals may


Regulations


animals.-The


make


and pi

keeping


where


permitted


what conditions such
c. Providing for-


(1) The impour
(2) The charges
animals if claimed


animal


and


relative tF
Governor


iblish,


and


of domestic


under


what


keeping
of the


from


time


animals


Sand impounding
Panama Canal is


%toti

within


conditions


do


d to be at large, and when, where
domestic animals shall be confined


hiding of


Sto be


me


amend,

SCanal


mestic
and u


ani-


under


and


animals;


paid for the impounding and


C


by the owner;


The disposition of unclaimed animals; and
The disposition of the proceeds of the sale of such
s, if sold. (July 5, 1932, ch. 427, sec. 1, 47 Stat.


are of such


unclaimed
178.)


CROSS-REFERENCE
Offenses in relation to the keeping, etc., of animals, see title 5, sections 561
to 567, 608 and 810.


202
shall


Violation


re


violate any provis


next preceding section,
1932, ch. 427, sec. 2, 47 S


gulations; punishment.-Any person
ion of the regulations established und
shall be guilty of a misdemeanor. (Ji


who
er the


uly


tat. 579.)


CHAPTER 11.-NOTARIES PUBLIC
Section 211. Appointment and regulation by Governor.-The Gov-


ernor oi
scribe t
charged


E the


Panama


heir powers and


and


collected


Stat. 564; Sept. 21, 1922,
ch. 91. sec. 1. 47 Stat. 81


Canal


s


duties


them.
ch. 370
6 [U.S.


hall appoint all notari
, their official seal, and


es


public, pre-
he fees to be


(Aug. 24, 1912, ch. 390, sec. 7, 37
, sec. 1, 42 Stat. 1004; Feb. 16, 1933,
Code, title 48, sec. 1336].)


CHAPTER 12.-PANAMA RAILROAD COMPANY; RAILROADS


Art.
1. In General .-- --- --


Sec.
~221 I


Art.
2. Safety


Sec.
Appliances ... ......_.... 241


GROSS-REFERENOES


'a a....


a -


a.


- a jph-k


5 '0 ~.rt nnn nnt te fl's nfl ruN n..~. at, nnr n n arc nan *~I a ~ nnn.4nfn -u tsta U fl.


Section


it C


4 t I


- I *


.*


h





OPlRATION, MAWNTENAN7O, AND


GOVERNMENT


[T.2, 241


Other oenses in relantion to railroads, see title 5,
6D, 688, 789, 740, 824, 843 and 844.
Suits in Admiralty Act not to apply to Panama
title 46, section 741 (appendix, p. 991).
Transfer to Shipping Board of vessels owned by P
pot required in its business, see U.S. Code, title 46, s


ARTICLE 1.-IN


Annual payment by Panama Railroad
Co. to United States not required.
Carriage by Panama Railroad Co. of
marine and fire insurance.


sections 521, 528 to 526,


Railroad,


see U.S.


Code,


anama Railroad Co. and
section 806.


GENERAL


See.
223. Contracts between Panama Railroad
Co. and departments of Government.
224. Hours of work for telegraph operators
and train dispatchers.


Section 221. Annual payment by Panama Railroad Company to
United States not required.-Payment by the Panama Railroad
Company to the United States, in accordance with the treaty with
Panama, of the annual subsidy of $250,000, as provided by the con-
cession granted by the United States of Colombia shall not be
required. (June 25, 1910, ch. 384, sec. 2, 36 Stat. 772 [U.S. Code
title 48, sec. 1334].)
222. Carriage by Panama Railroad Company of marine and fire
insurance.-The Panama Railroad Company shall carry no insur-
ance to cover marine or fire losses. (Mar. 4, 1911, ch. 285, sec. 2,
36 Stat. 1451 [U.S. Code, title 48, sec. 1333].)
223. Contracts between Panama Railroad Company and de-
partments of Government.-The Panama Railroad Company shall
not be required to give bond, either with or without surety, in con-
tracts which it may make to furnish services, materials, or supplies
to the Army, Navy, Marine Corps, or other departments of the Gov-
ernment, and such contracts may be made for periods less than one
year as may be agreed on, and formal contracts in writing shall
not e required unless agreed on. (Mar. 4, 1911, ch. 285, sec. 6, 36
Stat. 1452 [U.S. Code, title 48, sec. 1335].)


224. Hours of work for telegraph operators and train dis-
patchers.-No operator, train dispatcher or other employee of the
Panama Railroad Company who by the use of the telegraph or
telephone dispatches, reports, transmits, receives, or delivers orders
pertaining to or affecting train movements shall be required or per-
mitted to be or remain on duty for a longer period than nine hours
in any twenty-four-hour period in any tower, office, place or station
spntinuously operated night and day, nor for a longer period than
thirteen hours in any tower, office, place or station operated only
during the daytime, except in case of emergency, when the employees
named in this section may be permitted to be and remain on duty
for four additional hours in a twentv-four-hour period on not. prced-


I





T. 242]


OPERATION, MAINTENANCE, AND


GO VBRNMBNT


title 45, sees. 1 to 10), relating to the use on trains of certain de-
scribed and approved driving-wheel and train brakes, couplers, hand
holds, and draw bars of required height for freight cars, shall be
extended to apply to the Canal Zone.


242.


Running


boards,


brake shafts.-The


ladders,


various appliances


steps, x
for the


*oof


handholds,


protection


and


of train-


men on freight train cars, with reference to running boards, ladders,
sill steps, roof handholds, and the position of brake shafts, as desig-
nated in the existing standards of the Master Car Builders' Asso-


ciation i


n the


- C


United


States,


shall


used


carriers


Canal Zone.


243.


Maintenance


appliances


good


and


working


order.-


The equipment and appliances required to be used in sections 241 and
242 of this title shall be constantly and at all times maintained in
good and working order by any and all railroads engaged in the
business of a common carrier and operating in the Canal Zone.


244.


Observance


244 of


Panama


this


Panama


title shall


Railroad, a


carrier


Railroad.-In
carefully obse
operating in t


particular secti
ved and obeyed


he C


anal Zone.


ions
by


NoTE.-With


cars
other


of January


used


respect


to the use of


the Government


territories under


1909,


provides as follows:


"All railroads


safety


appliances


of the United


its jurisdiction,


as amended


operated


cars


used


section


States


Executive order


on railroads operated


within


reservations


of the Executive order


the Government


March


1913,


of the United


States within navy yards, arsenals, military reservations, Government wharves,


and any and all other territories under the jurisdiction of the


United States,


shall be equipped with the safety appliances required in the Safety Appliance
Acts mentioned and described in section 1 of this order (sec. 241 of this title),
and in the codes of rules mentioned and described in section 2 of this order


(see.


242 of this title)


and said equipment and appliances shall at all times be


maintained in good and working order.
"The application of the requirements of the Safety Appliance Acts to equip-
ment of rolling stock at navy yards is hereby so far modified that the cars and
engines at yards and stations will be fitted with safety appliances only to


such e:


tent


approval
be deeme


as may,


the judgment


commandant,


of the Chief of the Bureau of Yards and Docks, Navy


d


necessary


or advisable."


subject


Department,


CHAPTER


13.-PARDONS


AND


FINES AND


REPRIEVES


AND


FORFEITURES


REMISSION


Section 261.


pardons


and


Authority


reprieves


and


Governor.-The


remit


fines


and


Governor may


forfeitures


0


grant
ifenses


against the laws of the Canal Zone and reprieves for offenses against
the laws of the United States until the decision of the President is


1' t A 4 a ~a a S an. a a I


A


t


-- --w
w w





oflBM ,I, MMYTENANCEjAND GOVERNMENT


fT. 5 275


CHAPTER it-POSTAL SERVICE


alt Afplcatin of United Stata oU
lawi rules and regulations
272. Authority of Governor in respect
the service.
273. Defayingl expenses from revenues


atm!


30


See.
274. Rate of interest on deposit
a orders.
275. UTe of interest from money
funds deposited in banks.


money
order


Section 271. Application of United States postal laws, rules, and
reglations.-The postal serce of the Canal Zone shall be governed,
exce as otherwise provided it this chapter, by such of the laws,
ru ad regulations of the Postal Service of the United States as
amnt inapplicable to the conditions existing in the Canal Zone.
(Feb. 16, 1933, ch. 89, sec. 1, 47 Stat. 812 [U.S. Code, title 48, sec.
1 23a].)
COss-RoaRENNCBS


Extension to Canal Zone of United States laws and
crimes against the postal service, see title 5, section 111.
For the laws of the Postal Service of the United S1
tit st.


states,


see U.S


defining
L. Code,


272. Authority of Governor in respect to the service.-The Gov-
ernor of the Panama Canal is authorized:
a. To establish new post offices or discontinue those already
estab ished;-
To provide such rules and regulations as are necessary for the
operation of the service;
c. To appoint the personnel of the service; and
d. To prescribe the postage stamps and other stamped paper which
shall be used in the service. (Feb. 16, 1933, ch. 89, sec 1, 47 Stat. 812
[UTJ.S. Code, title 48, see. 1323a].)
273. Defraying expenses from revenue so far as possible.-The
expenses of operating the Canal Zone postal service shall be de-
frayed, so far as possible, from the revenue derived therefrom, the
te of which for that purpose is authorized. (Feb. 16, 1933, ch.
89, see. 1, 47 Stat. 812 [U.S. Code, title 48, sec. 1323a].)
i274. Rate of interest on deposit money orders.-Deposit money
orders issued in the Canal Zone in lieu of postal savings certificates
cordance with rules and regulations heretofore established by
te President, or that may hereafter be established by him, shall
bear interest at a rate not exceeding 3 per centum per annum. (Feb.
I, 1933, ch. 89, sec. 2, 47 Stat. 812 [U.S. Code, title 48, sec. 1323b].)
Use of interest from money order funds deposited in
inks.--The interest received from the Canal Zone money-order
Aan hnil.. nnl anlor f al na varnlatirmnnc dhlll fnrm


4


regulations





T.2, 291]


OPERATION, MAINTENANCE, AND


GOVERNMENT


CHAPTER


15.-PROTECTION


BIRDS


AND


THEIR


NESTS


Sec.
291. Regulations for protection of birds and
their nests. *
292. Taking, disturbing, or killing birds or
taking eggs.


Violations of law or regulations; pun-
ishment.


Section 291. Regulations for protection of birds and their
nests.-The Governor of the Panama Canal shall:
a. Make and publish suitable regulations, from time to time, for
the protection of birds and their nests within the Canal Zone; and
b. Prescribe the form and manner in which birds may be hunted
therein and the kinds of birds that may be hunted and that shall
not be molested. (July 5, 1932, ch. 420, sec. 1, 47 Stat. 576.)
Cuoss-RursncE
Carrying and keeping of arms, and hunting, see title 5, sections 871 to 877.


292. Taking, disturbing, or killing birds
person shall hunt, trap, capture, willfully di
of any kind whatever, or take the eggs of any
Zone, except in the form and manner permit
provided for by the next preceding section.
sec. 2, 47 Stat. 576.)


or taking eggs.-No
sturb, or kill any bird
bird, within the Canal
,ted by the regulations
(July 5, 1932, ch. 420,


293. Violations of law or regulations; punishment.-A violation
of any of the provisions of the next preceding section or of any of
the regulations established under section 291 of this title shall be
punished for each offence by a fine of not more than $100, or by
imprisonment in jail for not more than thirty days. (July 5, 1932,
ch. 420, sec. 3, 47 Stat. 576.)

CHAPTER 16.-PUBLIC LANDS


Sec.
301. Acquisition by United States of title
to land in Canal Zone.
302. Withdrawal of certain tract from ef-
fect of next preceding section.


Section 301. Acquisition by Ui
Canal Zone.-The President is aul
order that all land and land under
Canal Zone is necessary for the cons
sanitation or protection of the Pa
by agreement when advisable, all cl
ants and occupants. Upon failure
any such parcel of land or land u
1 B I S" f l1


Sec.
303. Lease of public lahds; land survey.
304. Revocable licenses for lots in town
sites.


,ited States of title to land in
bhorized to declare by Executive
r water within the limits of the
struction, maintenance, operation,
mama Canal, and to extinguish,
aims and titles of adverse claim-
Sto secure by agreement title to
nder water the adverse claim or
.* .S.- t ^- -


I





OPERA TI


ON, MAINTENANCE, AND GOVERNMENT


303.


Lease


public


lands;


land


survey.--The


authorized to grant leases of the public lands
for such period, not exceeding twenty-five yea
terms and conditions as he may deem advisable.
shall be granted for a tract of land in excess of f
any person who shall not have first established,
such other proof as may be required, that such
of a family or over the age of twenty-one years,
cation for a lease is made in good faith for the
settlement and cultivation, and not for the benef
son whatsoever, and that such person will faithft


President


in the Canal Zone
irs, and upon such
No lease, however,
ifty hectares, nor to
by affidavit and by
person is the head
and that the appli-
purposes of actual
it of any other per-
tlly comply with all


the requirements of law as to settlement, residence, and cultivation.
In granting such leases preference shall be accorded to actual occu-
pants of lands in good faith.
No portion of the lands of the United States within the Canal
Zone shall be leased hereunder unless it shall first be made to appear
by a statement or plat filed by the Governor of the Panama Canal with
the Collector of the Panama Canal, that it is not contemplated to use
such lands in the work of canal construction or to set the same aside
as a town site; and all leases shall be made subject to the provision
that if at any time it shall become necessary, notwithstanding, for
the United States to occupy or use any portion of the leased lands, it
shall have the right to so do without further compensation to the
lessee than for the reasonable value of the necessary improvements
made upon said tracts by the lessee, the same to be determined by the
courts of the Canal Zone.
All leases of lands hereunder shall reserve to the United States all


308


302 Withdrawal of certain tract from effect of next preceding
section.--The following tract of land situated within the Canal Zone,
and more particularly described as lots numbered 641, 643, 645, and
647, in the town of Cristobal, Canal Zone, the same being bounded on
the north by Eleventh Street, on the east by Bolivar Street, on the
south by lot numbered 649, and on the west by a vacant lot, the said
lots or tract of land having an extension from north to south of
120 feet and from east to west of 100 feet, and measuring in super-
ficial area 12,000 square feet, is withdrawn from the operation of the
next preceding section and the Executive order of December 5, 1912,
relating thereto.
The Panama Railroad Company is authorized to sell, transfer and
convey said lots or tracts of land with all improvements thereon to
any other person or persons or association of persons and retain the
consideration therefore for its own use. (June 5, 1920, ch. 239, secs. 1
and2,41Stat.948.)





T. 2, 304]


OPERATION, MAINTENANCE, AND


GOVERNMENT


304. Revocable licenses for lots in town sites.-The Governor of
the Panama Canal is authorized to execute revocable licenses for lots
in town sites in the Canal Zone, either directly or through such
agency as he may direct, such licenses to be revocable at his pleasure,
licensees to vacate and remove improvements at once without
indemnity.


CHAPTER


17.-PUBLIC


ROADS AND
FERRIES


HIGHWAYS;


VEHICLES;


Art. Sec.
1. Regulations governing roads, high-
ways, and self-propelled vehicles_ 321
2. Operation of street-railway cars at
crossings -...----- - 331


Art. See.
3. Ferry and highway near Pacific en-
trance of Canal- -- ... .. 341


ARTICLE


1.-REGULATIONS GOVERNING ROADS,
SELF-PROPELLED VEHICLES


HIGHWAYS,


AND


Sec.
321. Authority of President
enforce regulations.


to make


and


Agreements with Panama for recipro.
cal regulations.
Violation of regulations; punishment.


Section 321. Authority of President to make and enforce regu-
lations.-Until otherwise provided by Congress, the President maj
make, publish, and enforce, and from time to time alter or amend,
all rules and regulations for the use of the public roads and high-
ways in the Canal Zone, and for the regulation, licensing, and taxing
of the use and operation of all self-propelled vehicles using the public
highways, including speed limit, signals, tags, license fees, and all
detailed regulations which may from time to time be deemed neces-
sary in the exercise of the authority hereby conferred.
The taxes on automobiles may be graded according to the value
or the power of the machine. (Aug. 21, 1916, ch. 371, sec. 3, 39 Stat.
528 [U.S. Code, title 48, sec. 1312].)
Cboss-R_-mNcE


Offenses in relation to highways and automobiles,
507, 511, 512, 513, 525, 531, 551, 784, 785, 824, 825.


see also


title 5,


sections


322. Agreements
President may make
ama touching the re
and the Republic o:
taxes and license fee
lish comity for the c
tions. (Aug. 21, 191


with Panama for reciprocal regulations.-The
mutual agreements with the Republic of Pan-
ciprocal use of the highways of the Canal Zone
f Panama by self-propelled vehicles, touching
s, and any other matter of regulation to estab-
onvenience of the residents of the two jurisdic-
16, ch. 371, see. 3, 39 Stat. 528 [U.S. Code, title





OPBTIO N, MAIWNTENAMV, AND GOVERNMENT


AR LEH 1-OPERATION OF STRflT-RAILWAY
381. OperatIon at street, road, or street- 832. OperatIon
railway crossing. 8333. VIolation


[22,5342


CARS AT CROSSINGS

at railway crossing.
of article; punishment.


331. Operation at street, road, or street-railway crossing.-No
motorman or other person in control of a street-railway car shall run
such car over or upon any street crossing, road crossing or street-
railway crossing in the Canal Zone, at a speed of more than twelve
miles per hour, and without commencing to sound gong, horn or
whisle when at least one hundred feet from the crossing and con-
tinuing to sound same until the crossing has been passed. (July 5,
1982, cn. 424, sec. 1, 47 Stat. 577.)
332. Operation at railway crossing.-No motorman or other per-
son in control of a street-railway car shall run such car over or upon
any railroad crossing in the Canal Zone, without bringing the car to
a ull stop at least ten feet from the nearest rail, and without ascer-
taining from a view of the railroad track made either by himself or
by the conductor that the crossing may be safely passed. (July 5,
1982, ch. 424, sec. 2, 47 Stat. 577.)
333. Violation of article; punishment.--A violation of any of the
p provisions of this article shall be punished by a fine of not more than
100, or by imprisonment in jail for not more than thirty days, or
by both. (July 5, 1932, ch. 424, sec. 3, 47 Stat. 577.)


ARTICLE


3.-FERRY


AND


HIGHWAY
CANAL


NEAR


PACIFIC


ENTRANCE


See.
341. Maintenance of ferry
near Pacific entrance.


highway


See.
342. Regulations governing operation and
maintenance of ferry; punishment
for violations.


M41. Maintenance of ferry and highway near Pacific entrance.-
The Governor of the Panama Canal, under the supervision of the
Secretary of War, is authorized:
a. To maintain and operate, near the Pacific entrance of the Pan-
ara Canal, from a point at or near Balboa on the eastern side of
the Canal to a suitable point on the opposite shore of the Canal, a
ferry for the accommodation of the public and adequate to serve
military needs, and for such purposes is authorized to acquire such
ferryboats and other equipment, and to construct and maintain such
wharves, docks, and approaches, as may be necessary; and
b. To maintain a highway for the accommodation of the public
and adequate to serve military needs, extending from the western
t inal of such ferry to a point at or near the town of Arraijan


t





T. 2, 351] OPERATION, MAINTENANCE, AND GOVERNMENT
make rules and regulations governing the operation, use and main-
tenance of the ferry, equipment, wharves, docks and approaches
maintained, acquired and constructed under this article. Any per-
son violating any such rule or regulation shall be punished by a fine
of not more than $100, or by imprisonment in jail for not more than
thirty days, or by both. (May 27, 1930, ch. 338, sec. 2, 46 Stat.
388.)
CHAPTER 18.-PURCHASE OF SUPPLIES
Section 351. Purchase without advertising where amount does
not exceed $500.-The Governor of the Panama Canal may author-
ize, under such regulations as he may prescribe, the purchase of sup-
plies for the use of the Panama Canal, or for use in the Canal Zone,
in the open market and without advertising, if the amount involved
in any one purchase does not exceed $500. (Dec. 29, 1926, ch. 19,
sec. 6, 44 Stat. 926.)
Csoss-REFEENCES
Advertisement for proposals for purchases and contracts for supplies for
departments of Government, see U.S. Code, title 41, section 5 (appendix, p. 987).
Restriction of purchases to articles of growth, production, or manufacture
of United States, see U.S. Code, title 41, sections 10a to 10c (appendix, p. 987).
CHAPTER 19.-RADIO EQUIPMENT ON OCEAN-GOING VESSELS
USING PORTS
Sec. Sec.
361. Radio equipment on vessels using ports 362. Violations; fines and recovery thereof.
and carrying fifty or more persons.
Section 361. Radio equipment on vessels using ports and carry-
ing fifty or more persons.-It shall be unlawful for any ocean-going
vessel carrying fifty or more persons, including passengers and crew,
to leave or attempt to leave any port of the Canal Zone unless such
vessel is equipped with an efficient apparatus for radio communica-
tion, capable of transmitting and receiving messages for a distance
of at least one hundred miles, night or day, and which is in good
working order and in charge of a person skilled in the use of such
apparatus. This requirement shall not apply to vessels merely
transiting the Canal or to vessels plying between Canal Zone ports
and ports less than two hundred miles therefrom. (July 5, 1932, ch.
421, sec. 1, 47 Stat. 576 [U.S. Code, title 47, sec. 120].)
COoss-REFERENCE
Inspection of vessels, see sections 151 to 160 of this title.
362. Violations; fines and recovery thereof.-Any vessel leaving
44. a4n 4..^ ^ n a -S a 1-- an Cl /^- I 7 -- ~.__ - . ad- -- aa4 a- ^ -- .,*- a




OPERATION, MANTENANO, AND GOVERNMENT


[T.2,d 32


CHAPTER 20-SAnITATION,

371. Rules nd regulations in mitten of
sandtation, health, and quarantine.


HEALTH,


AND


QUARANTINE


See.
872. Regulations respecting practice of heal-
ing art.
873. Violation of regulations; punishment.


Section 371. Rules and regulations in matters of sanitation,
health, and quarantine.-Until otherwise provided by Congress, the
President is authorized:
a. To make rules and regulations in matters of sanitation, health,
and quarantine for the Canal Zone; and
T mdify or change existing rules and regulations and those
heiroaer made from time to time. (Aug. 21, 1916, ch. 371, sec. 1,
89 Stat. 527; Feb. 16, 1933, ch. 92, 47 Stat. 818 [U.S. Code, title 48,
sec. 1310].)


CO3oS-IUzEBrENCES
Conspiracy to commit act injurious to public health, see title 5, section 81.
Crimes against the public health and safety, see title 5, sections 501 to 572.
372. Regulations respecting practice of healing art.-The Presi-
dent, under such regulations as he may prescribe, may authorize the
Board of Health of the Canal Zone to issue licenses to practice the
healing art, which regulations shall include conditions under which
such licenses shall be issued and provisions for revocation for cause
of licenses issued. (Aug. 21, 1916, ch. 371, sec. 1, 39 Stat. 527; Feb.
16, 1933, ch. 92, 47 Stat. 818 [U.S. Code, title 48, sec. 1310].)
373. Violation of regulations; punishment.-A violation of any
quarantine regulation authorized under section 371 of this title shall
be punished by a fine of not more than $500, or by imprisonment in
jail for not more than ninety days or by both; and a violation of any
sanitary or health regulation authorized under sections 371 and 372
of this title shall be punished by a fine of not more than $25, or by
imprisonment in 'ail for not more than thirty days, or by both.
Each day such violation shall continue shall constitute a separate
of ense. (Aug. 21, 1916, ch. 371, sec. 1, 39 Stat. 527; Feb. 16, 1933,
ch. 92,47 Stat. 818 [U.S. Code, title 48, sec. 1310].)
CHAPTER 21.-SEAMEN


891, What laws applicable to seamen of ves-
sels of United States.


Sec.
392. Powers conferred upon shipping com-
missioner and deputies.


Section 391. What laws applicable to seamen o
United States.-The laws relating to seamen of vessels
States on foreign voyages shall apply to seamen of all
United States at the Canal Zone, whether such vessels be


f vessels of
of the United
vessels of the
registered or
gle.-CJ a


I





T. 2, 401]


OPERATION, MAINTENANCE, AND


GOVERNMENT


by law upon consular officers of the United States in foreign ports
and upon shipping commissioners in ports of the United States are
hereby bestowed upon the shipping commissioner and deputy ship-
ping commissioners in the Canal Zone. (Aug. 21, 1916, ch. 871, sec.
9, 39 Stat. 529 [U.S. Code, title 48, sec. 1331].)
CHAPTER 22.-TAXES AND LICENSES


Sec.
401. Regulations for levying, assessing, and
collecting taxes.


Violation of such regulations; punish-
menrit.


Section 401. Regulations for levying, assessing, and collecting
taxes.-Until otherwise provided by Congress, the President is
authorized to make and from time to time change rules and regula-
tions for levying, assessing and collecting ad valorem, excise, license
and franchise taxes in the Canal Zone. Ad valorem taxes imposed
shall not exceed one per centum of the value of the property, nor shall
franchise or excise taxes exceed two per centum of gross earnings.
(Aug. 21, 1916, ch. 371, sec. 2, 39 Stat. 528 [U.S. Code, title 48, sec.
1311].)
OCoss-RrERwoES
Automobile taxes and licenses, see section 321 of this title.
Failure to give proper tax or license receipts, see title 5, section 626.
Possession of improper blank licenses or tax receipts, see title 5, section 627.


402. Violation of
who commits any act
in the Canal Zone wit
established under the
fine of not more than
than thirty days, or b
528 [U.S. Code, title 4


such regulations; punishment.-Any person
or carries on any business, trade or occupation
hout complying with the rules and regulations
next preceding section, shall be punished by a
$25, or by imprisonment in jail for not more
y both. (Aug. 21, 1916, ch. 371, sec. 5, 39 Stat.
:8, sec. 1314].)


CHAPTER 23.-TOLLS FOR


Sec.
411. Authority of President to prescribe
and change tolls.
412. Bases of tolls; maximum and mini-
mum rates.


USE OF CANAL


Sec.
413. Restrictions on construction of 1914
act amending the two next preced-
ing sections.
414. Refund of amounts erroneously re-
ceived as tolls.


Section 411. Authority
tolls.-The President is a
section next following, to
the tolls that shall be l1
States for the use of the
scribed as above shall be
a t tt
it. cnxrnni ym^r thobr I-'rnoCirlant^4


r of President to prescribe and
authorized, subject to the provisions
prescribe and from time to time
evied by the Government of the
B Panama Canal, but no tolls wh
changed unless six months' notice 1
k y-/., nrnnnnnrmi<4iv- L~iA nr 0iL 10 10) t


change
of the
change
United
n pre-
thereof





OPERATION, MAINTENANO AND GOVERNMENT


[T.2, 421


lYn based upo n et ei steered tonnage for ships of commerce
th ols 1h11 not exceed $1.25 per net registered ton, nor be less
thn 75 cents per net registered ton, subject, however, to the pro-
visions of article 19 of the convention between the United States
awdlthe Republic of Panama, entered into November 18, 1903.
If the tolls are not based upon net registered tonnage, they shall
not exceed the equivalent of 1.25 per net registered ton as nearly
as the same may be determined, nor be less than the equivalent of
75 ce6s per net registered ton.
The toll for each passenger shall not be more than $1.50. (Aug.
24,1912, oh. 390, sec. 5, 37 Stat. 562; June 15, 1914, ch. 106, sees. 1, 2,
38 Sti, 885 [U.S. Code, title 48, see. 1315].)
Cuoss-RaramrO
Por article 19 of the convention between the United States and the Republic
of Panama, see appendix, p. 846.
413. Restrictions on construction of 1914 Act amending the two
next preceding sections.-The passage of the Act of June 15, 1914,
amending the two next preceding sections, shall not be construed or
held:
a. As a waiver or relinquishment of any right the United States
may have under the treaty with OGreat Britain, ratified February 21,
1902, or the treaty with the Republic of Panama, ratified February
26, 1904, or otherwise, to discriminate in favor of its vessels by
exempting the vessels of the United States or its citizens from the
payment of tolls for passage through the canal; or
b. As in any way waiving, impairing or affecting any right of the
United States under those treaties, or otherwise, with respect to the
sovereignty over or the ownership, control and management of the
Canal and the regulation of the conditions or charges of traffic
through the same. (June 15, 1914, ch. 106, sec. 2, 38 Stat. 386 [U.S.
Code, title 48, sec. 1317].)
Onoss-Rflauvces
For treaty with Great Britain, ratified February 21, 1902, see appendix, p. 837.
For treaty with the Republic of Panama, ratified February 26, 1904, see
appendix, p. 839.
414. Refund of amounts erroneously received as tolls.-There is
appropriated, out of any money received as tolls, before such money
is covered into the Treasury as miscellaneous receipts, amounts neces-
sary to refund to the parties entitled thereto amounts which have
been or may hereafter be erroneously received as tolls and covered
into the Treasury as miscellaneous receipts. (June 12, 1917, ch. 27,
-- .4 nfl. C'9ij < rvr Cl t1.. ii rtrl .... i -*rot ni %






T. 2, 421]


OPERATION, MAINTENANCE, AND


GOVERNMENT


coast adjacent to its two terminals, in connection with the operation
of the Canal, such wireless telegraphic installations as he may deem
necessary for the operation, maintenance, sanitation and protection
of the Canal, and for other purposes.
b. To make such agreement with the Government of Panama as
may be required if it is found necessary to locate such installations
upon territory of that Republic;
c. To provide for the acceptance and transmission by said system
of all private and commercial messages and those of the Government
of Panama on such terms and for such tolls as the President may
prescribe: Provided, however, That the messages of the Government
of the United States and the departments thereof, and the manage-
ment of the Panama Canal, shall always be given precedence over all
other messages; and
d. In his discretion, to enter into such operating agreements or
leases with any private wireless company or companies as may best


insure


freedom
freedom


From interference with


installations established by the
ch. 390, sec. 6, 37 Stat. 563 [U.S.


1


United


the wireless telegraphic
states. (Aug. 24, 1912,


Code, title 48, sec. 1323].)


CRoss-REniRENoE


For "The Act of Congress to regulate radio communication,"
Act of 1927, as amended (U.S. Code, title 47, sees. 81 to 119).


see the Radio












TITLE 3.-TE

cSec.


I'LL 00O)E


[E


CIVIL


[T. 3, 4


CODE


1. Preliminary provisionw ............. ...
Seasons -........ ...... .W ... .- ... ... ... ...
3. Personal rights.... ......................
4. Marriage...-.....- ............ ......---
5Divorce..... .............
8 jEIsbnd ajd wIfet_. ...- . aa..... -
7 Children by b6tIrh.1.. -..a-a---
& Obide by adoption ....... . .... ..
9, Guardian and ward.... .. . .. .. .. ... .
10. Foreign corporations generally_. -
I1. ~urities sales la-w...........----. .....
12. 16te of property.. ..... .. .. ..... ..
13. Owners of property ..... ...-.....- - -
14. Modhlcmationsof ownership ..............
I S. Nightsof o owners - -. -. a .. ----- a a
15. Termination of ownership...........
17. General definitions affecting property....
18. Personal property and particular kinds
therefO L-- - --a-- - -.. ..- -.. --. a
19. Modes in which property may be ac-

20. Acces--on---_ .................. .........
21. Transfer of property . .. ...... .. .. . ..
22.Proof and acknowledgment of instru-
ments ......... .. . .. .. .a. .....-
23. Execution and revocation of wills
24. Interpretation of wills, and effect of vari-
ous pof~.-o .ns_ .....-.............-. .....
25. General provisions relating to wills ......
26. SuCcesslonz...........----------.-.'a ..
27. Obligations in general .. ... .. .......
28. Nature of a antaract............ -....... -
29. Manner of creating contracts............
80. Interpretation of contracts...............a
381. UnIlawful -,r-cs. -.-a.._._ .. ._.... a
32. Extinction of contracts ......... .....-
33. Obligations imposed by law..............
34, Sales of goods .... .......................
35. Conditional sales ................ ........
36. Deposit in general .-- ------- - - a a - a
37. Depeal t for keeping.------- ---.---------


69. General provisions respecting negotiable
Instruments... .........--........ ......
70. General provisions affecting chapters 34
to 69....-...... ....--a .... ... .. -. ..
71. Relief in general...... . .. . ..... ... ..
72. Compensatory relief .......... ..........
78. Specific and preventive relief ..-.-....-...
74. Special relations of debtor and creditor...
75. Nuisance. - ..-... ..-.- . .. .. a . .. . .. .
76. Maxims of jurisprudence.......-.....-


Deposit for exchange .. .. .. . ... .
In ~~ a n..a a. a... a - . -
HIlring.. ----- --- a ..- -..-.- ..--.-
Service with employrnt__.......
Particular employme st .........-.
Service without empymen t... ..
Carriage in general ................
Carriage of persons.. ..... ...a.
carriage of property ......... ...
Carriage of mes-ges ..............
Common carriers..... ........._-.-
Trusts in general ..... .. .... ....
Trusts for benefit of third persons.
Agency In general .... .. ... ... .....
Factors -._.... --- ..... ...-..-. -
Partnership in general...........
General partnership .....
Special par tnership .... .._- ........-
Insurance in general -------.....- -
Fire insurance .. ..... ............
Life and health insuan e........
Indenuity aa----........... .......
Guaranty in general aa.. .-. .. -...-
Suretytship.. ... . ... . a ... ... ... .
Liens in general . .. .. .... .. .. .
Mortgage- ..-................. ....-.-.
Pledge....... ....... .......a..
Other liens ........... ..........a a
Negotiable instruments in general_
Bills of exchange -. ..-- ......---
Promissory notes and checks. --..


CHAPTER 1.-PRELIMINARY PROVISIONS


Name of title.
When this title takes effect.
Not retroactive.
Rules of construction.
Provisions similar to existing laws, how
construed.
Actions, etc., not affected.
Legal holidays.


Section 1.


Code of the Canal Zone.


Business days.
Computation of time.
Certain acts not to be done on holidays.
Words and phrases, how construed.
Words; definition; signification of
words.
Notice, actual and constructive.
Constructive notice, when deemed.


47 Stat.


1124.)


NoTa--The Civil Code of the Canal Zone, which comprises title 3 of the Canal
Zone Code, was derived from the act of February 27, 1933, above cited. That
act was entitled "An act to provide a new civil code for the Canal Zone and to
reveal the existing civil code!"


- a a -
a. a a -
- a a a
- a- -
a. aa a. -
------
----. -
- a. -. ~
a a a -
a - -
----. -
- a - -
a. a.
- a. a. a
-- - -
a -. a
a a .a.
----. -
- -----
- - a a
- - a
a -a -
-. - -
- a -. e
-. ----.
a a. a
- a a a
- a - -
- -. -


Name of title.--This title shall be known as the Civil


(Feb. 27, 1933, ch. 128,


Bec.
1221
1231
1271
1291
1351
1381
1391
1401
1421
1461
1471
1501
1551
1611
1701
1711
1751
1811
1851
2021
2031
2041
2061
2121
2171
2231
2281
2311
2321
2491
2581

2591

22601
2611
2621
2681
2751
2801
2831





T.3, 5]


THE


CIVIL CODE


Zone respecting the subjects to which it relates, and its
to be liberally construed with a view to effect its i
promote justice.


provisions are
iects and to


5. Provision
visions of thi,
existing statut
as new enactm
6. Actions,
commenced be
affected by its
7. Legal ho
Canal Zone w
uary 1, Febru
November 3, T
day other than
following will
all public busi
8. Business
tion 7 of this
9. Computa
by law is to 1
including the
also excluded.


10.
of a
appo
day,
next
upon
11.


is similar
s title, so
es, must b
ents.
and so fo]
fore this
provisions


to existing laws, how construed.-The pro-
far as they are substantially the same as
e construed as continuations thereof, and not

rth, not affected.-No action or proceeding
title takes effect, and no right accrued, is
S.


lidays.-The following are the legal holidays in the
within the meaning of this title: Every Sunday, Jan-
Lary 22, Good Friday, May 30, July 4, Labor Day,
thanksgiving Day, and December 25. If a legal holi-
Sunday falls on the first day of the week, the Monday
be observed as a legal holiday. As far as practicable,
ness will be suspended on these days.
days.-All other days than those mentioned in sec-
title are to be deemed business days for all purposes.
tion of time.-The time in which any act provided
be done is computed by excluding the first day and
last. unless the last day is a holiday, and then it is


I


4/


4/i


SCertain acts not to be done on holidays.-Whenever any act
secular nature, other than a work of necessity or mercy, is
inted by law or contract to be performed upon a particular
which day falls upon a holiday, it may be performed upon the
business day, with the same effect as if it had been performed
the day appointed.
Words and phrases, how construed.-Words and phrases are


construed according to the cont
language; but technical words a
have acquired a peculiar and a
defined in section 12 of this tit
such peculiar and appropriate m


ext and the approved usage of
nd phrases, and such others as m
appropriate meaning in law, or
le, are to be construed according
leaning or definition.


the
lay
are
to


CROSS-REFERENCES
Similar provision, see title 4, section 7.
Technical words, how construed, see sections 581 and 911 of this title.
Construction of words in contracts, see sections 910 and 911 of this title.
12. Words; definition; signification of words.-Words used in





[T.3, 23


CROSS-Rr FouaN
Similar provision, see title 4, section 8.


13, Notice, actual and constructive.-Notice is:
1. Actual-which consists in express information
2. Constructive-which is imputed by law.


14. Constructive notice,
actual notice of circumstan
inquiry as to a particular
itself in all cases in which
have learned such fact.


a fact;


when deemed.-Every person who has
ces sufficient to put a prudent man upon
fact, has constructive notice of the fact
, by prosecuting such inquiry, he might


CHAPTER 2--PERSONS


21. Minors, who are.
22. Periods of minority, how calculated.
23. Adults, who are.
24. Unborn child.
25. Delegation of powers; minors.
26. Contracts by minors.
27. When minor may disaffirm.
28. Minor cannot disaffirm contract I
necessaries.
29. Minor cannot disaffirm certain ol
gations.


30. Contracts by persons with<
standing.
31. Contracts by persons of uns(
32. Powers of persons whose
has been adjudged.
33. Minors liable for wrongs,
liable for exemplary dam!
34. Minors may enforce their ri


ut


under-


)und mind.
incapacity


Section 21. Minors, who are.-Minors are all persons under
twenty-one years of age: Provided, That this section shall be subject
to the provisions of chapters 4 to 6 of this title and shall not be
construed as repealing or limiting the provisions of section 174 of
this title: Provided, further, That upon the lawful marriage of any
female of the age of eighteen years or over but under the age of
twenty-one years, such female shall be deemed an adult person for
a 1! I A i* ,- ..,,


TEs CIVIL CODS


wtitlBr near it, by a person who writes his own name as a witness:
PIovide, That when a signature is by mark it must in order that
the same may be acknowledged or may serve as the signature to any
sworn statement be witnessed by two persons who must subscribe
their own names as witnesses thereto. The following words have
in this title the signification attached to them in this section, unless
otherwise apparent from the context:
1. The word "property" includes property real and personal;
2. The words "real property" are coextensive with lands, tene-
ments, and hereditaments;
8. The words personal property include money, goods, chattels,
things in action, and evidences of debt;
4. The word "month" means a calendar month, unless otherwise
expressed;
5. The word "will" includes codicil.


I





T.3, 24]


THE


GIVIL CODE


24. Unborn child.-A child conceived, but not yet born, is to be
deemed an existing person, so far as may be necessary for its inter-
ests in the event of its subsequent birth.
CROSS-REFERENCE


Posthumous children,
title.


right's


see sections 291,


650 of


25. Delegation of powers
nation of power, nor, undei
relating to real property, or
personal property not in his


; minors.-A minor cannot give
r the age of eighteen, make a c
any interest therein, or relating
immediate possession or control.


a dele-
ontract
to any


26. Contracts by minors.-A minor may make any other contract
than as specified in the next preceding section, in the same manner as
an adult, subject only to his power of disaffirmance under the pro-
visions of this chapter, and subject to the provisions of the chapter
on marriage.


minor


27. When
specified in s
if made whils
the minor hir
time afterwai
heirs or person
minor whilst
like manner
whom it was
28. Minor
cannot disaffi
value of thin
entered into b
able to provi<
29. Minor
disaffirm an
the express ai


30. Contracts
entirely without
any kind, but he
to him necessary


may


disaffirm.-In


cases


other


than


those


actions 28 and 29 of this title, the contract of a minor,
t he is under the age of eighteen, may be disaffirmed by
self, either before his majority or within a reasonable
rds; or, in case of his death within that period, by his
nal representatives; and if the contract be made by the
he is over the age of eighteen, it may be disaffirmed in
upon restoring the consideration to the party from
received, or paying its equivalent.
cannot disaffirm contract for necessaries.-A minor
rm a contract, otherwise valid, to pay the reasonable


igs ne(
)y him
de for


cessary for his support,
when not under the care
him or them.


or that of his family,
of a parent or guardian


cannot disaffirm certain obligations.-A minor cannot
obligation, otherwise valid, entered into by him under
authority or direction of a statute.


by persons without understanding.-A person
understanding has no power to make a contract of
is liable for the reasonable value of things furnished
for his support or the support of his family.


CROSS-REFERENCE
Contracts of insane persons, see sections 811 and 812 of this title.
31. Contracts by persons of unsound mind.-A contract of a
It *1* I 1 I 1. I J


i




THE CIVIL (lODE


[T. 3, 44


wafre any right, until his restoration to capacity. But a certificate
from the me dical superintendent or resident physician of the insane
asylum to which such person may have been committed, showing
that such person had been discharged therefrom, cured and restored
to reason, shall establish the presumption of legal capacity in such
person from the time of such discharge.
33. Minors liable for wrongs, but not liable for exemplary dam-
ages.-A minor, or person of unsound mind, of whatever degree, is
civilly liable for a wrong done by him, but is not liable in exem-
plary damages unless at the time of the act he was capable of know-
mg that it was wrongful.
34. Minors may enforce their rights.-A minor may enforce his
rights by civil action, or other legal proceedings, in the same man-
ner as a person of full age, except that a guardian must conduct
the same.


Csoss-RrrninwE


Appearance of minor by


guardian, see title 4, sections 127, 128, and


CHAPTER 3.-PERSONAL RIGHTS


Sec.
41. General personal rights.
42. Defamation, what.
43. Libel, what.
44. Slander, what.
45. Privileged publications.


See.
46. Malice not inferred.
47. Personal relations forbid abduction and
seduction.
48. Right to use force.


Section 41. General personal rights.-Besides the personal rights
mentioned or recognized in section 1 of title 1, and in Title 6, The
Code of Criminal Procedure, every person has, subject to the qualifi-
cations and restrictions provided by law, the right of protection from
bodily restraint or harm, from personal insult, from defamation, and
from injury to his personal relations.


42. Defamation,
1. Libel;
2. Slander.


what.-Defamation


is effected


43. Libel, what.-Libel is a false and unprivileged
by writing, printing, picture, effigy, or other fixed repre
the eye, which exposes any person to hatred, contempt,
obloquy, or which causes him to be shunned or avoided, o
a tendency to injure him in his occupation.
COOSS-RamnCrom
Privileged publication, see sections 45 and 46 of this title.


publication
sensation to
ridicule, or
r which has


44. Slander, what.-Slander is a false anm


1 unprivileged


publica-





THE CIVIL CODE


requires, or
profession,
its profits;
4. Imput
5. Which


* by imputing something with reference to his
trade, or business that has a natural tendency to


s to
,by


office,
lessen


him impotence or a want of chastity; or
natural consequence, causes actual damage.


45.P
made-
1. In
2. In
author
trained i
an action
cerning
in such
making
tion unl
without
believin
allegatia
action.
3. In
therein,
in such
ground
or (3)
informa


rivileged


publications.-A


privileged


publication


one


the proper discharge of an official duty.
any judicial proceeding, or in any other official proceeding
zed by law: Provided, That an allegation or averment con-
n any pleading or affidavit filed in an action for divorce or
in prosecuted under section 116 of this title made of or con-
a person by or against whom no affirmative relief is prayed
action shall not be a privileged publication as to the person
said allegation or averment within the meaning of this sec-
ess such pleading be verified or affidavit sworn to, and be made
malice, by one having reasonable and probable cause for
g the truth of such allegation or averment and unless such
on or averment be material and relevant to the issues in such


a communication,
(1) by one who is
relation to the pe
for supposing the
who is requested
tion.


without malice, to a person interested
also interested, or (2) by one who stands
rson interested as to afford a reasonable
motive for the communication innocent,
by the person interested to give the


4. By a fair and true report, without malice, in a public
of (1) a judicial or (2) other public official proceeding, or
anything said in the course thereof, or (4) of a verified ch
complaint made by any person to a public official, upon
complaint a warrant shall have been issued.
5. By a fair and true report, without malice, of (1) the p
ings of a public meeting, if such meeting was lawfully cc
for a lawful purpose and open to the public, or (2) the publics
the matter complained of was for the public benefit.


journal
(3) of
arge or
which


roceed-
nvened
nation of


Coss-REFErENoCE
Pleading libel, see title 4, sections 258 and 259.
46. Malice not inferred.-In the cases provided for in subdivisions
3, 4, and 5 of the next preceding section, malice is not inferred from
the communication or publication.


47. Personal relations forbid abduction and seduction.
* A a A 1 l A 5 '1


-The


T. 3, 45]





Sffl*VIL OODE


[T.%54


48. Right to use force.-Any necessary force may be used to pro-
itet from wongf l injury the person or property of oneself, or of
h wift, hband, child, parent, or other relative, or member of one's
fmily, or of a ward, servant, master, or guest.


CHAPTER &4.-MARRIAGE


l What constitutes marriage.
52, Marriage; how proved.
53. What marriages void without being so
deieiL,
54, fat marriages voidable.
5S. Annulment of marriage celebrated
elsewhere.
56 Jurisdiction of annulment suit; who
may institute suit.
UT. Legitmnacy of children of annulled
marriages.
58. Custody of children of annulled mar-
W|ages.
59. Effect of judgment of nullity
60. Capability of minors to contract mar-
riage.


01. Application for and issuance of license;
fee.
62. Who may celebrate marriages; license
to celebrate marriages.
63. Certifying, signing, return, and re-
cording of license; marriage certifi-
cate.
64. Violations of provisions of this chap-
ter; punishment.
65. Declaration where there is no record.
66. To be acknowledged and recorded.
67. Either party may proceed to test valid-
ity of marriage.
68. Marriages contracted outside of Canal
Zone.


Section 51. What constitutes marriage.-Marriage is a personal
relation arising out of a civil contract, to which the consent of
parties capable of making that contract is necessary. Consent alone
will not constitute marriage; it must be followed by a solemnization
authorized by this title.
52. Marriage; how proved.-Consent to marriage and solemniza-
tion thereof may be proved under the same general rules of evidence
as facts are proved in other cases.
53. What marriages void without being so decreed.-(a) A
marriage celebrated in the Canal Zone after December 29, 1926, shall
be void without being so decreed-
(1) f between persons related by consanguinity within the fourth
degree, determined according to sections 636 to 640 of this title;
(2) If either party thereto has been previously married and such
previous marriage has not been terminated by death, annulment, or a
final decree of divorce; or
(83 If either party thereto is not present in person at the celebra-
tion of the marriage.
(b) A void marriage may, in addition, be declared by judicial
decree, or be shown in any collateral proceeding, to have been void
from the time of its celebration. (Dec. 29, 1926, ch. 19, sec. 8, 44
Stat. 927; Feb. 27,1933, ch. 128, sec. 39,47 Stat. 1128.)


0308 s-RWCN cm






T. 3, 55]


THE


CIVIL CODE


(3)
ble fr
4)
under
brated
(5)
the fe
(b)


If either party thereto is, at the time of the marriage, incapa-
om physical cause, of entering into the marriage state;
If, because of the age of either party thereto, a written consent
section 60 of this title was required, and the marriage was cele-
without such consent; or


If,
mali
A


the time of the
under fourteen
dable marriage


marriage,
years of
shall be


annulled, by judicial decree, as of the
1926, ch. 19, see. 9, 44 Stat. 927; Jan.
Feb. 27, 1933, ch. 128, sec. 40, 47 Stat.


the male is under seventeen or
age.
Held to be valid until it is
date of such decree. (Dec. 29,
22, 1927, ch. 52, 44 Stat. 1023;
1128.)


55. Annulment of
riage celebrated outsic
may be annulled in t
though it had been c<
shall have resided in t
before and a period of
(b) A suit to have
Zone declared void or
district attorney of th
of the Canal Zone. (Z


marriage
e of the
he same
celebrated
the Cana
thirty d
my such
annulled
e Canal


Dec.


e celebrated elsewhere.-(a) A mar-
Canal Zone may be declared void or
manner and with the same effect as
in the Canal Zone if the petitioner
l Zone within a period of thirty days
ays after the date of such marriage.
marriage celebrated outside the Canal
Smay, in addition, be instituted by the
Zone in the name of the Government


, 1926, ch.


19, sec. 10, 44 Stat. 928; Feb.


27, 1933, ch. 128, sec. 41, 47 Stat. 1129.)


56. Jurisdiction of annulment sui
(a) The district court shall have ju
marriage declared void or annulled.
(b) In the case of a male under
eighteen years of age such suit may
friend or by a parent or guardian.
lunatic such suit may be instituted thi
(c) No suit to have a marriage an
person who, when fully capable of
into such marriage willfully and w:
stances rendering such marriage voi
sec 11. 44 Stat. 928: Feb. 27. 1933, ch


7


t; who may
risdiction of

twenty-one or
be instituted
In the case


institute
a suit to


suit.-
have a


a female under
through a next
of an idiot or a


oughh a next friend.
nulled may be instituted


contr
ith k]
able.
S128,


acting m
knowledge
(Dec.
sec. 42, 4


marriage,
of the
29, 1926,
67 Stat. 1


'


entered
circum-
ch. 19,
129.)


57. Legitimacy of children of annulled marriages.-A judgment
of nullity of marriage does not affect the legitimacy of children
begotten before the judgment.
CROSS-REFERMNCES


Divorce as affecting legitimacy
Legitimate children, who are, see
Legitimacy of children of annull


of children, see section 118 of this title.
sections 162 and 164 of this title.
ed marriage, see section 634 of this title.


/





THE
59. Efect of judgment of
marriage rendered is conelusi
action and those claiming und


Etfect of decree of divorce, see se
60. Capability of minors ti
proided in subdivision (b),
or a female under eighteen
marriage in the Canal Zone.
(b) A male seventeen years
years of age, or a female fou
eighteen years of age, may en
consent of his or her natural
having custody of such male o


or oone o
her family,
appointed
consent. (
clh. 128, se8.


f such parents if th
or has been adjudg
guardian if there
Dec. 29, 1926, ch. 1
46, 47 Stat. 1129.)


CIVIL CODE


nullity.--A judgment
ire only as against the
er them.


of nullity of
parties to the


se-Rinaun


action 117 of this title.
o contract marriage.- (a) Except as
i male under twenty-one years of age
years of age may not enter into a


of age or over and under twenty-one
teen years of age or over and under
Lter into a marriage with the written
or adopted parents, or of the parent
r female if such parents are divorced,
e other is dead, or has deserted his or
ed insane or a lunatic, or of a legally
is no parent qualified to give such
9, sec. 12, 44 Stat. 928; Feb. 27, 1933,


61. Application for and issuance of license; fee.- (a) No mar-
riage shall be celebrated in the Canal Zone unless a license to marry
has first been secured from the clerk of the division of the district
court in which the marriage is to be celebrated: Provided however,
That no marriage license shall be granted unless one of the parties
thereto is an American citizen, or a resident of the Canal Zone:
And provided further, That no marriage license shall be issued
to a leper except upon a certificate of approval by the chief health
officer of the Canal Zone. Such license when issued shall be accom-
panied by a marriage certificate to be filled in by the person cele-
brating the marriage.
(b) Such clerk shall, upon application therefore in accordance with
subdivision (c), accompanied by the written consent when required
by subdivision (b) of the next preceding section, issue a license to
marry if it appears to the satisfaction of such clerk from the sworn
statement of the persons desiring to marry, or, if required by such
clerks from the sworn statement of another, that no legal impedi-
ment to the marriage is known to exist.
(c) The application for a license to marry shall state-
(1) The name, address, age, color, and race of each of the persons


to be
(2)


married;
The relationship, if any, of such


persons,


consanguinity


,






T.3, 62]


THE


CIVIL CODE


(e) The c
license to ma
all applicati
parents or a


paying the
as other feel
44 Stat. 928
128, sec. 47,
62. Who
riages.-(a)
by-


lerk shall be paid a fee of $2 upon the issuance of a
Lrry, and shall keep a record of all licenses issued and of
ons for licenses, together with any written consent of
i parent or guardian or the chief health officer accom-
same. Such fee shall be disposed of in the same manner
s received by such clerk. (Dec. 29, 1926, ch. 19, sec. 13,
; Jan. 22, 1927, ch. 52, 44 Stat. 1023; Feb. 27, 1933, ch.
47 Stat. 1130.)
may celebrate marriages; license to celebrate mar-
A marriage may be celebrated in the Canal Zone only


(1) A magistrate of the Canal Zone.
(2) A minister in good standing in any religious society or
denomination who resides in the Canal Zone.
(3) A minister in good standing in any religious society or
denomination who resides in the city of Colon or the city of Panama,
in the Republic of Panama, if he has procured from the clerk of the
district court for the Canal Zone a license authorizing such minister
to celebrate marriages in the Canal Zone.
(b) The clerk shall issue the license provided for in paragraph (3)


of su
such
The
such
other
Stat.


division (a) 1
minister is qu
clerk shall be
license. Such
Sfees received
929; Feb. 27,


o j
ali
pa
fe
by
193


.. .... .~ - .. . . ... -. ..- ---- - --
any such minister if such clerk is satisfied that
fied to celebrate marriages in the Canal Zone.
id a fee of $2 for issuing and recording any
e shall be disposed of in the same manner as
such clerk. (Dec. 29, 1926, ch. 19, sec. 14, 44
13, ch. 128, sec. 48, 47 Stat. 1130.)


63. Certifying, signing, return,
riage certificate.-(a) The judicial
marriage shall-


(1) certify upon the mi
riage, giving his official
such marriage was celebr
(2) Cause two persons
names on the marriage lic
residence;
(3) At the time of the
certificate accompanying
parties to the marriage; a
(4) Within thirty days
license, so certified and wil
(b) Upon return of a


rk shall file


the


Lrriage lice
title and t
ated;


who
ense


and recording of license; mar-
officer or minister celebrating a

nse that he celebrated such mar-
;he time when and place where


witnessed the marriage to sign their
as witnesses, each giving his place of


marriage
the licen
nd
after the
tnessed, toc
license as


same aftei


mak


e,
sec


fill out and sign
and deliver it


marriage
ie of the


date of the marriage, return such
the clerk who issued such license.
required in subdivision (a), the
ing registry thereof in a book to


cle


*


b


i





TE CJ01IVIL CODE [T. 8,68

ine of not more than $25, or by imprisonment in jail for not more
than thirty days, or by both.
(b) Any Verson who knowingly makes or causes to be made any
i se oath as to any material matter for the purpose of procuring or
siding another to procure a marriage license shall be guilty of per-
jury ad shall be punished by imprisonment in the penitentiary for
not more than ten years.
(c) Any person who knowingly files or causes to be filed with the
clerk a written consent, any signature to which is a forgery, shehall
be guilty of uttering a .forged instrument and shall be punished
by imprisonment in the penitentiary for not more than fourteen years.
(d) Any person who is not quahfied to celebrate marriages in the
Canal Zone under this chapter and who celebrates in the Canal Zone
what purports to be a marriage ceremony shall be punished by im-
prisonment in the penitentiary for not more than three years. (Dec.
29, 1926, ch. 19, sec. 16, 44 Stat. 929; Jan. 22, 1927, ch. 52, 44 Stat.
1023; Feb. 27, 1983, ch. 128, sec. 50, 47 Stat. 1131.)
d **.*> ^-^_ ^ J 3k


65. Declaration where there is no record
solemnization of a marriage heretofore co
exist, the parties may join in a written declar
substantially showing:
(1) The names, ages, and residences of the
(2) The fact of marriage.
(3) That no record of such marriage is
declaration must be subscribed by the part
least three witnesses.


1.-If no record of the
ntracted, be known to
action of such marriage,

parties.


known
ies and


to exist.
attested


Such
by at


66. To be acknowledged and recorded.-Declarations of marriage
must be acknowledged and recorded in the office of the clerk of the
district court.


7. Either
either party
declaration t
trict court, i
declared.


party


hereof,
;o have


may proceed to
marriage denies
, the other may
Sthe validity of


test validity of marriage.-If
the same, or refuses to join in a
proceed, by action in the dis-
Sthe marriage determined and


68. Marriages contracted outside of Canal Zone.-Except as
otherwise provided in section 55 of this title, all marriages con-
tracted outside of the Canal Zone, which would be valid by the laws
of the country in which the same were contracted, are valid in the
Canal Zone.
CHAPTER 5.---DIVORCE


Art.
1- Causes for divorce._.......


See. j Art. Sec.
71 3. General provisions___._....._ 111I






THE


CIVIL CODE


ARTICLE 1.-OAUSES FOR DIVORCE


71. Causes for divorce.
72. Adultery defined.
73. Desertion, what.
74. Desertion, how manifested.
75. In case of stratagem or fraud, who com-
mits desertion.
76. In case of cruelty, where one party
leaves other, who commits desertion.
77. Separation by consent not desertion.
78. Absence becomes desertion, when.


See.
79. Consent to separate revocable.
80. Desertion, how cured; effect of refus-
ing condonation.
81. Wife must abide by husband's selec-
tion of home, or it is desertion on
her part.
82. If place is unfit, and wife refuses to
conform, it is desertion by husband.
83. Habitual intemperance, what.
84. Extreme cruelty, what.


Section 71. Causes for divorce.-In
riage has been, or hereafter may be, c
tween any two persons, and it shall be E
inafter provided, (1) that either party
sequent to the marriage except as here
willfully deserted and absented herself
or wife without any reasonable cause I
(3) has been guilty of willful neglec
willful failure of the husband to provi
of life, he having the ability to do so, (


by reason of voluntary idleness,
case continued for a period of (


habitual


drun


tempted the li
has been guill
the marriage,
party to obtai
in the district
Feb. 27, 1933,


i every case in which a m
ontracted and solemnized
adjudged, in the manner h
has committed adultery
inafter provided; or (2)
or himself from the husb
For a period of two years
t which shall consist of


e for
r the


profligacy,


)ne year


; or


kenness for the space of t
ife of the other by any meai
by of extreme cruelty; or (
convicted of felony, it shall
n a divorce and dissolution
court. (Sept. 21, 1922, ch.
ch. 128, sec. 60, 47 Stat. 1132


wo
)IS
7)


374


iar-
be-
ere-
sub-
has
and
; or
the


his wife the necessaries
willful failure to do so


or dissipation, in either
(4) has been guilty of
I years; or (5) has at-
showing malice; or (6)
has been subsequent to
a lawful for the injured
such marriage contract
0, sec. 12, 42 Stat. 1008;


.a)


72. Adultery defined.-Adultery
course of a married person with a


husband


is the
person


voluntary
other than


sexual inter-
the offender's


or wife.


73. Desertion, what.-Willful desertion is the voluntary separa-
tion of one of the married parties from the other with intent to
desert.
74. Desertion, how manifested.-Persistent refusal to have rea-
sonable matrimonial intercourse as husband and wife, when health
or physical condition does not make such refusal reasonably neces-
sary, or the refusal of either party to dwell in the same house with
the other party, when there is no just cause for such refusal, is
desertion.


7_ In onca nf qtfragtnrai nr frnail who rommiQts Ap


'rtinn


T. 3, 71]





THE C1VlL CODE


pr.8,g84


harm from which danger would
the other, is not desertion by the
by the other party.


be reasonably
absent party,


apprehended from
but it is desertion


77. Separation by consent not desertion.-Separation by consent
with or without the understanding that one of the parties will apply
for a divorce, is not desertion.
CBOBSS-REFERENCES
Agreement for separation, see section 135 of this title.
Coaent revocable, see section 79 of this title.


78. Absence becomes desertion, when.-Absence or
proper in itself, becomes desertion whenever the intent
fixed during such absence or separation.


separation,
to desert is


79. Consent to separate revocable.-Consent to a separation is a
revocable act, and if one of the parties afterwards, in good faith,
seeks a reconciliation and restoration, but the other refuses it, such
refusal is desertion.
80. Desertion, how cured; effect of refusing condonation.-If
one party deserts the other, and before the expiration of the statutory
period required to make the desertion a cause of divorce, returns and
offers in good faith to fulfill the marriage contract, and solicits con-
donation, the desertion is cured. If the other party refuse such offer
and condonation, the refusalshall be deemed and treated as desertion
by such party from the time of refusal.
81. Wife must abide by husband's selection of home, or it is
desertion on her part.-The husband may choose any reasonable
place or mode of living, and if the wife does not conform thereto, it
is desertion.
82. If plae
82. If place is unfit, and wife refuses to conform, it is desertion
by husband.-If the place or mode of living selected by the husband
is unreasonable and grossly unfit, and the wife does not conform
thereto, it is desertion on the part of the husband from the time her
reasonable objections are made known to him.
83. Habitual intemperance, what.-Habitual drunkenness is that
degree of intemperance from the use of intoxicating drinks which
disqualifies the person a great portion of the time from properly
attending to business, or which would reasonably inflict a course of
great mental anguish upon the innocent party.


84. Extreme cruelty, what.-Extreme cruelty
infliction of grievous bodily iniurv. or grievous


is the
mental


wrongful
stilm ffeCin c






THE CIVIL CODE


ARTICLE 2.---CAUSES FOR DENYING


DIVORCE


Divorces den
Connivance,
Corrupt cons
Collusion, wi


led, on showing what.
what.
ent, how manifested.
lat.


Condonation, what.
Requisites to condonation.
Condonation implies what.
Evidence of condonation.
Condonation; can only be made when.
Concealment of facts in certain cases
makes condonation void.


Sec.
101. Condonation, how revoked.
102. Recrimination, what.
103. Condonation; when to bar defense.
104. Divorce, when denied.
105. Lapse of time establishes certain pre-
sumptions.
106. Presumptions may be rebutted.
107. Limitation of time.
108. Residence of plaintiff in suit for
divorce.


91. Divorces denied, on showing what.-Divorces must be denied
upon showing:
1. Connivance;
2. Collusion;
3. Condonation;
4. Recrimination; or
5. Limitation and lapse of time.
CROSs-REFERENES


Connivance,


see section 92 of this title.


Collusion, see section 94 of this title.
Condonation, see sections 95 et seq., of this title.


Recrimination,


see sections 102 et seq., of this title.


Limitation and lapse of time, see sections 104 et seq., of this title.


92. Cc
party to


nnivance,


what.-Connivance is the corrupt consent of one


commission


acts


other,


constituting the


cause of divorce.


Corrupt consent, how manifested.-Corrupt consent is mani-


tested by passive permission, with intent to con
procure the commission of the acts complained of.


Dive


at or


actively


94.
and


Collusion,


wife


that


what.-Collusion is an agreement between husband


them


shall


commit,


or appear


have


com-


mitted, or to be represented in court as having committed, acts con-
stituting a cause of divorce, for the purpose of enabling the other


to obtain a divorce.


.5.


C)


Condonation,


what.-Condonation is the conditional forgive-


ness of a matrimonial offense constituting a cause of divorce.


CROSS-REFERENCES
Revoking condonation, see section 101 of this title.
Condonation of a recriminatory defense, see section 103 of this title.


Requisites


condonation.-The


following requirements


T.3, 91]


-


w


V


Wl V





THE CIVIL ODE


[T.3, 106


,98. idence of edadonat on.- Where the cause of divorce con-
sof a course of offensive conduct, or arises, in cases of cruelty,
from excessive acts of ill treatment which may aggregately, consti-
tut the offense, cohabitation, or passive endurance, or conjugal
kindess, shall not be evidence of condonation of any of the acts
constituting such cause, unless accompanied by an express agreement
to condone.
99. Condonation; can only be made when.-In cases mentioned
in the next preceding section, condonation can be made only after the
cansw of divorce has become complete, as to the acts complained of.
100. Concealment of facts in certain cases makes condonation
void.-A fraudulent concealment by the condonee of facts consti-
tuting a different cause of divorce from the one condoned, and exist-
ing at the time of condonation, avoids such condonation.
101. Condonation, how revoked.-Condonation is revoked and
the original cause of divorce revived:
1. When the condone commits acts constituting a like or other
cause of divorce; or
2. When the condone is guilty of great conjugal unkindness, not
amounting to a cause of divorce, but sufficiently habitual and gross
to show that the conditions of condonation had not been accepted in
good faith, or not fulfilled.
102. Recrimination, what.-Recrimination is a showing by the
defendant of any cause of divorce against the plaintiff, in bar of the
plaintiff's cause of divorce.
103. Condonation; when to bar defense.-Condonation of a
cause of divorce, shown in the answer as a recriminatory defense, is
a bar to such defense, unless the condonation be revoked, as provided
In section 101 of this title, or two years have elapsed after the
condonation, and before the accruing or completion of the cause of
divorce against which the recrimination is shown.


104.
(1)
within
after i
(2)
corn me
the ter
(3)
before


Divorce,


when


denied.-A


divorce must be denied:


When the cause is adultery and the action is nc
two years after the commission of the act of
ts discovery by the injured party.
When the cause is conviction of felony, and the
.nced before the expiration of two years after
mination of the period of sentence.
In all other cases when there is an unreasonable
the commencement of the action.


)t commenced
adultery, or


action is not
a pardon, or

lapse of time


Tn nan


nf limo natsnhliha~ rArtnin nranmntin-na-.TTnoa..


in.


.





T. 3, 107]


THE


CIVIL CODE


107.


Limitation


commencing


time.-There


actions


divorce


, except


no limitations


such


as are


of time
contained


section 104 of this title.


108. Residence of plaintiff in suit for divorce.-(a) Any person
having an official residence within the territorial limits of the Canal


Zone


or who


employment,
the Canal Z


resid
shall,
ne for


181 to 183, 203, 228
she may not have a
Zone.


(b)
resided


before
duly
least t


therein


during such


for the


purpose


residence


of any
deemed


occupation or
a resident of


Sthe purpose of this chapter and sections 152,
, and 2155 of title 4, notwithstanding that he or
,cauired a permanent domicile within the Canal


A.


No plaintiff shall be entitled to a divorce who has not actually
Sin the Canal Zone continuously during the whole year next
the filing of his or her complaint, which residence shall be
roven by the plaintiff to the satisfaction of the court by at


wo


plaintiff
plaintiff


witnesses


shall


Swho
with


are
the


which he or she shall state


in the Canal Zone


place or


residents
complaint


length
places


Canal


or her


of time
where ]


Zone;


own


and


affidavit


plaintiff has
ie or she has


resided
resided


for the last preceding year, and
21, 1922 ch. 370, sec. 13,42 Stat.


Stat.


his or her office or occupation
1008; Feb. 27, 1933, ch. 128, s


. (Sept.
ec. 91, 47


1135.)


CROSS-REFERENCE


Venue in suit for divorce,


see title 4, section 152.


ARTICLE 3.-GENERAL PROVISIONS


Sec.
111. Marriage, how dissolved.
112. Custody and care of children pending


113. Alimony pending suit.
114. When bill is taken
default.
115. Maintenance by husba,
denied.
116. Action for permanent
117. Effect of divorce in g
118. Legitimacy of children
119. Interlocutory order a8
from; final decree
120. Alimony and mainten


confessed


nd where divorce
support of wife.
general .
1.
nd appeal there-
of divorce.


ance; care,


tody, and support of children.


cus-


121. Court shall resort to what, in execut-
ing certain sections.
122. If wife has sufficient for her support,
court may withhold allowance.
123. Community and separate property may
be subjected to support and educate
children.
124. Disposition of community property on
divorce.
125. Same.
126. Compelling conveyance of property be-
longing to other spouse.
127. Resumption of maiden or former hus-
band's name.
128. Decrees and orders prior to Septem-
ber 21, 1922, legalized.


111. Marriage, how dissolved.-
(1) By the death of one of the I
(2) By the judgment of a court o
a divorce of the parties.


-Marriage
parties ; or


is dissolved


only:


competent jurisdiction decreeing


iflfl es-a -.-. s-C


dS
d


0


A.


)


~~.1 -


I-




T orIVL CoL S


divorce, the


by the hi Ih
of agvb. mo
the pendenc
proper. (S
ch. 128, sec.


[TJ I 1160


the pealn of the suit sudh bum o 'uk of m0nej
her to mainin a defend the suit; and in evety suit for
.wife, when it is just and equitable, shall be entitled to
ring, the p endency of theq And in case of appeal
Md, the district court may grant and enforce the pa eut
ney for her defense and such equitable alimony during
y of the appeal as to the court shall seem reasonable and
ept. 21,1922, ch. 8370, sec. 20,42 Stat. 1010; Feb. 27,1933,
94, 47 Stat. 1136.)


COBOss-RSarwcBN
Property resorted to in executing this section, see section 121 of this title.
4. en bill is taken as confessed; default.--If the bill is
taken as confessed, the court shall proceed to hear the cause by exam-
ination of witnesses in open court, and in no case of default shall the
court grant a divorce unless the judge is satisfied that all proper
means have been taken to notify the defendant of the pendency of the
suit, arid that the cause of divorce has been fully proven by compe-
tent evidence. Whenever the district judge is satisfied that the in-
terests of the defendant require it, the court may order such addi-
tional notice as equity may seem to require. (Sept. 21, 1922, ch. 370,
sec. 16, 42 Stat. 1010; Feb. 27, 1933, ch. 128, sec. 95, 47 Stat. 1136.)


115. Maintenance by husband where
judgment of divorce is denied, the court
vorce, provide for the maintenance by the
children of the marriage, or any of them.


divorce denied.-Though
may, in an action for di-
husband, of the wife and


CROSS-REFERENCES


Alimony generally, see section 120 of this title.
Property resorted to in executing this section, see section 121 of this title.
t16. Action for permanent support of wife.-When the husband
willfullHy deserts the wife or when the husband willfully fails to pro-
vide for the wife or when the wife has any cause of action for di-
vorce as provided in section 71 of this title, she may, without ap-
plying fTr divorce, maintain in the district court an action against
him for permanent support and maintenance of herself or of her-
self and children. During the pendency of such action the court
may, in its discretion, require the husband to pay as alimony any
money necessary for the prosecution of the action and for support
and maintenance, and execution may issue therefore in the discretion
of the court. The court, in granting the wife permanent support
and maintenance of herself, or of herself and children, in any such
action, shall make the same disposition of the community property
1 T'I -. 1. 1 i ^ i T l t.._ t^ ,--2t L-^ A





T. 3, 117]


THE CIVIL OODE


117. Effect of divorce in general.-The effect of a judgment de-
creeing a divorce is to restore the parties to the state of unmarried
persons.
118. Legitimacy of children.-No divorce shall in anywise affect
the legitimacy of the children of such marriage. (Sept. 21, 1922,
ch. 370, see. 18, 42 Stat. 1010; Feb. 27, 1933, ch. 128, sec. 99, 47 Stat.
1137.)
CRoss-R-FEmNcES


Issue of marriages
title.
Legitimacy of chili


dissolved


ren


divorce legitimate,


of annulled


marriages,


see section


see section


57 of


134 of
this


this
title.


119.


Interlocutory


order and appeal


therefrom;


final


decree of


divorce.-(a) No final decree granting a divorce shall be entered
until after the expiration of the period of six months from the date
of the entry of an interlocutory order adjudging that a case for di-
vorce has been proved, and every such interlocutory order shall ex-
pressly state that no divorce is granted by it. An appeal may be
taken from any such interlocutory order in the same manner and
within the same time as an appeal from a final decree of such court
in any other proceeding.
(b) After the expiration of such period of six months, or if an
appeal is taken and the case is pending at the time of the expira-
tion of such period then after the final disposition of the case
if determined in favor of the plaintiff, the court, upon application
filed within thirty days after the expiration of such period or such
final disposition, by the person in whose favor such interlocutory
order was entered, shall enter a final decree granting a divorce. If
no such application is made, the court may, on its own motion, within
three months after the expiration of such thirty-day period, enter
a final decree of divorce. No appeal may be taken from such final
decree. (Sept. 21, 1922, ch. 370, sec. 21, 42 Stat. 1011; Dec. 29, 1926,
ch. 19, sec. 5, 44 Stat. 926; Feb. 27, 1933, ch. 128, sec. 100, 47 Stat.
1137.)


Alimony


children.-
order touci
custody, an
circumstan
reasonable
defendant
tenance, or
nance in ai
11 .1


and maintenance;


care,


When a divorce shall be dec:
ling the alimony and main
id support of the children,
ces of the parties and the
and just, and in case the wi
to give reasonable security
may enforce the payment
iy other manner consistent


reed
enan
or a:
natu
fe be
for


custody,


and support of


the court may x
ice of the wife,
ny of them as,
ire of the case
Plaintiff, may
such alimony a


nake such
the care,
from the
, shall be
order the
id main-


of such alimony and mainte-
wivith the rules and practice of


120.


q





YE
L


W CIVIL OODEB


[T.B,128


not personally served with summons or does not voluntarily appear.
(Sept. 21 1922, ch. 8370, sec. 20, 42 Stat. 1010; Feb. 27, 1988, ch. 128,
ac. 101,47 Stat. 118T.)
SOBms-RmEEmm
Propey resorted to in executing this section, see section 121 of this title.


121. Court shall resort to what
In executing sections 118,115, 116
resort:
1. To the community property;
2. To the separate property of t2
122. If wife has sufficient for
allowance.-When the wife has e:
community property sufficient to
port, the court, in its discretion,
her out of the separate property of


, in executing certain sections.-
and 120 of this title, the court must

then,
he husband.
her support, court may withhold
either a separate estate, or there is
ive her alimony or a proper sup-
may withhold any allowance to
the husband.


123. Community and separate property may
support and educate children.-The community
separate property may be subjected to the support
the children in such proportions as the court deems


124. Disposition of community property on divorce.-In case of
the dissolution of the marriage by the decree of a court of competent
jurisdiction, the community property shall be assigned to the re-
spective parties in such proportions as the court, from all the facts
of the case, and the condition of the parties, may 'deem just.
125. Same.-The court, in rendering a decree of divorce, must
make such order for the disposition of the community property,
as in this chapter provided, and whenever necessary for that purpose,
may order a partition or sale of the property and a division or other
disposition of the proceeds.
126. Compelling conveyance of property belonging to other
spouse.-Whenever a divorce is granted, if it shall appear to the
court that either party holds the title to property equitably belong-
ing to the other, the court may compel conveyance thereof to the
party entitled to the same, upon such terms as it shall deem equitable.
(Sept. 21, 1922, ch. 370, sec. 20, 42 Stat. 1010; Feb. 27, 1933, ch. 128,
sec. 107, 47 Stat. 1138.)


127. Resumption
court, upon granting
mony, may allow h
any former husband
V^L0'7 IOQQ 10


r
I:.
a


of maiden
to a woman
r to resume
(Sept. 21,
I n Ir*.-AQ A


or former husband's name.-The
a divorce from the bonds of matri-
her maiden name or the name of
1922, ch. 370, sec. 20, 42 Stat 1010;
r C^+11QQ \


be subjected
property and
and education
just.





T. 3, i 131]


THE


CIVIL CODE


CHAPTER 6.-HUSBAND


AND


WIFE


131. Mutual obligations of
wife.
132. Rights of husband, as 1
133. In other respects their
arate.
134. Husband and wife m
tracts.
135. Husband and wife; pro
136. Consideration for agrn
aration.
137. May hold property ho'
138. Separate property of t
139. Separate property of tt
140. Property acquired afte
141. Inventory of separate
wife.
142. Filing inventory notice
143. Community property;
wife.


husband


and~


head of family.
Interests sep-


make


con-


perty relations.
cement of sep-


w.
he wife.
ie husband.
r marriage.
e property


of wife's title.
contracts by


144. Earnings of wife not liable for debts
of the husband.
145. Earnings of wife, when living sepa-
rate, separate property.
146. Liability for debts of wife contracted
before marriage.
147. Liability of separate property of wife.
148. Married woman's torts.
149. Management of community personal
property.
150. Support of wife.
151. Husband not liable when abandoned
by wife.
152. When wife must support husband.
153. Rights of husband and wife governed
by what.
154. Marriage settlement contracts, how
executed.
155. Minors may make marriage settle-
ments.


Section 131.


Mutual obligations of husband and wife.-Husband


and wife contract towards each
fidelity, and support.


other obligations of mutual respect,


CROSS-REFERENCES


Abandonment or omission
section 441.
Mother aiding in support o
Husband's support of wife,
Wife's support of husband,


to provide for wife,


as misdemeanor, see title 5,


f children, see section 166 of this title.
see sections 150 and 151 of this title.
see section 152 of this title.


132. Rights of husband, as head of family.-The husband is the
head of the family. He may choose any reasonable place or mode of
living, and the wife must conform thereto.
OCROSS-RErENCES
Parent changing residence of child, see section 183 of this title.
Husband's selection of dwelling place, etc., see section 81 of this title.


133. In other respects their intere
band nor wife has any interest in the
neither can be excluded from the other's


sts


prc


separate.-Neither
)perty of the other,


hus-
but


dwelling.


134. Husband and wife may make contracts.-Either hi
or wife may enter into any engagement or transaction with the
or with any other person, respecting property, which either
if unmarried; subject, in transactions between themselves,


general rules
dential relati
of this title o


which contrc
ons with eaci


n tr


r.Usts


the actions of persons occupying
other, as defined by chapters 49


I


isband
other,
might
to the
confi-
nd b0


135. Husband an


LI


d wife; property


relations.-A husband u


md




FDM CIVIL ClOD


(T.3, 148


136.. ConideratIon for agree ment of separation.-The mutual
consent of the parties is a sufficient consideration for such an agree-
ment as is mentioned in the next preceding section.
137. May hold property, how.-A husband and wife may hold
property by joint interests, by interests in common, or as community
property.
138. Separate property of the wife.-All property of the wife,
owned by her before marriage and that acquired afterwards by gift,
be uest, devise, or descent, with the rents, issues, and profits thereof,
is her separate property. The wife may, without the consent of her
husband, convey her separate property.
139. Separate property of the husband.-All property owned by
the husband before marriage, and that acquired afterwards by gift,
bequest, devise, or descent, with the rents, issues, and profits thereof,


is his separate property.


C0OSS-RBEERENCES
Community property, see section 280 of this title.
Community property liable for what debts, see section 143 of this title.
Husband's control over community property, see section 149 of this title.
Descent of community property, see sections 648 and 649 of this title.
140. Property acquired after marriage.-All other property ac-
quired after marriage by either husband or wife, or both, including
personal property wherever situated, heretofore or hereafter ac-
quired while domiciled elsewhere, which would not have been the
separate property of either if acquired while residing in the Canal
Zone, is community property; but whenever personal property, or
any interest therein or encumbrance thereon, is acquired by a married
woman by an instrument in writing the presumption is that the same
is her separate property, and if acquired by such married woman
and her husband, or by her and any other person, the presumption
is that she takes the part acquired by her, as an interest in common,
unless a different intention is expressed in the instrument; and the
presumptions in this section mentioned are conclusive in favor of
a purchaser, encumbrancer, payor, or any other person dealing with
s w married woman, in good faith and for a valuable consideration.
CzOss-RlErmNc
See, also, section 280 of this title.


141. Inventory of.separate property of wife.-A
plete inventory of the separate personal property of
be made out and signed by her, acknowledged or


full and (
the wife
proved in


2om-
may
the





T.3, 3 144]


THE CIVIL CODE


marriage,
husband.


unless


secured


mortgage


thereof


executed


Cuoss-RmrrnmN as


Debts of wife, see sections 146, 147, and 150 of this title.
Community property is liable for husband's debts, see
title.
Necessaries furnished wife, see section 150 of this title.


144.


section 149 of


Earnings of wife not liable for debts of the husband.-The


earnings of the wife are not liable


for the debts of the


husband.


145. Earnings of wife, when living separate, separate
erty.-The earnings and accumulations of the wife, while
living separate from her husband, are her separate property.


prop-
she is


146.


Liability for


debts


wife


contracted


before


marriage.-


The separate property of the husband is not liable for the debts of
the wife contracted before the marriage.


Liability o


erty of the wife is
her marriage, but
That the separate
debts contracted b
furnished to them
Proved, That t
apply to the separl
her marriage or a
than by gift from


148. Married
married woman
husband shall n
be jointly liable


f separate property of wife.-The separate prop-
liable for her own debts contracted before or after
is not liable for her husband's debts: Provided,
property of the wife is liable for the payment of
y the husband or wife for the necessaries of life
or either of them while they are living together:
ie provisions of the foregoing proviso shall not
ate property of the wife held by her at the time of


squired by he
the husband,


r by devise, succession, or gift, other
after marriage.


woman's torts.-For civil
, damages may be recovered
ot be liable therefore, except
with her if the marriage did


injuries committed by a
from her alone, and her
in cases where he would
not exist.


149. Management of community personal property.-The hus-
band has the management and control of the community personal
property, with like absolute power of disposition, other than testa-
mentary, as he has of his separate estate: Provided, however, That
he cannot make a gift of such community personal property, or
dispose of the same without a valuable consideration, or sell, convey,
or encumber the furniture, furnishings, or fittings of the home or
the clothing or wearing apparel of the wife or minor children that
is community, without the written consent of the wife.
CROSS-R FEENCOES


147.





'WI CL(1ODE0


[T. 8, 161


supply her with articles necessary for her support, and recover the
reasonable value thereof from the husband.

Ab~ndo9n4nt ox omission to provide for wife, as misdemeanor, see title 5,
..-^ -< ^^l~'B :^,* jR ltl 1 rll. . : ''


151 Husbnd not liabl
saddned by is wife is


t' retulrunless she was j
him; nor iv he liable for
Sfrom him, by agreement,
agreement.


(
1


lit When wit
te husband when
rty, when he has
)ronerty. and he


a a Vt


.5 1~


e when abandoned
not liable for her sl
ustifid, by his misc
her support when


un!es


such


support


by
uppo'
,ondui
she i


ife.-A husband
rt until she offers
ct, in abandoning
s living separate
stipulated in the


e must support usThe wife must support
i he has not deserted her, out of her separate prop-
no separate property and there is no community
is unable, from infirmity, to support himself.


~JfltIfl0LI.CaEfl.flflL~tiEa


at oblgations of sup ort, see section 131 of this title.


J I


153. Rights of husband and wife governed by what.-The prop-
ryrg3t iof husband and wife are governed by this chapter,
l~ese there is t marriage settlement containing stipulations contrary
h :X */ : I'A f lj ^ j^^J


thereto.
'4. )&rfage
'".' ll .-^ a'1


traots tor mi
the pary tos
writing; and
ch pier oef


settlement


rriage settlem
be charged o:
acknowledged
this title.


contracts,


ents


r


must


by his agent
or proved in


how


executed.-All


n writing;
thereunto
the manner


con-


subscribed by
authorized in
prescribed in


155 Viurs may make marriage settlements.-A minor capable
of contracting marriage may make a valid marriage settlement.


CHAPTER 7.-CHILDREN BY BIRTH


161. Legitimacy of I;
with husband
162. Legitimacy of
lock.
163. Legitimacy of c
solution of n
164. Who may dispu


ssuane of wife cohabiting
children born In we4-
hildren born after lis-.
aarriage.
ite the legititay of a


child.
When child becomes legitimate.
Obligation of parents for the sup]
and education of their children.
Custody of minors.
Husband and wife living separ
neither to have superior right
custody of children.


: '
port

ate,
to


Remedy for parental abuse.
When parental authority ceases.
Remedy when parent dies without pro-
viding for the support of his child.
Reciprocal duties of parents and chil-
dren in maintaining each other.
When parent is liable for necessaries
supplied to child.
When parent is not liable for support
furnished his child.
Husband not bound for the support
of his wife's children by a former


marriage.
180. Compensation and sup
S child.


port


of adult


*





T. 3, 162]


162.


THE


Legitimacy of


CIVIL CODB


children born in wedlock.-All children born


in wedlock are presumed to be legitimate.
OBOSs-RErEENCES
Father legitimating child by acknowledging it, see section 196 of this title.
Illegitimates, heirs to whom, see section 634 of this title.
Legitimacy of children of nullified marriage, see section 57 of this title.
Legitimating children by marriage of parents, see section 165 of this title.
Mother entitled to custody of illegitimate unmarried minor, see section 170
of this title.
Mother succeeds to estate of illegitimate, see section 635 of this title.
Rebutting presumption of legitimacy, see section 164 of this title.


Presumption of legitimacy,


see title 4, sections 2006 and 2007.


163.


Legitimacy


children


born


after


dissolution


mar-


riage.-All children of a woman who has been married, born within


ten months after the dissolution of the marriage,
legitimate children of that marriage.


164.


are presumed to be


Who may dispute the legitimacy of a child.-The presump-


tion of legitimacy
the descendant of


can be disputed
one or both of I


may be proved like any other fact.


only


them.


by the husband or wi
Illegitimacy, in such


fe, or
case,


165.


When


child becomes legitimate.-A


child born before


wed-


lock becomes legitimate by the subsequent marriage of its parents.


166.


Obligation


parents


support


and


education


their children.-The parent entitled to the custody of a child must
give him support and education suitable to his circumstances: Pro-
vided, That if a child has earnings of his own sufficient therefore the
cost of his support and education may be taken therefrom. If the
support and education which the father of a legitimate child is able
to give are inadequate, the mother must assist him to the extent of
her ability.


CROSS-REFERENCE


Abandonment or omission
section 441.


to provide for child, as misdemeanor,


see title 5,


167.


Custody


of minors.-The


unmarried minor child are equally


ices.
take


either the


the custody


father and mother of a legitimate


entitled


father or mother be dead


or has


abandoned


entitled to its custody and services.


or her


> its custody and serv-
or unable or refuse to


family,


other


CROSS-REFERENCES
A n4*n -O/..- Sa4-^ J .1,13 S- .LflA2^ ,aa Or 4flf l aS t^2r A1it





THE CIVIL ODB


46>9. W bsun h
pentrol of ebidri
a divorce, the hi
exclusive control
court may, during,
ing thereof, or a:
thp support, cjre
iarhage, as
right of the pa
any o ft"i T
may at any time
decree, as the nat
the children, ma


[T. 3, 5 176


band Or wife may bring action for the exclusive
en; decree in such cases.-Without application for
uiisband or the wife may bring an action for the
of the children of the marriage; and the district
g the pendency of such action, or at the final hear-
fterwards, make such order or decree in regard to
, custody, education, and control of the children of
may be ust, and in accordance with the natural
rents and the best interests of the children, and
thereafter amend, vary, or modify such order or
aral rights and the interests of the parties, including
r require.


170. Custody of illegitimate child.-The mother of an illegiti-
mate unmarried minor is entitled to its custody and services.


O~AB-RWA=NcN


hIneritance from illegitimate child, see section 635 of this title.
171. Allowance to parent.-The district court may direct an al-
lowance to be made to the parent of a child, out of its property,
fot its past or future support and education, on such conditions as
>may be proper whenever such direction is fer its benefit.
172. Parent cannot control property of child.-The parent, as
suh, has no control over the property of the child.
173. Remedy for parental abuse.-The abuse of parental author-
jty is the subject of judicial cognizance in a civil action brought by
the child, ory relative within the third degree, or by the district
attorney of the Canal Zone; and when the abuse is established.
the hi may freed from the dominion of the parent, and the
duty of support and education enforced.
COs-RuErnRNCES
Parental duty, see section 166 of this title.
Abuse or abandonment of child, as misdemeanor, see title 5, section 443.
174. When parental authority ceases.-The authority of a parent
ceases:
1 Xpon the appointment, by a court, of a guardian of the person
eta. dild"
s Upon the marriage of the child; or
3. Upon its attaining majority.
175. Remedy when parent dies without providing for the sup-
Dort of his child.-If a parent chargeable with the support of a child





T. 3, 177]


THE


CIVIL CODE


to maintain such person to the extent of their ability. The promise
of an adult child to pay for necessaries previously furnished to such
parent is binding.
CROSS-REFERENCES
Mother supporting children, see section 166 of this title.
Wife supporting husband, see section 152 of this title.
177. When parent is liable for necessaries supplied to child.-
If a parent neglects to provide articles necessary for his child who
is under his charge, according to his circumstances, a third person
may in good faith supply such necessaries, and recover the reasonable
value thereof from the parent.
caoss-RrEFEIEOE
Infant liable on contract for necessaries, see section 28 of this title.


178. When parent is n
A parent is not bound to
for the voluntary suppo
compensation, nor to co
child who has abandoned


ot liable fo:
compensate
rt of his cl
mpensate a
the parent


r support furnished
e the other parent, o
hiild, without an ag
stranger for the si
without just cause.


his child.-
>r a relative,
reement for
support of a


179. Husband not bound for the support of his wife's children
by a former marriage.-A husband is not bound to maintain his
wife's children by a former husband; but if he receives them into
- . j S* -m - S. S -*


his family and supports
parent, and, where such
their support, nor he to t
180. Compensation an
after attaining majority
by the parent, neither
absence of an agreement


them, it is presumed that he does so
is the case, they are not liable to him
them for their services.


ad support of adult
r, continues to serve
party is entitled to
therefore.


as a
for


child.-Where a child,
and to be supported
compensation, in the


181. Parent may relinquish services and custody of
parent, whether solvent or insolvent, may relinquish
the right of controlling him. Abandonment by the pi
sumptive evidence of such relinquishment.


child.-The
to the child
trent is pre-


182. Wages of minors.-The wages of a minor employed in serv-
ice may be paid to him.
183. Right of parent to determine the residence of child.-A
parent entitled to the custody of a child has a right to change his
residence, subject to the power of the proper court to restrain a
removal which would prejudice the rights or welfare of the child.


CUOSS-REFERLNCE


]
[





THE' CIIL OODE


[T.,1f 1


d rit court for leave to adopt a minor child; but a written consent
must be given for the adoption by the child, if of the age of four-
teen years, and by each of his or her living parents who i not hope-
lwly insane or intemperat e, or has not abandoned such child, or
if there are no such parents, or if the parents are unknown, or
have abandoned such child, or if they are hopelessly insane or in-
temperate, then by the legal guardian, or if there is no such guar-
dian, then by a discreet and suitablee prson appointed by the court
to act in the proceedings as the next friend of such child; but when
such child is an inmate of a charitable or eleemosynary institution
within the Canal Zone and has been previously abandoned by its
parents or guardians thereto, then the written consent of the head
of such institution must be given: Provided, nevertheless, That noth-
ing herein contained shall authorize a guardian to adopt his ward
before the termination of the guardianship and the final settlement
and approval of his accounts as guardian by the court.


192. Adoption


stepfather.-A


resident


Canal


being the husband of any woman who has a minor child b
ceased husband, may petition the district court for leave t
suc minor child and for a change in the name of such ch
the written consent must be given to the adoption by the
of the age of fourteen years, and by the mother of such
she is not hopelessly insame or intemperate, or if such m
hopelessly insane or intemperate, then by the legal guardian
child, or if there is no such guardian, then by a discreet and
person appointed by the court to act in the proceedings as
friend of such child.


Zone,
a de-


o adopt
ild; but
child, if
child, if
other is
of such
suitable
the next


193. Order of the court.-When the foregoing provisions are
complied with, if the court is satisfied with the ability of the peti-
tioner to bring up and educate the child properly, having refer-
ence to the degree and condition of the child's parents and the fitness
and propriety of such adoption, it shall make an order, setting forth
the facts and declaring that from that date said child, to all legal
intents and purposes, is the child of the petitioner and that its name
is thereby changed. The order shall be recorded in the records of
the court.


194. Effect of
child is adopted
by such order,
respect to the ch
tions of obedience
shall be to all i


the order.-The natural parents, except when such
under the provisions of section 192 of this title, shall,
be divested of all legal rights and obligations in
ild, and the child shall be free from all legal obliga-
:e and maintenance with respect to them. Such child
ntents and purposes the child and legal heir of the






T.3, 201]


THE CIVIL CODB


it as


such


family,
thereby


with


and


the consent


otherwise


adopts it as su


of his


treating it a-
ch; and such


wife,
3 if ]


were


is married,


into


a legitimate


child is thereupon


deeme


all purposes legitimate from the time of its birth. The I
provisions of this chapter do not apply to such an adoption.


child,
d for


!oregoing


COSS-REFERENCwE
Affecting inheritance, see section 634 of this title.


CHAPTER 9.-GUARDIAN


AND


WARD


Guardian,
Ward, wha
Kinds of g
General gu
Special gua
Guardian;
so forth.


what.
t.
uardians.


ardian, what
rdian, what.
appointment


207. Appointment by will or deed of
guardian.
208. Rules for awarding custody of minor.


209. Relation confidential.
210. Guardian under direction of court.
211. Death of a Joint guardian.
212. Removal of guardian.
213. Guardian appointed by parent, 1
superseded.
214. Suspension of power of guardian.
215. Release by ward.
216. Guardian's discharge.


Cnoss-Rnnmwm


Judicial appointment of guardians,


see Title 4, The Code of Civil Procedure.


Section 201.


Guardian,


what.-A guardian is a person appointed


to take care of the person or property of another.


202.


Ward, what.-


The person over whom or over whose property


a guardian is appointed, is called his ward.


203.


Kinds of


guardians.-Guardians are either


General; or
Special.


Cxoss-RxnrrBrNozs


Testamentary guardians,
Guardians ad litem, see 1


see section 207 of this title.
title 4, sections 127 and 128.


204.
of the


General guardian,


person


or of


Zone, or of both.


what.-A general guardian is a guardian
a property of the ward within the Canal


205.


Special guardian,


what.-Every other is a special guardian.


206.
of the


Guardian; appointment by will, and so forth.-A guardian
person or estate, or of both, of a child born, or likely to be


born, may be appoi
death of the parent
1. If the child be
nPf thA mnfthor nr. h


nted by will
appointing:
legitimate, by
I? thcipr no' T


or by deed,

the father,


'It


to take effect upon


with the written consent


r tho nthnr ha Aoad A- inrnnihla


ft


*





THE b7JVIL 00DB


E'L8~I21Z


i. It insane or incmpetent person be unmarried, or be a per-
son whose marriage has been annulled or dissolved by death or
divorce, by the father with the written consent of the mother, or by
eitbte ar nt if the other be dead or incapable of consent.
"2If the insane or incompetent person be married and a person
whose marriage has not been annulled or dissolved by divorce, then
by the spouse.
208. Rules for awarding custody of minor.-In awarding the
cutody of a minor, or .in appointing a general, guardian, the court
or officer is to be guided by the following considerations:
1. By what appears to be for the best interest of the child in
respect to its temporal and its mental and moral welfare; and if the
child is of a sufficient age to form an intelligent preference, the court
may consider that preference in determine the question;
2. As between parents adversely claiming the custody or guardian-
ship, neither parent is entitled to it as of right; but other things being
equal, if the child is of tender years, it should be given to the mother;
if it is of an age to require education and preparation for labor and


business, then to the father;
8. Of two persons equally entitled
preference is to be given as follows:


to the custody in other respects,


(1) To
(2) To
(3) To
fund to be
(4) To
,4. An
the abihty
of fourtee


a parent;
one who was indicated by the wishes of
one who already stands in the position
applied to the child's support;
a relative.
parent who knowingly or willfully aba
so to do, fails to maintain his minor ch
n years, forfeits the guardi ship of su
n years, nr is~ eh< oa ~'a'ni'f f% CsuP


I deceased parent;
of a trustee of a


radons, or having
ild under the age
h child.


CItoes-RnnuNcu


Respedlve rights of parents,


see section


title.


209. Relation confidential.--The relation of guardian and ward
is confidential, and is subject to the provisions of chapters 49 and
50 of this title on trusts.


210. Guardian under direction of court.-In
and disposition of the person or property committed
i zmay be regulated and controlled by the court.
211. Death of a joint guardian.-On the death
more joint guardians, the ower continues to the
further appointment is made by the court.


the management
to him, a guard-


of one of two or
survivor until a






T.3,213]


THE CIVIL CODE


5. For having an interest adverse to
his duties;


the faithful


performance of


6. For removal from the Canal Zone;


In the case of a guardian of the property, for insolvency; or
When it is no lonster uroer that the ward should be under


A A


guardianship.


CROSS-RErmRENOE


Removal of guardian,


see title 4, sections 1693 and 1812.


213.


Guardian


appointed


parent,


how


superseded.-The


power of a guardian appointed by a parent is superseded:
1. By his removal, as provided by the next preceding section;
2. By the solemnized marriage of the ward; or
3. By the ward's attaining majority.


CROSS-RFEUENC


Marriage of ward


terminates guardianship,


see title 4, section


1813.


214.


Suspension of power of


guardian.-The


power of


a guard-


ian appointed by a court, is suspended only:
1. By order of the court;


2. If the appointment was made solely because of the ward's
minority, by his attaining majority; or
3. The guardianship over the person of the ward, by the marriage
of the ward.
COROSS-REFERENCE


Marriage of ward


terminates guardianship,


see title 4,


section 1813.


215.


Release


ne may settle acI
which is valid if


Ii'


by ward.-After a


counts


with


obtained


fairly


ward has come


guardian


and


and


give


his majority,


him


a release


without undue influence.


216. Guardian's discharge.-A guardian appointed by a court is
not entitled to his discharge until one year after the ward's majority.


COsas-RUaNaoss


Discharge of guardian, s
Resignation of guardian,


ee title 4, section 1813.
see title 4, section 1812.


CHAPTER 10.-FOREIGN


CORPORATIONS GENERALLY


Application for license to dc
accompanying papers; ]
agent; filing fee.
Insurance companies to file
documents and deposits.
Insurance companies to file


business;


~ro


cess


additional
statement


Transacting business without 1
how punished; contracts void.
Same; loss of benefit of limr
laws.


icene,
station


License under chapter 11 sufficient.
"Corporation" includes joint stock


fla-tfl nO llaa


221.

222.
223.


w-- w --





THE CIVIL OODE


[T. s, 22


under the laws of any State or Territory of the United States or
of any foreign country shall do business in the Canal Zone or main-
tain an office therein until it shall have field with the executive
secretary of the Panama Canal:
(a) ap location for a license setting forth the name of the
corporation, the names of its officers and directors, and a statement
showing the general nature of the business in which it desires to
engage in the Canal Zone;
(b) A certified copy of its articles of incorporation, or of its
charter, or of the statute or statutes or legislative or executive or
governmental acts creating it, in cases where it has been created by
charter or statute or legislative or executive or governmental act,
duly certified by the Secretary of State or other officer authorized by
law to certify y such copy;
c) An affid vit sworn to by any authorized officer of such corpo-
Sation which shall state the amo unt of its authorized capital stock at
ax within sixtv days nrior to such filing:


*~ ~ -'*T - *- "-'ij .^---, ,-- ^ -, at ^ - - ,-_-_ -
d) Every corporation must, at the time of filing its application,
tff in the office of the executive secretary a designation of some
person residing within the Canal Zone and the place of business or
evidence of such person upon whom process issued by authority
of .x under any law of the Canal Zone may be served. With
ws*ch designation shall be submitted a certified copy of the minutes
of the board of directors of such corporation authorizing such desig-
nation. Process may be served on the person so designated, or, in
the event that such person cannot be found at the place designated
or in the event that no such person is designated, then on the execu-
tive secretary of the Panama Canal, or his successor in office, and
such service shall be a valid service on such corporation. When the
executive secretary shall have been served with process as provided
herein he shall without delay communicate the same to the corpora-
tion concerned at its last known address and no default judgment
shall be entered against such corporation in any action in which
process is served on the executive secretary until at least 60 days
after the date of such service;
(e) Corporations licensed under the provisions of this chapter
shall also be required to file with the executive secretary any amend-
ment of or change in any of the provisions of its original articles of
incorporation;
(f) With the application for license there shall also be submitted
the sum of $10, which amount shall cover the filing fee and the
annual license fee for the remainder of the calendar year during
which the licena is issued.


i





T, 3, 223]


THE


OIVIL CODE


(a) A certificate of the Commissioner of Insurance or
authorized official, showing that the company is authoriz
act business in the State or country under whose laws tl
is organized;
(b) A duly certified copy of the last annual statement (
ance company to the Commissioner of Insurance or
authorized official in the State or country where the
organized;
(c) A deposit with the executive secretary or his
office of $10,000 in cash or current marketable securities,
be held in trust by the executive secretary for the ace
company, to satisfy any judgment that may be rendered
company under any insurance policies that it may issue.
223. Insurance companies to file statement and
tax.-Insurance companies licensed under this chapter sh
the executive secretary between January 1 and March 1 <
a verified statement showing the business transacted within


Zone by
certified
the State
Such ins
in lieu o
225 of t
premium


C,


the company during
copy of its annual
STerritory, or cou
urance companies
f all other taxes sa
his title, a license
receipts in the Ca:


ig the previous
report to the
ntry in which
shall pay bef
ve the annual
tax equal to
nal Zone for t


s calendar
insurance
the compi
ore March
fee provide
11/2 per c


year
comr


my is
1 of
ed for
mtum


he calendar year


* other duly
ed to trans-
hie company


)f the insur-
other duly
company is


successor in
which shall
ount of the
against the


pay license
iall file with
of each year
in the Canal
and a duly
nissioner of


organized.
each year,
in section
of its net
preceding.


224. Issuance of license.--Upon compliance with the foregoing
conditions, the Governor of the Panama Canal, if he is satisfied that
the business desired to be transacted is proper, legitimate, permis-
sible under the laws of the Canal Zone, and not in conflict with the
policy of administering the Canal Zone as an adjunct of the Panama
Canal, may issue a license to do business in the Canal Zone.


225. Annual license
after the period for wh
upon the payment of a
January 1 of each year.


226.
tracts
Zone i
shall I
person
with t
shed


V


Transactin;
void.-Any
without havi
3 subject to
acting for


C


I


he provision
is for a misd


fee.-The right to continue to do business
ich the license is issued shall be contingent
license fee of $10, payable in advance, on


g business without
Corporation which
ng complied with tl
a fine of not more
such corporation, u
s of this chapter, sh
demeanor. In additi


tract made by or on behalf of any such forei^


license, how punished
does business in the
he provisions of this cl
than $500, and any ag
nless it shall have cos
all, upon conviction, b
on to this penalty. ever


p corporation


alf


; con-
Canal
chapter
ent or
nplied
pun-
y con-
ecting





EEB CIVIL (BOD


ET,8J 241


228. License under chapter 11 sufficient.-No corporation licensed
under the provisions of chapter 11 of this title shall be required to
y wthe provisioq of this chapter.
jf (JBporation" includes joint stock companies.-The term
* corporation" as used in this chapter shall include joint stock
-r me
230. Revocation of license.---The Governor of the Panama Canal
is aitorized to revoke any license issued hereunder if, upon exami-
natioi, he shall be satisfied that the operations of the corporation are
conducted in an illegal manner, or in a manner contrary to public
poliby or to the policy of administering the Canal Zone as an adjunct
bf the Panama Canal.


CHAPTER 11.-SECURITIES SALES LAW


Sec.
241,.
RAt
~Ifl.
24t


Permit to sell securities.
Dsilgnatfilon of process uent.
Examinao cation of appcaion; issuance
and revocafton of permit.
Certificate of agent or broker.


See.
245. Examination of application
and revocation of permit.
246. Report on sale of securities.
247. Fees.
248. Penalty for violation.
249. Definitions.


issuance


OCOSS-RKFEENCES
For provisions of the Securities Act of 1933, wherein the term "territory"
Is tefiled to include the banal Zone, see U.S. Code, title 15, sections 77a to
tmnm appendix, p. 898).
Nreign corporations generally, see sections 221 to 280 of this title.
F*wdulent insolvencies by corporations and other frauds in their manage-
ment, gee title 5, sections 751 to 764.

Section 241. Permit to sell securities.-No company shall sell, or
offer sale, negotiate for the sale of, or take subscriptions for any
Aeeurit of its own issue until it shall have first applied for and
Theun from the Governor of the Panama Canal a permit author-
izi it to do so. Such application shall be in writing and shall be
v Tied. In such application the applicant shall set forth the names
&nd addresses of its officers, the location of its principal office, the
nae of its Canal Zone representative, an itemized account of its
financial condition, the amount and character of its assets and lia-
bi ties, a detailed statement of the plan upon which it proposes to
transact business, a copy of any prospectus or advertisement, or
other description of such securities, then prepared by or for it for
distribution or publication, and such additional information con-
cerning the company, its condition and affairs, as the Governor may
require. If the applicant is a partnership or an unincorporated
association or joint stock company, it shall file with its application a
a -kw av C : Jan A s .-. w n a na C n tM ad n ah nn t Wane nS a1l8 RS ndB re nnWS -4 w tA 11 T la 4 sr-L n 4 & nfl kVnt





T. 3, 242]


THE


CIVIL CODE


that the applicant is authorize<
Territory, or country.
242. Designation of process


of filing its application, s
secretary a designation of
Zone and stating the place
upon whom process issued
Canal Zone may be served.
a certified copy of the mi
company authorizing such
the person so designated, (
be found at the place desi
designated, then on the exe


his successor in offi
such corporation.
served with process
municate the same
address and no de


ce. and


shall
som
of
by a


I


transact business in such


State,


agent.-Every company, at the time
file in the office of the executive
e person residing within the Canal
business or residence of such person
uthoritv of or under any law of the


With such d
nutes of the
designation.
o, in the eve
mnated or in
cutive secret
such service


When the execui
as provided here


to the
fault ju


corporation in any action in
secretary until at least sixty


company
dgment
which pI
days aft


Assignation
board of
Process
nt that s
the event
ry of the
shall be


L shall be submitted
directors of such
may be served on
uch person cannot
that no person is
Panama Canal, or
a valid service on


Live secretary shall
in he shall without
r concerned at its
shall be entered a
process is served on tt


er


have been
delay corn-
last known
against such
he executive


the date of such service.


243.


Examination


application;


issuance


permit.-Upon the filing of such application, ii
the Governor to examine it, and the other p
filed therewith, or cause the same to be exam:
he deems it advisable, make or have made a (
audit, and investigation of the applicant and it
that the proposed plan of business of the apj
unjust, inequitable, or contrary to the policy
Canal Zone as an adjunct of the Panama Can
transact its business fairly and honestly, and th
it proposes to issue and the methods to be use
disposing of them are not such as, in his opinic
upon the purchaser thereof, the Governor may
a permit authorizing it to issue and dispose of
provided, in the Canal Zone. Each such perm
thirty-first day of December next following
sooner revoked. Otherwise, he shall deny the a
such permit and notify the applicant in wri
Every permit shall recite that the issuance t


only and d
securities
conditions
.0A h01011


toes not co
permitted
as he ma:
ho''7 t"hp ,


institute a recommendation
to be sold. The Govern
y deem necessary to the iss
-nwar tn octlnhhh anih nil


and


t shall l
ipers a
ined, a]
detailed
s affair
)licant
of adm
al, thai
tat the
d by it
on, will
issue to
security
it shall


revocation


be
nd
ad
e:
s.
is


the duty of
documents
he may, if
examination,
If he finds
not unfair,


ministering the
b it intends to
securities that
in issuing or
work a fraud
the applicant
ies, as therein
expire on the


its issuance, unless
application and refuse
ting of his decision.
hereof is permissive
or endorsement of the
or may impose such
ue of such securities,
an and1 raonla.innc 0o





2W5 0CIIL CODE


[T. 1 247


pany shall have first applied for and secured from the Governor
a certificate then in emt, authorizing such person or company so
t Eac such certificate shall expire on the thirty-first day of
ciembar next after its issuance, unless sooner revoked. To secure
mat ertificte, the applicat shall make and file in the office of the
(ovenor an application therefore in writing, verified by or in behalf
* *aAicant. In such application the applicant shall set forth,
in edition to such other information as may be required by the
Governor:


.1 The name and address of the applicant, and, if it be a corpo]
tion, association, or joint-stock company, the name and address
each of its managing officers and agents, and, if it be a partners
the name and address of each of the partners;
2, A succinct statement of facts showing that the applicant, and
managing officers and agents, if it be a corporation, or members,
it be a partnership, have a good business reputation;
8. If the applicant is a broker, the general plan and character
the business of the applicant.
If the applicant is a corporation or association it shall file with
application a designation of a process agent, as provided in secti
S42 of this title.


ra-
of
ip,


of


its
on


245. Examination of application; issuance and revocation of
ennit.-The Governor shall examine such application, or cause the
same t8 be examined, and shall make such further investigation
of the applicant and its affairs as he shall deem advisable. If, from
such examination, the Governor shall be satisfied that the business
reputation of the applicant and of its officers or members, if any,
is good, and that the conduct of such business will not conflict with
ths policy of administering the Canal Zone as an adjunct of the
Panama Canal, he may issue such certificate. Otherwise he shall
refuse the same and deny the application and notify the applicant of
his decision. The Governor may at any time revoke any -broker's
or agent's certificate issued by him if he shall find that the holder
thereof is of bad business repute, or had violated any provision of
this chapter, or has engaged in, or is about to engage in, any fraudu-
lent transaction, or if he shall find that the conduct of such business
twith .good policy in the administration of the Canal Zone.
S246. Report on sale of securities.--Every company or broker
authorized under this chapter to sell securities shall thereafter, at
such times as they may be required by the executive secretary, make
and file in the office of the executive secretary a report setting forth,
in such form as the executive secretary may prescribe, the securities
an! Al hvr ; t nn/^n,.* r+bm nTrrf-4+r n4 a nwmr narmni f-nl aocnmnA kg 1vr ;-w- .44% a fln





T. 3, 248]


but n(
appro
issued
Janua
248.
which
solicit
chapter
tion t
such c
be voi
enforce


THIE CIVIL CODB


a -. -- a .. -. S S


Part of such fee shall be returned if the application is dis-
ved. The annual fee for renewal of a permit or certificate
hereunder shall be $10, payable in advance on or before
ry first of each year.
SPenalty for violation.-Any company, agent, or broker,
shall directly or indirectly issue or cause to be issued, or
the sale of any security contrary to the provisions of this
r, shall be subject to a fine of not more than $500. In addi-
o this penalty, every contract made by or on behalf of any
Company, agent, or broker affecting the liability thereof shall
id on its behalf and on behalf of its assigns, but shall be
able against it or them.


249. Definitions.-The following words hav
signification attached to them in this section, un
ent from the context:
1. The word "company" includes all corp
joint-stock companies, and partnerships;
2. The word "security includes all stocks,
dences of property or interest in any company;
3. The word "agent" means and includes


pany employed or a]
within the Canal Zo3
compensation, sell, oi
a subscription for the
4. The word brokek
than an agent, who
engage either wholly
for sale, negotiating
security or securities
of securities, or of i
reselling them or of o


e in this chapter the
less otherwise appar-


)rations,

bonds,


associations,


or other


evi-


very person or cornm-


appointed by a company or broker who shall,
no, either as an employee or otherwise, for a
fer for sale, negotiate for the sale of, or take
sale of any security;
cer" includes every person or company, other
shall for a commission in the Canal Zone
or in part in the business of selling, offering
for the sale of, or otherwise dealing in any
issued by others, or of underwriting any issue
mrchasing such securities for the purpose of
offering them for sale to the public.


CHAPTER 12.-NATURE OF PROPERTY


Property, what.
In what property may exist.
Wild animals.
Real and personal.


Real property.
Land.
Fixtures.
Personal property.


Section 251. Property, what.-The ownership of a thing is the
right of one or more persons to possess and use it to the exclusion of
others. In this title, the thing of which there may be ownership is
called property.
CosS-RrrEnrENoES


Personal property, see sections 258 and 361 et seq.,
fl^ -.1 __-^ __-- -- tt _- nr~__ .S"*" tt P tA ci JtI


of this title.





fli VftVlL CODS

253. Wlt animals.Aniimals wild by nature
ownership, while living nly when on the land
20 Jmor when tam ofr taken and held in p
a irvtediately pursued.
254. Real and personaL-Property is either:
1. Real or immovable or
2. Personal or movable.


255. Real property.--Rleal
1. Land;
2. That which is affixed to
8. That which is incidental
4. That which is immovabl


[T. 3, 22


are the subjects of
of the person claim-
)ssession, or disabled


or immovable property consists of:


land;
or appurtenant to land;
e by law.


COaSs-BWERENCES
Land defined, see section 256 of this title.
Fixtures, see section 1044 of this title.
256. Land.-Land is the solid material of the earth, whatever may
be the ingredients of which it is composed, whether soil, rock, or
other substance.
257. Fixtures.-A thing is deemed to be affixed to land when it is
attached to it by roots, as in the case of trees, vines, or shrubs; or
hbedded in it, as in the case of walls; or permanently resting upon
it, as in the case of buildings; or permanently attached to what is
thus permanent, as by means of cement, plaster, nails, bolts, or
screws.
CuOss-REfesNC
Ownership of fixtures, see section 411 of this title.
258. Personal property.-Every kind of property that is not real
" 1
is personal.
CbOss-RUnuENCES


Accession to personal property, see sections 413 to 421
Choses in action, see sections 371 and 372 of this title.
Cohittpio of goods, see sections 413 to 421 of this title.
Law governing, see section 361 of this title.
Modes of acquisition of, see section 401 of this title.
Products of mind, see sections 381 to 386 of this title.


CHAPTER

201. Owners.
o&, ho pnay own property.


of this title.


R IS--OWNERS OF PROPERTY


I Sec.
S263. Aliens inheriting must claim within 5
I years.


RSartinn 21_ Own-flnrs.--All nrnnnrtv ham an nwnfr_ whathAr that






T.3, 0 263]


263.


THE CIVIL CODB


Aliens inheriting must claim within 5 years.-If a nonresi-


dent alien takes by


succession, he must appear and claim the


prop-


erty within five years from the time of succession, or be barred.
The property in such case is disposed of as provided in sections 1181
to 1185 of title 4.


Onoss-Rramworn


When and how


aliens may inherit,


see section


of this


title.


Escheat of property, see title 4, sections 1181 et seq.


CHAPTER


14.-MODIFICATIONS OF


OWNERSHIP


1. Interests in property ---......---.... 271
2. Conditions of ownership ...... 301


3. Restraints upon alienation ...-- 311
4. Accumulations ...... ....-...... 321


ARTICLE 1.-INTERESTS IN PROPERTY


Ownership, absolute or qualified.
When absolute.


When qualified
Several owners
Ownership of s
Joint interest,
Partnership in
Interest in con
What interests
Community pr
Interests as to
Present interest


Section


271.


S


hip,


what.


several persons.
what.


terest,


what.


imon, what.
are in common.
operty.
time.
t, what.

Ownership,


283.
284.
285.
286.
287.
288.
289.
290.
291.
292.
293.
294.


absolute


Future interest,
Perpetual interest
Limited interest,
Kinds of future
Vested interests.
Contingent inter
Two or more fut
Certain future in
Posthumous chili
Qualities of exp
Same.
What future int


what.
at, what.
what.
interests.


Sts.
ure interests.
terests not to be void.
dren.
ectant estates.
erests are recognized.


or qualified.-The


ownership


of property is either:
1. Absolute; or
2. Qualified.


272.


When absolute.-The ownership of property is absolute when


a single person has the absolute dominion over it, and may use it or
dispose of it according to his pleasure, subject only to general laws.

CROSS-REFERENCES
Ownership in what property may exist, see sections 252 and 253 of this title.


Ownership, termination of,


see section 341 of this title.


Perpetual interest defined, see section 284 of this title.


273.


When qualified.-The ownership of property is qualified:


1. When it is shared with one or more persons;
2. When the time of enjoyment is deferred or limited;
3. When the use is restricted.


274. Several ownership, what.-The ownership of property by a
single person is designated as a sole or several ownership.
275. Ownership of several persons.-The ownership of property
bv several Dersons is either:


A





Tfl CIVL 0ODSB


[T. 3,fA 285


276. Joint interest, what-A joint interest is one owned
eral persons in equal shares by a title created by a single
transfer, when expressly declared in the will or transfer to be
^Apa~ifexpre|s|sly "s- w ill
ten ooy Qr when granted [ devised to executors or trustee

27. Partnership interest, what.-A partnership interest
owned by several persons, in partnership, for partnership p
78. Interest in common, what.-An interest in common
owned by several persons, not in joint ownership or partner


by sev-
will or
a oint
as joint


is one
irposes.
tis one
ship.


See, also,
Husband
Legacy to
title.


COo
sections 276 and 279 ol
and wife as owners i:
two or more makes thi


ss-REEECEs
e this title.
n common, see section 137 of this title.
em owners in common, see section 601 of this


S279. What interests are min common.-Every interest created in
favor of several persons in their own right is an interest in com-
mon, unless acquired by them in partnership, for partnership pur-
de or unless declared in its creation to be a joint interest, as
provided in section 276 of this title, or unless acquired as com-
nity property.
Cnoss-REFERENOE
Interests in common, see section 278 of this title.
280. Community property.-Community property is property ac-
quired by husband and wife, or either, during marriage, when not
acquired as the separate property of either or as joint interests or
interests mi common.
CROSS-REFERENoCE
See also section 140 of this title.


281. Interests as to time.-In ,
an interest in property is either:
1. Present or future; and
2. Perpetual or limited.
282. Present interest, what.-A.
to the immediate possession of the


time of enjoyment,


present interest entitles the owner
property.


283. Future interest, what.-A future interest entitles the owner
to the possession of the property only at a future period.
CnOSS-REFErNCES





T. 3, 5 286]


THBE


GIVIL OODE


286. Kinds of future interests.-A future intest is either:
1. Vested; or
2. Contingent.


287. Vested interests.-A future
person in being who would have a
to the immediate possession of the
intermediate or precedent interest.


e interest is vested when there is a
right, defeasible or indefeasible,
property, upon the ceasing of the


288. Contingent interests.-A future interest is contingent, whilst
the person in whom, or the event upon which, it is limited to take
effect remains uncertain.


289. Two or more future interests.-Two
ay be created to take effect in the alterna
. order fails to vest, the next in succession
, and take effect accordingly.


or more future interests
tive, so that if the first
shall be substituted for


290. Certain future interests not to be void.-A future interest
is not void merely because of the improbability of the contingency
on which it is limited to take effect.
291. Posthumous children.-When a future interest is limited to
successors, heirs, issue or children, posthumous children are entitled
to take in the same manner as if living at the death of their parent.
CuOSS-REFERENCES
Future interests defeated by birth of posthumous child, see section 841 of this
title.
Succession by posthumous children, see sections 554, 590, and 650 of this
title.


292.
cession,


Qualities of expectant estates.-Future interests pass by suc-
will, and transfer, in the same manner as present interests.


293. Same.-A mere possibility, such as the e
apparent, is not to be deemed an interest of any


of an heir


Caoss-RrnzNom


Mere possibility cannot be


transferred,


see section 442


of this


title.


294. What future interests are recognized.-No future interest
in property is recognized by the law, except such as is defined in this
title.
ARTICLE 2.-CONDITIONS OF OWNERSHIP


See.
301. Fixing the time of enjoyment.
302. Conditions.


Sec.
304. Conditions restraining marriage void.
305. Conditions restraining alienation void.


*





TIP CwIvIL 0M
wra fOODy ^7f^^;i


[T. 3, 8 12


O02. Conditions.- Onatlo%^ sare precedent or subsequent.
former fix the beginning, the latter the ending, of the right.
CBosS-REFERNCEmS
liop44J^np oblgatiis, see ei80o0 61 to UQ of this title.
"tobditdnktbneurtent, see Metlon 69 of this title.
Coitions precedent, what are, see etions 597 and 693 of this title.
Conditions subsequent, what are, see sections 60 and 695 of this title.


803.


the
ful,


The


Certain conditions precedent void.-If a condition precedent
the fformance of an act wrong of itself, the instrument
ing it is so far void, and the right cannot exist. If it requires
formance of an act not wrong of itself, but otherwise unlaw-
instrument takes elect and the condition is void.


COs-REBRmsOEs
Conditions precedent, see section 693 of this title.
Unlawful conditions void, see section 698 of this title.
304. Conditions restraining marriage void.-Conditions impos-
ing restraints upon marriage, except upon the marriage of a minor,
are void; but this does not affect limitations where the intent was
not to forbid marriage, but only to give the use until marriage.
Onoss-RERENCo


Codtract In restraint of marriage, see section 937


of this title.


305. Conditions restraining alienation void.-Conditions restrain-
ing alienation, when repugnant to the interest created, are void.
CuOSS-REFnRmOE
4lestraints upon alienation, see section 311 of this title.


ARTICLE 3.-RESTRAINTS


UPON


ALIENATION


S1 estrants upon alienation.
alt. Restraints upon ,alienation.


See.
312. Future interests void,
power of alienation.


which


suspend


3 lrestraints upon alienation.-The absolute power
tiqn cannot be suspended, by any limitation or condition
for a longer period than as follows:
t. During the continuance of the lives of persons in be
creation of the limitation or condition; or
2. For a period not to exceed twenty-five years from ti
the creation of the suspension.


of aliena-
whatever,


ing at the

he time of


312. Future interests void, which suspend power of alienation.-
-- S ^*' S S * 4- S.. tT." *W ^ <*1410 a





T.3, 321]


THE


GIVIL OODE


ARTICLE 4.-ACCUMULATIONS


Sec.
321. Dispositions of income.
322. Accumulations, when void.
323. Accumulation of income.


321. Dispositions of
erty to accrue and to be
tion of the instrument
the rules prescribed in


Sec.
324. Other directions, when void in part.
325. Application of income to support, etc.,
of minor.


income.-Dispositions of the income of prop-
received at any time subsequent to the execu-
creating such disposition, are governed by
this chapter in relation to future interests.


322. Accumulations, when void.-All directions for the accumu-
lation of the income of property, except such as are allowed by this
chapter, are void.
323. Accumulation of income.--An accumulation of the income
of property, for the benefit of one or more persons, may be directed
by any will or transfer in writing sufficient to pass the property out
of which the fund is to arise, as follows:
1. If such accumulation is directed to commence on the creation
of the interest out of which the income is to arise, it must be made
for the benefit of one or more minors then in being, and terminate at
the expiration of their minority; or
2. If such accumulation is directed to commence at any time subse-
quent to the creation of the interest out of which the income is to
arise, it must commence within the time in this chapter permitted
for the vesting of future interests, and during the minority of the
beneficiaries, and terminate at the expiration of such minority.


CROSS-REFERENCES
Annuities and bequest of income, see sections 611 (3) and 618 of this title.
Ownership of undisposed accumulations, see section 332 of this title.
324. Other directions, when void in part.-If in either of the
cases mentioned in the next preceding section the direction for an
accumulation is for a longer term than during the minority of the
beneficiaries, the direction only, whether separable or not from other
provisions of the instrument, is void as respects the time beyond
such minority.
325. Application of income to support, etc., of minor.-When a
minor for whose benefit an accumulation has been directed is desti-
tute of other sufficient means of support and education, the proper
court, upon application, may direct a suitable sum to be applied
thereto out of the fund.
CROSs-REFERENCE
Maintenance of ward out of own estate, see title 4, sections 1773 and 1775.
frlf A n'umrn we nrrrnarrmc! fa' nyrsTrnC




THU CIVIL ClODS


IT. 8, 352


332. In certain cases, who entitled to income of property.-
When, in consequence of a valid limitation of a future interest, there
is a suspension of the power of alienation or of the ownership during
the continuation of which the income is undisposed of, and no valid
direction for its accumulation is given, such income belongs to the
persons presumptively entitled to the next eventual interest.


CHAPTER 16U-TERMINATION


OF OWNERSHIP


See.
341. Future interests,
342. Same.


when defeated.


See.
343. Future
344. Same.


interests,


when


not defeated.


Section
depending
successors,
posthumou


341. Future
on the cont
heirs, issue,
s child of s.


interests,v
ingency of
or children
uch person,


rhen
the
n, is
cap


* defeated.-A
death of any
defeated by
able of taking


future interest,
person without
the birth of a
by succession.


CaOSS-REFERENm
Posthumous children, see section 291 of this title.


342. Same.-A fu
by any act or means
for or authorized in t
liable to be defeated
creation.


ture interest may be defeated in any manner or
which the party creating such interest provided
he creation thereof; nor is a future interest, thus
d, to be on that ground adjudged void in its


343. Future interests, when not defeated.-No future interest
can be defeated or barred by any alienation or other act of the
owner of the intermediate or precedent interest, nor by any destrue-
tion of such precedent interest by forfeiture, surrender, merger, or
otherwise, except as provided by the section next following, or where
a forfeiture is imposed by statute as a penalty for the violation
thereof.
344. Same.-No future interest, valid in its creation, is defeated
by the determination of the precedent interest before the happening
of the contingency on which the future interest is limited to take
effect; but should such contingency afterwards happen, the future
interest takes effect in the same manner and to the same extent as
if the precedent interest had continued to the same period.


CHAPTER


17.-GENERAL


DEFINITIONS


AFFECTING


PROPERTY


Income, what.


Time of creation, what.


Section 351. Income, what.-The income of property, as the term





T. 3, 861]


THE CIVIL OODB


CHAPTER


18--PERSONAL


1. Personal property in general
2. Things in action- .. ...-..
3. Products of the mind ..- -- -


PROPERTY
THEREOF


---- -
- ----
-----


361.
371
381


AND


4. Patents,
rights


PARTICULAR


trade-marks,


KINDS


copy-


ARTICLE


1.-PERSONAL


PROPERTY


IN GENERAL


Section


361.


By what


law


governed.-If there is no


law


to the


contrary, in the place where personal property is situated, it is
deemed to follow the person of its owner, and is governed by the law
of his domicile.


ARTICLE


2.-THINGS


IN ACTION


371. Things in action defined.


Sec.
372. Transfer and survivorship.


371. Things
recover money


action


defined.-A


or other personal


proper


thing in
Dirty by a


action is
judicial


a right to
proceeding.


372.


Transfer
violation


and
of


I


survivorship.-A


a right


p


may be transferred by the owner.


passes


s personal


provided in Title 4,
devisees or successor


T


h


property,
Upon


representatives,
e Code of Civil


thing


in action


or out o
the death


except


where


Procedure


arising


! an obligation,
of the owner it


in the
passes


cases


in office.


Caoss-REFnENCES


Assignment of debt secured by mortgage carries security,
this title.
Assignment of chose in action does not prejudice defense,


see section 2246 of
see title 4, section


123.
Burden of obligation not transferable, see section 711 of this title.


Counterclaim not barred


by assignment, see


title 4, section


Insurance policy, transfer of, see section 2033 of this title.
Literary property is assignable, see section 383 of this title.
Mere possibility cannot be transferred, see section 442 of this title.
Nonnegotiable written contract for payment of money or property transferable
by endorsement, see section 713 of this title.
Obligation defined, see section 661 of this title.
Property of any kind may be transferred, see section 441 of this title.


Right arising out of obligation


transferable, see section


Right of repossession can be transferred,


712 of this title.


see section 443 of this


Suing on chose in action, see title 4, sections 122 to


title.


124, 1522 and 1523.


Transfer may be oral, when, see section 451 of this title.


ARTICLE


3.-PRODUCTS


OF THE


MIND


381. How far the subject
382. Joint authorship.
883. Transfer.


: of ownership.


Subsequent
forth.


inventor,


author,


386. Private writings.





TSP CIVIL CODS


[T. 8, 401


as the product and the representations or expressions thereof
by him remain in his possession.
382. int authorship. -Unless otherwise agreed, a product
mind in the production of which several persons are joint;
corned is owned by them as follows:
1. If the product is single, in equal proportions;
*. If it is not single, in proportion to the contribution of eac
3883. Transfer.-The owner of any product of the mind, or
representation or expression thereof, may transfer his prope
the same.


made


of the
v con-


~h.


of any
rty in


384.
intent
public
to the


Effect of publication.-If the
onally makes it public, a copy
by any person, without respo
law of copyright.


owner of a product of the mind
or reproduction may be made
nsibility to the owner, subject


COes-RurErCcE
Copyright law, see section 391 of this title.
385. Subsequent inventor, author, and
of a product of the mind does not make it
subsequently and originally producing the
right therein as the prior author, which
extent against all persons except the prior
under him.


so forth.-If the owner
public, any other person
same thing has the name
is exclusive to the same
author, or those claiming


386. Private writings.-Letters and other private communica-
tions in writing belong to the person to whom they are addressed and
delivered; but they cannot be published against the will of the writer,
except by authority of law.


ARTICLE .-PATENTS,


TRADE-MARKS,


AND


COPYRIGHTS


9l. Patent, trade-mark, and copyright
Zone.--The patent, trade-mark, and copyr
States shall have the same force and effect
ontinpntal United States, and the district
risdiction in actions arising under such
nited States district courts.


laws extended to Canal
ight laws of the United
in the Canal Zone as in
court is given the same
laws as is exercised by


CnOSS-RRERCENES
Products of the mind, see section 381 of this title.
For patent laws of United States, see U.S. Code, title 35.
For trade-mark laws of United States; see U.S. Code, title 15, chapter 3.
For copyright laws of United States, see U.S. Code, title 17.


rPc1 A DTPD


* A tflflflttn


tW VWWI'WW


nfl ~nfln -


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r .,u S S* *5C U Si *1U~ s *U ~u.a FE SUSS5. U w -s a ~t s K.. a sa K U * X *~*U K


lU m





T.3, 411]


THE CIVIL CODE


CHAPTER 20.-ACCESSION


Fixtures.
What fixtures tenant may remove.
Accession by uniting several things.
Principal part, what.
Same.
Uniting materials and workmanship.


See.
417. Inseparable materials.
418. Materials of several owners.
419. Willful trespassers.
420. Owner may elect between the thing
and its value.
421. Wrongdoer liable in damages.


Section 411. Fixtures.-When a person affixes his property to the
land of another, without an agreement permitting him to remove it.
the thing affixed, except as provided in the section next following,
belongs to the owner of the land, unless he chooses to require the
former to remove it.
OCROSS-REFERENCE
Fixtures, see section 257 of this title.
412. What fixtures tenant may remove.-A tenant may remove
from the demised premises, any time during the continuance of his
term, anything affixed thereto for the purposes of trade, manufac-
ture, ornament, or domestic use, if the removal can be effected with-
out injury to the premises, unless the thing has, by the manner in
which it is affixed, become an integral part of the premises.
413. Accession by uniting several things.-When things belong-
ing to different owners have been united so as to form a single thing,
and cannot be separated without injury, the whole belongs to the
owner of the thing which forms the principal part; who must, how-
ever, reimburse the value of the residue to the other owner, or
surrender the whole to him.
414. Principal part, what.-That part is to be deemed the prin-
cipal to which the other has been united only for the use, ornament,
or completion of the former, unless the latter is the more valuable,
and has been united without the knowledge of its owner, who may,
in the latter case, require it to be separated and returned to him,
although some injury should result to the thing to which it has been
united.


415.


Same.-If


neither


part


)nsidered the principal,


within the rule prescribed by the next preceding section, the more
valuable, or, if the values are nearly equal, the more considerable in
bulk, is to be deemed the principal part.
416. Uniting materials and workmanship.-If one makes a thing
from materials belonging to another, the latter may claim the thing
on reimbursing the value of the workmanship, unless the value of the
workmanship exceeds the value of the materials, in which case the
thing belongs to the maker, on reimbursing the value of the materials.





THU IVIL COD


[T. 3,% 482


tohim, and as respects the other, of the materials belonging to him
and the price of his workmanship.
*18 M er of xsetenowners.-When a thing has been formed
by the adiixture of several materials of different owners, and neither
can be considered the phiz substance, an owner without whose
coxiut the admixture wa made may require a separation, if the
materials can be separated without inconvenience. If they cannot
be thus separated, the owners acquire the thing in common, in pro-
portion to the quantity, quality, and value of their materials; but
if the materials of one were far superior to those of the others, both
in quantity and value, he may claim the thing on reimbursing to the
others the value of their materials.
419t Willful trespassers.---The foregoing sections of this chapter
are not applicable to cases in which one willfully uses the materials
of another without his consent; but, in such cases, the product belongs
to the owner of the material, if its identity can be traced.
420. Owner may elect between the thing and its value.-In all
casepwhere one whose material has been used without his knowledge,
in order to form a product of a different description, can claim an
interest in such product, he has an option to demand either resti-
titiq. of his material in kind, in the same quantity, weight, measure,
and quality, or the value thereof; or where he is entitled to the prod-
uct, the value thereof in place of the product.
421. Wrongdoer liable in damages.-One who wrongfully em-
ploys materials belonging to another is liable to him in damages, as
well as under the foregoing provisions of this chapter.


CHAPTER 21-TRANSFER OF PROPERTY


Alt. See.
1. De ditio of transfer-. .--.. 431
2. WMt may be transferred .- --.. 441
3~tMde of tranuser,-...- _- -- 451


ARTICLE 1.-DEFINITION


Art. Sec.
4. Interpretation of grants. ...... 461
5. Effect of transfer .--........__- -47'
6. Gifts ---_ .... -.._---..- 481


OF TRANSFER


41. Transfer,; what


Voluntary transfer.


Section 431. Transfer, what.-Transfer is an act of the parties,
Sor of the law, by which the title to property is conveyed from one
living person to another.
Onoss-Rwmmonwr
Transfer, see sections 432 and 454 of this title.
Transfer in writing is ealed a grant, see section 454 of this title.





T.3, 5 441]


THBE


CIVIL CODE


ARTICLE


2.-WHAT


MAY


BE TRANSFERRED


441. What may be transferred.
442. Possibility.


443. Right of
ferred.


repoueugitrn


can be tits-


441.


What


transferred,
following.


may
except


transferred.-Property <
otherwise provided by


any
the


kind


section


may


next


442.
cannot


Possibility.-A mere possibility, not coupled with an interest,
be transferred.


CEOSS-REFERENCE


Mere possibility not deemed an interest,


443.


see section 293 of this title.


Right of repossession can be transferred.-A right of repos-


session for


breach


of condition subsequent, can


be transferred.


ARTICLE


-MODE


OF TRANSFER


451. When oral.
452. When must be in writing.
453. Transfer by sale, etc.
454. Grant, what.
455. Delivery necessary.


456. Date.
457. Delivery to grantee is necessarily ab-
solute.
458. Delivery in escrow.
459. Constructive delivery.


451.


When


every case in


oral.-
which a


transfer


may


made


without


writing,


writing is not expressly required by statute.


CROBS-RECEREN CES


What contracts must be in writing,


Fraudulent
title.


instruments


see sections 886 and 984 of this title.


transfers,


see sections


2761


2762


of this


452.


When must be in


writing.-An interest in an existing trust


can be
ment, s


transferred only by operation of law, or by a written instru-
ubscribed by the person making the transfer, or by his agent.


453. Transfer by sale, etc.-The mode of transferring other per-
sonal property by sale is regulated by chapter 34 of this title.


454.
of sale.


Grant,
The


title, includes


what.-A transfer in


term
both


"grant "


these


this


instruments.


writing is called a grant or bill
and sections 455 to 472 of this


CuOSS-REFERENCES


Construction of grants,


Transfer,


see sections 461 et seq.,


see sections 431 and 432 of this title.


of this title.


455.
interest


Delivery necessary


intended


grant


transferred,


takes effect


only


upon


so as to
delivery


vest the


~4. nfl


I




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UNIVERSITY OF FLORIDA LIBRARY

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Digitized by the Internet Archive in 2010 with funding from Lyrasis IVIembers and Sloan Foundation http://www.archive.org/details/canalzonecodeact1934pana

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CANAL ZONE CODE AN ACT OF THE CONGRESS OF THE UNITED STATES OF AMERICA TO ESTABLISH A CODE OF LAWS FOR THE CANAL ZONE, APPROVED JUNE 19, 1934 TOGETHER WITH AN APPENDIX CONTAINING CERTAIN TREATIES AND GENERAL LAWS OF THE UNITED STATES APPLICABLE IN OR RELATING TO THE CANAL ZONE OR THE PANAMA CANAL UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1934

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34 6 -^Z C ^/o^c

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CONTENTS Page Preface v Table of titles: Title 1. Personal and Civil Rights 1 2. Operation and Maintenance of the Canal and Government of the Canal Zone Generally 3 3. The Civil Code 41 4. The Code of Civil Procedure 319 5. The Criminal Code 637 6. The Code of Criminal Procedure 729 7. The Judiciary 821 Appendix: Treaties 833 General laws 869 Parallel reference tables 1017 Index ^ _ 1039 7 ^^33 xn

PAGE 9

PREFACE This Code of Laws for the Canal Zone embraces all the laws relating to or applying in the Canal Zone, except such general laws of the United States as relate to or apply in the Canal Zone. The preparation of the code was authorized by the act of Congress approved May 17, 1928 (45 Stat. 596), which authorized the President to have all the laws in force in the Canal Zone revised and codified, and to report the same to Congress for its approval. Under authority of that act, the President placed the work of revision and codification under the supervision of the Governor of the Panama Canal, and ordered the appointment of Paul A. Bentz as codifier. Mr. Bentz remained in active charge of the codification until its completion. The material included in the code has its source in acts of Congress, in certain acts and ordinances of the former Isthmian Canal Commission which were ratified and confirmed as valid and binding by Congress in the Panama Canal Act of 1912, and, in a limited number of sections, in Executive orders of the President which were likewise ratified and confirmed by Congress. The code embodies the existing laws without substantive change except in the cases of 29 sections wherein alteration was found to be desirable in the interests of uniformity and effectiveness. Twenty of the changes consist in the elimination of minimum punishments from the following sections of Title 5, The Criminal Code : Sections 92, 93, 103, 131, 175, 206, 293, 363, 644, 654, 737, 753, 789, 803, 823, 828, 830, 836, 839, and 843. The other sections embodying substantive change are as follows : Title 2, sections 33, 158, and 159 ; title 4, section 1706; and title 5, sections 257, 281, 401, 603, and 787. Citations or "credits" are employed following the text of such sections only as were enacted or amended by Congress prior to the enactment of this code. In the cases of Title 3, The Civil Code, and Title 4, The Code of Civil Procedure, citations have been restricted to the first section in order to avoid unnecessary repetition. The appendix is designed to afford a convenient means of reference to certain treaties and general laws of the United States applicable in or relating to the Canal Zone or the Panama Canal. An attempt has been made to represent all general laws which are applicable, setting forth the text of the law in the cases wherein that course is warranted by the extent of the practical application of the law and in all other cases inserting an appropriate reference to the law under a proper heading. It is sought in the parallel reference tables to facilitate reference to the former law by showing the origin thereof, whether in act of Congress, Executive order, or act or ordinance of the Isthmian Canal Commission, and, in addition, in the cases of titles 3 to 6, to show the sources of the sections in the California law in order to render more accessible the decisions of the California courts construing those sections.

PAGE 11

June 19, 1934 [H.R. 8700] [Public No. 431] Chapter 667 THE CANAL ZONE CODE SEVENTY-THIRD CONGRESS, UNITED STATES OF AMERICA AN ACT To establish a Code of Laws for the Canal Zone and for other purposes Be it enacted hy the Senate and House of Representatives of the United States of Anierica in Congress assembled^ Tliat the seven titles liereinafter set f ortli sliall constitute tlie Code of Laws for the Canal Zone and shall, for all purposes, establish conclusively, and be deemed to embrace, all the permanent laws relating to or applying in the Canal Zone in force on the date of enactment of this Act, except such general laws of the United States as relate to or apply in the Canal Zone. Such code shall be designated as the " Canal Zone Code " and shall take effect on the expiration of ninety days after the date of enactment of this Act. Copies of such code printed at the Government Printing Office and bearing its imprint shall be conclusive evidence of the original of such code. Sec. 2. The said Canal Zone Code shall not be published in the Session Laws or Statutes at Large, and there shall be printed and bound, as may be directed by the Joint Committee on Printing, such number of copies thereof as may be required for official use and distribution, including an index and any other explanatory matter the committee may deem necessary. VII

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CANAL ZONE CODE TITLE 1.— PERSONAL AND CIVIL RIGHTS Section 1. Personal and civil rights and guarantees. — There are certain great principles of government which have been made the basis of an existence as a nation which are deemed essential to the rule of law and the maintenance of order, and which shall have force in the Canal Zone. The principles referred to may be generally stated as follows: a. That no person shall be deprived of life, liberty or property without due process of law; b. That private property shall not be taken for public use without just compensation; c. That in all criminal prosecutions the accused shall enjoy the right : (1) To a speedy and public trial; (2) To be informed of the nature and cause of the accusation; (3) To be confronted with the witnesses against him; (4) To have compulsory process for obtaining witnesses in his favor; and (5) To have the assistance of counsel for his defense; d. That excessive bail shall not be required nor excessive fines imposed, nor cruel or unusual punishments inflicted; e. That no person shall be put twice in jeopardy for the same offense, or be compelled in any criminal case to be a witness against himself; f. That the right to be secure against unreasonable searches and seizures shall not be violated; g. That neither slavery nor involuntary servitude shall exist except as a punishment for crime; h. That no bill of attainder or ex post facto law shall be passed ; i. That no law shall be passed abridging the freedom of speech or of the press, or of the rights of the people to peaceably assemble and petition the government for a redress of grievances; and j. That no law shall be made respecting the establishment of religion or prohibiting the free exercise thereof. Ckoss-Res^rences Rights of defendant in criminal action, see also title 6, section 14. Right to jury trial, see title 4, section 441 ; title 6, section 302 ; and title 7, section 33. Modes of conviction of public offense, see title 6, section 15. Prohibition of unnecessary restraint before conviction, see title 6, section 11. Prohibition of second prosecution for same offense, see also title 6, sections 8 and 9. No person compelled in criminal action to be witness against himself, see also title 6, sections 10 and 673. 1

PAGE 15

OPERATION, MAINTENANCE, AND GOVERNMENT IT. 2, § 2 TITLE 2.— OPERATION AND MAINTENANCE OF THE CANAL AND GOVERNMENT OF THE CANAL ZONE GENERALLY Sec. General provisions .1 Accounting for funds. 31 Administering oaths and summoning witnesses 41 Business operations 51 Customs service 61 Employees 81 Exclusion and deportation of persons 141 Inspection of vessels..151 Intoxicating liquors (note) Keeping and impounding of domestic animals 201 Notaries public 211 Panama Railroad Co.; railroads 221 Ch. Sec. 13. Pardons and reprieves and remission of fines and forfeitures 261 14. Postal service 271 15. Protection of birds and their nests 291 16. Public lands 301 17. Public roads and highways; vehicles; ferries.... 321 18. Purchase of supplies 351 19. Radio equipment on ocean-going vessels using ports 361 20. Sanitation, health, and quarantine 371 21. Seamen 391 22. Taxes and licenses 401 23. Tolls for use of Canal 411 24. Wireless telegraphic installations 421 CHAPTER 1.— GENERAL PROVISIONS Sec. 1. Short title of organic act ; reservation of right to alter, amend or ropeaW 2. Establishment of Canal Zone. 3. Acquisition of additional land ; exchange of land. 4. Towns and subdivisions of Canal Zone. 5. Government and operation of Canal and government of Canal Zone. 6. Appointment, term and salary of Governor. 7. Control and jurisdiction of Governor over Canal Zone. Sec. 8. Army control in time of war or when war is imminent. 9. Regulations governing operation of Canal, pilotage and navigation. 10. Damages for injuries to vessels, cargo or passengers in passing through 11. Canal closed to violators of antitrust laws. 12. Regulation by Governor of anchorage and movement of vessels in time of national emergency. Section 1. Short title of organic act; reservation of right to alter, amend or repeal. — ^The Act entitled "An Act to provide for the opening, maintenance, protection, and operation of the Panama Canal, and the sanitation and government of the Canal Zone," approved August 24, 1912 (ch. 390, 37 Stat. 560), shall be known and referred to as the Panama Canal Act, and the right is expressly reserved: a. To alter, amend or repeal any or all of its provisions; and b. To extend, modify or annul any rule or regulation made under its authority. (Aug. 24, 1912, ch. 390, sec. 14, 37 Stat. 569 [U.S. Code, title 48, sec. 1301].) 2. Establishment of Canal Zone. — The zone of land and land under water of the width of ten miles extending to the distance of five miles on each side of the center line of the route of the canal constructed thereon, which zone begins in the Caribbean Sea three marine miles from mean low-water mark and extends to and across the Isthmus of Panama into the Pacific Ocean to the distance of three marine miles from mean low-water mark, excluding therefrom the cities of Panama and Colon and their adjacent harbors located within said zone, as excepted in the treaty with the Republic of Panama dated November 18, 1903, but including all islands within said described zone, and in addition thereto the group of islands in the Bay of Panama named Perico, Naos, Culebra and Flamenco, and any lands and waters outside of said limits above described

PAGE 16

T. 2, § 3] OPERATION, MAINTENANCE, AND GOVERNMENT which are necessary or convenient or from time to time may become necessary or convenient for the construction, maintenance, operation, sanitation or protection of the said canal or of any auxiliary canals, lakes or other works necessary or convenient for the construction, maintenance, operation, sanitation or protection of said canal, the use, occupancy or control whereof were granted to the United States by the treaty between the United States and the Republic of Panama, the ratifications of which were exchanged on February 26, 1904:, shall be known and designated as the Canal Zone, and the canal constructed thereon shall be known and designated as the Panama Canal. (Aug. 24, 1912, ch. 390, sec. 1, 37 Stat. 560 [U.S. Code, title 48, sec. 1302].) 3. Acquisition of additional land; exchange of land. — The President is authorized, by treaty with the Republic of Panama : a. To acquire any additional land or land under water not already granted, or which was excepted from the grant, that he may deem necessary for the operation, maintenance, sanitation or protection of the Panama Canal; and b. To exchange any land or land under water not deemed necessary for such purposes, for other land or land under water which may be deemed necessary for such purposes; Which additional land or land under water so acquired shall become part of the Canal Zone. (Aug. 24, 1912, ch. 390, sec. 1, 37 Stat. 560 [U.S. Code, title 48, sec. 1302].) Cross-Re^^bence For convention between United States and Panama defining the boundary line of the Canal Zone, see appendix, p. 848. 4. Towns and subdivisions of Canal Zone. — The President is authorized to determine or cause to be determined what towns shall exist in the Canal Zone, and subdivide and from time to time resubdivide the Canal Zone into subdivisions, to be designated by name or number, so that there shall be situated one town in each subdivision, and the boundaries of each subdivision shall be clearly defined. (Aug. 24, 1912, ch. 390, sec. 7, 37 Stat. 564; Sept. 21, 1922, ch. 370, sec. 1, 42 Stat. 1004; Feb. 16, 1933, ch. 91, sec. 1, 47 Stat. 814 [U.S. Code, title 48, sec. 1341].) CB088-ReFEBENCE8 Magistrate's court in each town, see title 7, section 1. Revocable licenses for lots in town sites, see section 304 of this title. 5. Government and operation of Canal and government of Canal Zone. — The President is authorized to govern and operate the Panama Canal and govern the Canal Zone, or cause them to be governed and operated, through a Governor of the Panama Canal and such other persons as he may deem competent to discharge the various duties connected with the care, maintenance, sanitation, operation, government and protection of the Canal and Canal Zone. (Aug. 24, 1912, ch. 390, sec. 4, 37 Stat. 561 [U.S. Code, title 48, sec. 1305].) Cboss-Reference Appointment of necessary persons, see section 81 of this title.

PAGE 17

OPERATION, MAINTENANCE, AND GOVERNMENT [T. 2, § 10 6. Appointment, term and salary of Governor. — ^The Governor of the Panama Canal shall be appointed by the President, by and with the advice and consent of the Senate, commissioned for a term of four years and until his successor is appointed and qualified. He shall receive a salary of $10,000 a year. (Aug. 24, 1912, ch. 390, sec. 4, 37 Stat. 561 [U.S. Code, title 48, sec. 1305].) 7. Control and jurisdiction of Governor over Canal Zone. — The Governor of the Panama Canal shall, in connection with the operation of the Canal : a. Have official control and jurisdiction over the Canal Zone; and b. Perform all duties in connection with the civil government of the Canal Zone, which is to be held, treated and governed as an adjunct of the Canal. (Aug. 24, 1912, ch. 390, sec. T, 37 Stat. 564; Sept 21, 1922, ch. 370, sec. 1, 42 Stat. 1004; Feb. 16, 1933, ch. 91 sec. 1, 47 Stat. 814 [U.S. Code, title 48, sec. 1307].) 8. Army control in time of war or when war is imminent. — In time of war in which the United States is engaged or when in the opinion of the President war is imminent, such officer of the Army as the President may designate shall, upon the order of the President, assume and have exclusive authority and jurisdiction over the operation of the Panama Canal and all its adjuncts, appendants and appurtenances, including the entire control and government of the Canal Zone. During a continuance of such condition the Governor of the Panama Canal shall be subject to the order and direction of such officer of the Army in all respects and particulars as to the operation of the Canal and all duties, matters and transactions affecting the Canal Zone. (Aug. 24, 1912, ch. 390, sec. 13, 37 Stat. 569 [U.S. Code, title 48, sec. 1306].) 9. Regulations governing operation of Canal, pilotage and navigation. — The President is authorized to make, and from time to time amend, regulations governing : a. The operation of the Panama Canal ; b. The passage and control of vessels through the same or any part thereof, including the locks and approaches thereto ; c. Pilots and pilotage in the Canal or the approaches thereto through the adjacent waters; and d. The navigation of the harbors and other waters of the Canal Zone, including the licensing of officers of vessels navigating such waters. Any person violating any of the provisions of the rules and regulations established hereunder shall be punished by a fine of not more than $100, or by imprisonment in jail for not more than thirty days, or by both. (Aug. 24, 1912, ch. 390, sec. 5, 37 Stat. 562; July 5, 1932, ch. 425, 47 Stat. 578 [U.S. Code, title 48, sec. 1318].) Cboss-Refekences Inspection of vessels, see sections 151 to 160 of tliis title. Injury to, or obstruction of, Canal or locks, see title 5, sections 255 and 821. 10. Damages for injuries to vessels, cargo or passengers in passing through locks. — The regulations authorized under the next preceding section shall provide for prompt adjustment by agree-

PAGE 18

T.2, §11] OPERATION, MAINTENANCE, AND GOVERNMENT ment and immediate payment of claims for damages which may arise from injury to vessels, cargo, or passengers from the passing of vessels through the locks under the control of those operating them under such rules and regulations. In case of disagreement action may be brought in the district court against the Governor of the Panama Canal. The hearing and disposition of such actions shall be expedited and the judgment shall be paid immediately out of any moneys appropriated or allotted for Canal operation. (Aug. 24, 1912, ch. 390, sec. 5, 37 Stat. 562 [U.S. Code, title 48, sec. 1319].) Ckoss-Reteben ce Establishment and designation of district court, see title 7, section 21. 11. Canal closed to violators of anti-trust laws. — No vessel permitted to engage in the coastwise or foreign trade of the United States shall be permitted to enter or pass through the Panama Canal if such ship is owned, chartered, operated, or controlled by any person or company which is doing business in violation of the provisions of the anti-trust laws (U.S. Code, title 15, sees. 1 to 27), or of any other Act of Congress amending or supplementing the same. The question of fact may be determined by the judgment of any court of the United States of competent jurisdiction in any cause pending before it to which the owners or operators of such ship are parties. Suit may be brought by any shipper or by the Attorney General of the United States. (Aug. 24, 1912, ch. 390, sec. 11, 37 Stat. 567 [U.S. Code, title 15, sec. 31].) 12. Regulation by Governor of anchorage and movement of vessels in time of national emergency. — Within the territory and waters of the Canal Zone the Governor of the Panama Canal, with the approval of the President, shall exercise all the powers conferred by section 1 of the Act of June 15, 1917 (ch. 30, title II, 40 Stat. 220 [U.S. Code, title 50, sec. 191]), on the Secretary of the Treasury. (June 15, 1917, ch. 30, title II, sec. 1, 40 Stat. 220 [U.S. Code, title 50, sec. 191].) CROS S-REFERiBN CES Failure to observe regulations, see U.S. Code, title 50, section 192 (appendix, p. 1014). Jurisdiction of district court and duties of district attorney in relation to offenses, see U.S. Code, title 50, section 39 (appendix, p. 1012). CHAPTER 2.— ACCOUNTING FOR FUNDS Sec. 31. Consolidation of functions in relation to the various funds. 32. Accounting by collecting oflScers of Panama Canal. Sec. 33. Examination of accounts by persona detailed from General Accounting Office. Section 31. Consolidation of functions in relation to the various funds. — The consolidation of the functions of receiving, disbursing and accounting for the funds of the Canal Zone Government and the Panama Railroad operations on the Isthmus with the functions of receiving, disbursing and accounting for the funds appropriated for the Panama Canal is authorized in so far as may be practicable, but separate accounts shall be kept of the transactions under

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OPERATION, MAINTENANCE, AND GOVERNMENT [T. 2, § 42 each fund. (Aug. 1, 1914, ch. 223, sec. 4, 38 Stat. 679 [U.S. Code, title 48, sec. 1327].) 32. Accounting by collecting officers of Panama Canal. — The collecting officers of the Panama Canal shall render their accounts in such detail, and shall transmit with their accounts to the General Accounting Office all such papers, records and copies relating to their transactions as collectors, as shall be prescribed in regulations approved by the President, and, in his judgment, not incompatible with the methods of accounting prescribed in the Budget and Accounting Act, 1921 (U.S. Code, title 31, ch. 1). (Aug. 1, 1914, ch. 223, sec. 5, 38 Stat. 679 [U.S. Code, title 48, sec. 1328].) 33. Examination of accounts by persons detailed from General Accounting Office. — In prescribing regulations under the provisions of the next preceding section, the President shall provide that in lieu of furnishing to the General Accounting Office individual detail collection vouchers, two competent persons from the General Accounting Office, designated by the Comptroller General, shall be sent at such time as may be designated by the Comptroller General, to the Canal Zone to examine the accounts and vouchers and verify the submitted schedules of collections, and report in duplicate to the General Accounting Office and the Auditor of the Panama Canal; and such persons shall make such other examination into the accounts of the Panama Canal as may be directed by the Comptroller General, and for all such purposes they shall have access to all records and papers pertaining thereto. Such persons shall be furnished transportation and traveling expenses out of such appropriations for the Panama Canal as may be designated by the Governor. (Mar. 3, 1915, ch. 75, sec. 3, 38 Stat. 886 [U.S. Code, title 48, sec. 1329].) CHAPTER 3.— ADMINISTERING OATHS AND SUMMONING WITNESSES Sec. 43. Process to compel attendance of witnesses and production of papers. Sec. 41. Authority of certain officers to administer oaths for certification of papers. 42. Authority to summon witnesses and require production of papers. Section 41. Authority of certain officers to administer oaths for certification of papers. — Members of the board of local inspectors, customs officers, quarantine officers, and admeasurers, appointed by the Governor of the Panama Canal, may administer oaths for the purpose of certifying the correctness of official papers. (July 5, 1932, ch. 422, sec. 1, 47 Stat. 576.) Ceoss-Refekence Administration of oaths by judicial and other oflacers, see title 4, section 2171. 42. Authority to summon witnesses and require production of papers. — The officers designated in the next preceding section may: a. Summon witnesses to testify in matters within the jurisdiction of such officers; and b. Require the production of books and papers necessary thereto. (July 5, 1932, ch. 422, sec. 2, 47 Stat. 577.)

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T. 2, § 43] OPERATION, MAINTENANCE, AND GOVERNMENT 43. Process to compel attendance of witnesses and production of papers. — The district court may : a. Issue processes at the request of the designated Canal officers to compel the attendance of witnesses and the production of books and papers; and b. Funish for contempt of court any person who refuses to obey such processes, or who refuses to be sworn or to answer any material or proper question after being duly sworn. (July 5, 1932, ch. 422, sec. 2, 47 Stat. 577 [U.S. Code, title 48, sec. 1345a].) CHAPTER 4.— BUSINESS OPERATIONS Sec. 51. Providing materials, supplies, and services for vessels. See. 52. Receipts from such business ; appropriation for expenditure and reinvestment. Section 51. Providing materials, supplies, and services for vessels. — The President is authorized to establish, maintain and operate, through the Panama Kailroad Company or otherwise, dry docks, repair shops, yards, docks, wharves, warehouses, storehouses and other necessary facilities and appurtenances for the purpose of providing coal and other materials, labor, repairs and supplies for vessels of the Government of the United States and, incidentally, for supplying such at reasonable prices to passing vessels, in accordance with appropriations hereby authorized to be made from time to time by Congress as a part of the maintenance and operation of the Panama Canal. (Aug. 24, 1912, ch. 390, sec. 6, 37 Stat. 563 [U.S. Code, title 48, sec. 1323].) 52. Receipts from such business; appropriation for expenditure and reinvestment. — Moneys received from the conduct of the business referred to in the next preceding section, may be expended and reinvested for such purposes without being covered into the Treasury of the United States ; and such moneys are hereby appropriated for such purposes, but all deposits of such funds shall be subject to the provisions of existing law relating to the deposit of other public funds of the United States, and any net profits accruing from such business shall annually be covered into the Treasury of the United States. Monthly reports of such receipts and expenditures shall be made to the President by the persons in charge, and annual reports shall be made to the Congress. (Aug. 24, 1912, ch. 390, sec. 6, 37 Stat. 563 [U.S. Code, title 48, sec. 1323].) CHAPTER 5.— CUSTOMS SERVICE Sec. 61. Control by Governor of importation of articles or merchandise ; regulations. 62. Offenses in relation to entry or importation of articles or merchandise. 63. Seizure and confiscation of articles illegally imported or obtained. 64. Omission of merclumdise from manifest; penalty and forfeiture. Sec. 65. Omission of sea stores from list ; landing of sea stores ; penalty and forfeiture. 66. Powers of officers performing duties in relation to customs. 67. Fees of customs officers. Section 61. Control by Governor of importation of articles or merchandise; regulations.— The Governor of the Panama Canal shall : a. Have control for customs purposes over all articles introduced into the Canal Zone including passengers' baggage ; and

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OPERATION, MAINTENANCE. AND GOVERNMENT [T. 2, § 65 b. Have authority to establish, and to alter and amend from time to time, rules and regulations governing: , ^ i v -i (1) The entry and importation of goods into the Canal Zone; and (2) The disposition of goods brought into the Canal Zone in violation of such regulations. (Feb. 16, 1933, ch. 90, sec. 1, 47 btat. 813 [U.S. Code, title 48, sec. 1325a].) 62. Offenses in relation to entry or importation of articles or merchandise. — Any person who shall: a. Enter or import, or attempt to enter or import, any articles or merchandise into the Canal Zone before the entry or importation of such articles or merchandise has been approved by the proper officers of the Canal Zone; i i . • b. Pass, or attempt to pass, any false, forged or fraudulent invoice, bill or other paper, for the purpose of securing the entry or importation of any articles or merchandise into the Canal Zone in violation of the rules and regulations established under the authority of the next preceding section ; or ,,.,-, n ^, c. Violate any of the rules and regulations established under the authority of the next preceding section ; , . . Shall be punished by a fine of not more than $100, or by imprisonment in jail for not more than ninety days, or by both. (Feb. 16, 1933, ch. 90, sec. 3, 47 Stat. 813 [U.S. Code, title 48, sec. 1325c].) 63. Seizure and confiscation of articles illegally imported or obtained. — Any article brought into or obtained in the Canal Zone in violation of the rules and regulations established under the authority of section 61 of this title may be seized and held, and, unless entered in conformity with such rules and regulations withm a period of thirty days from the date of seizure, may be confiscated and disposed of as provided in such rules and regulations. (Feb. 16, 1933, ch. 90, sec. 3, 47 Stat. 813 [U.S. Code, title 48, sec. 1325c].) 64. Omission of merchandise from manifest; penalty and forfeiture.— If any vessel arriving at the Canal Zone from any port, other than a port in the Canal Zone or the Republic of Panama, is found to have on board merchandise not manifested, the master of such vessel shall be liable to a penalty equal in amount to the value of the merchandise not manifested, and all such merchandise belonging to or consigned to or for the officers or crew of the vessel shall be forfeited : Provided, however, That such penalty shall not be imposed if it is made to appear to the customs officers, or to the court in which the trial is held, that no part of the cargo has been unloaded except as accounted for in the master's report, and that the errors and omissions in the manifest were made without fraud or collusion ; and in such case the master may be allowed to correct his manifest by means of a post entry. A permit shall not be granted to unload any such merchandise so omitted from the manifest before post entry or addition to report or manifest has been made. (Feb. 16, 1933, ch. 90, sec. 4, 47 Stat. 813 [U.S. Code, title 48, sec. 1325d].) 65. Omission of sea stores from list; landing of sea stores; penalty and forfeiture.— If sea stores are found on board a vessel from any port, other than a port in the Canal Zone or the Republic of 93083—34 2 9

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T. 2, § 66] OPERATION, MAINTENANCE, AND GOVERNMENT Panama, which are not specified in the list furnished the boarding officer, or if a greater quantity of such articles is found than that specified in such list, or if any of such articles are landed without a permit being first obtained from the customs officer for that purpose, all of such articles omitted from the list or manifest, or so landed, shall be seized and forfeited, and the master of the vessel shall be liable to a penalty treble the value of the articles so omitted or landed. (Feb. 16, 1933, ch. 90, sec. 5, 47 Stat. 814 [U.S. Code, title 48, sec. 1325e].) 66. Powers of officers performing duties in relation to customs. — Customs officers in the Canal Zone, including deputy shipping commissioners and boarding officers when performing duties m relation to customs, shall have general powers of search, seizure, and arrest. In the exercise of these powers such officers may: a. Enter any building other than a dwelling house ; b. Stop vessels and vehicles; c. Search vessels, vehicles, and their contents ; and d. Stop and search persons and any packages carried by them. Such rights of entry, stopping, search, seizure, and arrest shall be exercised only when there are reasonable grounds for suspecting violations of the customs rules and regulations authorized under section 61 of this title or of the United States applicable in the Canal Zone. (Feb. 16, 1933, ch. 90, sec. 2, 47 Stat. 813 [U.S. Code, title 48, sec. 1325b].) 67. Fees of customs officers. — A customs officer of the Canal Zone may collect a fee, equivalent to the fee prescribed by the United States consular regulations for the same act or service when performed by consular officials, whenever he shall : a. Certify an invoice, landing certificate, or other similar document ; b. Register a marine note of protest ; or c. Perform any notarial service. (Aug. 21, 1916, ch. 371, sec. 8, 39 Stat. 528 [U.S. Code, title 48, sec. 1326].) Cross-Refebet^ce Authority to certify invoices for merchandise shipped to United States from Canal Zone, see U.S. Code, title 19, section 1482 (appendix, p. 957). CHAPTER 6.— EMPLOYEES Art. Sec. Appointment and compensation in ficnoral 81 Retirement of Canal and Railroad employees on Isthmus who are citizens 01 Art. Sec. 3. Compensation for injuries to Canal and Railroad employees 121 ARTICLE 1.— APPOINTMENT AND COMPENSATION IN GENERAL Sec. 81. Appointment, removal, and compensation of necessary persons. 82. Deduction from compensation of per.sons in military or naval service. Sec. 83. Deduction from compensation of amounts due for supplies or services. Section 81. Appointment, removal, and compensation of necessary persons. — AH persons, other than the Governor of the Panama 10

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OPERATION, MAINTENANCE, AND GOVERNMENT [T. 2, § 83 Canal, necessary for the care, management, maintenance, sanitation, government, operation, and protection of the Canal and Canal Zone shall: a. Be appointed by the President or by his authority; b. Be removable at the pleasure of the President ; and c. Receive such compensation as shall be fixed by the President or by his authority until such time as Congress may by law regulate the same, but salaries or compensation fixed by the President hereunder shall in no instance exceed by more than 25 per centum the salary or compensation paid for the same or similar services to persons employed by the Government in continental United States. (Aug. 24, 1912, ch. 390, sec. 4, 37 Stat. 561 [U.S. Code, title 48, sec. 1305].) 82. Deduction from compensation of persons in military or naval service. — If any of the persons appointed or employed as provided in sections 6 and 81 of this title are in the military or naval service of the United States, the amount of the official salary paid to any such person shall be deducted from the amount of salary or compensation provided by or which shall be fixed under the terms of those sections, but this section shall not be construed as requiring the deduction from the amount of such salar}^ or compensation, of : a. The retired pa}^ or allowances of any retired warrant officer or enlisted man of the Army, Navy, Marine Corps, or Coast Guard ; or b. The training pay, retainer pay or allowances of any warrant officer or enlisted man of the reserve forces of the Army, Navy, Marine Corps, or Coast Guard. (Aug. 24, 1912, ch. 390, sec. 4, 37 Stat. 561 [U.S. Code, title 48, sec. 1305] ; Mar. 12, 1928, ch. 213, 45 Stat. 310 [U.S. Code, title 48, sec. 1305a]. CB0S8-ReI"E[RENCES Double salaries, generally, see U.S. Code, title 5, sections 58 to 59a (appendix, p. 870). Holding other lucrative office, see U.S. Code, title 5, section 62 (appendix, p. 871). 83. Deduction from compensation of amounts due for supplies or services. — All amounts due from employees, whether to the Panama Canal, Panama Railroad Company, or contractor, for transportation, board, supplies or any other service, are hereby authorized to be deducted from the compensation otherwise pa3^able to such emplo3^ees, and to be paid to the authorized parties or to be credited to the appropriation out of which the transportation, board, supplies, or other service was originally paid. (Mar. 4, 1907, ch. 2918, sec. 8, 34 Stat. 1371.) Cboss-Reference Application of pay to indebtedness due United States on removal of employee for cause, see U.S. Code, title 5, section 46a (appendix, p. 870). 11

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T. 2, § 91] OPERATION, MAINTENANCE, AND GOVERNMENT ARTICLE 2. -RETIREMENT OF CANAL AND RAILROAD EMPLOYEES ON ISTHMUS WHO ARE CITIZENS Sec. 91. Employees to whom article applies. 92. Automatic retirement ; optional retirement at 60 in certain cases. Voluntary retirement. Di.sability retirement ; requirement of medical examination. Involuntary separation from the service. Method of computing annuities. 97. Computation of accredited service. 98. Credit for past service. 93. 94. 95. 96. Sec. 99. Deductions. 100. Investments and accounts. 101. Return of amounts deducted from salaries. 102. Payment of annuities. 103. Benefits extended to those already retired. 104. Board of actuaries. 105. Administration. 106. Moneys not assignable or subject to legal process. 107. Effective date. 91. Employees to whom article applies. — All employees of the Panama Canal on the Isthmus of Panama and all employees of the Panama Railroad Company on the Isthmus of Panama, who are citizens of the United States and whose tenure of employment is not intermittent nor of uncertain duration, shall come within the provisions of this article. (Mar. 2, 1931, ch. 375, sec. 1, 46 Stat. 1471 [U.S. Code, title 48, sec. 1371].) 92. Automatic retirement; optional retirement at 60 in certain cases. — All employees to whom this article applies shall, after reaching the age of sixty-two years and having rendered at least fifteen years of service on the Isthmus of Panama, be automatically separated from the service and retired on the annuity provided for herein; and all salary, pay, or compensation shall cease from that date. On and after July 1, 1932, no employee to whom this article applies who shall have reached the retirement age prescribed for automatic separation from the service, shall be continued in such service, notwithstanding any provision of law or regulation to the contrary: Provided, That the President may, by Executive order, exempt from the provisions of this paragraph any person when, in his judgment, the public interest so requires : Provided further, That no such person heretofore or hereafter separated from the service under any provision of law or regulation providing for such retirement on account of age shall be eligible again to appointment to any appointive office, position, or employment to which this article applies: Provided further, That this paragraph shall not apply to any person named in any Act of Congress providing for the continuance of such person in the service. All employees to whom this article applies who would be eligible for retirement from the service upon attaining the age of sixtytwo years shall, after attaining the age of sixty years and having rendered at least thirty years' service, computed as provided in section 97 of this title, be eligible for retirement on an annuity as provided in section 96 of this title. Retirement under the provisions of this paragraph shall be at the option of the employee, but if such option is not exercised prior to the date upon which the employee would otherwise be eligible for retirement from the service, the provisions of this article with respect to automatic separation from the service shall apply. (Mar. 2, 1931, ch. 375, sec. 2, 46 Stat. 1471 [U.S. Code, title 48, sec. 1371a] ; June 30, 1932, ch. 314, sec. 204, 47 Stat. 404 [U.S. Code, title 5, sec. 692b].) 12

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OPERATION, MAINTENANCE, AND GOVERNMENT [T. 2, § 94 93. Voluntary retirement. — (a) Any employee to whom this article applies who shall have attained the age of fifty-five and rendered at least twenty-five years of service, of which not less than fifteen years shall have been rendered on the Isthmus of Panama, may voluntarily retire on an annuity equivalent in value to the present worth of a deferred annuity beginning at the age at which the employee would otherwise have become eligible for retirement, computed as provided in section 96 of this title, the present worth of said deferred annuity to be determined on the basis of the American Experience Table of Mortality and an interest rate of 4 per centum, compounded annually. (b) Any employee to whom this article applies may voluntarily retire on an annuity computed as provided in section 96, who shall have attained the age of fifty-five and rendered at least thirty years of service on the Isthmus of Panama (inclusive of absences while in the service of the United States during the World War), of which not less than three years shall have been in the employment of the Isthmian Canal Commission or the Panama Railroad Company between May 4, 1904, and April 1, 1914. (Mar. 2, 1931, ch. 375, sec. 3, 46 Stat. 1472 [U.S. Code, title 48, sec. 1371b].) 94. Disability retirement; requirement of medical examinations. — (a) Any employee to whom this article applies who shall have attained the age of fifty -five years and shall have rendered at least fifteen years of service on the Isthmus of Panama, and who shall have become physically or mentally disqualified to perform satisfactorily and efficiently the duties of his position or of any other position of approximately equal compensation to which he might be assigned, because of the strenuous or hazardous nature of such posi • lion, shall, upon the request or order of the Governor of the Panama Canal, be retired on an annuity computed in accordance with the provisions of section 96 of this title: Provided, That no such employee shall be so retired except after an examination and finding as to his mental or physical disqualifications as hereinafter provided. (b) Any employee to whom this article applies who shall have .served for a total period of not less than five years, and who, before becoming eligible for retirement under the conditions defined in section 92 of this title, shall have become totally disabled for useful and efficient service in the grade or class of position occupied by the employee, by reason of disease or injury not clue to vicious habits, intemperance, or willful misconduct on the part of the employee, shall upon his own application or upon request or order of the Governor of the Panama Canal, be retired on an annuity computed in accordance with the provisions of section 96 of this title. No claim shall be allowed under the provisions of this section unless the application for retirement shall have been executed prior to the applicant's separation from the service or within six months thereafter. No employee shall be retired under the provisions of this section unless he or she shall have been examined by a medical officer of the United States, or a duly qualified physician or surgeon or board of physicians or surgeons, designated by the Administrator of Veterans' Affairs for that purpose, and found to be disabled in the degree and in the manner specified herein. 13

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T. 2, § 94] OPERATION, MAINTENANCE, AND GOVERNMENT Every annuitant retired under the provisions of this section, unless the disability for which he was retired be permanent in character, shall at the expiration of one year from the date of such retirement and annually thereafter, until reaching retirement age as defined in section 92 of this title, be examined under the direction of the Administrator of Veterans' Affairs by a medical officer of the United States, or a duly qualified physician or surgeon, or board of physicians or surgeons designated by the Administrator of Veterans' Affairs for that purpose, in order to determine the nature and degree of the annuitant's disability, if any. If an annuitant shall recover before reaching the age at which he would otherwise have become eligible for retirement and be restored to an earning capacity which would permit him to be appointed to some appropriate position fairly comparable in compensation to the position occupied at the time of retirement, payment of the annuity shall be continued temporarily to afford the annuitant opportunity to seek such available position, but not in any case exceeding ninety days from the date of the medical examination showing such recovery. If the annuitant shall fail to obtain reemployment through no fault of his own within the ninety-day period in any position included in the provisions of this article, he shall be considered as involuntarily separated from the service as of the date he shall have been retired for disability, and if otherwise eligible, entitled to an annuity under section 95 of this title to begin at the close of said ninety-day period based on the service rendered prior to his retirement for disability. The Administrator of Veterans' Affairs may order or direct at any time such medical or other examination as he shall deem necessary to determine the facts relative to the nature and degree of disability of any employee retired on an annuity under this section. Should an annuitant fail to appear for any examination required under this section, payment of the annuity shall be suspended until the requirement shall have been met. In all cases where the annuity is discontinued under the provisions of this section before the annuitant has received a sum equal to the amount credited to his individual account as provided in paragraph (a) of section 101 of this title, together with interest at 4 per centum per annum compounded on June 30 of each year, the difference, unless he shall become reemployed in a position within the purview of this article, shall be paid to the retired employee, as provided in paragraj^h (b) of section 101 of this title, upon application therefor in such form and manner as the Administrator of Veterans' Affairs may direct. In case of reemployment in a position within the purview of this article the amount so refunded shall be redeposited as provided in paragraph (b) of section 101 of this title. No person shall be entitled to receive an annuity under the provisions of this article, and compensation under the provisions of the Act of September 7, 1916 (ch. 458, 39 Stat. 742 [U.S. Code, title 5, ch. 15]), covering the same period of time; but this provision shall not be so construed as to bar the right of any claimant to the greater benefit conferred by either Act for any part of the same period of time. 14

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OPERATION, MAINTENANCE, AND GOVERNMENT [T. 2, § 95 Fees for examinations made under the provisions of this section, by physicians or surgeons who are not medical officers of the United States, shall be fixed by the Administrator of Veterans' Affairs, and such fees, together with the employee's reasonable traveling and other expenses incurred in order to submit to such examinations, shall be paid out of the appropriations for the cost of administering this article. (Mar. 2, 1931, ch. 375, sec. 4, 46 Stat. 1472 [U.S. Code, title 48, sec. 1371c].) Note. — A uniform retirement date for the authorized retirement of Federal personnel is fixed by the Act of April 23, 1930 (ch. 209, sec. 1, 46 Stat. 253 [U.S. Code, title 5, sec. 47a]), which reads as follows: " Retirement authorized by law of Federal personnel of whatever class, civil, military, naval, judicial, legislatire, or otherwise, and for whatever cause retired, shall take effect on the 1st day of the month following the mouth in which said retirement would otherwise be effective, and said 1st day of the month for retirements made after July 1, 1930, shall be for all purposes in lieu of such date for retirement as was on April 23, 1930, authorized ; except that the rate of active or retired pay or allowance shall be computed as of the date retirement would have occurred if this section had not been enacted." Section 2 of the act (46 Stat. 253) provided as follows: "This Act shall become effective July 1, 1930. All laws or parts of laws, insofar as in conflict herewith, are repealed." 95. Involuntary separation from the service. — Should any employee fifty-five years of age or over to whom this article applies, after having served for a total period of not less than fifteen years and before becoming eligible for retirement under the conditions defined in section 92 of this title, become involuntarily separated from the service, not by removal for cause on charges of misconduct or delinquency, such employee shall be paid as he may elect, either — (a) The amount of the deductions from his basic salary, pay, or compensation, including accrued interest thereon computed as prescribed in ]3aragraph (b) of section 101 of this title; (b) An immediate life annuity beginning at the date of separation from the service, having a value equal to the present worth of a deferred annuity beginning at the age at which the employee would otherwise have become eligible for retirement, computed as provided in section 96 of this title, the present worth of said deferred annuity to be determined on the basis of the American Experience Table of Mortality and an interest rate of 4 per centum, compounded annually; or (c) A deferred annuity beginning at the age at which the employee would otherwise become eligible for retirement computed as provided in section 96 of this title. Any employee who has served for a period of not less than fifteen years, and who is forty-five years of age, or over, and less than fiftyfive years, and who becomes separated from the service under the conditions set forth in this section shall be entitled to a deferred annuity, but such employee may, upon reaching the age of fifty-five years, elect to receive an immediate annuity as provided in paragraph (b) of this section. Should an annuitant under the provisions of this section be reemployed in any position included in the provisions of this article, payment of annuity shall not be allowed covering the period of such 15

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T. 2, § 96] OPERATION, MAINTENANCE, AND GOVERNMENT reemployment, and an annuity based upon involuntary separation shall not be allowed upon subsequent separation from the service unless such subsequent separation shall be involuntary. (Mar. 2, 1931, ch. 375, sec. 5, 46 Stat. 1474 [U.S. Code, title 48, sec. 1371d].) Note. — With respect to involuntary separation from tlie service between June 16, 1933, and July 1, 1935, by a person having at least 30 years' service, act of June 16, 1933 (ch, 101, sec. 8, par. (b), 48 Stat. 305 [U.S. Code, title 48, sec. 1371 bb]), provides as follows: " Whenever at any time hereafter prior to July 1, 1935, any person to whom the Canal Zone Retirement Act, approved March 2, 1931 (Public, Numbered 781, Seventy-first Congress), applies, who has an aggregate period of service of at least thirty years computed as prescribed in section 7 of such Act (section 97 of this title), is involuntarily separated from the service for reasons otlier than his misconduct, such employee shall be entitled to an annuity computed as provided in section 6 of such Act (section 96 of this title) payable from the Canal Zone retirement and disability fund less a sum equal to 5 ijer centum of such annuity : Provided, That when an annuitant hereunder attains the age at which he w^ould have been entitled to retirement with annuity computed as provided in section 6 of such Act (section 96 of this title), such deduction from the annuity shall cease. If and when any such annuitant shall be reemployed in the service of the District of Columbia or the United States (including any corporation the majority of the stock of which is owned by the United States), the right to the annuity provided by this section shall cease and the subsequent annuity rights of such person shall be determined in accordance with the applicable provisions of retirement law existing at the time of the subsequent separation of such person from the service." 96. Method of computing annuities. — The annuity of an employee retired under the provisions of this article shall be composed of— (1) A sum equal to $37.50 multiplied by the number of years of service, not to exceed thirty years, rendered (a) on the Isthmus of Panama, or (b) in the military or naval service of the United States in the Tropics; and (2) The annuity purchasable with the sum to the credit of the employee's individual account, including accrued interest thereon computed as prescribed in paragraph (a) of section 101 of this title, according to the experience of the Canal Zone retirement and disability fund as may from time to time be set forth in tables of annuity values by the board of actuaries ; and (3) Thirty dollars multiplied by the number of years of service rendered and not allowable under paragraph (1) hereof: Provided, That the number of years of service to be used in computing the allowance under paragraph (3) shall not exceed the difference between thirty and the number of allowable years of service under paragraph (1) ; and (4) Thirty-six dollars multiplied hj the number of years of service rendered on the Isthmus of Panama, either in the employ of the Isthmian Canal Commission or the Panama Raih'oad Company, between May 4, 1904, and April 1, 1914. In no case, however, shall the total annuity paid exclusive of that provided in paragraph (4) hereof, be less than an auiount equal to the sum of — The average annual basic salary, pay, or compensation, not to exceed $2,00() per annum, received by the employee during any five consecutive years of allowable service at the option of the employee, 16

PAGE 29

OPERATION, MAINTENANCE, AND GOVERNMENT [T. 2, § 97 multiplied by the number of years of service used in computing the annuity under paragraph (1) hereof, and divided by forty; and the average annual basic salary, pay, or compensation, not to exceed $1,600 per annum, received by the employee during any hve consecutive years of allowable service at the option of the employee, multiplied by the number of years of service used in computing the annuity under paragraph (3) hereof, and divided by forty: Frovlded, That the annuity paid a retiring emj^loyee ot the i'anama Railroad Company in such service on June 30, 1931, shall be an amount equal to 2 per centum of the average annual basic salary, pay, or compensation, not to exceed $5,000 per annum, received by the employee during any five consecutive years of allowable service at the option of the employee, multiplied by the number ot years of allowable service rendered prior to July 1, 1931; plus the amount to which the employee is entitled under the provisions of this section, exclusive of paragraph (4), for service rendered subsequent to June 30 1931 : Provided, however, That the sum to be used in computing the annuity purchasable under paragraph (2) of this section shall include only contributions made subsequent to June 30, 1931: Arul provided further. That the number of years of service to be used in computing the annuity under paragraph (1) and w) ot this section shall not exceed the difference between thirty and the number of years of allowable service rendered prior to July 1, 1931. The annuity granted under paragraphs (1), (3), and (4) ot this section shall not exceed three fourths of the average annual basic salary, pay, or compensation received by the employee during any five consecutive years of allowable service at the option of the employee. . , ^ ^ • • Any employee at the time of his retirement may elect to receive, m lieu of the life annuity herein described, an increased annuity of equivalent value which shall carry with it a proviso that no unexpended part of the principal upon the annuitant's death shall be returned. For the purposes of this article all periods of service shall be computed in accordance with section 97 of this title, and the annuity shall be fixed at the nearest multiple of twelve. _ The term " basic salary, pay, or compensation ", wherever used m this article, shall be so construed as to exclude from the operation ot the article all bonuses, allowances, overtime pay, or salary, pay, or compensation given in addition to the base pay of the position as fixed by law or regulation. (Mar. 2, 1931, ch. 375, sec. 6, 46 Stat. 1474 [U.S. Code, title 48, sec. 1371e].) 97. Computation of accredited service.— Subject to the provisions of section 98 of this title, the service which shall form the basis for calculating the amount of any benefit provided in this article shall be computed from the date of original employment, whether as a classified or an unclassified employee, in the civil service of the United States or under the municipal government of the District of Columbia, including periods of service at different times and in one or more departments, branches, or independent offices of the Government, and service on the Isthmus of Panama with the Isthmian Canal Commission, the Panama Canal, or the Panama Railroad Company; also periods of service performed overseas under authority of the United 17

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T. 2, § 98] OPERATION, MAINTENANCE, AND GOVERNMENT States and periods of honorable service in the Army, Navy, Marine Corps, or Coast Guard of the United States. In the case of an employee, however, who is eligible for and elects to receive a pension under any law, or retired pay on account of military or naval service, or compensation under the War Eisk Insurance Act, the period of his military or naval service upon which such pension, retired pay, or compensation is based shall not be included, but nothing in this article shall be so construed as to affect in any manner his right to a pension, or to retired pay, or to compensation under the War Risk Insurance Act in addition to the annuity herein provided. In computing length of service for the purposes of this article all periods of separation from the service, and so much of any leaves of absencel without pay as may exceed six months in the aggregate in any calendar year, shall be excluded. In determining the total periods of service upon which the allowances are to be computed under section 96 of this title, the fractional part of a month, if any, shall be eliminated from each respective total period. (Mar. 2, 1931, ch. 375, sec. 7, 46 Stat. 1476 [U.S. Code, title 48, sec. 1371f].) 98. Credit for past service. — All employees coming within the provisions of this article after July 1, 1931, shall be required to deposit with the Treasurer of the United States to the credit of the Canal Zone retirement and disability fund referred to in section 99 of this title, under rules to be prescribed by the Administrator of Veterans' Affairs, a sum equal to 2i/^ per centum of the employee's basic salary, pay, or compensation received for services rendered after July 31, 1920, and prior to July 1, 1926, and also 3i/2 per centum of the basic salary, pay, or compensation for services rendered subsequent to June 30, 1926, together with interest computed at the rate of 4 per centum per annum compounded on the last day of each fiscal year, but such interest shall not be included for any period during which the employee was separated from the service. Upon making such deposit the employee shall be entitled to credit for the period or periods of service involved : Provided, That no such deposit shall be required on account of services rendered for the Panama Railroad Company prior to January 1, 1924: Provided further, That failure to make such deposit shall not deprive the employee of credit for any past service for which no deposit is required under the provisions of this section. (Mar. 2, 1931, ch. 375, sec. 8, 46 Stat. 1476 [U.S. Code, title 48, sec. 1371g].) 99. Deductions. — Beginning July 1, 1931, there shall be deducted and withheld from the basic salary, pay, or compensation of each employee to whom this article applies a sum equal to 5 per centum of such em})loyee's basic salary, pay, or compensation. The amounts so deducted and withheld from the basic salary, pay, or compensation of each employee shall be deposited with the Treasurer of the United States to the credit of a special fund to be known as the Canal Zone retirement and disability fund, in accordance with the procedure now or hereafter prescribed for covering into the United States Treasury the deductions from salaries under the Civil Service Retirement Act (U.S. Code, title 5, c. 14), and said fund is hereby 18

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OPERATION, MAINTENANCE, AND GOVERNMENT [T. 2, § 101 appropriated for the payment of the annuities, refunds, and allowances as provided in this article. Every employee coming within the provisions of this article shall be deemed to consent and agree to the deductions from salary, pay, or compensation as provided herein, and payment less such deductions shall be a full and complete discharge and acquittance of all claims and demands Avhatsoever for all regular services rendered by such employee during the period covered by such payment, except the right to the benefits to which he shall be entitled under the provisions of this article, notwithstanding the provisions of any other law, rule, or regulation aifecting the salary, pay, or compensation of any person or persons to whom this article applies. (Mar. 2, 1931, ch. 375, sec. 9, 46 Stat. 1477 [U.S. Code, title 48, sec. 1371h].) 100. Investments and accounts. — The Secretary of the Treasury shall invest from time to time in interest-bearing securities of the United States or in Federal farm-loan bonds such portions of the Canal Zone retirement and disability fund as in his judgment may not be immediately required for the payment of the annuities, refunds, and allowances herein authorized, and the incomes derived from such investments shall constitute a part of such fund. (Mar. 2, 1931, ch. 375, sec. 10, 46 Stat. 1477 [U.S. Code, title 48, sec. 13711].) 101. Return of amounts deducted from salaries. — (a) Under such regulations as may be prescribed by the Civil Service Commission the amounts deducted and withheld from the basic salary, pay, or compensation of each employee for credit to the civil-service retirement and disability fund or the Panama Railroad pension fund, covering service rendered prior to July 1, 1931, shall be credited to an individual account of such employee to be maintained by the Panama Canal, and the amounts deducted and withheld from the basic salary, pay, or compensation of each employee for credit to the Canal Zone retirement and disability fund, covering service from and after July 1, 1931, less the sum of $1 per month or major fraction thereof, shall similarly be credited to such individual account. (b) In the case of any employee to whom this article applies who shall be transferred to a position not within the purview of the article, or who shall become absolutely separated from the service before becoming eligible for retirement on annuity, the amount credited to his individual account shall be returned to such employee together with interest at 4 per centum per annum compounded on June 30 of each year: Provided^ That when any employee becomes involuntarily separated from the service, not by removal for cause on charges of misconduct or delinquency, the total amount of his deductions with interest thereon shall be paid to such employee : And provided further^ That all moneys so returned to an employee must, upon reinstatement, retransfer, or reappointment to a position coming within the purview of this article, be redeposited with interest before such employee may derive any benefits under this article, except as provided in this section, but interest shall not be required covering any period of separation from the service. (c) In case an annuitant shall die without having received in annuities purchased by the employee's contributions as provided in (2) of section 96 of this title an amount equal to the total amount to 19

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T. 2, § 102] OPERATION, MAINTENANCE, AND GOVERNMENT his credit at time of retirement, the amount remaining to his credit shall be paid in one sum to his legal representatives upon the establishment of a valid claim therefor, unless the annuitant shall have elected to receive an increased annuity as provided in section 96 of this title. (d) In case an employee shall die without having attained eligibility for retirement or without having established a valid claim for annuity, the total amount of his deductions with interest thereon shall be paid to the legal representatives of such employee. (e) In case a former employee entitled to the return of the amount credited to his individual account shall become legally incompetent, the total amount due may be paid to a duly appointed guardian or committee of such employee. (f) If the amount of accrued annuity or of refund due a former employee who is legally incompetent does not exceed $1.0U0, and if there has been no demand upon the Administrator of Veterans' Affairs by a duly appointed executor, administrator, guardian, or committee, payment may be made, after the expiration of thirty days from date of death or of separation from the service, as the case may be, to such person or persons as may appear in the judgment of the Administrator of Veterans' Affairs to be legally entitled thereto, and such payment shall be a bar to recovery by any otlier person. (Mar. 2, 1931, ch. 375, sec. 11, 46 Stat. 1477 [U.S. Code, title 48, sec. 1371j].) 102. Payment of annuities. — Annuities granted under the terms of this article shall be due and payable in monthly installments on the first business day of the month following the month or other period for which the annuity shall have accrued; and payment of all annuities, refunds, and allowances granted hereunder shall be made by checks drawn and issued by the disbursing clerk for the payment of pensions in such form and manner and with such safeguards as shall be prescribed by the Administrator of Veterans' Affairs in accordance with the laws, rules, and regulations governing accounting that may be found applicable to such payments. Applications for annuity shall be in such form as the Administrator of Veterans' Affairs may prescribe, and shall be supported by such certificates from the heads of departments, branches, or independent offices of the Government or the Panama Railroad Company in which the applicant has been employed as may be necessary to the determination of the rights of the applicant. Upon receipt of satisfactory evidence the Administrator of Veterans' Affairs shall forthwith adjudicate the claim of the applicant, and if title to annuity be established, a proper certificate shall be issued to the annuitant under the seal of the Veterans' Administration. Annuities granted under the provisions of sections 92 and 93 of this title shall commence from the date of separation from the service and shall continue during the life of the annuitant. Annuities granted under the provisions of sections 94 and 95 of this title shall be subject to the limitations specified in said sections. (Mar. 2, 1931, ch. 375, sec. 12, 46 Stat. 1478 [U.S. Code, title 48, sec. 1371k].) 103. Benefits extended to those already retired. — In the case of those employees of the Panama Canal or the Panama Railroad Company who before July 1, 1931, shall have been retired on annuity 20

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OPERATION, MAINTENANCE, AND OOVERNMENT [T. 2, § 106 under the provisions of the Civil Service Retirement Act (U.S. Code, title 5, oh. 14), or said Act as amended, or as extended by Executive orders, or under the provisions of the Panama Railroad pension plan, the annuity shall be computed, adjusted, and paid under the provisions of this article, but this article shall not be so construed as to reduce the annuity of any person retired before its effective date, nor shall any increase in annuity commence before such effective date. All those who were separated from the service of either the Panama Canal or the Panama Railroad Company on the Isthmus of Panama, subsequent to August 1, 1920, and before July 1, 1931, not by removal for cause on charges of misconduct or delinquency, without having been granted retirement annuities due to the fact that all of their service which would be allowable under the provisions of this article was not counted in arriving at their total service, and who are otherwise eligible by having made the necessary contributions to the retirement and disability funds as herein provided, shall, from July 1, 1931, be paid annuities in accordance with the provisions of this article. (Mar. 2, 1931, ch. 375, sec. 13, 46 Stat. 1479 [U.S. Code, title 48, sec. 13711].) 104. Board of actuaries. — The board of actuaries selected by the Administrator of Veterans' Affairs under the provisions of section 16 of the Act of July 3, 1926 (U.S. Code, title 5, sec. 706a), shall make a valuation of the Canal Zone retirement and disability fund at intervals of five years, or oftener, if deemed necessary by the Administrator of Veterans' Affairs. (Mar. 2, 1931, ch. 375, sec. 14, 46 Stat. 1479 [U.S. Code, title 48, sec. 1371m].) 105. Administration. — For the purpose of administration, except as otherwise provided herein, the Administrator of Veterans' Affairs, is hereby authorized and directed to perform, or cause to be performed, any and all acts and to make such rules and regulations as may be necessary and proper for the purpose of carrying the provisions of this article into full force and effect. An appeal to the Administrator of Veterans' Affairs shall lie from the final action or order affecting the rights or interests of any person or of the United States under this article, the procedure on appeal to be as prescribed by the Administrator of Veterans' Affairs. The Administrator of Veterans' Affairs shall make a detailed comparative report annuall}'-, showing all receipts and disbursements on account of annuities, refunds, and allowances under this article, together with the total number of persons receiving annuities and the total amounts paid them ; and he shall transmit to Congress the reports and recommendations of the board of actuaries. The Administrator of Veterans' Affairs shall submit annually to the Bureau of the Budget estimates of the appropriations necessary to finance the Canal Zone retirement and disability fund, and to continue this article in full force and effect. (Mar. 2, 1931 ch. 375, sec. 15, 46 Stat. 1479 [U.S. Code, title 48, sec. 1371n].) Note. — Executive order no. 6670, dated April 7, 1934, provides for the transfer of the administration of this article to the United States Civil Service Commission. 106. Moneys not assignable or subject to legal process.— None of the moneys mentioned in this article shall be assignable, either in 21

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T. 2, § 107] OPERATION, MAINTENANCE, AND GOVERNMENT law or equity, or be subject to execution, levy, attachment, garnishment, or other legal process. (Mar, 2, 1931, ch. 375, sec. 16, 46 Stat. 1480 [U.S. Code, title 48, sec. 13Tlo].) 107. Effective date.— This article shall take effect July 1, 1931, and from and after that date the provisions of the Civil Service Retirement Act (U.S. Code, title 5, ch. 14), shall not apply to employees of the Panama Canal on the Isthmus of Panama or to any other employees coming within the provisions of this article: Provided^ however^ That any employee of the Panama Canal who shall attain the age of eligibility for retirement without having rendered sufficient service on the Isthmus of Panama to entitle him to be retired on an annuity as provided by section 92 of this title, but whose aggregate employment under the United States would be sufficient in character and duration to entitle him to receive an annuity under the provisions of the Civil Service Retirement Act, will be eligible to retire and receive an annuity under the provisions of that Act and payable from the civil service retirement and disability fund ; and in such event the employee shall be entitled, upon separation from the service, to the refund, under such regulations as the Administrator of Veterans' Affairs may prescribe, of any excess in the deductions made from his salary, pay, or compensation under the provisions of this article, with interest, over those which would have been made at the rate fixed by the Civil Service Retirement Act as amended; and the Administrator of Veterans' Affairs shall certify to the Secretary of the Treasury the amount remaining to the credit of such employee in the Canal Zone retirement and disability fund, and said amount shall be transferred on the books of the Treasury Department to the civil service retirement and disability fund. (Mar. 2, 1931, ch. 375, sec. 17, 46 Stat. 1480 [U.S. Code, title 48, sec. 1371 p.].)' ARTICLE 3.-COMPENSATION FOR INJURIES TO CANAL AND RAILROAD EMPLOYEES Sec. 121. Application of Federal Employees' Compensation Act to Canal and Railroad employees. 122. Release or assignment of rights arising from liability of Panama Railroad Co. Sec. 123. Transfer of administration of act to Governor ; modifications of act in respect to Canal and Railroad employees. 121. Application of Federal Employees' Compensation Act to Canal and Railroad employees. — The term " employee " whenever used in the Act of September 7, 1916 (ch. 458, 39 Stat. 742), as amended (U.S. Code, title 5, ch. 15), includes all employees of the Panama Canal and of the Panama Railroad Company. (Sept. 7, 1916 ch. 458, sec. 40, 39 Stat. 750; June 5, 1924, ch. 261, sec. 2, 43 Stat. 389 [U.S. Code, title 5, sec. 790].) Cross-Re!fekencb The Federal Employees' Compensation Act cited in the above section is shown in the appendix at pa^e S76. 122. Release or assignment of rights arising from liability of Panama Railroad Company. — If an injury or death for wliich compensation is payable under the Act of September 7, 1916 (ch. 458, 22

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OPERATION, MAINTENANCE, AND GOVERNMENT [T. 2, § 123 39 Stat. 742), as amended (U.S. Code, title 5, ch. 15), is caused under circumstances creating a legal liability in the Panama Railroad Company to pay damages therefor under the laws of any State, Territory, or possession of the United States or of the District of Columbia or of any foreign country, no compensation shall be payable until the person entitled to compensation releases to the Panama Railroad Company any right of action which he may have to enforce such liability of the Panama Railroad Company, or until he assigns to the United States any right which he may have to share in any money or other property received in satisfaction of such liability of the Panama Railroad Company. (Sept. 7, 1916, ch. 458, sec. 41, 39 Stat. 750 [U.S. Code, title 5, sec. 791].) 123. Transfer of administration of act to Governor; modifications of act in respect to Canal and Railroad employees. — The President may, from time to time, transfer the administration of the Act of September 7, 1916 (ch. 458, 39 Stat. 742), as amended (U.S. Code, title 5, ch. 15), so far as employees of the Panama Canal and of the Panama Railroad Company are concerned to the Governor of the Panama Canal, in which case the words " commission " and " its " wherever they appear in said act shall, so far as necessary to give effect to such transfer, be read " Governor of the Panama Canal " and " his " ; and the expenses of medical examinations under sections 21 and 22of said act, as amended (U.S. Code, title 5, sees. 771 and 772), and the reasonable traveling and other expenses and loss of wages payable to employees under section 21 of said act, as amended, shall be paid out of appropriations for the Panama Canal or out of funds of the Panama Railroad, as the case may be, instead of out of the appropriation for the work of the United States Employees' Compensation Commission. In the case of compensation to employees of the Panama Canal or of the Panama Railroad Company for temporary disability, either total or partial, the President may authorize the Governor of the Panama Canal to waive, at his discretion, the making of the claim required by section 18 of said act (U.S. Code, title 5, sec. 768). In the case of alien employees of the Panama Canal or of the Panama Railroad Company, or of any class or classes of them, the President may remove or modify the minimum limit established by section 6 of said act, as amended (U.S. Code, title 5, sec. 756), on the monthly compensation for disability and the minimum limit established by clause (K) of section 10 of said act, as amended (U.S. Code, title 5, sec. 760) on the monthly pay on which death compensation is to be computed. The President may authorize the Governor of the Panama Canal to pay the compensation provided by said act, including the medical, surgical, and hospital services and supplies provided by section 9 of said act, as amended (U.S. Code, title 5, sec. 759), and the transportation and burial expenses provided by sections 9 and 11 of said act (U.S. Code, title 5, sees. 759 and 761), out of the appropriations for the Panama Canal, such appropriations to be reimbursed for such payments by the transfer of funds from the employees' compensation fund. (Sept. 7, 1916, ch. 458, sec. 42, 39 Stat. 750 [U.S. Code, title 5, sec. 793].) 23

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T. 2, § 141] OPERATION, MAINTENANCE, AND GOVERNMENT CHAPTER 7.— EXCLUSION AND DEPORTATION OF PERSONS Sec. 141. Regulations as to right to enter or remain upon Canal Zone. Sec. 142. Punishment of persons deported from Canal Zone who return thereto. Section 141. Regulations as to right to enter or remain upon Canal Zone. — The President is authorized to make rules and regulations, and to alter or amend the same from time to time : a. Touching the right of any person to enter, remain upon or pass over any part of the Canal Zone; and b. For the detention of any person entering the Canal Zone in violation of such rules and regulations, and the return of such person to the country whence he came, on the vessel bringing the person to the Canal Zone, or any other vessel belonging to the same owner or interest, and at the expense of such owner or interest ; and in addition to the punishment prescribed by this section for violation of such rules and regulations, the authorities of the Canal Zone may withhold the clearance of the vessel from any port in the Canal Zone until any fine imposed and the cost of maintenance of the person are paid. Any person violating any of such rules or regulations shall be punished by a fine of not more than $500, or by imprisonment in jail for not more than one year, or by both. (Aug, 21, 1916, ch. 371, sec. 10, 39 Stat. 529 [U.S. Code, title 48, sec. 1321].) Ceoss-References Punishment for importing foreign criminals, see title 5, section 184. Extradition of persons accused of crime, see title 6, sections 8(51 et seq. 142. Punishment of persons deported from Canal Zone who return thereto. — Any person who voluntarily returns to the Canal Zone after having served a sentence of imprisonment therein and after being deported therefrom, shall : a. Be punished by imprisonment in the penitentiary for not more than two years; and b. Be removed from the Canal Zone upon the completion of his sentence, in accordance with the laws and orders relating to deportation. A voluntary entry into the Canal Zone for any purpose shall be sufficient to constitute a return to the Zone within the meaning of this section, except that the Governor of the Panama Canal may, in his discretion, in a case of necessity, grant a permit to any such person to return to the Canal Zone temporarily. Any such person who remains in the Canal Zone after the expiration of the time specified in the permit shall be deemed guilty of a violation of this section and be punished as herein provided. (July 5, 1932, ch. 423, 47 Stat. 577.) 24

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Sec. 151. Vessels subject to inspection in general. 152. Inspection of foreign vessels. 153. Regulations governing inspection. 154. Issuance and display of certificate of in.spection. 155. Refusal of certificate of inspection. 156. Failure to Lave or display certificate ; receiving excess passengers ; fines. OPERATION, MAINTENANCE, AND GO VEllNMENT [T. 2, § 155 CHAPTER 8.— INSPECTION OF VESSELS Sec. 157. Revocation of certificate for changes in condition of vessel. 158. Small vessels propelled by machinery ; registration, certification, and numbering ; licensing of operators ; fines. 159. Small vessels not propelled by machinery ; registration and numbering ; fines. 100. Small vessels carrying passengers ; certificate ; inspection ; fines. Section 151. Vessels subject to inspection in general.-— All vessels navigating the waters of the Canal Zone, except public vessels of all nations, and private vessels merely transiting the Canal, shall be subject to an annual inspection of hulls, boilers, machinery, equipment, and passenger accommodations. (Feb. 16, 1933, ch. 88, sec. 1, 47 Stat. 811 [U.S. Code, title 48, sec. 1336a].) Ceoss-Refebences Regulations governing the navigation of the harbors and other vpaters of the Canal Zone, see section 9 of this title. Radio equipment on ocean-going vessels using ports, see sections 361 and 362 of this title. 152. Inspection of foreign vessels. — A foreign <^essel of a country which has inspection laws approximating those of the United States, having an unexpired certificate of inspection duly issued by the authorities of the said country, shall not be subjected to an inspection other than that necessary to determine whether the vessel, boilers and life-saving equipment are as stated in the certificate of inspection; but no such certificate of inspection shall be accepted as evidence of lawful inspection unless like privileges are granted to vessels of the United States under the laws of the country to which such vessel belongs. (Feb. 16, 1933, ch. 88, sec. 2, 47 Stat. 811 [U.S. Code, title 48, sec. 1336b].) 153. Regulations governing inspection. — ^The Governor of the Panama Canal is authorized to prescribe regulations concerning the inspection referred to in the two next preceding sections, which regulations shall conform as nearly as practicable to the laws and regulations governing the Steamboat lusnection Service of the United States. (Feb. 16. lO^S^-ch. 88, sec, 1, 47 fitut. ^il [U.S. Code, title 48, sec. 1336a].) • '. •;.''' 154. Issuance attri display of certific?ite of inspection.— When the board of local inspectors of tlw P^mauia Caiial approves a, vessel and its equipment^ a certificate df inspection, in triplicate, shall be issued by the Canal authorities, two copies of which shall be displayed in conspicuous places in the vessel where they are most likely to be observed by passengers and others, and there kept at all times framed under glass. (Feb. 16, 1933, ch. 88, sec. 3, 47 Stat. 811 [U.S. Code, title 48, sec. 1336c].) 155. Refusal of certificate of inspection. — When the board of local inspectors fails to approve the vessel or its equipment, a certificate of inspection shall be refused, and the board of local inspectors shall make a statement in writing giving the reason for failure 93083—3425

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T. 2, § 156] OPERATION, MAINTENANCE, AND GOVERNMENT to approve, filing such statement in the records of the board, and giving a copy thereof to the owner, agent or master of the vessel. (Feb. 16, 1933, ch. 88, sec. 4, 47 Stat. 811 [U.S. Code, title 48, sec. 1336d].) 156. Failure to have or display certificate; receiving excess passengers; fines. — Any vessel, other than those excepted in section 151 of this title, that navigates the waters of the Canal Zone without having an unexpired certificate of inspection issued by the Canal authorities or by the Steamboat Inspection Service of the United States, or an unexpired certificate accepted by the Canal authorities under section 152 of this title, shall be subject to a fine of not more than $1,000; and whenever any passenger is received on board a vessel not having certified copies of the certificate of inspection placed and kept as required by section 154 of this title, or whenever passengers are received on board a vessel in excess of the number authorized by said certificate of inspection, such vessel shall be liable to a fine of not more than $100 for each passenger so received. Fines shall be recovered in the district court, and the amount so recovered shall be a lien upon such vessel, and it may be seized and sold to satisfy same, as well as the costs of the court proceedings. (Feb. 16, 1933, ch. 88, see. 5, 47 Stat. 811 [U.S. Code, title 48, sec. 1336e].) 157. Revocation of certificate for changes in condition of vessel. — In case a vessel holding an unexpired certificate issued by the Canal authorities shall change its condition as to hull, boilers, machinery, equipment or accommodations for passengers in such manner as not to conform to the regulations under which such certificate was issued, the board of local inspectors is authorized to make an inspection and to recommend revocation of the certificate of inspection, and upon approval of such recommendation by the marine superintendent, or such other officer of the Panama Canal as may be designated by the Governor, a notice of revocation will be issued to the owner, agent or master of the vessel; and after such notice of revocation the navigation of Canal Zone waters by such vessel shall subject it to the penalty prescribed by section 156 of this title. (Feb. 16, 1933, ch. 88, sec. 6, 47 Stat. 811 [U.S. Code, title 48, sec. 1336f].) 158. Small vessels propelled by machinery; registration, certification, and numbering; licensing of operators; fines. — Small vessels propelled inwhole or in part by niacliinery, other than public vessels of -the United States or of the Republic of Panama, shall be registered', certificated and nr.mbered,,and shall display the numbers assigned in a conspicjuoua -place in prescribed form. Such vessels shall not be operated except by an operator holding a license to operate, issued after examination by the board of local inspectors, and approval of such examination by the marine superintendent or such other officer of the Panama Canal as may be designated by the Governor. Any vessel which is operated in Canal Zone waters in violation of any of the requirements of this section shall be liable to a fine of not more than $100. (Feb. 16, 1933, ch. 88, sec. 7, 47 Stat. 812 [U.S. Code, title 48, sec. 1336g].) 159. Small vessels not propelled by machinery; registration and numbering; fines. — Small vessels not propelled in whole or in part 26

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OPERATION, MAINTENANCE, AND GOYERNMENT [T. 2, § 160 by machinery shall be registered and numbered, and when numbers have been assigned they shall be displayed in a conspicuous place in prescribed form. Any vessel which is operated in Canal Zone waters in violation of any of the requirements of this section shall be liable to a fine of not more than $100. (Feb. 16, 1933, ch. 88, sec. 8, 47 Stat. 812 [U.S. Code, title 48, sec. 1336h].) 160. Small vessels carrying passengers; certificate; inspection; fines. — Vessels under 65 feet in length, before carrying passengers for hire in Canal Zone waters, shall obtain a certificate from the Canal Zone authorities to engage in this business, and such certificate shall specify the number of passengers and life preservers and the fire-fighting apparatus which the vessel must carry. Such vessels shall be subject to annual inspection, and the certificate referred to will be granted for one year only. Any such vessel which shall carry passengers for hire without first having obtained the certificate required by this section, or which shall carry passengers in excess of the number authorized by such certificate, shall be liable to a fine of not more than $100 for each passenger so carried. (Feb. 16, 1933, ch. 88, sec. 9, 47 Stat. 812 [U.S. Code, title 48, sec. 13361].) CHAPTER 9.— INTOXICATING LIQUORS Note. — The chapter heading " Intoxicating Liquors " has been reserved here in order to accommodate any special liquor legislation which may be enacted for the Canal Zone, supplanting, in application to the Zone, the National Prohibition Act and the acts amendatory thereof and supplemental thereto. 27

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T. 2, § 201] OPERATION, MAINTENANCE, AND GOVERNMENT CHAPTER 10.— KEEPING AND IMPOUNDING OF DOMESTIC ANIMALS Sec. 201. Regulations relative to keeping and impounding of domestic animals. Sec. 202. Violation of regulations ; punishment. Section 201. Regulations relative to keeping and impounding of domestic animals. — The Governor of the Panama Canal is authorized to make and publish, and from time to time amend, regulations : a. Governing the keeping of domestic animals within the Canal Zone; b. Prescribing v^here and under what conditions domestic animals may be permitted to be at large, and when, where and under what conditions such domestic animals shall be confined; and c. Providing for — (1) The impounding of animals; (2) The charges to be paid for the impounding and care of such animals if claimed by the owner; (3) The disposition of unclaimed animals; and (4) The disposition of the proceeds of the sale of such unclaimed animals, if sold. (July 5, 1932, cli. 427, sec. 1, 47 Stat. 578.) Ckoss-Heference Offenses in relation to the keeping, etc., of animals, see title 5, sections 561 to 567, 608 and SIO. 202. Violation of regulations; punishment. — Any person who shall violate any provision of the regulations established under the next preceding section, shall be guilty of a misdemeanor. (July 5. 1932, ch. 427, sec. 2, 47 Stat. 579.) CHAPTER 11.— NOTARIES PUBLIC Section 211. Appointment and regulation by Governor. — The Governor of the Panama Canal shall appoint all notaries public, prescribe their powers and duties, their official seal, and the fees to be charged and collected by them. (Aug. 24, 1912, ch. 390, sec. 7, 37 Stat. 564; Sept. 21, 1922, ch. 370, sec. 1, 42 Stat. 1004; Feb. 16, 1933, ch. 91, sec. 1, 47 Stat. 814 [U.S. Code, title 48, sec. 1336].) CHAPTER 12.— PANAMA RAILROAD COMPANY; RAILROADS Ai't. Sec. 1. In General 221 Art. Sec. 2. Safety Appliances 241 Ceoss-References Carriers, their rights, duties, and liabilities, see title 3, sections 1391 to 1459. Consolidation of functions in respect to receiving, disbursing, and accounting for funds, see section 31 of this title. Compensation for injuries to employees of Panama Railroad Company, see sections 121 to 123 of this title. Liability of railroads to their employees in certain cases, see U.S. Code, title 45, sections 52 to 59 (appendix, p. 989). Retirement of Panama Railroad employees on Isthmus who are citizens, see sections 91 to 107 of this title. Malicious injuries to railroads, see title 5, sections 826 and 827. 28

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OPERATION, MAINTENANCE, AND GOVERNMENT [T. 2, § 241 Other offenses in relation to railroads, see title 5, sections 521, 523 to 526, 664, 688, 739, 740, 824, 843 and 844. Suits in Admiralty Act not to apply to Panama Railroad, see U.S. Code, title 46, section 741 (appendix, p. 991). Transfer to Shipping Board of vessels owned by Panama Railroad Co. and not required in its business, see U.S. Code, title 46, section 806. ARTICLE 1.— IN GENERAL Sec. 221. Annual payment by Panama Railroad Co. to United States not required. 222. Carriage by Panama Railroad Co. of marine and fire insurance. Sec. 223. Contracts between Panama Railroad Co. and departments of Government. 224. Hours of work for telegraph operators and train dispatchers. Section 221. Annual payment by Panama Railroad Company to United States not required. — Payment by the Panama Railroad Company to the United States, in accordance with the treaty with Panama, of the annual subsidy of $250,000, as provided by the concession granted by the United States of Colombia, shall not be required. (June 25, 1910, ch. 384, sec. 2, 36 Stat. 772 [U.S. Code title 48, sec. 1334].) 222. Carriage by Panama Railroad Company of marine and fire insurance. — The Panama Railroad Company shall carry no insurance to cover marine or fire losses. (Mar. 4, 1911, ch. 285, sec. 2, 36 Stat. 1451 [U.S. Code, title 48, sec. 1333].) 223. Contracts between Panama Railroad Company and departments of Government. — The Panama Railroad Company shall not be required to give bond, either with or without surety, in contracts which it may make to furnish services, materials, or supplies to the Army, Navy, Marine Corps, or other departments of the Government, and such contracts may be made for periods less than one year, as may be agreed on, and formal contracts in writing shall not be required unless agreed on. (Mar. 4, 1911, ch. 285, sec. 6, 36 Stat. 1452 [U.S. Code, title 48, sec. 1335].) 224. Hours of work for telegraph operators and train dispatchers. — No operator, train dispatcher or other employee of the Panama Railroad Company who by the use of the telegraph or telephone dispatches, reports, transmits, receives, or delivers orders pertaining to or affecting train movements shall be required or permitted to be or remain on duty for a longer period than nine hours in any twenty-four-hour period in any tower, office, place or station continuously operated night and day, nor for a longer period than thirteen hours in any tower, office, place or station operated only during the daytime, except in case of emergency, when the employees named in this section may be permitted to be and remain on duty for four additional hours in a twenty-four-hour period on not exceeding three days in any week. ARTICLE 2.— SAFETY APPLIANCES Sec. 241. Requirements of Safety Appliance Acts extended to Canal Zone. 242. Running boards, ladders, sill steps, roof handholds, and brake shafts. 241. Requirements of Safety Appliance Acts extended to Canal Zone. — The requirements of the Safety Appliance Acts (U.S. Code, 29 Sec. 243. Maintenance of appliances in good and working order. 244. Observance by Panama Railroad.

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T. 2, § 242] OPERATION, MAINTENANCE, AND GOVERNMENT title 45, sees. 1 to 10), relating to the use on trains of certain described and approved driving-wheel and train brakes, couplers, hand holds, and draw bars of required height for freight cars, shall be extended to apply to the Canal Zone, 242. Running boards, ladders, sill steps, roof handholds, and brake shafts. — The various appliances for the protection of trainmen on freight train cars, with reference to runnnig boards, ladders, sill steps, roof handholds, and the position of brake shafts, as designated in the existing standards of the Master Car Builders' Association in the United States, shall be used by all carriers in the Canal Zone. 243. Maintenance of appliances in good and working order. — The equipment and appliances required to be used in sections 241 and 242 of this title shall be constantly and at all times maintained in good and working order by any and all railroads engaged in the business of a common carrier and operating in the Canal Zone. 244. Observance by Panama Railroad. — In particular, sections 241 to 244 of this title shall be carefully observed and obeyed by the Panama Railroad, a carrier operating in the Canal Zone. Note. — With respect to the use of safety appliances on railroads operated and cars used by the Government of the United States within reservations and other territories under its jurisdiction, section 5 of the Executive order of January 6, 19t>9, as amended by the Executive order of March 19, 1913, provides as follows : " All railroads operated and cars used by the Government of the United States within navy yards, arsenals, military reservations, Government wharves, and any and all other territories under the jurisdiction of the United States, shall be equipped with the safety appliances required in the Safety Appliance Acts mentioned and described in section 1 of this order (sec. 241 of this title), and in the codes of rules mentioned and described in section 2 of this ordeo* (see. 242 of this title) ; and said equipment and appliances shall at all times be maintained in good and working order. " The application of the requirements of the Safety Appliance Acts to equipment of rolling stock at navy yards is hereby so far modihed that the cars and engines at yards and stations will be fitted with safety appliances only to such extent as may, in the judgment of the commandant, subject to the approval of the Chief of the Bureau of Yards and Docks, Navy Department, be deemed necessary or advisable." CHAPTER 13.— PARDONS AND REPRIEVES AND REMISSION OF FINES AND FORFEITURES Section 261. Authority of Governor. — The Governor may grant pardons and reprieves and remit fines and forfeitures for offenses against the laws of the Canal Zone and reprieves for offenses against the laws of the United States until the decision of the President is made known thereon. (Aug. 24, 1912, ch. 390, sec. 7, 37 Stat. 564; Sept. 21, 1922, ch. 370, sec. 1, 42 Stat. 1004; Feb. 16, 1933, ch. 91, sec. 1, 47 Stat. 814 [U.S. Code, title 48, sec. 1342].) Cboss-Kefeeences Issuance of i>ermits to be at liberty, to persons imprisoned as habitual criminals, see title 5, sections 75 and 76. Suspension of execution of judgment of death, see title 6, section 523. Suspension of sentence by district and magistrates' courts, see title 6, sections 500 and 501. 30

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OPERATION, MAINTENANCE, AND GO VERNMENT [T. 2, 5? 275 CHAPTER 14.— POSTAL SERVICE Sec. 274. Rate of interest on deposit money * orders. 275. Use of interest from money order funds deposited in banks. Sec. 271. Application of United States postal laws, rules and regulations. 272. Authority of Governor in respect to the service. 273. Defraying expenses from revenues so far as possible. Section 271. Application of United States postal laws, rules, and regulations. — The postal service of the Canal Zone shall be governed, except as otherwise provided in this chapter, by such of the laws, rules and regulations of the Postal Service of the United States as are not inapplicable to the conditions existing in the Canal Zone. (Feb. 16, 1933, ch. 89, sec. 1, 47 Stat. 812 [U.S. Code, title 48, sec. 1323a].) Ceoss-Re:fekences Extension to Canal Zone of United States laws and regidations defining crimes against the postal service, see title 5, section 111. For the laws of the Postal Service of the United States, see U.S. Code, title 39. 272. Authority of Governor in respect to the service. — The Governor of the Panama Canal is authorized : a. To establish new post offices or discontinue those already established ; b. To provide such rules and regulations as are necessary for the operation of the service ; c. To appoint the personnel of the service; and d. To prescribe the postage stamps and other stamped paper which shall be used in the service. (Feb. 16, 1933, ch. 89, sec 1, 47 Stat. 812 [U.S. Code, title 48, sec. 1323a].) 273. Defraying expenses from revenue so far as possible. — The expenses of operating the Canal Zone postal service shall be defrayed, so far as possible, from the revenue derived therefrom, the use of which for that purpose is authorized. (Feb. 16, 1933, ch. 89, sec. 1, 47 Stat. 812 [U.S. Code, title 48, sec. 1323a].) 274. Rate of interest on deposit money orders. — Deposit money orders issued in the Canal Zone in lieu of postal savings certificates in accordance with rules and regulations heretofore established bj^ the President, or that may hereafter be established by him, shall bear interest at a rate not exceeding 3 per centum per annum. (Feb. 16, 1933, ch. 89, sec. 2, 47 Stat. 812 [U.S. Code, title 48, sec. 1323b].) 275. Use of interest from money order funds deposited in banks. — The interest received from the Canal Zone money-order funds deposited in banks under Canal Zone regulations shall form a part of the postal revenues and shall be available to pay : a. The interest on deposit money orders authorized by the next preceding section; and b. The losses which are chargeable to the Canal Zone postal service. (Feb. 16, 1933, ch. 89, sec. 3, 47 Stat. 812 [U.S. Code, title 48. sec. 1323c].) 31

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T.2, §291] OPERATION, MAINTENANCE, AND GOVERNMENT CHAPTER 15.— PROTECTION OF BIRDS AND THEIR NESTS Sec. I Sec. 291. Regulations for protection of birds and 293. Violations of law or regulations ; puntheir nests. » ishment. 292. Taking, disturbing, or killing birds or taking eggs. ' Section 291. Regulations for protection of birds and their nests. — The Governor of the Panama Canal shall : a. Make and publish suitable regulations, fi-om time to time, for the protection of birds and their nests within the Canal Zone ; and b. Prescribe the form and manner in which birds may be hunted therein and the kinds of birds that may be hunted and that shall not be molested. (July 5, 1932, ch. 420, sec. 1, 47 Stat. 576.) Ceoss-Re:ference Carrying and keeping of arms, and hunting, see title 5, sections 871 to 877. 292. Taking, disturbing, or killing birds or taking eggs. — No person shall hunt, trap, capture, willfully disturb, or kill any bird of any kind whatever, or take the eggs of any bird, within the Canal Zone, except in the form and manner permitted by the regulations provided for by the next preceding section. (July 5, 1932, ch. 420, sec. 2, 47 Stat. 576.) 293. Violations of law or regulations; punishment. — A violation of any of the provisions of the next preceding section or of any of the regulations established under section 291 of this title shall be punished for each offence by a fine of not more than $100, or by imprisonment in jail for not more than thirty days. (July 5, 1932, ch. 420, sec. 3, 47 Stat. 576.) CHAPTER 16.— PUBLIC LANDS Sec. 301. Acquisition by United States of title to land in Canal Zone. 302. Withdrawal of certain tract from effect of next preceding section. Sec. 303. Lease of public lands ; land survey. 304. Revocable licenses for lots in town sites. Section 301. Acquisition by United States of title to land in Canal Zone. — The President is authorized to declare by Executive order that all land and land under water within the limits of the Canal Zone is necessary for the construction, maintenance, operation, sanitation or protection of the Panama Canal, and to extinguish, by agreement when advisable, all claims and titles of adverse claimants and occupants. Upon failure to secure by agreement title to any such parcel of land or land under water the adverse claim or occupancy shall be disposed of and title thereto secured in the United States and compensation therefor fixed and paid in the manner provided in the treaty with the Kepublic of Panama dated November 18, 1903, or such modification of that treaty as may be made. (Aug. 24, 1912, ch. 390, sec. 3, 37 Stat. 561 [U.S. Code, title 48, sec. 1304].) Cboss-Reference Establishment of Canal Zone, see section 2 of tliis title. 32

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OPERATION, MAINTENANCE, AND GOVERNMENT [T. 2, § 303 302. Withdrawal of certain tract from effect of next preceding section. — The following tract of land situated within the Canal Zone, and more particularly described as lots numbered 641, 643, 645, and 647, in the town of Cristobal, Canal Zone, the same being bounded on the north by Eleventh Street, on the east by Bolivar Street, on the south by lot numbered 649, and on the west by a vacant lot, the said lots or tract of land having an extension from north to south of 120 feet and from east to west of 100 feet, and measuring in superficial area 12,000 square feet, is withdrawn from the operation of the next preceding section and the Executive order of December 5, 1912, relating thereto. The Panama Railroad Company is authorized to sell, transfer and convey said lots or tracts of land with all improvements thereon to any other person or persons or association of persons and retain the consideration therefor for its own use. (June 5, 1920, ch. 239, sees. 1 and2, 41Stat. 948.) 303. Lease of public lands; land survey. — ^The President is authorized to grant leases of the public lands in the Canal Zone for such period, not exceeding twenty-five years, and upon such terms and conditions as he may deem advisable. No lease, however, shall be granted for a tract of land in excess of fifty hectares, nor to any person who shall not have first established, by affidavit and by such other proof as may be required, that such person is the head of a family or over the age of twenty-one years, and that the application for a lease is made in good faith for the purposes of actual settlement and cultivation, and not for the benefit of any other person whatsoever, and that such person will faithfully comply with all the requirements of law as to settlement, residence, and cultivation. In granting such leases preference shall be accorded to actual occupants of lands in good faith. No portion of the lands of the United States within the Canal Zone shall be leased hereunder unless it shall first be made to appear by a statement or plat filed by the Governor of the Panama Canal with the Collector of the Panama Canal, that it is not contemplated to use such lands in the work of canal construction or to set the same aside as a town site ; and all leases shall be made subject to the provision that if at any time it shall become necessary, notwithstanding, for the United States to occupy or use any portion of the leased lands, it shall have the right to so do without further compensation to the lessee than for the reasonable value of the necessary improvements made upon said tracts by the lessee, the same to be determined by the courts of the Canal Zone. All leases of lands hereunder shall reserve to the United States all mineral, oil, and gas rights in the lands leased. The President may, in his discretion, require a land survey to be made of the Canal Zone. The powers conferred upon the President under this section may be exercised by him through the Governor of the Panama Canal or in such other manner as the President may designate. (Feb. 27, 1909, ch. 224, sees. 1 to 5, 35 Stat. 658 [U.S. Code, title 48, sees. 1303 and 1308].) * 33

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T. 2, § 304] OPERATION, MAINTENANCE, AND GOVERNMENT 304. Revocable licenses for lots in town sites. — The Governor of the Panama Canal is authorized to execute revocable licenses for lots in town sites in the Canal Zone, either directly or through such agency as he may direct, such licenses to be revocable at his pleasure, licensees to vacate and remove improvements at once without indemnity. CHAPTER 17.— PUBLIC ROADS AND HIGHWAYS; VEHICLES; FERRIES Art. Sec. 1. Regulations governing roads, higliways, and self-propelled veiiicles_ 321 2. Operation of street-railway cars at crossings 331 Art. Sec. 3. Ferry and highway near Pacific entrance of Canal 341 ARTICLE 1. -REGULATIONS GOVERNING ROADS, HIGHWAYS, AND SELF-PROPELLED VEHICLES Sec. 321. Authority of President to make and enforce regulations. Sec. 322. Agreements with Panama for reciprocal regulations. 323. Violation of regulations ; punishment. Section 321. Authority of President to make and enforce regulations. — Until otherwise provided by Congress, the President may make, publish, and enforce, and from time to time alter or amend, all rules and regulations for the use of the public roads and highways in the Canal Zone, and for the regulation, licensing, and taxing of the use and operation of all self-propelled vehicles using the public highways, including speed limit, signals, tags, license fees, and all detailed regulations which may from time to time be deemed necessary in the exercise of the authority hereby conferred. The taxes on automobiles may be graded according to the value or the power of the machine. (Aug. 21, 1916, ch. 371, sec. 3, 39 Stat. 528 [U.S. Code, title 48, sec. 1312].) Cross-Refeeeincb Offenses in relation to highways and automobiles, see also title 5, sections 507, 511, 512, 513, 525, 531, 551, 784, 785, 824, 825. 322. Agreements with Panama for reciprocal regulations. — The President may make mutual agreements with the Republic of Panama touching the reciprocal use of the highways of the Canal Zone and the Republic of Panama by self-propelled vehicles, touching taxes and license fees, and any other matter of regulation to establish comity for the convenience of the residents of the two jurisdictions. (Aug. 21. 1916, ch. 371, sec. 3, 39 Stat. 528 [U.S. Code, title 48, sec. 1312].) 323. Violation of regulations; punishment. — Any person who violates any rule or regulation established under the authority of the two next preceding sections shall be punished by a fine of not more than $25, or by imprisonment in jail for not more than thirty days, or by both. (Aug. 21, 1916, ch. 371, sec. 5, 39 Stat. 528 [U.S. Code, title 48, sec. 1314]'.) 84

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OPERATION, MAINTENANCE, AND GOVERNMENT [T. 2, § 342 ARTICLE 2.— OPERATION OF STREET-RAILWAY CARS AT CROSSINGS Sec. 331. Operation at street, road, or streetrailway crossing. Sec. 332. Operation at railway crossing. 333. Violation of article ; punishment. 331. Operation at street, road, or street-railway crossing. — No motorman or other person in control of a street-railway car shall run such car over or upon any street crossing, road crossing or streetrailway crossing in the Canal Zone, at a speed of more than twelve miles per hour, and without commencing to sound gong, horn or whistle when at least one hundred feet from the crossing and continuing to sound same until the crossing has been passed. (July 5, 1932, ch. 424, sec. 1, 47 Stat. 577.) 332. Operation at railway crossing. — No motorman or other person in control of a street-railway car shall run such car over or upon any railroad crossing in the Canal Zone, without bringing the car to a full stop at least ten feet from the nearest rail, and without ascertaining from a view of the railroad track made either by himself or by the conductor that the crossing may be safely passed. (July 5, 1932, ch. 424, sec. 2, 47 Stat. 577.) 333. Violation of article ; punishment. — A violation of any of the provisions of this article shall be punished by a fine of not more than $100, or by imprisonment in jail for not more than thirty days, or by both. (July 5, 1932, ch. 424, sec. 3, 47 Stat. 577.) ARTICLE 3.— FERRY AND HIGHWAY NEAR PACIFIC ENTRANCE OF CANAL Sec. 341. Maintenance of ferry and highway near Pacific entrance. Sec. 342. Regulations governing operation and maintenance of ferry ; punisliment for violations. 341. Maintenance of ferry and highway near Pacific entrance. — The Governor of the Panama Canal, under the supervision of the Secretary of War, is authorized : a. To maintain and operate, near the Pacific entrance of the Panama Canal, from a point at or near Balboa on the eastern side of the Canal to a suitable point on the opposite shore of the Canal, a ferry for the accommodation of the public and adequate to serve military needs, and for such purposes is authorized to acquire such ferryboats and other equipment, and to construct and maintain such wharves, docks, and approaches, as may be necessary; and b. To maintain a highway for the accommodation of the public and adequate to serve military needs, extending from the western terminal of such ferry to a point at or near the town of Arraijan at or near the Canal Zone line. Such ferry and highway shall be operated and maintained free of toll. There are authorized to be appropriated annually such sums as may be necessary to carry out the provisions of this article. (May 27, 1930, ch. 338, sees. 1 to 3, 46 Stat. 388.) 342. Regulations governing operation and maintenance of ferry; punishment for violations. — The Governor of the Panama Canal, subject to the approval of the Secretary of War, is authorized to 35

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T. 2, § 351] OPERATION, MAINTENANCE, AND GOVERNMENT make rules and regulations governing the operation, use and maintenance of the ferry, equipment, wharves, docks and approaches maintained, acquired and constructed under this article. Any person violating any such rule or regulation shall be punished by a fine of not more than $100, or by imprisonment in jail for not more than thirty days, or by both. (May 27, 1930, ch. 338, sec. 2, 46 Stat. 388.) CHAPTER 18.— PURCHASE OF SUPPLIES Section 351. Purchase without advertising where amount does not exceed $500. — The Governor of the Panama Canal may authorize, under such regulations as he may prescribe, the purchase of supplies for the use of the Panama Canal, or for use in the Canal Zone, in the open market and without advertising, if the amount involved in any one purchase does not exceed $500. (Dec. 29, 1926, ch. 19, sec. 6, 44 Stat. 926.) CROS S-EEFEKBN CBS Advertisement for proposals for purchases and contracts for supplies for departments of Government, see U.S. Code, title 41, section 5 (appendix, p. 987). Restriction of purchases to articles of growth, production, or manufacture of United States, see U.S. Code, title 41, sections 10a to 10c (appendix, p. 987). CHAPTER 19.— RADIO EQUIPMENT ON OCEAN-GOING VESSELS USING PORTS Sec. 361. Radio equipment on vessels using ports and carrying fifty or more persons. Sec. 362. Violations ; fines and recovery thereof. Section 361. Radio equipment on vessels using ports and carrying fifty or more persons. — It shall be unlawful for any ocean-going vessel carrying fifty or more persons, including passengers and crew, to leave or attempt to leave any port of the Canal Zone unless such vessel is equipped with an efficient apparatus for radio communication, capable of transmitting and receiving messages for a distance of at least one hundred miles, night or day, and which is in good working order and in charge of a person skilled in the use of such apparatus. This requirement shall not apply to vessels merely transiting the Canal or to vessels plying between Canal Zone ports and ports less than two hundred miles therefrom. (July 5, 1932, ch. 421, sec. 1, 47 Stat. 576 [U.S. Code, title 47, sec. 120].) Cross-Retebeince Inspection of vessels, see sections 151 to 160 of this title. 362. Violations; fines and recovery thereof. — Any vessel leaving or attempting to leave a Canal Zone port not equipped as required by section 361 of this title shall be liable to a fine of not more than $5,000, and each such departure or attempted departure shall constitute a separate offense. Fines shall be recovered in the district court, and the amount so recovered shall be a lien upon the vessel, and it may be seized and sold to satisfy same, as well as all costs of the court proceedings. (Julv 5, 1932, ch. 421, sec. 2, 47 Stat. 576 [U.S. Code, title 47, sec. 121].) 36

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Sec. 371. Rules and regulations in matters of sanitation, health, and quarantine. OPERATION, MAINTENANCE, AND GOVERNMENT [T. 2, § 392 CHAPTER 20.— SANITATION, HEALTH, AND QUARANTINE Sec. 372. Regulations respecting practice of healing art. 373. Violation of regulations ; punishment. Section 371. Rules and regulations in matters of sanitation, health, and quarantine. — Until otherwise provided by Congress, the President is authorized : a. To make rules and regulations in matters of sanitation, health, and quarantine for the Canal Zone; and b. To modify or change existing rules and regulations and those hereafter made from time to time. (Aug. 21, 1916, eh. 371, sec. 1, 39 Stat. 527; Feb. 16, 1933, ch. 92, 47 Stat. 818 [U.S. Code, title 48. sec. 1310].) CB0SS-ReFE21ENCES Conspiracy to commit act injurious to public health, see title 5, section 81. Crimes against the public health and safety, see title 5, sections 501 to 572. 372. Regulations respecting practice of healing art. — The President, under such regulations as he may prescribe, may authorize the Board of Health of the Canal Zone to issue licenses to practice the healing art, which regulations shall include conditions under which such licenses shall be issued and provisions for revocation for cause of licenses issued. (Aug. 21, 1916, ch. 371, sec. 1, 39 Stat. 527; Feb. 16, 1933, ch. 92, 47 Stat. 818 [U.S. Code, title 48, sec. 1310].) 373. Violation of regulations; punishment. — A violation of any quarantine regulation authorized under section 371 of this title shall be punished by a fine of not more than $500, or by imprisonment in jail for not more than ninety days or by both; and a violation of any sanitary or health regulation authorized under sections 371 and 372 of this title shall be punished by a fine of not more than $25, or by imprisonment in jail for not more than thirty days, or by both. Each day such violation shall continue shall constitute a separate offense. (Aug. 21, 1916, ch. 371, sec. 1, 39 Stat. 527 ; Feb. 16, 1933, ch. 92, 47 Stat. 818 [U.S. Code, title 48, sec. 1310].) CHAPTER 21.— SEAMEN Sec. 391. What laws applicable to seamen of vessels of United States. Sec. 392. Powers conferred upon sbipping commissioner and deputies. Section 391. What laws applicable to seamen of vessels of United States. — The laws relating to seamen of vessels of the United States on foreign voyages shall apply to seamen of all vessels of the United States at the Canal Zone, whether such vessels be registered or enrolled and licensed. (Aug. 21, 1916, ch. 371, sec. 9, 39 Stat. 529 [U.S. Code, title 48, sec. 1331].) Ceos s-Re:fetience For laws of United States relating 46, sections 541 to 713. to merchant seamen, see U.S. Code, title 392. Powers conferred upon shipping commissioner and deputies. — The powers in respect of such seamen of such vessels bestowed 87

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T.2,§401] OPERATION, MAINTENANCE, AND GOVERNMENT by law upon consular officers of the United States in foreign ports and upon shipping commissioners in ports of the United States are hereby bestowed upon the shipping commissioner and deputy shipping commissioners in the Canal Zone. (Aug. 21, 1916, ch. 371, sec. i), 39 Stat. 529 [U.S. Code, title 48, sec. 1331].) CHAPTER 22.— TAXES AND LICENSES Sec. 401. Regulations for levying, assessing, and collecting taxes. Sec. 402. Violation of such regulations ; punishment. Section 401. Regulations for levying, assessing, and collecting taxes. — Until otherwise provided by Congress, the President is authorized to make and from time to time change rules and regulations for levying, assessing and collecting ad valorem, excise, license and franchise taxes in the Canal Zone. Ad valorem taxes imposed shall not exceed one per centum of the value of the property, nor shall franchise or excise taxes exceed two per centum of gross earnings. (Aug. 21, 1916, ch. 371, sec. 2, 39 Stat. 528 [U.S. Code, title 48, sec. 1311].) Cboss-Refebences Automobile taxes and licenses, see section 321 of this title. Failure to give proper tax or license receipts, see title 5, section 626. Possession of improper blank licenses or tax receipts, see title 5, section 627. 402. Violation of such regulations; punishment. — Any person who commits any act or carries on any business, trade or occupation in the Canal Zone without complying with the rules and regulations established under the next preceding section, shall be punished by a fine of not more than $25, or by imprisonment in jail for not more than thirty days, or by both. (Aug. 21, 1916, ch. 371, sec. 5, 39 Stat. 628 [U.S. Code, title 48, sec. 1314].) CHAPTER 23.— TOLLS FOR USE OF CANAL Sec. 411. Authority of President to prescribe and change tolls. 412. Bases of tolls ; maximum and minimum rates. Sec. 413. Restrictions on construction of 1914 act amending the two next preceding sections. 414. Refund of amounts erroneously received as tolls. Section 411. Authority of President to prescribe and change tolls. — The President is authorized, subject to the provisions of the section next following, to prescribe and from time to time change the tolls that shall be levied by the Government of the United States for the use of the Panama Canal, but no tolls when prescribed as above shall be changed unless six months' notice thereof is given by the President by proclamation. (Aug. 24, 1912, ch. 390, sec. 5, 37 Stat. 562; June 15, 1914, ch. 106, sees. 1, 2, 38 Stat. 385 [U.S. Code, title 48, sec. 1315].) 412. Bases of tolls; maximum and minimum rates. — Tolls may be based upon ^ross or net registered tonnage, displacement tonnage, or otherwise, and may be based on one form of tonnage for warships and another for ships of commerce. The rate of tolls may be lower upon vessels in ballast than upon vessels carrying passengers or cargo. 38

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OPERATION, MAINTENANCE, AND GOVERNMENT [T. 2, § 421 When based upon net registered tonnage for ships of commerce the tolls shall not exceed $1.25 per net registered ton, nor be less than 75 cents per net registered ton, subject, however, to the provisions of article 19 of the convention between the United States and the Republic of Panama, entered into November 18, 1903. If the tolls are not based upon net registered tonnage, they shall not exceed the equivalent of $1.25 per net registered ton as nearly as the same may be determined, nor be less than the equivalent of 75 cents per net registered ton. The toll for each passenger shall not be more than $1.50. (Aug. 24, 1912, ch. 390, sec. 5, 37 Stat. 562 ; June 15, 1914, eh. 106, sees. 1, 2, 38 Stat. 385 [U.S. Code, title 48, sec. 1315].) Ceoss-Referbnob For article 19 of the convention between the United States and the Republic of Panama, see appendix, p. 846. 413. Restrictions on construction of 1914 Act amending the two next preceding sections. — The passage of the Act of June 15, 1914. amending the two next preceding sections, shall not be construed or held: a. As a waiver or relinquishment of any right the United States may have under the treaty with Great Britain, ratified February 21, 1902, or the treaty with the Republic of Panama, ratified February 26, 1904, or otherwise, to discriminate in favor of its vessels by exempting the vessels of the United States or its citizens from the payment of tolls for passage through the canal ; or b. As in any way waiving, impairing or affecting any right of the United States under those treaties, or otherwise, with respect to the sovereignty over or the ownership, control and management of the Canal and the regulation of the conditions or charges of traflSc through the same. (June 15, 1914, ch. 106, sec. 2, 38 Stat. 386 [U.S. Code, title 48, sec. 1317].) Cboss-Refeeences For treaty with Great Britain, ratified February 21, 1902, see appendix, p. 837. For treaty with the Republic of Panama, ratified February 26, 1904, see appendix, p. 839. 414. Refund of amounts erroneously received as tolls. — There is appropriated, out of any money received as tolls, before such money is covered into the Treasury as miscellaneous receipts, amounts necessary to refund to the parties entitled thereto amounts which have been or may hereafter be erroneously received as tolls and covered into the Treasury as miscellaneous receipts. (June 12, 1917, ch. 27, sec. 1, 40 Stat. 179 [U.S. Code, title 48, sec. 1316].) CHAPTER 24.— WIRELESS TELEGRAPHIC INSTALLATIONS Section 421. Wireless telegraphic installations in connection with operation of Canal. — The President is authorized: a. To cause to be erected, maintained and operated, subject to the International Convention and the Act of Congress to regulate radiocommunication, at suitable places along the Panama Canal and the 39

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T. 2, § 421] OPERATION, MAINTENANCE, AND GOVERNMENT coast adjacent to its two terminals, in connection with the operation of the Canal, such wireless telegraphic installations as he may deem necessary for the operation, maintenance, sanitation and protection of the Canal, and for other purposes. b. To make such agreement with the Government of Panama as may be required if it is found necessary to locate such installations upon territory of that Republic; c. To provide for the acceptance and transmission by said system of all private and commercial messages and those of the Government of Panama on such terms and for such tolls as the President may prescribe : Provided, however, That the messages of the Government of the United States and the departments thereof, and the management of the Panama Canal, shall always be given precedence over all other messages; and d. In his discretion, to enter into such operating agreements or leases with any private wireless company or companies as may best insure freedom from interference with the wireless telegraphic installations established by the United States. (Aug. 24, 1912. ch. 390, sec. 6, 37 Stat. 563 [U.S. Code, title 48, sec. 1323].) Ceo&s-Re'ferencjb For " The Act of Congress to regulate radio communication," see the Eadid Act of 1927, as amended (U.S. Code, title 47, sees. 81 to 119). 40

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THE CIVIL CODE [T. 3, § 4 TITLE 3.— THE CIVIL CODE Ch 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. Preliminary provisions... Persons Personal rights .Marriage Divorce Husband and wife Children by birth. Children by adoption Guardian and ward Foreign corporations generally Securities sales law Nature of property O wners of proper ty Modifications of ownership Rights of owners Termination of ownership General definitions affecting property Personal property and particular kinds thereof Modes in which property may be acquired Accession Transfer of property Proof and acknowledgment of instruments .Execution and revocation of wills Interpretation of wills, and effect of various provisions General provisions relating to wills Succession Obligations in general Nature of a contract Manner of creating contracts Interpretation of contracts. Unlawful contracts Extinction of contracts Obligations imposed by law Sales of goods.. Conditional sales Deposit in general Deposit for keeping Sec. Cl 1 38 21 39. 41 40. 51 41 71 42 131 43 161 44 191 45 201 46 221 47 241 48 251 49 261 50 271 51 331 52 341 53 351 54 55 361 56 57 401 58 411 59 431 60 61 491 62 521 03 64 571 65 611 66 631 67 661 68 801 69 881 901 70 931 941 71 971 72 981 73 1061 74 1091 75 nil 76 Deposit for exchange^ . Loan ..Hiring Service with employr Jiit Particular employme ts Service without empiyyment Carriage in general Carriage of persons Carriage of property Carriage of messages Common carriers Trusts in general Trusts for benefit of third persons Agency in general Factors Partnership in general General partnership Special par tnersfaip Insurance in general Fire insurance Life and health insure ce.. Indemnity Guaranty in general Suretyship Liens in general Mortgage Pledge. _.. Other liens Negotiable instruments in general Bills of exchange Promissory notes and checks.'. General provisions respecting negotiable instruments _ General provisions affecting chapters 34 to 69 Relief in general Compensatory relief. Specific and preventive relief Special relations of debtor and creditor.. Nuisance Maxims of jurisprudence Sec. 1221 1231 1271 1291 1351 1381 1391 1401 1421 1461 1471 1501 1551 1611 1701 1711 1751 1811 1851 2021 2031 2041 2061 2121 2171 2231 2281 2311 2321 2491 2581 2591 2601 2611 2621 2681 2751 2801 2831 CHAPTER 1.— PRELIMINARY PROVISIONS Sec. 1. Name of title. 2. When this title takes effect. 3. Not retroactive. 4. Rules of construction. 5. I'rovisions similar to existing laws, how construed. 6. Actions, etc., not affected. 7. Legal holidays. Sec. 8. 9. 10. 11. 12. 13. 14. Business days. Computation of time. Certain acts not to be done on holidays. Words and phrases, how construed. Words ; definition ; signification of words. Notice, actual and constructive. Constructive notice, when deemed. Section 1. Name of title. — This title shall be known as the Civil Code of the Canal Zone. (Feb. 27, 1933, ch. 128, 47 Stat. 1124.) Note. — The Civil Code of the Canal Zone, which comprises title 3 of the Canal Zone Code, was derived from the act of February 27, 1933, above cited. That act was entitled "An act to provide a new civil code for the Canal Zone and to repeal the existing civil code." 2. When this title takes effect. — The code embodied ir this title shall be effective as of October 1, 1933. 3. Not retroactive. — No part of this title is retroactive, unless expressly so declared. 4. Rules of construction. — The rule of the common law, that statutes in derogation thereof are to be strictly construed, has no application to this title. The title establishes the law of the Canal 93083—3441

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T. 3, § 5] THE CIVIL CODE Zone respecting the subjects to which it relates, and its provisions are to be liberally construed with a view to effect its objects and to promote justice. 5. Provisions similar to existing laws, how construed. — The provisions of this title, so far as they are substantially the same as existing statutes, must be construed as continuations thereof, and not as new enactments. 6. Actions, and so forth, not affected. — No action or proceeding commenced before this title takes effect, and no right accrued, is affected by its provisions. 7. Legal holidays. — The following are the legal holidays in the Canal Zone within the meaning of this title: Every Sunday, January 1, February 22, Good Friday, May 30, July 4, Labor Day, November 3, Thanksgiving Day, and December 25. If a legal holiday other than Sunday falls on the first day of the week, the Monday following will be observed as a legal holiday. As far as practicable, all public business will be suspended on these days. 8. Business days. — All other days than those mentioned in section 7 of this title are to be deemed business days for all purposes. 9. Computation of time. — The time in which any act provided by law is to be done is computed by excluding the first day and including the last, unless the last day is a holiday, and then it is also excluded. 10. Certain acts not to be done on holidays. — Whenever any act of a secular nature, other than a work of necessity or mercy, is appointed by law or contract to be performed upon a particular day, which day falls upon a holiday, it may be performed upon the next business day, with the same effect as if it had been performed upon the day appointed. 11. Words and phrases, how construed. — Words and phrases are construed according to the context and the approved usage of the language; but technical words and phrases, and such others as may have acquired a peculiar and appropriate meaning in law, or are defined in section 12 of this title, are to be construed according to such peculiar and appropriate meaning or definition. Cros s-Refebences Similar provision, see title 4, section 7. Technical words, how coustiTjed. see sections 581 and 911 of this title. Construction of words in contracts, see sections 910 and 911 of this title. 12. Words; definition; signification of words. — Words used in this title in the present tense include the future as well as the present; words used in the masculine gender include the feminine and neuter ; the singular number includes the plural, and the plural the singular ; the word " person " includes a corporation as well as a natural person; writing includes printing and typewriting; oath includes affirmation or declaration ; and every mode of oral statement, under oath or affirmation, is embraced by the term " testify ", and every written one in the term " depose " ; signature or subscription includes mark, when the person cannot write, his name being 42

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THE CIVIL CODE [T. 3, § 23 written near it, by a person who writes his own name as a witness : Provided, That when a signature is by mark it must in order that the same may be acknowledged or may serve as the signature to any sworn statement be witnessed by two persons who must subscribe their own names as witnesses thereto. The following words have in this title the signification attached to them in this section, unless otherwise apparent from the context: 1. The word " property " includes property real and personal ; 2. The words " real property " are coextensive with lands, tenements, and hereditaments; 3. Th-e words " personal property " include money, goods, chattels, things in action, and evidences of debt; 4. The word " month " means a calendar month, unless otherwise expressed ; 5. The word " will " includes codicil. Cboss-Refebencb Similar provision, see title 4, section 8. 13. Notice, actual and constructive. — Notice is: 1. Actual — which consists in express information of a fact; or 2. Constructive — which is imputed by law. 14. Constructive notice, when deemed. — Every person who has actual notice of circumstances sufficient to put a prudent man upon inquiry as to a particular fact, has constructive notice of the fact itself in all cases in which, by prosecuting such inquiry, he might have learned such fact. CHAPTER 2.— PERSONS Sec. 21. Minors, who are. 22. Periods of minority, how calculated. 23. Adults, who are. 24. Unhorn child. 25. Delegation of powers ; minors. 2G. Contracts by minors. 27. When minor may disaffirm. 28. Minor cannot disaffirm contract for necessaries. Minor cannot disaffirm certain obligations. 29. Sec. 30. Contracts by persons without understanding. .31. Contracts by persons of unsound mind. 82. Powers of persons whose incapacity has been adjudged. 33. Minors liable for wrongs, but not liable for exemplary damages. 34. Minors may enforce their rights. Section 21. Minors, who are. — Minors are all persons under twenty-one years of age : Provided, That this section shall be subject to the provisions of chapters 4 to 6 of this title and shall not be construed as repealing or limiting the provisions of section 174 of this title : Provided, further, That upon the lawful marriage of any female of the age of eighteen years or over but under the age of twenty-one years, such female shall be deemed an adult person for the purpose of entering into any engagement or transaction respecting property or any contract, the same as if such person were over twenty-one years of age. 22. Periods of minority, how calculated. — The periods specified in section 21 of this title must be calculated from the first minute of the day on which persons are born to the same minute of the corresponding day completing the period of minority. 23. Adults, who are. — All other persons are adults. 43

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T. 3, § 24] THE CIVIL CODE 24. Unborn child.— A child conceived, but not yet born, is to be deemed an existing person, so far as may be necessary for its interests in the event of its subsequent birth. Ceoss-Rkference Posthumous children, rights of, see sections 291, 341, 590, and 650 of this title. 25. Delegation of powers; minors. — A minor cannot give a delegation of power, nor, under the age of eighteen, make a contract relating to real property, or any interest therein, or relating to any personal property not in his immediate possession or control. 26. Contracts by minors. — A minor may make any other contract than as specified in the next preceding section, in the same manner as an adult, subject only to his power of disaffirmance under the provisions of this chapter, and subject to the provisions of the chapter on marriage. 27. When minor may disaffirm. — In all cases other than those specified in sections 28 and 29 of this title, the contract of a minor, if made whilst he is under the age of eighteen, may be disaffirmed by the minor himself, either before his majority or within a reasonable time afterw^ards; or, in case of his death within that period, by his heirs or personal representatives ; and if the contract be made by the minor whilst he is over the age of eighteen, it may be disaffirmed in like manner upon restoring the consideration to the party from whom it was received, or paying its equivalent. 28. Minor cannot disaffirm contract for necessaries. — A minor cannot disaffirm a contract, otherwise valid, to pay the reasonable value of things necessary for his support, or that of his family, entered into by him when not under the care of a parent or guardian able to provide for him or them. 29. Minor cannot disaffirm certain obligations. — A minor cannot disaffii'm an obligation, otherwise valid, entered into by him under the express authority or direction of a statute. 30. Contracts by persons without understanding. — A person entirely without understanding has no power to make a contract of any kind, but he is liable for the reasonable value of things furnished to him necessary for his support or the support of his family. CuOSS-lvEFERENCE Contracts of insane persons, see sections 811 and 812 of this title. 31. Contracts by persons of unsound mind. — A contract of a person of unsound mind, but not entirely without understanding, made before his incapacity has been judicially determined, is subject to rescission, as provided in sections 951 to 954 of this title. Ckoss-Refe«ence Rescission of contracts, see sections 951 to 954 and 2721 to 2723 of this title. 32. Powers of persons whose incapacity has been adjudged. — After his incapacity has been judicially determined, a person of unsound mind can make no contract, nor delegate any power or 44

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THE CIVIL CODE [T. 3, § 44 waive any right, until his restoration to capacity. But a certificate from the medical superintendent or resident physician of the insane asylum to which such person may have been committed, showing that such person had been discharged therefrom, cured and restored to reason, shall establish the presumption of legal capacity in such person from the time of such discharge. 33. Minors liable for wrongs, but not liable for exemplary damages. — A minor, or person of unsound mind, of whatever degree, is civilly liable for a wrong done by him, but is not liable in exemplary damages unless at the time of the act he was capable of knowing that it was wrongful. 34. Minors may enforce their rights. — A minor may enforce his rights by civil action, or other legal proceedings, in the same manner as a person of full age, except that a guardian must conduct the same. Ckoss-Refeeence Appearance of minor by guardian, see title 4, sections 127, 128, and 695. CHAPTER 3.— PERSONAL RIGHTS Sec. 46. Malice not inferred. 47. Personal relations forbid abduction and seduction. 48. Right to use force. Sec. 41. General personal rights. 42. Defamation, what. 43. Libel, what. 44. Slander, what. 4.'>. Privileged publications. Section 41. General personal rights.— Besides the personal rights mentioned or recognized in section 1 of title 1, and in Title 6, The Code of Criminal Procedure, every person has, subject to the qualifications and restrictions provided by law, the right of protection from bodily restraint or harm, from personal insult, from defamation, and from injury to his personal relations. 42. Defamation, what. — Defamation is effected by: 1. Libel; 2. Slander. 43. Libel, what.— Libel is a false and unprivileged publication by writing, printing, picture, effigy, or other fixed representation to the eye, which exposes any person to hatred, contempt, ridicule, or obloquy, or which causes him to be shunned or avoided, or which has a tendency to injure him in his occupation. CKOSS-REFEaiENCB Privileged publication, see sections 45 and 46 of this title. 44. Slander, what.— Slander is a false and unprivileged publication other than libel, which : 1. Charges any person with crime, or with having been indicted, convicted, or punished for crime ; 2. Imputes in him the present existence of an infectious, contagious, or loathsome disease ; 3. Tends directly to injure him in respect to his office, profession, trade, or business, either by imputing to him general disqualification in those respects w^hich the office or other occupation peculiarly 45

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T. 3, § 45] THE CIVIL CODE requires, or by imputing something with reference to his office, profession, trade, or business that has a natural tendency to lessen its profits; 4. Imputes to him impotence or a want of chastity; or 5. Which, by natural consequence, causes actual damage. 45. Privileged publications. — A privileged publication is one made — 1. In the proper discharge of an official duty. 2. In any judicial proceeding, or in any other official proceeding authorized by law: Provided^ That an allegation or averment contained in any pleading or affidavit filed in an action for divorce or an action prosecuted under section 116 of this title made of or concerning a person by or against whom no affirmative relief is prayed in such action shall not be a privileged publication as to the person making said allegation or averment within the meaning of this section unless such pleading be verified or affidavit sworn to, and be made without malice, by one having reasonable and probable cause for believing the truth of such allegation or averment and unless such allegation or averment be material and relevant to the issues in such action. 3. In a communication, without malice, to a person interested therein, (1) by one who is also interested, or (2) by one who stands in such relation to the person interested as to afford a reasonable ground for supposing the motive for the communication innocent, or (3) who is requested by the person interested to give the information. 4. By a fair and true report, without malice, in a public journal, of (1) a judicial or (2) other public official proceeding, or (3) of anything said in the course thereof, or (4) of a verified charge or complaint made by any person to a public official, upon which complaint a warrant shall have been issued, 5. By a fair and true report, without malice, of (1) the proceedings of a public meeting, if such meeting was lawfully convened for a lawful purpose and open to the public, or (2) the publication of the matter complained of was for the public benefit. Cross-Refeeence Pleading libel, see title 4, sections 258 and 259. 46. Malice not inferred. — In the cases provided for in subdivisions 3, 4, and 5 of the next preceding section, malice is not inferred from the communication or publication. 47. Personal relations forbid abduction and seduction. — The rights of personal relations forbid : 1. The abduction of a husband from his wife, or of a parent from his child. 2. The abduction or enticement of a wife from her husband, or a child from a parent, or from a guardian entitled to its custody. 3. The seduction of daughter or orphan sister. Ceoss-Refekence Action for seduction, see title 4, sections 129 and 130. Damages for seduction, see section 2665 of this title. 46

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THE CIVIL CODE [T. 3, § 54 48. Right to use force. — Any necessary force may be used to protect from wrongful injury the person or property of oneself, or of a wife, husband, child, parent, or other relative, or member of one's family, or of a ward, servant, master, or guest. CHAPTER 4.— MARRIAGE Sec. What constitutes marriage. Marriage ; how proved. What marriages void without being so decreed. What marriages voidable. Annulment of marriage celebrated elsewliere. Jurisdiction of annulment suit ; who may institute suit. Legitimacy of children of annulled marriages. Custody of children of annulled marriages. 59. Efifect of judgment of nullity. 60. Capability of minors to contract marriage. 53 58 Sec. 61. Application for and issuance of license ; fee. 62. Who may celebrate marriages ; license to celebrate marriages. 63. Certifying, signing, return, and recording of license ; marriage certificate. 64. Violations of provisions of this chapter ; punishment. 65. Declaration where there is no record. 66. To be acknowledged and recorded. 67. Either party may proceed to test validity of marriage. 68. Marriages contracted outside of Canal Zone. Section 51. What constitutes marriage. — Marriage is a personal relation arising out of a civil contract, to which the consent of parties capable of making that contract is necessary. Consent alone will not constitute marriage ; it must be followed by a solemnization authorized by this title. 52. Marriage; how proved. — Consent to marriage and solemnization thereof may be proved under the same general rules of evidence as facts are proved in other cases. 53. What marriages void without being so decreed. — (a) A marriage celebrated in the Canal Zone after December 29, 1926, shall be void, without being so decreed — (1) If between persons related by consanguinity within the fourth degree, determined according to sections 636 to 640 of this title ; (2) If either party thereto has been previously married and such previous marriage has not been terminated by death, annulment, or a final decree of divorce ; or (3) If either party thereto is not present in person at the celebration of the marriage. (b) A void marriage may, in addition, be declared by judicial decree, or be shown in any collateral proceeding, to have been void from the time of its celebration. (Dec. 29, 1926, ch. 19, sec. 8, 44 Stat. 927; Feb. 27, 1933, ch. 128, sec. 39, 47 Stat. 1128.) Cross-Refeibence Bigamous and incestuous marriages, see title 5, sections 411 to 414. 54. What marriages voidable. — (a) A marriage celebrated in the Canal Zone after December 29, 1926, shall be voidable — (1) If either party thereto, at the time of the marriage, is an idiot or a lunatic ; (2) If the consent of either party thereto was procured by force or fraud : 47

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T. 3, § 55] THE CIVIL CODE (3) If either party thereto is, at the time of the marriage, incapable, from physical cause, of entering into the marriage state ; (4) If, because of the age of either party thereto, a written consent under section 60 of this title was required, and the marriage was celebrated without such consent ; or (5) If, at the time of the marriage, the male is under seventeen or the female is under fourteen years of age. (b) A voidable marriage shall be held to be valid until it is annulled, by judicial decree, as of the date of such decree. (Dec. 29, 1926, ch. 19, sec. 9, 44 Stat. 927; Jan. 22, 1927, ch. 52, 44 Stat. 1023; Feb. 27, 1933, ch. 128, sec. 40, 47 Stat. 1128.) 55. Annulment of marriage celebrated elsewhere. — (a) A marriage celebrated outside of the Canal Zone may be declared void or may be annulled in the same manner and with the same effect as though it had been celebrated in the Canal Zone if the petitioner shall have resided in the Canal Zone within a period of thirty days before and a period of thirty days after the date of such marriage. (b) A suit to have any such marriage celebrated outside the Canal Zone declared void or annulled may, in addition, be instituted by the district attorney of the Canal Zone in the name of the Government of the Canal Zone. (Dec. 29, 1926, ch. 19, sec. 10, 44 Stat. 928; Feb. 27, 1933, ch. 128, sec. 41, 47 Stat. 1129.) 56. Jurisdiction of annulment suit; who may institute suit. — (a) The district court shall have jurisdiction of a suit to have a marriage declared void or annulled. (b) In the case of a male under twenty-one or a female under eighteen years of age such suit may be instituted through a next friend or by a parent or guardian. In the case of an idiot or a ]unatic such suit may be instituted through a next friend. (c) No suit to have a marriage annulled may be instituted by a person who, when fully capable of contracting marriage, entered into such marriage willfully and with knowledge of the circumstances rendering such marriage voidable. (Dec. 29, 1926, ch. 19, sec 11, 44 Stat. 928; Feb. 27, 1933, ch. 128, sec. 42, 47 Stat. 1129.) 57. Legitimacy of children of annulled marriages. — A judgment of nullity of marriage does not affect the legitimacy of children begotten before the judgment. Ceoss-Rkfebences Divorce as affecting legitimacy of cliildien. soe seclion 118 of this title. Legitimate children, who are, see sections 162 and 164 (if this title. Legitimacy of children of annulled marriage, see section 634 of this title. Presumption of legitimacy of children, see sections 1(5:! and 103 of this title. Who may dispute legitimacy of child, see section 104 of tliis title. Presumption of legitimacy of children, see title 4, sections liOOO and 1!007. 58. Custody of children of annulled marriages. — The court must award the custody of the children of a marriage annulled on the ground of fraud or force to the innocent pareut, and may also provide for their education and maintenance out of the property of the guilty party. 48

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THE CIVIL CODE [T. 3, § 61 59. Effect of judgment of nullity.— A judgment of nullity of marriage rendered is conclusive only as against the parties to the action and those claiming under them. C5kobs-Refekbncb Effect of decree of divorce, see section 117 of this title. 60. Capability of minors to contract marriage. — (a) Except as provided in subdivision (b), a male under twenty-one years or age or a female under eighteen years of age may not enter into a marriage in the Canal Zone. (b) A male seventeen years of age or over and under twenty-one years of age, or a female fourteen years of age or over and under eighteen years of age, may enter into a marriage with the written consent of his or her natural or adopted parents, or of the parent having custody of such male or female if such parents are divorced, or of one of such parents if the other is dead, or has deserted his or her family, or has been adjudged insane or a lunatic, or of a legally appointed guardian if there is no parent qualified to give such consent. (Dec. 29, 1926, ch. 19, sec. 12, 44 Stat. 928; Feb. 27, 1933, ch. 128, sec. 46, 47 Stat. 1129.) 61. Application for and issuance of license; fee. — (a) No marriage shall be celebrated in the Canal Zone unless a license to marry has first been secured from the clerk of the division of the district court in which the marriage is to be celebrated : Provided however, That no marriage license shall be granted unless one of the parties thereto is an American citizen, or a resident of the Canal Zone: AThd provided further, That no marriage license shall be issued to a leper except upon a certificate of approval by the chief health officer of the Canal Zone. Such license when issued shall be accompanied by a marriage certificate to be filled in by the person celebrating the marriage. (b) Such clerk shall, upon application therefor in accordance with subdivision _(c), accompanied by the written consent when required by subdivision (b) of the next preceding section, issue a license to marry if it appears to the satisfaction of such clerk from the sworn statement of the persons desiring to marry, or, if required by such clerk, from the sworn statement of another, that no legal impediment to the marriage is known to exist. (c) The application for a license to marry shall state — (1) The name, address, age, color, and race of each of the persons to be married ; (2) The relationship, if any, of such persons, by consanguinity or affinity; (3) If either of such persons has been previously married, then the date and place of each previous marriage, the name of each person to whom previously married, and the manner in which each such marriage has been terminated. (d) The Governor shall prescribe the form of the application for a license to marry, of the license to marry, and of the marriage certificate. 49

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T. 3, § 62] THE CIVIL CODE (e) The clerk shall be paid a fee of $2 upon the issuance of a license to marry, and shall keep a record of all licenses issued and of all applications for licenses, together Avith any written consent of parents or a parent or guardian or the chief health officer accompanying the same. Such fee shall be disposed of in the same manner as other fees received by such clerk. (Dec. 29, 1926, ch. 19, sec. 13, 44 Stat. 928; Jan. 22, 1927, ch. 52, 44 Stat. 1023; Feb. 27, 1933, ch. 128, sec. 47, 47 Stat. 1130.) 62. Who may celebrate marriages; license to celebrate marriages. — (a) A marriage may be celebrated in the Canal Zone only by— (1) A magistrate of the Canal Zone. (2) A minister in good standing in any religious society or denomination who resides in the Canal Zone. (3) A minister in good standing in any religious society or denomination who resides in the city of Colon or the city of Panama, in the Republic of Panama, if he has procured from the clerk of the district court for the Canal Zone a license authorizing such minister to celebrate marriages in the Canal Zone. (b) The clerk shall issue the license provided for in paragraph (3) of subdivision (a) to any such minister if such clerk is satisfied that such minister is qualified to celebrate marriages in the Canal Zone. The clerk shall be paid a fee of $2 for issuing and recording any such license. Such fee shall be disposed of in the same manner as other fees received by such clerk. (Dec. 29, 1926, ch. 19, sec. 14, 44 Stat. 929; Feb. 27, 1933, ch. 128, sec. 48, 47 Stat. 1130.) 63. Certifying, signing, return, and recording of license; marriage certificate. — (a) The judicial officer or minister celebrating a marriage shall — (1) Certif}^ upon the marriage license that he celebrated such marriage, giving his official title and the time wdien and place where such marriage was celebrated; (2) Cause two persons who witnessed the marriage to sign their names on the marriage license as witnesses, each giving his place of residence ; (3) At the time of the marriage, fill out and sign the marriage certificate accompanying the license and deliver it to one of the parties to the marriage; and (4) Within thirty days after the date of the marriage, return such license, so certified and witnessed, to the clerk wlio issued such license. (b) Upon return of a license a,s required in subdivision (a), the clerk shall file the same after making registry thereof in a book to be kept in his office for that purpose only, such registry to contain the Christian and surnames of the parties, the time of their marriage, and the name and title of the person who celebrated the marriage. (Dec. 29, 1926, ch. 19, sec. 15, 44 Stat. 929 ; Feb. 27, 1933, ch. 128, sec. 49, 47 Stat. 1131.) 64. Violations of provisions of this chapter; punishment. — (a) Any judicial officer or minister who is qualified to celebrate marriages in the Canal Zone and any clerk of court who violates any of the provisions of .sections 61 to 63 of this title shall be punished by a 60

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THE CIVIL CODE [T. 3, § C8 fine of not more than $25, or by imprisonment in jail for not more than thirty days, or by both. (b) Any person who knowingly makes or causes to be made any false oath as to any material matter for the purpose of procuring or aiding another to procure a marriage license shall be guilty of perjury and shall be punished by imprisonment in the penitentiary for not more than ten years. (c) Any person who knowingly file,s or causes to be filed with the clerk a written consent, any signature to which is a forgery, shall be guilty of uttering a forged instrument and shall be punished by imprisonment in the penitentiary for not more than fourteen years. (d) Any person who is not qualified to celebrate marriages in the Canal Zone under this chapter and who celebrates in the Canal Zone what purports to be a marriage ceremony shall be punished by imprisonment in the penitentiary for not more than three years. (Dec. 29, 1926, ch. 19, sec. 16, 44 Stat. 929 ; Jan. 22, 1927, ch. 52, 44 Stat. 1023; Feb. 27, 1933, ch. 128, sec. 50, 47 Stat. 1131.) 65. Declaration where there is no record. — If no record of the solemnization of a marriage heretofore contracted, be known to exist, the parties may join in a written declaration of such marriage, substantially showing : (1) The names, ages, and residences of the parties. (2) The fact of marriage. (3) That no record of such marriage is known to exist. Such declaration must be subscribed by the parties and attested by at least three witnesses. 66. To be acknowledged and recorded. — Declarations of marriage must be acloiowledged and recorded in the office of the clerk of the district court. 67. Either party may proceed to test validity of marriage. — If either party to any marriage denies the same, or refuses to join in a declaration thereof, the other may proceed, by action in the district court, to have the validity of the marriage determined and declared. 68. Marriages contracted outside of Canal Zone. — Except as otherwise provided in section 55 of this title, all marriages contracted outside of the Canal Zone, which would be valid by the laws of the country in which the same were contracted, are valid in the Canal Zone. CHAPTER 5.— DIVORCE Art. Sec. 1. Causes for divorce 71 2. Causes for denying divorce 91 Art. Sec. 3. General provisions 111 Cross-Refb3iences Admission of defendant as evidence, see title 4, section 2155. Cross complaint for divorce and proceedings thereon, see title 4, section 228. Practice in general in suits for divorce, see title 4, section 181. Process and service thereof in suits for divorce, see title 4, sections 181 and 182. Statement of facts in divorce complaint, see title 4, section 203. Time for appearance and answer, see title 4, section 183. Venue of suits for divorce, see title 4, section 152. 61

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T. 3, § 71] THE CIVIL CODE ARTICLE 1.— CAUSES FOR DIVORCE Sec. 71. Causes for divorce. 72. Adultery defined. 73. Desertion, what. 74. Desertion, how manifested. 75. In case of stratagem or fraud, who commits desertion. 76. In case of cruelty, where one party leaves other, who commits desertion. 77. Separation by consent not desertion. 78. Absence becomes desertion, when. Sec. 79. Consent to separate revocable. 80. Desertion, how cured ; effect of refusing condonation. SI. Wife must abide by husband's selection of home, or it is desertion on her part. 82. If place is unfit, and wife refuses to conform, it is desertion by husband. 83. Habitual intemperance, what. 84. Extreme cruelty, what. Section 71. Causes for divorce. — In every case in which a marriage has been, or hereafter may be, contracted and solemnized between any two persons, and it shall be adjudged, in the manner hereinafter provided, (1) that either party has committed adultery subsequent to the marriage except as hereinafter provided; or (2) has willfully deserted and absented herself or himself from the husband or wife without any reasonable cause for a period of two years; or (3) has been guilty of willful neglect wdiich shall consist of the willful failure of the husband to provide for his wife the necessaries of life, he having the ability to do so, or the willful failure to do so by reason of voluntary idleness, profligacy, or dissipation, in either case continued for a period of one year; or (4) has been guilty of habitual drunkenness for the space of two years; or (5) has attempted the life of the other by any means showing malice; or (6) has been guilty of extreme cruelty; or (7) has been subsequent to the marriage, convicted of felony, it shall be lawful for the injured party to obtain a divorce and dissolution of such marriage contract in the district court. (Sept. 21, 1922, ch. 370, sec. 12, 42 Stat. 1008; Feb. 27, 1933, ch. 128, sec. 60, 47 Stat. 1132.) 72. Adultery defined. — Adultery is the voluntary sexual intercourse of a married person with a person other than the offender's husband or wife. 73. Desertion, what. — "Willful desertion is the voluntary separation of one of the married parties from the other with intent to desert. 74. Desertion, how manifested. — Persistent refusal to have reasonable matrimonial intercourse as husband and wnfe, when health or physical condition does not make such refusal reasonably necessary, or the refusal of either party to dwell in the same house with the other party, when there is no just cause for such refusal, is desertion. 75. In case of stratagem or fraud, who commits desertion. — When one party is induced, by the stratagem or fraud of the other party, to leave the family dwelling place, or to be absent, and during such absence the offending party departs Avith intent to desert the other, it is desertion by the party committing the stratagem or fraud, and not by the other. 76. In ease of cruelty, where one party leaves other, who commits desertion. — Departure or absence of one party from the family dwelling place, caused by extreme cruelty or by threats of bodily 52

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THE CIVIL CODE [T. 3, § 84 harm from which danger would be reasonably apprehended from the other, is not desertion by the absent party, but it is desertion by the other party. 77. Separation by consent not desertion. — Separation by consent with or without the understanding that one of the parties will apply for a divorce, is not desertion. CROSS-REFBaJEHSrCES Agreement for separation, see section 135 of this title. Consent revocable, see section 79 of this title. 78. Absence becomes desertion, v/hen. — Absence or separation, proper in itself, becomes desertion whenever the intent to desert is fixed during such absence or separation. 79. Consent to separate revocable. — Consent to a separation is a revocable act, and if one of the parties afterwards, in good faith, seeks a reconciliation and restoration, but the other refuses it, such refusal is desertion. 80. Desertion, how cured; effect of refusing condonation. — If one party deserts the other, and before the expiration of the statutory period required to make the desertion a cause of divorce, returns and offers in good faith to fulfill the marriage contract, and solicits condonation, the desertion is cured. If the other party refuse such offer and condonation, the refusal shall be deemed and treated as desertion by such party from the time of refusal. 81. Wife must abide by husband's selection of home, or it is desertion on her part. — The husband may choose any reasonable place or mode of living, and if the wife does not conform thereto, it is desertion. 82. If place is unfit, and wife refuses to conform, it is desertion by husband. — If the place or mode of living selected by the husband is unreasonable and grossly unfit, and the wife does not conform thereto, it is desertion on the part of the husband from the time her reasonable objections are made known to him. 83. Habitual intemperance, what.— Habitual drunkenness is that degree of intemperance from the use of intoxicating drinks which disqualifies the person a great portion of the time from properly attending to business, or which would reasonably inflict a course of great mental anguish upon the innocent party. 84. Extreme cruelty, what. — Extreme cruelty is the wrongful infliction of grievous bodily injury, or grievous mental suffering, upon the other by one party to the marriage. 58

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T. 3, § 91] THE CIVIL CODE ARTICLE 2.— CAUSES FOB DENYING DIVORCE Sec. 91. Divorces denied, on showing what. 92. Connivance, what. 93. Corrupt consent, how manifested. 94. Collusion, what. 95. Condonation, what. 96. Requisites to condonation. 97. Condonation implies what. 98. Evidence of condonation. 99. Condonation ; can only be made when. 100. Concealment of facts in certain cases makes condonation void. Sec. 101. Condonation, how revoked. 102. Recrimination, what. 103. Condonation ; when to bar defense. 104. Divorce, when denied. 105. Lapse of time establishes certain presumptions. 106. Presumptions may be rebutted. 107. Limitation of time. 108. Residence of plaintiff in suit for divorce. -Divorces must be denied 91. Divorces denied, on showing what.npon showing: 1. Connivance; 2. Collusion; 3. Condonation; 4. Recrimination; or 5. Limitation and lapse of time. Ceoss-Referewces Connivance, see section 92 of tliis title. Collusion, see section 94 of this title. Condonation, see sections 95 et seq., of this title. Recrimination, see sections 102 et seq., of this title. Limitation and lapse of time, see sections 104 et seq., of this title. 92. Connivance, what. — Connivance is the corrupt consent of one party to the commission of the acts of the other, constituting the cause of divorce. 93. Corrupt consent, how manifested. — Corrupt consent is manifested by passive permission, with intent to connive at or actively procure the commission of the acts complained of. 94. Collusion, what. — Collusion is an agreement between husband and wife that one of them shall commit, or appear to have committed, or to be represented in court as having committed, acts constituting a cause of divorce, for the purpose of enabling the other to obtain a divorce. 95. Condonation, what. — Condonation is the conditional forgiveness of a matrimonial offense constituting a cause of divorce. Cboss-Refebences Revoking condonation, see section 101 of this title. Condonation of a recriminatory defense, see section 103 of this title. 96. Requisites to condonation. — The following requirements are necessary to condonation: 1. A knowledge on the part of the condoner of the facts constituting the cause of divorce ; 2. Reconciliation and remission of the offense by the injured party; 3. Restoration of the offending party to all marital rights. 97. Condonation implies what. — Condonation implies a condition subsequent; that the forgiving party must be treated with conjugal kindness54

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THE CIVIL CODE [T. 3, § 106 98. Evidence of condonation. — Where the cause of divorce consists of a course of offensive conduct, or arises, in cases of cruelty, from excessive acts of ill treatment which may, aggregately, constitute the offense, cohabitation, or passive endurance, or conjugal kindness, shall not be evidence of condonation of any of the acts constituting such cause, unless accompanied by an express agreement to condone. 99. Condonation; can only be made when. — In cases mentioned in the next preceding section, condonation can be made only after the cause of divorce has become complete, as to the acts complained of. 100. Concealment of facts in certain cases makes condonation void. — A fraudulent concealment by the condonee of facts constituting a different cause of divorce from the one condoned, and existing at the time of condonation, avoids such condonation. 101. Condonation, how revoked. — Condonation is revoked and the original cause of divorce revived : 1. When the condonee commits acts constituting a like or other cause of divorce ; or 2. When the condonee is guilty of great conjugal unkindness, not amounting to a cause of divorce, but sufficiently habitual and gross to show that the conditions of condonation had not been accepted in good faith, or not fulfilled. 102. Recrimination, what. — Eecrimination is a showing by the defendant of any cause of divorce against the plaintiff, in bar of the plaintiff's cause of divorce. 103. Condonation; when to bar defense. — Condonation of a cause of divorce, shown in the answer as a recriminatory defense, is a bar to such defense, unless the condonation be revoked, as provided in section 101 of this title, or two years have elapsed after the condonation, and before the accruing or completion of the cause of divorce against which the recrimination is shown. 104. Divorce, when denied. — A divorce must be denied: (1) When the cause is adultery and the action is not commenced within two years after the commission of the act of adultery, or after its discovery by the injured party. (2) When the cause is conviction of felony, and the action is not commenced before the expiration of two years after a pardon, or the termination of the period of sentence. (3) In all other cases when there is an unreasonable lapse of time before the commencement of the action. 105. Lapse of time establishes certain presumptions. — Unreasonable lapse of time is such a delay in commencing the action as establishes the presumption that there has been connivance, collusion, or condonation of the offense, or full acquiescence in the same, with intent to continue the marriage relation notwithstanding the commission of such offense. 106. Presumptions may be rebutted. — The presumptions arising from lapse of time may be rebutted by showing reasonable grounds for the delay in commencing the action. 55

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T. 3, § 107] THE CIVIL CODE 107. Limitation of time. — There are no limitations of time for commencing actions for divorce, except such as are contained in section 104 of this title. 108. Residence of plaintiff in suit for divorce. — (a) Any person having an official residence within the territorial limits of the Canal Zone, or who resides therein for the purpose of any occupation or employment, shall, during such residence, be deemed a resident of the Canal Zone for the purpose of this chapter and sections 152, 181 to 183, 203, 228, and 2155 of title 4, notwithstanding that he or she may not have acquired a permanent domicile within the Canal Zone. (b) No plaintiff shall be entitled to a divorce who has not actually resided in the Canal Zone continuously during the whole year next before the filing of his or her complaint, which residence shall be duly proven by the plaintiff to the satisfaction of the court by at least two witnesses who are residents of the Canal Zone; and the plaintiff shall file with the complaint his or her own affidavit, in which he or she shall state the length of time plaintiff has resided in the Canal Zone, the place or places where he or she has resided for the last preceding vear. and his or her office or occupation. (Sept. 21, 1922 ch. 370, sec. 13, 42 Stat. 1008; Feb. 27, 1933, ch. 128, sec. 91, 47 Stat. 1135.) Ceoss-Reference Venue in suit for divorce, see title 4, section 152. ARTICLE 3.— GENERAL PROVISIONS Sec. 111. Marriage, how dissolved. 112. Custody and care of children pending suit. 113. Alimony pending suit. 114. When bill is taken as confessed ; default. 115. Maintpnance by husband where divorce denied. 116. Action for permanent support of wife. 117. Effect of divorce in general, lis. Legitimacy of children. 119. Interlocutory order and appeal therefrom ; final decree of divorce. 120. Alimony and maintenance ; care, custody, and support of children. Sec. 121. Court shall resort to what, in executing certain sections. 122. If wife has sufflciont for her support, court may withhold allowance. 123. Community and separate property may be subjected to support and educate children. 124. Disposition of community property on divorce. 12.'5. Same. 126. Compelling conveyance of property belonging to other spouse. 127. Resumption of maidon or former husband's name. 128. Decrees and orders prior to September 21, 1922, legalized. 111. Marriage, how dissolved. — Marriage is dissolved only: (1) By the death of one of the parties; or (2) By the judgment of a court of competent jurisdiction decreeing a divorce of the parties. 112. Custody and care of children pending suit. — The court may, en the application of either party, make such order concerning the custody and care of the minor children of the parties during the pendencv of the suit as may be deemed expedient and for the benefit of the children. (Sept. 21, 1922, ch. 370, sec. 17, 42 Stat. 1010; Feb. 27, 1933, ch. 128, sec. 93, 47 Stat. 1136.) 113. Alimony pending suit. — In all cases of divorce the court may require the husband to pay to the wife or Day into court for her 66

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THE CIVIL CODE [T. 3, § 116 use during the pendency of the suit such sum or sums of money as may enable her to maintain or defend the suit ; and in every suit for divorce, the wife, when it is just and equitable, shall be entitled to alimony during the pendency of the suit. And in case of appeal by the husband, the district court may grant and enforce the payment of such money for her defense and such equitable alimony during the pendency of the appeal as to the court shall seem reasonable and proper. (Sept. 21, 1922, ch. 370, sec. 20, 42 Stat. 1010; Feb. 27, 1933, ch. 128, sec. 94, 47 Stat. 1136.) Cboss-Referenoej Property resorted to in executing tliis section, see section 121 of this title. 114. When bill is taken as confessed; default.— If the bill is taken as confessed, the court shall proceed to hear the cause by examination of witnesses in open court, and in no case of default shall the court grant a divorce unless the judge is satisfied that all proper means have been taken to notify the defendant of the pendency of the suit, and that ih.Q cause of divorce has been fully proven by competent evidence. Whenever the district judge is satisfied that the interests of the defendant require it, the court may order such additional notice as equity may seem to require. (Sept. 21, 1922, ch. 370, sec. 16, 42 Stat. 1010; Feb. 27, 1933, ch. 128, sec. 95, 47 Stat. 1136.) 115. Maintenance by husband where divorce denied. — Though judgment of divorce is denied, the court may, in an action for divorce, provide for the maintenance by the husband, of the wife and children of the marriage, or any of them. Cross-References Alimony generally, see section 120 of this title. Property resorted to in executing this section, see section 121 of this title. 116. Action for permanent support of wife. — When the husband willfully deserts the wife or when the husband willfully fails to provide for the wife or when the wife has any cause of action for divorce as provided in section 71 of this title, she may, without applying for divorce, maintain in the district court an action against him for permanent support and maintenance of herself or of herself and children. During the pendency of ,such action the court may, in its discretion, require the husband to pay as alimony any money necessary for the prosecution of the action and for support and maintenance, and execution may issue therefor in the discretion of the court. The court, in granting the wife permanent support and maintenance of herself, or of herself and children, in any such action, shall make the same disposition of the commimity property as would have been made if the marriage had been dissolved by the decree of a court of competent jurisdiction. The final judgment in such action may be enforced by the court by such order or orders as in its discretion it may from time to time deem necessary, and auch order or orders may be varied, altered, or revoked at the discretion of the court. Cboss-Refehencb Property resorted to in executing this section, see section 121 of this title. 93083 — 34 5 57

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T. 3, § 117] THE CIVIL CODE 117. Effect of divorce in general. — The effect of a judgment decreeing a divorce is to restore the parties to the state of unmarried persons. 118. Legitimacy of children. — No divorce shall in anywise affect the legitimacy of the children of such marriage. (Sept. 21, 1922, ch. 370, sec. 18, 42 Stat. 1010; Feb. 27, 1933, ch. 128, sec. 99, 47 Stat. 1137.) Cboss-Referbnces Issue of marriages dissolved by divorce legitimate, see section 634 of this title. Legitimacy of children of annulled marriages, see section 57 of this title. 119. Interlocutory order and appeal therefrom; final decree of divorce. — (a) No final decree granting a divorce shall be entered until after the expiration of the period of six months from the date of the entry of an interlocutory order adjudging that a case for divorce has been proved, and every such interlocutory order shall expressly state that no divorce is granted by it. An appeal may be taken from any such interlocutory order in the same manner and within the same time as an appeal from a final decree of guch court in any other proceeding. (b) After the expiration of such period of six months, or if an appeal is taken and the case is pending at the time of the expiration of such period then after the final disposition of the case if determined in favor of the plaintiff, the court, upon application filed within thirty days after the expiration of such period or such final disposition, by the person in who,se favor such interlocutory order was entered, shall enter a final decree granting a divorce. II no such application is made, the court may, on its own motion, within three months after the expiration of such thirty-day period, enter a final decree of divorce. No appeal may be taken from such final decree. (Sept. 21, 1922, ch. 370, sec. 21, 42 Stat. 1011; Dec. 29, 1926, ch. 19, sec. 5, 44 Stat. 926; Feb. 27, 1933, ch. 128, sec. 100, 47 Stat. 1137.) 120. Alimony and maintenance; care, custody, and support of children. — When a divorce shall be decreed the court may make such order touching the alimony and maintenance of the wife, the care, custody, and support of the children, or any of them as, from the circumstances of the parties and the nature of the case, shall be reasonable and just, and in case the wife be plaintiff, may order the defendant to give reasonable security for such alimony and maintenance, or may enforce the payment of such alimony and maintenance in any other manner consistent with the rules and practice of the court. And the court may, on application, from time to time make such alterations in the allowance of alimony and maintenance and the care, custody, and support of the children as shall appear reasonable and proper. In decreeing a divorce to the wife the court may order the husband to pay alimony in a gross sum or in installments as may seem best. And it may make such orders and enforce the same by attachment and secure the payment of such alimony, but judgment for alimony cannot be taken when the defendant is 58

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THE CIVIL CODE [T. 3, § 128 not personally served with summons or does not voluntarily appear. (Sept. 21, 1922, ch. 370, sec. 20, 42 Stat. 1010; Feb. 27, 1933, ch. 128, sec. 101, 47 Stat. 1137.) CBOSS-REI'EaBNCE Property resorted to in executing this section, see section 121 of this title. 121. Court shall resort to what, in executing certain sections. — In executing sections 113, 115, 116 and 120 of this title, the court must resort : 1. To the community property ; then, 2. To the separate property of the husband. 122. If wife has sufficient for her support, court may withhold allowance. — When the wife has either a separate estate, or there is community property sufficient to give her alimony or a proper support, the court, in its discretion, may withhold any allowance to her out of the separate property of the husband. 123. Community and separate property may be subjected to support and educate children. — ^The community property and the separate property may be subjected to the support and education of the children in such proportions as the court deems just. 124. Disposition of community property on divorce. — In case of the dissolution of the marriage by the decree of a court of competent jurisdiction, the community property shall be assigned to the respective parties in such proportions as the court, from all the facts of the case, and the condition of the parties, may 'deem just. 125. Same. — The court, in rendering a decree of divorce, must make such order for the disposition of the community property, as in this chapter provided, and, whenever necessary for that purpose, may order a partition or sale of the property and a division or other disposition of the proceeds. 126. Compelling conveyance of property belonging to other spouse. — Whenever a divorce is granted, if it shall appear to the court that either party holds the title to property equitably belonging to the other, the court may compel conveyance thereof to the party entitled to the same, upon such terms as it shall deem equitable. (Sept. 21, 1922, ch. 370, sec. 20, 42 Stat. 1010; Feb. 27, 1933, ch. 128, sec. 107, 47 Stat. 1138.) 127. Resumption of maiden or former husband's name. — The court, upon granting to a woman a divorce from the bonds of matrimony, may allow her to resume her maiden name or the name of any former husband. (Sept. 21, 1922, ch. 370, sec. 20, 42 Stat. 1010; Feb. 27, 1933, ch. 128, sec. 108, 47 Stat. 1138.) 128. Decrees and orders prior to September 21, 1922, legalized. — All proceedings in the district court of the Canal Zone, wherein and whereby a decree of divorce was granted prior to September 21, 1922, upon personal service, or service by publication, and wherein other orders were made affecting the status of the parties or their children, are hereby legalized. (Sept. 21, 1922, ch. 370, sec. 22, 42 Stat. 1011; Feb. 27', 1933, ch. 128, sec. 109, 47 Stat. 1138.)

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T. 3, § 131] THE CIVIL CODE CHAPTER 6.— HUSBAND AND WIFE Sec. 131. Mutual obligations of husband and wife. 1.32. Rights of husband, ms head of family. 133. In other respects their interests separate. 134. Husband and wife may make contracts. 135. Husband and wife; property relations. 136. Consideration for agreement of separation. 137. May hold property how. 138. Separate property of the wife. 139. Separate property of the husband. 140. Property acquired after marriage. 141. Inventory of separate property of wife. 142. Filing inventory notice of wife's title. 143. Community property ; contracts by wife. Sec. 144. Earnings of wife not liable for debts of the husband. 145. Earnings of wife, when living separate, separate property. 146. Liability for debts of wife contracted before marriiige. 147. Liability of separate property of wife. 148. Married woman's torts. 149. Management of community personal property. 150. Support of wife. 151. Husband not liable when abandoned by wife. 152. When wife must support husband. 153. Rights of husband and wife governed by what. 154. Marriage settlement contracts, how executed. 155. Minors may make marriage settlements. Section 131. Mutual obligations of husband and wife. — Husband and wife contract towards each other obligations of mutual respect, fidelity, and support. CkOSS-Re3FERENCB8 Abandonment or omission to provide for wife, as misdemeanor, see title 5, section 441. Motlier aiding in support of cliildren, see section 166 of this title. Husband's support of wife, see sections 150 and 151 of this title. Wife's support of husband, see section 152 of this title. 132. Rights of husband, as head of family. — The husband is the head of the family. He may choose any reasonable place or mode of living, and the wife must conform thereto. Ceoss-Re^'ebences Parent clianging residence of child, see section 183 of this title. HiLsband's selection of dwelling place, etc., see section 81 of this title. 133. In other respects their interests separate. — Neitlier husband nor wife has any interest in the property of the other, but neither can be excluded from the other's dwelling. 134. Husband and wife may make contracts. — Either husband or wife may enter into any engagement or transaction with the other, or with any other person, respecting property, which either might if unmarried; subject, in transactions between themselves, to the general rules which control the actions of persons occupying confidential relations with each other, as defined by chapters 49 and 50 of this title on trusts. 135. Husband and wife; property relations. — A husband and wife cannot, by any contract with each other, alter their legal relations, except as to property, and except that they may agree, in writing, to an immediate separation, and may make provision for the support of either of them and of their children during such separation. Cross-Referencb Marriage settlements, see sections 153 to 155 of this title. 60

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THE CIVIL CODE [T. 3, § 143 136. Consideration for agreement of separation. — The mutual consent of the parties is a sufficient consideration for such an agreement as is mentioned in the next preceding section. 137. May hold property, how. — A husband and wife may hold property by joint interests, by interests in common, or as comnmnity property. 138. Separate property of the wife. — All property of the wife, owned by her before marriage, and that acquired afterwards by gift, bequest, devise, or descent, with the rents, issues, and profits thereof, is her separate property. The wife may, without the consent of her husband, convey her separate property. 139. Separate property of the husband. — All property owned by the husband before marriage, and that acquired afterwards by gift, bequest, devise, or descent, with the rents, issues, and profits thereof, is his separate property. Cboss-Refebences Commuuity property, see section 280 of this title. Community property liable for what debts, see section 143 of this title. Husband's control over community property, see section 149 of this title. Descent of community property, see sections 648 and 649 of this title. 140. Property acquired after marriage. — All other property acquired after marriage by either husband or wife, or both, including personal property wherever situated, heretofore or hereafter acquired while domiciled elsewhere, which would not have been the separate property of either if acquired while residing in the Canal Zone, is community property; but whenever personal property, or any interest therein or encumbrance thereon, is acquired by a married woman by an instrument in writing the presumption is that the same is her separate property, and if acquired by such married woman and her husband, or by her and any other person, the presumption is that she takes the part acquired by her, as an interest in common, unless a different intention is expressed in the instrument; and the presumptions in this section mentioned are conclusive in favor of a purchaser, encumbrancer, payor, or any other person dealing with such married woman, in good faith and for a valuable consideration. Ceoss-Re3'ebbncb See, also, section 280 of this title. 141. Inventory of. separate property of wife. — A full and complete inventory of the separate personal property of the wife may be made out and signed by her, acknowledged or proved in the manner required by chapter 22 of this title, and recorded in the office of the registrar of property. 142. Filing inventory notice of wife's title.— The filing of the inventory in the office of the registrar of property is notice and prima facie evidence of the title of the wife. 143. Community property; contracts by wife. — The property of the community is not liable for the contracts of the wife, made after

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T. 3, § 144] THE CIVIL CODE marriage, unless secured by mortgage thereof executed by the husband. Ceoss-Re^'ebences Debts of wife, see sections 146, 147, and 150 of this title. Community property is liable for husband's debts, see section 149 of this title. Necessaries furnished wife, see section 150 of this title. 144. Earnings of wife not liable for debts of the husband. — The earnings of the wife are not liable for the debts of the husband. 145. Earnings of wife, when living separate, separate property. — The earnings and accumulations of the wife, while she is living separate from her husband, are her separate projDerty. 146. Liability for debts of wife contracted before marriage. — The separate property of the husband is not liable for the debts of the wife contracted before the marriage. 147. Liability of separate property of wife. — The separate property of the wife is liable for her own debts contracted before or after her marriage, but is not liable for her husband's debts: Provided, That the separate property of the wife is liable for the payment of debts contracted by the husband or wife for the necessaries of life furnished to them or either of them while they are living together: Provided, That the provisions of the foregoing proviso shall not apply to the separate property of the wife held by her at the time of her marriage or acquired by her by devise, succession, or gift, other than by gift from the husband, after marriage. 148. Married woman's torts. — For civil injuries committed by a married woman, damages may be recovered from her alone, and her husband shall not be liable therefor, except in cases where he would be jointly liable with her if the marriage did not exist. 149. Management of community personal property. — The husband has the management and control of the community personal property, with like absolute power of disposition, other than testamentary, as he has of his separate estate: Provided, however, That he cannot make a gift of such community personal property, or dispose of the same without a valuable consideration, or sell, convey, or encumber the furniture, furnishings, or fittings of the home, or the clothing or wearing apparel of the wife or minor children that is community, without the written consent of the wife. Cross-Rei-ekences Community property generally, see section 140 of this title. Dissolution of t!ie commimity by divorce, see section 125 of this title. Testamentary control over community property, see sections 648 and 649 of this title. 150. Support of wife. — If the husband neglects to make adequate provision for the support of his wife, except in the cases mentioned in the section next following, any other person may, in good faith, 82

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THE CIVIL CODE [T. 3, § 161 supply her with articles necessary for her support, and recover the reasonable value thereof from the husband. Cross-Referenc?e Abandonment or omission to provide for wife, as misdemeanor, see title 5, section 441. 151. Husband not liable when abandoned by wife. — A husband abandoned by his wife is not liable for her support until she offers to return, unless she was justified, by his misconduct, in abandoning him; nor ig he liable for her support when she is living separate from him, by agreement, unless such support is stipulated in the agreement. 152. When wife must support husband. — The wife must support the husband when he has not deserted her, out of her separate property, when he has no separate property, and there is no community property, and he is unable, from infirmity, to support himself. Cross-Rb:febence Mutual obligations of support, see section 131 of this title. 153. Rights of husband and wife governed by what. — The property rights of husband and wife are governed by this chapter, unless there is a marriage settlement containing stipulations contrary thereto. 154. Marriage settlement contracts, how executed. — All contracts for marriage settlements must be in writing; subscribed bj^ the party to be charged or by his agent thereunto authorized in writing; and acknowledged or proved in the manner prescribed in chapter 22 of this title. 155. Minors may make marriage settlements. — A minor capable of contracting marriage may make a valid marriage settlement. CHAPTER 7.— CHILDREN BY BIRTH Sec. 161. Legitimacy of issue of wife coliablting witli husband. 162. Legitimacy of children born In wedlock. 163. Legitimacy of children born after dissolution of marriage. 164. Who may di.'^pute the legitimacy of a child. 165. When child becomes legitimate. 166. Obligation of parents for the support and education of their children. 167. Custody of minors. 168. Husband and wife living separate, neither to have superior right to custody of children. 169. When husband or wife may bring action for the exclusive control of children ; decree in such cases. 170. Custody of illegitimate child. 171. Allowance to parents. 172. Parent cannot control property of child. Sec. 173. 174. 175. Remedy for parental abuse. When parental authority ceases. Remedy when parent dies without providing for the support of his child. 176. Reciprocal duties of parents and children in maintaining each other. 177. When parent is liable for necessaries supplied to child. 178. When parent is not liable for support furnished his child. 179. Husband not bound for the support of his wife's children by a former marriage. 180. Compensation and support of adult child. 181. Parent may relinquish services and custody of child. 182. Wages of minors. 183. Right of parent to determine the residence of child. Section 161. Legitimacy of issue of wife cohabiting with husband. — The issue of a wife cohabiting with her husband, who is not impotent, is indisputably presumed to be legitimate.

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T. 3, § 162] THE CIVIL CODE 162. Legitimacy of children born in wedlock. — All children born in wedlock are presumed to be legitimate. Cross-Refebences Father legitimating child by acknowledging it, see section 196 of this title. Illegitimates, heirs to whom, see section 634 of this title, ^legitimacy of children of nullified marriage, see section 57 of this title. Legitimating children by marriage of parents, see section 165 of this title. Mother entitled to custody of illegitimate unmarried minor, see section 170 of this title. Mother succeeds to estate of illegitimate, see section 635 of this title. Rebutting presumption of legitimacy, see section 164 of this title. Presumption of legitimacy, see title 4, sections 2006 and 2007. 163. Legitimacy of children born after dissolution of marriage. — All children of a woman who has been married, born within ten months after the dissolution of the marriage, are presumed to be legitimate children of that marriage. 164. Who may dispute the legitimacy of a child. — The presumption of legitimacy can be disputed only by the husband or wife, or the descendant of one or both of them. Illegitimacy, in such case, may be proved like any other fact. 165. When child becomes legitimate. — A child born before wedlock becomes legitimate by the subsequent marriage of its parents. 166. Obligation of parents for the support and education of their children. — The parent entitled to the custody of a child must give him support and education suitable to his circumstances: Provid^d^ That if a child has earnings of his own sufficient therefor, the cost of his support and education may be taken therefrom. If the support and education which the father of a legitimate child is able to give are inadequate, the mother must assist him to the extent of her ability. Cboss-Reference Abnndonment or omission to provide for child, as misdemeanor, see title 5, section 441. 167. Custody of minors. — The father and mother of a legitimate unmarried minor child are equally entitled to its custody and services. If either the father or mother be dead or unable or refuse to take the custody or has abandoned his or her family, the other is entitled to its custody and services. CrOSS-REFE3{ENCES Action for control of child, see section 169 of this title. Control over property of child, see section 172 of this title. Relinquishing light to child's earnings, see section 181 of this title. 168. Husband and wife living separate, neither to have superior right to custody of children. — The husband and father, as such, has no rights superior to those of the wife and mother, in regard to the care, custody, education, and control of the children of the marriage, while such husband and wife live separate and apart from each other. 64

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THE CIVIL CODE [T. 3, § 176 169. When husband or wife may bring action for the exclusive control of children ; decree in such cases. — Without application for a divorce, the husband or the wife may brinj^ an action for the exclusive control of the children of the marriage; and the district court may, during the pendency of such action, or at the final hearing thereof, or afterwards, make such order or decree in regard to the support, care, custody, education, and control of the children of the marriage, as may be just, and in accordance with the natural rights of the parents and the best interests of the children, and may at any time thereafter amend, vary, or modify such order or decree, as tne natural rights and the interests of the parties, including the children, may require. 170. Custody of illegitimate child. — The mother of an illegitimate unmarried minor is entitled to its custody and services. Ckoss-Refeeence Inheritance from illegitimate child, see section 635 of this title. 171. Allowance to parent. — The district court may direct an allowance to be made to the parent of a child, out of its property, for its past or future support and education, on such conditions as may be proper, whenever such direction is f er its benefit. 172. Parent cannot control property of child. — The parent, as such, has no control over the property of the child. 173. Remedy for parental abuse. — The abuse of parental authority is the subject of judicial cognizance in a civil action brought by the child, or by its relative within the third degree, or by the district attorney of the Canal Zone; and when the abuse is established, the child may be freed from the dominion of the parent, and the duty of support and education enforced. CeOSS-REFEREN CE8 Parental duty, see section 166 of this title. Abuse or abandonment of child, as misdemeanor, see title 5, section 443. 174. When parental authority ceases. — The authority of a parent ceases : 1. Upon the appointment, by a court, of a guardian of the person of a child; 2. Upon the marriage of the child ; or 3. Upon its attaining majority. 175. Remedy when parent dies without providing for the support of his child. — If a parent chargeable with the support of a child dies, leaving it a public charge, and leaving an estate sufficient for its support, the district attorney may claim provision for its support from the parent's estate by civil action, and for this purpose may have the same remedies as any creditors against that estate, and against the heirs and next of kin of the parent. 176. Reciprocal duties of parents and children in maintaining each other. — It is the duty of the father, the mother, and the children of any poor person who is unable to maintain himself by work, 65

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T. 3, § 177] THE CIVIL CODE to maintain such person to the extent of their ability. The promise of an adult child to pay for necessaries previously furnished to such parent is binding. Ceoss-References Mother supporting children, see section 166 of this title. Wife supporting husband, see section 152 of this title. 177. When parent is liable for necessaries supplied to child. — If a parent neglects to provide articles necessary for his child who is under his charge, according to his circumstances, a third person may in good faith supply such necessaries, and recover the reasonable value thereof from the parent. CrOS S-REFEKEay CE Infant liable on contract for necessaries, see section 28 of this title. 178. When parent is not liable for support furnished his chUd. — A parent is not bound to compensate the other parent, or a relative, for the voluntary support of his child, without an agreement for compensation, nor to compensate a stranger for the support of a child who has abandoned the parent without just cause. 179. Husband not bound for the support of his wife's children by a former marriage. — A husband is not bound to maintain his wife's children by a former husband; but if he receives them into his family and supports them, it is presumed that he does so as a parent, and, where such is the case, they are not liable to him for their support, nor he to them for their services. 180. Compensation and support of adult child. — Where a child, after attaining majority, continues to serve and to be supported by the parent, neither party is entitled to compensation, in the absence of an agreement therefor. 181. Parent may relinquish services and custody of child. — The parent, whether solvent or insolvent, may relinquish to the child the right of controlling him. Abandonment by the parent is presumptive evidence of such relinquishment. 182. Wages of minors. — The wages of a minor employed in service may be paid to him. 183. Right of parent to determine the residence of child. — A parent entitled to the custody of a child has a right to change his residence, subject to the power of the proper court to restrain a removal which would prejudice the rights or welfare of the child. Cross-IIeference Residence, husband's right to change, see section 132 of this title. CHAPTER 8.— CHILDREN BY ADOPTION Sec. 191. How child may be adopted. 192. Adoption by stepfather. 193. Order of the court. 194. Effect of the order. Sec. 195. Consent to adoption of Illegitimate cliild. 196. Adoption of illegitimate child by father. Section 191. How child may be adopted. — A resident of the Canal Zone, not married, or a husband and wife jointly, may petition the 66

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THE CIVIL CODE [T. 3, § 196 district court for leave to adopt a minor child ; but a written consent must be given for the adoption by the child, if of the age of fourteen years, and by each of his or her living parents who i^ not hopelessly insane or intemperate, or has not abandoned such child, or if there are no such parents, or if the parents are unknown, or have abandoned such child, or if they are hopelessly insane or intemperate, then by the legal guardian, or if there is no such guardian, then by a discreet and suitable person appointed by the court to act in the proceedings as the next friend of such child ; but when such child is an inmate of a charitable or eleemosynary institution within the Canal Zone, and has been previously abandoned by its parents or guardians thereto, then the written consent of the head of such institution must be given : Provided, nevertheless, That nothing herein contained shall authorize a guardian to adopt his ward before the termination of the guardianship and the final settlement and approval of his accounts as guardian by the court. 192. Adoption by stepfather. — A resident of the Canal Zone, being the husband of any woman who has a minor child by a deceased husband, may petition the district court for leave to adopt such minor child and for a change in the name of such child; but the written consent must be given to the adoption by the child, if of the age of fourteen years, and by the mother of such child, if she is not hopelessly insame or intemperate, or if such mother is hopelessly insane or intemperate, then by the legal guardian of such child, or if there is no such guardian, then by a discreet and suitable person appointed by the court to act in the proceedings as the next friend of such child, 193. Order of the court. — When the foregoing provisions are complied with, if the court is satisfied with the ability of the petitioner to bring up and educate the child properly, having reference to the degree and condition of the child's parents and the fitness and propriety of such adoption, it shall make an order setting forth the facts and declaring that from that date said child, to all legal intents and purposes, is the child of the petitioner and that its name is thereby changed. The order shall be recorded in the records of the court. 194. Effect of the order. — The natural parents, except when such child is adopted under the provisions of section 192 of this title, shall, by such order, be divested of all legal rights and obligations in respect to the child, and the child shall be free from all legal obligations of obedience and maintenance with respect to them. Such child shall be to all intents and purposes the child and legal heir of the person adopting him or her, entitled to all the rights and privileges, and subject to all the obligations of a child of such person begotten in lawful wedlock. 195. Consent to adoption of illegitimate child. — If the child to be adopted is illegitimate, the consent of the father to adoption shall not be required. 196. Adoption of illegitimate child by father. — The father of an illegitimate child, by publicly acknowledging it as his own, receiving 67

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T. 3, § 201] TBE CIVIL CODE it as such, with the consent of his wife, if he is married, into his family, and otherwise treating it as if it were a legitimate child, thereby adopts it as such; and such child is thereupon deemed for all purposes legitimate from the time of its birth. The foregoing provisions of this chapter do not apply to such an adoption. CROSS-REFE3lEa^CE Affecting inheritance, see section 634 of this title. CHAPTER 9.— GUARDIAN AND WARD Sec. 201. Guardian, what. 202. Ward, what. 203. Kinds of guardians. 204. General guardian, what. 205. Special guardian, what. 206. Guardian ; appointment by will, and so forth. 207. Appointment by will or deed of guardian. 208. Rules for awarding custody of minor. Sec. 209. Relation confidential. 210. Guardian under direction of court. 211. Death of a Joint guardian. 212. Removal of guardian. 213. Guardian appointed by parent, how superseded. 214. Suspension of power of guardian. 215. Release by ward. 216. Guardian's discharge. CeOS S -REFEatEN CB Judicial appointment of guardians, see Title 4, The Code of Civil Procedure. Section 201, Guardian, what. — A guardian is a person appointed to take care of the person or property of another. 202. Ward, what. — The person over whom or over whose property a guardian is appointed, is called his ward. 203. Kinds of guardians. — Guardians are either: 1. General; or 2. Special. Ceoss-Refeiiences Testamentary guardians, see section 207 of this title. Guardians ad litem, see title 4, sections 127 and 128. 204. General guardian, what. — A general guardian is a guardian of the person or of all the property of the ward within the Canal Zone, or of both. 205. Special guardian, what. — Every other is a special guardian. 206. Guardian; appointment by will, and so forth. — A guardian of the person or estate, or of both, of a child born, or likely to be born, may be appointed by will or by deed, to take effect upon the death of the parent appointing : 1. If the child be legitimate, oy the father, with the written consent of the mother ; or by either parent, if the other be dead or incapable of consent. 2. If the child be illegitimate, by the mother. Cros 8-Refebencb Bond of testamentary guardian, see title 4, section 1731. 207. Appointment by will or deed of guardian. — A guardian of the person or estate, or of both, of an insane or incompetent person may be appointed by will or deed, to take effect upon the death of the person appointing: 68

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THE CIVIL CODE [T. 3, § 212 1. If the insane or incompetent person be unmarried, or be a person whose marriage has been annulled or dissolved by death or divorce, by the father, with the written consent of the mother, or by either parent if the other be dead or incapable of consent. 2. If the insane or incompetent person be married and a person whose marriage has not been annulled or dissolved by divorce, then by the spouse. 208. Rules for awarding custody of minor. — In awarding the custody of a minor, or in appointing a general guardian, the court or officer is to be guided by the following considerations : 1. By what appears to be for the best interest of the child in respect to its temporal and its mental and moral welfare ; and if the child is of a sufficient age to form an intelligent preference, the court may consider that preference in determining the question; 2. As between parents adversely claiming the custody or guardianship, neither parent is entitled to it as of right; but other things being equal, if the child is of tender years, it should be given to the mother; if it is of an age to require education and preparation for labor and business, then to the father ; 3. Of two persons equally entitled to the custody in other respects, preference is to be given as follows : (1) To a parent; (2) To one who was indicated by the wishes of a deceased parent; (3) To one who already stands in the position of a trustee of a fund to be applied to the child's support ; (4) To a relative. 4. Any parent who knowingly or willfully abandons, or having the ability so to do, fails to maintain his minor child under the age of fourteen years, forfeits the guardianship of such child. Cross-Refekencb Respective rights of parents, see section 167 of this title. 209. Relation confidential. — The relation of guardian and ward is confidential, and is subject to the provisions of chapters 49 and 50 of this title on trusts. 210. Guardian under direction of court. — In the management and disposition of the person or property committed to him, a guardian may be regulated and controlled by the court. 211. Death of a joint guardian. — On the death of one of two or more joint guardians, the power continues to the survivor until a further appointment is made by the court. Ceoss-Rbterench Survival of trust, see section 1602 of this title. 212. Removal of guardian. — A guardian may be removed by the district court for any of the following causes : 1. For abuse of his trust ; 2. For continued failure to perform his duties ; 3. For incapacity to perform his duties ; 4. For gross immorality ;

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T. 3, § 213] THE CIVIL CODE 5. For having an interest adverse to the faithful performance of his duties ; 6. For removal from the Canal Zone ; 7. In the case of a guardian of the property, for insolvency ; or 8. When it is no longer proper that the ward should be under guardianship. Cboss-Rbference Removal of guardian, see title 4, sections 1693 and 1812. 213. Guardian appointed by parent, how superseded. — The power of a guardian appointed by a parent is superseded : 1. By his removal, as provided by the next preceding section ; 2. By the solemnized marriage of the ward ; or 3. By the ward's attaining majority. CbOS S-REIFEaSEN CB Marriage of ward terminates guardianship, see title 4, section 1813. 214. Suspension of power of guardian. — The power of a guardian appointed by a court, is suspended only : 1. By order of the court; 2. li the appointment was made solely because of the ward's minority, by his attaining majority ; or 3. The guardianship over the person of the ward, by the marriage of the ward. Ceoss-Referen oe Marriage of ward terminates guardianship, see title 4, section 1813. 215. Release by ward. — After a ward has come to his majority, he may settle accounts with his guardian, and give him a release, which is valid if obtained fairly and without undue influence. 216. Guardian's discharge. — A guardian appointed by a court is not entitled to his discharge until one year after the ward's majority. Cboss-Refeeenc?es Discharge of guardian, see title 4. section 1813. Resignation of guardian, see title 4, section 1812. CHAPTER 10.— FOREIGN CORPORATIONS GENERALLY Sec. Sec. 221. Application for license to do business ; 226. Transacting business without license, accompanying papers ; process how punislied ; contracts void, agent ; filing fee. 227. Same ; loss of benefit of limitation 222. Insurance companies to file additional laws. documents and deposits. 228. License under chapter 11 suflicient. 223. Insurance companies to file statement 229. " Corporation " includes joint stock and pay license tax. companies. 224. Issuance of license. 230. Revocation of license. 225. Annual license fee. Cross-Referbnoes In respect to corporations engaged in the sale of securities, see sections 241 to 249 of this title. Fraudulent insolvencies by corporations and other frauds in their management, see title 5, sections 751 to 764. Section 221. Application for license to do business; accompanying papers; process agent; filing fee. — No corporation organized 70

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THE CIVIL CODE [T. 3, § 222 under the laws of any State or Territory of the United States or ot any foreign country shall do business in the Canal Zone or maintain an office therein until it shall have filed with the executive secretary of the Panama Canal: (a) An application for a license setting forth the name of the corporation, the names of its officers and directors, and a statement showing the general nature of the business in which it desires to engage in the Canal Zone ; (b) A certified copy of its articles of incorporation, or of its charter, or of the statute or statutes or legislative or executive or governmental acts creating it, in cases where it has been created bv charter or statute or legislative or executive or governmental act, duly certified by the Secretary of State or other officer authorized bv law to certify such copy ; (c) An affidavit sworn to by any authorized officer of such corporation which shall state the amount of its authorized capital stock at or within sixty days prior to such filing; (d) Every corporation must, at the time of filing its application. Hie m the office of the executive secretary a designation of some person residing within the Canal Zone and the place of business or residence of such person upon whom process issued by authority ot or under any law of the Canal Zone may be served With such designation shall be submitted a certified copy of the minutes of the board of directors of such corporation authorizing such designation. Process niay be served on the person so designated, or, in the event that such person cannot be found at the place designated or m the event that no such person is designated, then on the executive secretary of the Panama Canal, or his successor in office and such service shall be a valid service on such corporation When the executive secretary shall have been served with process'as provided herein he shall without delay communicate the same to the corooration concerned at its last known address and no default iud^mient shall be entered against such corporation in any action in which process IS served on the executive secretary until at least 60 days alter the date of such service; -^ (e) Corporations licensed under the provisions of this chapter shall also be required to file with the executive secretary any amendment of or change in any of the provisions of its original articles of incorporation ; &
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T. 3, § 223] THE CIVIL CODE (a) A certificate of the Commissioner of Insurance or other duly authorized official, showing that the company is authorized to transact business in the State or country under whose laws the company is organized ; (b) A duly certified copy of the last annual statement of the insurance company to the Commissioner of Insurance or other duly authorized official in the State or country where the company is organized ; (c) A deposit with the executive secretary or his successor in office of $10,000 in cash or current marketable securities, which shall be held in trust by the executive secretary for the account of the company, to satisfy any judgment that may be rendered against the company under any insurance policies that it may issue. 223. Insurance companies to file statement and pay license tax. — Insurance companies licensed under this chapter shall file with the executive secretary between January 1 and March 1 of each year a verified statement showing the business transacted within the Canal Zone by the company during the previous calendar year and a duly certified copy of its annual report to the insurance commissioner of the State, Territory, or country in which the company is organized. Such insurance companies shall pay before March 1 of each year, in lieu of all other taxes save the annual fee provided for in section 225 of this title, a license tax equal to II/2 per centum of its net premium receipts in the Canal Zone for the calendar year preceding. 224. Issuance of license. — Upon compliance with the foregoing conditions, the Governor of the Panama Canal, if he is satisfied that the business desired to be transacted is proper, legitimate, permissible under the laws of the Canal Zone, and not in conflict with the policy of administering the Canal Zone as an adjunct of the Panama Canal, may issue a license to do business in the Canal Zone. 225. Annual license fee. — The right to continue to do business after the period for which the license is issued shall be contingent upon the payment of a license fee of $10, payable in advance, on January 1 of each year. 226. Transacting business without license, how punished; contracts void. — Any corporation which does business in the Canal Zone without having complied with tlie provisions of this chapter shall be subject to a fine of not more than $500, and any agent or person acting for such corporation, unless it shall have complied with the provisions of this chapter, shall, upon conviction, be punished as for a misdemeanor. In addition to this penalty, every contract made by or on behalf of any such foreign corporation affecting the liability thereof or relating to property within the Canal Zone shall be held void on its behalf and on behalf of its assigns, but shall be enforceable against it or them. 227. Same; loss of benefit of limitation laws. — Corporations doing business in the Canal Zone which fail to comply with the provisions of this chapter shall not be entitled to the benefit of the laws of the Canal Zone limiting the time for the commencement of civil actions. 72

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THE CIVIL CODE [T. 3, § 241 228. License under chapter 11 sufficient. — No corporation licensed under the provisions of chapter 11 of this title shall be required to comply with the provisions of this chapter. 229. " Corporation " includes joint stock companies.— The term " corporation " as used in this chapter shall include joint stock companies. 230. Revocation of license. — The Governor of the Panama Canal is authorized to revoke any license issued hereunder if, upon examination, he shall be satisfied that the operations of the corporation are conducted in an illegal manner, or in a manner contrary to public policy or to the policy of administering the Canal Zone as an adjunct of the Panama Canal. CHAPTER 11.— SECURITIES SALES LAW Sec. 241. Permit to sell securities. 242. Designation of procc^ss agent. 243. Examination of application ; issuance and revocation of permit. 244. Certificate of agent or broker. 248. Penalty for violation. I 249. Definitions, Sec. 245. Examination of application ; issuance and revocation of permit. 246. Report on sale of securities. 247. Fees. Cross-References For provisions of the Securities Act of 1933, wlierein tlie term " territory " is defined to include the Canal Zone, see U.S. Code, title 15, sections 77a to 77mm (appendix, p. 893). Foreign conx)rations generally, see sections 221 to 230 of this title. Fraudulent insolvencies by corporations and other frauds in their management, see title 5, sections 751 to 764. Section 241. Permit to sell securities. — No company shall sell, or offer for sale, negotiate for the sale of, or take subscriptions for any security of its own issue until it shall have first applied for and secured from the Governor of the Panama Canal a permit authorizing it to do so. Such application shall be in writing and shall be verified. In such application the applicant shall set forth the names and addresses of its officers, the location of its principal office, the name of its Canal Zone representative, an itemized account of its financial condition, the amount and character of its assets and liabilities, a detailed statement of the plan upon which it proposes to transact business, a copy of any prospectus or advertisement, or other description of such securities, then prepared by or for it for distribution or publication, and such additional information concerning the company, its condition and affairs, as the Governor may require. If the applicant is a partnership or an unincorporated association or joint stock company, it shall file with its application a copy of its articles of partnership or association, and all other papers pertaining to its organization. If the applicant is a corporation, it shall file with its application a co-^y of all minutes of ?inj proceedings of its directors or stockholders or members relating to or affecting the issue of such securities, a copy of its articles of incorporation and of its bylaws and of any amendments thereto, and also a certificate, executed by the proper officer of the State, Territory, or country in which such corporation is organized, dated not more than sixty days before the filing of the application, showing 93083—34 6 73

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T. 3, § 242] THE CIVIL CODE that the applicant is authorized to transact business in such State, Territory, or country. 242. Designation of process agent. — Every company, at the time of filing its application, shall file in the office of the executive secretary a designation of some person residing within the Canal Zone and stating the place of business or residence of such person upon whom process issued by authority of or under any law of the Canal Zone may be served. AVith such designation shall be submitted a certified copy of the minutes of the board of directors of such company authorizing such designation. Process may be served on the person so designated, or, in the event that such person cannot be found at the place designated or in the event that no person is designated, then on the executive secretary of the Panama Canal, or his successor in office, and such service shall be a valid service on such corporation. When the executive secretary shall have been served with process as provided herein he shall without delay communicate the same to the company concerned at its last known address and no default judgment shall be entered against such corporation in any action in which process is served on the executive secretary until at least sixty days after the date of such service. 243. Examination of application; issuance and revocation of permit. — Upon the filing of such application, it shall be the duty of the Governor to examine it, and the other papers and documents filed therewith, or cause the same to be examined, and he may, if he deems it advisable, make or have made a detailed examination, audit, and investigation of the applicant and its affairs. If he finds that the proposed plan of business of the applicant is not unfair, unjust, inequitable, or contrary to the policy of administering the Canal Zone as an adjunct of the Panama Canal, that it intends to transact its business fairly and honestly, and that the securities that it proposes to issue and the methods to be used by it in issuing or disposing of them are not such as, in his opinion, will work a fraud upon the purchaser thereof, the Governor may issue to the applicant a permit authorizing it to issue and dispose of securities, as therein provided, in the Canal Zone. Each such permit shall expire on the thirty-first day of December next following its issuance, unless sooner revoked. Otherwise, he shall deny the application and refuse such permit and notify the applicant in writing of his decision. Every permit shall recite that the issuance thereof is permissive only and does not constitute a recommendation or indorsement of the securities permitted to be sold. The Governor may impose such conditions as he may deem necessary to the issue of such securities, and shall have the power to establish such rules and regulations as may be reasonable or necessary to insure the disposition of the proceeds of such securities in the manner and for the purposes provided in such permit, and may, from time to time for cause, amend, alter, or revoke any permit issued by him, or temporarily suspend the rights of the applicant under such permit. 244. Certificate of agent or broker. — No person or company shall act as an agent or broker, other than for a company holding a permit under the next preceding section, until such person or com-

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THE CIVIL CODE [T. 3, § 247 pany shall have first applied for and secured from the Governor a certificate, then in effect, authorizing such person or company so to do. Each such certificate shall expire on the thirty-first day of December next after its issuance, unless sooner revoked. To secure such certificate, the applicant shall make and file in the office of the Governor an application therefor in writing, verified by or in behalf of the applicant. In such application the applicant shall set forth, in addition to such other information as may be required by the Governor : 1. The name and address of the applicant, and, if it be a corporation, association, or joint-stock company, the name and address of each of its managing officers and agents, and, if it be a partnership, the name and address of each of the partners ; 2. A succinct statement of facts showing that the applicant, and its managing officers and agents, if it be a corporation, or members, if it be a partnership, have a good business reputation ; 3. If the applicant is a broker, the general plan and character of the business of the applicant. If the applicant is a corporation or association it shall file with its application a designation of a process agent, as provided in section 242 of this title. 245. Examination of application; issuance and revocation of permit. — The Governor shall examine such application, or cause the same to be examined, and shall make such further investigation of the applicant and its affairs as he shall deem advisable. If, from such examination, the Governor shall be satisfied that the business reputation of the applicant and of its officers or members, if any, is good, and that the conduct of such business will not conflict with the policy of administering the Canal Zone as an adjunct of the Panama Canal, he may issue such certificate. Otherwise he shall refuse the same and deny the application and notify the applicant of his decision. The Governor may at any time revoke any broker's or agent's certificate issued by him if he shall find that the holder thereof is of bad business repute, or had violated any provision of this chapter, or has engaged in, or is about to engage in, aily fraudulent transaction, or if he shall find that the conduct of such business conflicts with good policy in the administration of the Canal Zone. 246. Report on sale of securities. — Every company or broker authorized under this chapter to sell securities shall thereafter, at such times as they may be required by the executive secretary, make and file in the office of the executive secretary a report setting forth, in such form as the executive secretary may prescribe, the securities sold by it under the authority of any permit issued by him, the proceeds derived therefrom, the disposition of such proceeds, and such other information concerning its property, officers, or affairs, relating to or affecting the value of such securities, as the executive secretary may require. 247. Fees. — Each company or broker shall, with its application for a permit or certificate, remit the sum of $10, which amount shall cover the filing fee and the annual license fee for the remainder of the calendar year during which the permit or certificate is issued, 75

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T. 3, § 248] THE CIVIL CODE but no part of such fee shall be returned if the application is disapproved. The annual fee for renewal of a permit or certificate issued hereunder shall be $10, payable in advance on or before January first of each year. 248. Penalty for violation. — Any company, agent, or broker, which shall directly or indirectly issue or cause to be issued, or solicit the sale of any securitv contrary to the provisions of this chapter, shall be subject to a fine of not more than $500. In addition to this penalty, every contract made by or on behalf of any such company, agent, or broker affecting the liability thereof shall be void on its behalf and on behalf of its assigns, but shall be enforceable against it or them. 249. Definitions. — The following words have in this chapter the signification attached to them in this section, unless otherwise apparent from the context : 1. The word " company " includes all corporations, associations, joint-stock companies, and partnerships; 2. The word " security " includes all stocks, bonds, or other evidences of property or interest in any company ; 3. The word " agent " means and includes every person or company employed or appointed by a company or broker who shall, within the Canal Zone, either as an employee or otherwise, for a compensation, sell, offer for sale, negotiate for the sale of, or take a subscription for the sale of any security ; 4. The word " broker " includes every person or company, other than an agent, who shall for a commission in the Canal Zone engage either wholly or in part in the business of selling, offering for sale, negotiating for the sale of, or otherwise dealing in any security or securities issued by others, or of underwriting any issue of securities, or of purchasing such securities for the purpose of reselling them or of offering them for sale to the public. CHAPTER 12.— NATURE OF PROPERTY Sec. 251. Property, what. 252. In what property may exist. 253. Wild animals. 254. Real and personal. Sec. 255. Real property. 256. Land. 257. Fixtures. 258. Personal property. Section 251. Property, what. — The ownership of a thing is the right of one or more persons to possess and use it to the exclusion of others. In this title, the thing of which there may be ownership is called property. Cboss-References Personal property, see sections 258 and 361 et seq., of this title. Real property, see section 255 of this title. 252. In what property may exist. — There may be ownership of all inanimate things which are capable of appropriation or of manual delivery; of all domestic animals; of all obligations; of such products of labor or skill as the composition of an author, the goodwill of a business, trade marks and signs, and of rights created or granted by statute. Cross-Refereince Products of the mind, see sections 381 et seq., of this title. 76

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THE CIVIL CODE [T. 3, § 262 253. Wild animals. — Animals wild by nature are the subjects of ownership, while living, only when on the land of the person claiming them, or when tamed, or taken and held in possession, or disabled and immediately pursued. 254. Real and personal. — Property is either: 1. Real or immovable ; or 2. Personal or movable. 255. Real property, — Real or immovable property consists of: 1. Land; 2. That which is affixed to land; 3. That which is incidental or appurtenant to land ; 4. That which is immovable by law. Ceoss-Refebences Land defined, see section 256 of this title. Fixtures, see section 1044 of this title. 256. Land. — Land is the solid material of the earth, whatever may be the ingredients of which it is composed, whether soil, rock, or other substance. 257. Fixtures. — A thing is deemed to be affixed to land when it is attached to it by roots, as in the case of trees, vines, or shrubs; or imbedded in it, as in the case of walls ; or permanently resting upon it, as in the case of buildings; or permanently attached to what is thus permanent, as by means of cement, plaster, nails, bolts, or screws. Ceoss-Refeeencb Ownership of fixtures, see section 411 of this title. 258. Personal property. — Every kind of property that is not real is personal. Ceoss-Refebences Accession to personal property, see sections 413 to 421 of this title. Choses in action, see sections 371 and 372 of this title. Confusion of goods, see sections 413 to 421 of this title. Law governing, see section 361 of this title. Modes of acquisition of, see section 401 of this title. Products of mind, see sections 381 to 386 of this title. CHAPTER 13.— OWNERS OF PROPERTY Sec. 261. Owners. 262. Who may own property. Sec. 263. Aliens inheriting must claim within 5 years. Section 261. Owners. — All property has an owner, whether that owner is the government, and the property public, or the owner an individual, and the property private. 262. Who may own property. — Anv person, whether citizen or alien, may take, hold, and dispose of property within the Canal Zone. Cboss-Rbfebencb Aliens, right to inherit property, see section 651 of this title. 77

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T.3, §263] TEE CIVIL CODE 263. Aliens inheriting must claim within 5 years. — If a nonresident alien takes by succession, he must appear and claim the property within five years from the time of succession, or be barred. The property in such case is disposed of as provided in sections 1181 to 1185 of title 4. Cbos s-References When and how aliens may inherit, see section 651 of tliis title. Escheat of property, see title 4, sections 1181 et seq. CHAPTER 14.— MODIFICATIONS OF OWNERSHIP Art. See. 1. Interests in property 271 2. Conditions of ownership 301 Art. Sec. 3. Restraints upon alienation 311 4. Accumulations 321 ARTICLE 1.— INTERESTS IN PROPERTY Sec. 271. 272. 273. 274. 275. 276. 277. 278. 279. 280. 281. 282. Ownersiiip, absolute or qualified. When absolute. When qualified. Several ownership, what. Ownership of several persons. Joint interest, what. Partnership interest, what. Interest in common, what. What interests are in common. Community property. Interests as to time. Present interest, what. Sec. 283. Future interest, what. 284. Perpetual interest, what. 285. Limited interest, what. 286. Kinds of future interests. 287. Vested interests. 288. Contingent interests. 289. Two or more future interests. -90. Certain future interests not to be void. 291. Posthumous children. 292. Qualities of expectant estates. 293. Same. 294. What future interests are recognized. Section 271. Ownership, absolute or qualified. — The ownership of property is either : 1. Absolute ; or 2. Qualified. 272. When absolute. — The ownership of property is absolute when a single person has the absolute dominion over it, and may use it or dispose of it according to his pleasure, .subject only to general laws. Cross-Refebences Ownership in what property may exist, see sections 252 and 2.53 of this title. Ownership, termination of, see section 341 of this title. Perpetual interest defined, see section 284 of this title. 273. When qualified. — The ownership of property is qualified : 1. Wlien it is shared with one or more persons ; 2. When the time of enjoyment is deferred or limited ; 3. When the use is restricted. 274. Several ownership, what. — The ownership of property by a single person is designated as a sole or .several ownership. 275. Ownership of several persons. — The ownership of property by several persons is either : 1. Of joint interests; 2. Of partnership interests; 3. Of interests in common ; 4. Of community interest of husband and wife. Ckoss-Refeeences Community property, see section 280 of this title. Interests in common, see sections 278 and 279 of this title. Joint interest, see section 271 of this title. Partnership interests, see section 277 of this title. 78

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THE CIVIL CODE [T. 3, § 285 276. Joint interest, what, — A joint interest is one owned by several persons in equal shares, by a title created by a single will or transfer, when expressly declared in the will or transfer to be a joint tenancy, or when granted or devised to executors or trustees as joint tenants. 277. Partnership interest, what. — A partnership interest is one owned by several persons, in partnership, for partnership purposes. 278. Interest in common, what. — An interest in common is one owned by several persons, not in joint ownership or partnership. Ceoss-References See, also, sections 276 and 279 of this title. Husband and wife as owners in common, see section 137 of this title. Legacy to two or more makes them owners in common, see section 601 of this title. 279. What interests are in common. — Every interest created in favor of several persons in their own right is an interest in common, unless acquired by them in partnership, for partnership purposes, or unless declared in its creation to be a joint interest, as provided in section 276 of this title, or unless acquired as community property. CEOSS-REFEaiENOH Interests in common, see section 278 of this title. 280. Community property. — Community property is property acquired by husband and wife, or either, during marriage, when not acquired as the separate property of either or as joint interests or interests in common. Cross-Refeeencb See also section 140 of this title. 281. Interests as to time. — In respect to the time of enjoyment, an interest in property is either : 1. Present or future; and 2. Perpetual or limited. 282. Present interest, what.— A present interest entitles the owner to the immediate possession of the property. 283. Future interest, what.— A future interest entitles the owner to the possession of the property only at a future period. Cross-Refebences Accumulations as future interests, see sections 321 et seq., and 332 of this title. Conditions upon enjoyment of estates, see section 301 of this title. Terminating future interests, see sections 341 et seq., of this title. 284. Perpetual interest, what.— A perpetual interest has a duration equal to that of the property. 285. Limited interest, what.— A limited interest has a duration less than that of the property. 79

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T. 3, § 286] THE CIVIL CODE 286. Kinds of future interests. — A future interest is either: 1. Vested; or 2. Contingent. 287. Vested interests. — A future interest is vested when there is a person in being who would have a right, defeasible or indefeasible, to the immediate possession of the property, upon the ceasing of the intermediate or precedent interest. 288. Contingent interests. — A future interest is contingent, whilst the person in whom, or the event upon which, it is limited to take effect remains uncertain. 289. Two or more future interests. — Two or more future interests may be created to take effect in the alternative, so that if the first in order fails to vest, the next in succession shall be substituted for it, and take effect accordingly. 290. Certain future interests not to be void. — A future interest IS not void merely because of the improbability of the contingency on which it is limited to take effect. 291. Posthumous children. — When a future interest is limited to successors, heirs, issue or children, posthumous children are entitled to take in the same manner as if living at the death of their parent. Ceoss-References Future interests defeated by birth of posthumous child, see section 341 of this title. Succession by posthumous children, see sections 554, 590, and 650 of this title. 292. Qualities of expectant estates. — Future interests pass by succession, will, and transfer, in the same manner as present interests. 293. Same. — A mere possibility, such as the expectancy of an heir apparent, is not to be deemed an interest of any kind. Cross-Refeeencb Mere possibility cannot be transferred, see section 442 of this title. 294. What future interests are recognized. — No future interest in property is recognized hj the law, except such as is defined in this title. ARTICLE 2.— CX)NDITIONS OF OWNERSHIP Sec. Sec. 301. Fixing the time of enjoymeut. 304. Conditions restraining marriage void. 302. Conditions. 305. Conditions restraining alienation void. 303. Certain conditions precedent void. 301. Fixing the time of enjoyment. — The time when the enjoyment of property is to begin or end may be determined by computation, or be made to depend on events. In the latter case, the enjoyment is said to be upon condition. Cross-Refebenck Conditional legacies, see section 596 of this title. 80

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THE CIVIL CODE [T. 3, § 312 302. Conditions. — Conditions are precedent or subsequent. The former fix the beginning, the latter the ending, of the right. Cross-Refekences Conditional obligations, see sections 691 to 699 of this title. Conditions concurrent, see section 694 of tliis title. Conditions precedent, what are, see sections 597 and 693 of this title. Conditions subsequent, wliat are, see sections 600 and 695 of this title. 303. Certain conditions precedent void. — If a condition precedent requires the performance of an act wrong of itself, the instrument containing it is so far void, and the right cannot exist. If it requires the performance of an act not wrong of itself, but otherwise unlawful, the instrument takes effect and the condition is void. CROSS-REFERENCES Conditions precedent, see section 693 of this title. Unlawful conditions void, see section 698 of this title. 304. Conditions restraining marriage void. — Conditions imposing restraints upon marriage, except upon the marriage of a minor, are void; but this does not affect limitations where the intent was not to forbid marriage, but only to give the use until marriage. Ceoss-Refekence Contracts in restraint of marriage, see section 937 of this title. 305. Conditions restraining alienation void. — Conditions restraining alienation, when repugnant to the interest created, are void. Cross-reference Restraints upon alienation, see section 311 of this title. ARTICLE 3.— RESTRAINTS UPON ALIENATION Sec. 311. Restraints upon alienation. Sec. 312. Future interests void, which suspend power of alienaUon. 311. Restraints upon alienation. — The absolute power of alienation cannot be suspended, by any limitation or condition whatever, for a longer period than as follows : 1. During the continuance of the lives of persons in being at the creation of the limitation or condition; or 2. For a period not to exceed twenty-five years from the time of the creation of the suspension. 312. Future interests void, which suspend power of alienation. — Every future interest is vo'd in its creation which, by any possibility, may suspend the absolute power of alienation for a longer period than is prescribed in this chapter. Such power of alienation is suspended when there are no persons in being by whom an absolute interest in possession can be conveyed. 81

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T. 3, § 321] THE CIVIL CODE ARTICLE 4.— ACCUMULATIONS Sec. 321. Dispositions of income. 322. Accumulutions, when void. 323. Accumulation of income. Sec. 324. Other directions, when void in part. 325. Application of income to support, etc. of minor. 321. Dispositions of income. — Dispositions of the income of property to accrue and to be received at any time subsequent to the execution of the instrument creating such disposition, are governed by the rules prescribed in this chapter in relation to future interests. 322. Accumulations, when void. — All directions for the accumulation of the income of propert}'^, except such as are allowed by this chapter, are void. 323. Accumulation of income. — An accumulation of the income of property, for the benefit of one or more persons, may be directed by any will or transfer in writing sufficient to pass the property out of which the fund is to arise, as follows : 1. If such accumulation is directed to commence on the creation of the interest out of which the income is to arise, it must be made for the benefit of one or more minors then in being, and terminate at the expiration of their minority ; or 2. If such accumulation is directed to commence at any time subsequent to the creation of the interest out of which the income is to arise, it must commence within the time in this chapter permitted for the vesting of future interests, and during the minority of the beneficiaries, and terminate at the expiration of such minority. Ceoss-References Annuities and bequest of income, see sections 611 (3) and 618 of this title. Ownership of undisposed accumulations, see section 332 of this title. 324. Other directions, when void in part. — If in either of the cases mentioned in the next preceding section the direction for an accumulation is for a longer term than during the minority of the beneficiaries, the direction only, whether separable or not from other provisions of the instrument, is void as respects the time beyond such minority. 325. Application of income to support, etc., of minor. — When a minor for whose benefit an accumulation has been directed is destitute of other sufficient means of support and education, the proper court, upon application, may direct a suitable sum to be applied thereto out of the fund. Cross-Referencb Maintenance of ward out of own estate, see title 4. sections 1773 and 1775. CHAPTER 15.— RIGHTS OF OWNERS Sec. 331. Increase of property. Sec. 332. In certain rases, who entitled to income of property. Section 331. Increase of property. — The owner of a thing owns also all its products and accessions. Ckoss-Reiferencks Accessions to personal property, see sections 413 et seq., of this title. Fixtures, see section 411 of this title. 82

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THE CIVIL CODE [T. 3, § 352 332. In certain cases, who entitled to income of property. — When, in consequence of a valid limitation of a future interest, there is a suspension of the power of alienation or of the ownership during the continuation of which the income is undisposed of, and no valid direction for its accumulation is given, such income belongs to the persons presumptively entitled to the next eventual interest. CHAPTER 16.— TERMINATION OF OWNERSHIP Sec. 341. Future interests, when defeated. 342. Same. Sec. 343. Future interests, when not defeated. 344. Same. Section 341. Future interests, when defeated. — A future interest, depending on the contingency of the death of any person without successors, heirs, issue, or children, is defeated by the birth of a posthumous child of such person, capable of taking by succession. Ceoss-Rkfekbnce Posthumous children, see section 291 of this title. 342. Same. — A future interest may be defeated in any manner or by any act or means which the party creating such interest provided for or authorized in the creation thereof ; nor is a future interest, thus liable to be defeated, to be on that ground adjudged void in its creation. 343. Future interests, when not defeated. — No future interest can be defeated or barred by any alienation or other act of the owner of the intermediate or precedent interest, nor by any destruction of such precedent interest by forfeiture, surrender, merger, or otherwise, except as provided by the section next following, or where a forfeiture is imposed by statute as a penalty for the violation thereof. 344. Same. — No future interest, valid in its creation, is defeated by the determination of the precedent interest before the happening of the contingency on which the future interest is limited to take effect; but should such contingency afterwards happen, the future interest takes effect in the same manner and to the same extent as if the precedent interest had continued to the same period. CHAPTER 17.— GENERAL DEFINITIONS AFFECTING PROPERTY Sec. 352. Time of creation, what. Sec. 351. Income, what. Section 351. Income, what. — The income of property, as the term is used in chapters 12 to 16 of this title, includes the rents and profits of real property, the interest on money, dividends upon stock, and other produce of personal property. 352. Time of creation, what. — The delivery of the grant, where a limitation, condition, or future interest is created by grant, and the death of the testator, where it is created by will, is to be deemed the time of the creation of the limitation, condition, or interest within the meaning of chapters 12 to 16 of this title. 83

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T.3, §361] THE CIVIL CODE CHAPTER 18. Art. -PERSONAL PROPERTY AND PARTICULAR KINDS THEREOF Sec. 1. Personal property in general 3G1 2. Things in action 371 3. Products of the mind 381 Art. Sec. 4. Patents, trade-marlcs, and copyrights 391 ARTICLE 1.— PERSONAL PROPERTY IN GENERAL Section 361. By what law governed. — If there is no law to the contrary, in the place where personal property is situated, it is deemed to follow the person of its owner, and is governed by the law of his domicile. ARTICLE 2.— THINGS IN ACTION Sec. 371. Things in action deflned. Sec. 372. Transfer and survivorsliip. 371. Things in action defined. — A thing in action is a right to recover money or other personal property by a judicial proceeding. 372. Transfer and survivorship. — A thing in action arising out of the violation of a right of property, or out of an obligation, may be transferred by the owner. Upon the death of the owner it passes to his personal representatives, except where, in the cases provided in Title 4, The Code of Civil Procedure, it passes to his devisees or successor in office. Cross-references Assignment of debt secured by mortgage carries security, see sectiun 2246 of this title. Assignment of chose in action does not prejudice defense, see title 4, section 123. Burden of obligation not transferable, see section 711 of this title. Counterclaim not barred by assignment, see title 4, section 225. Insurance policy, transfer of, see section 2033 of this title. Literary property is assignable, see section 383 of tliis title. Mere possibility cannot be transferred, see section 442 of this title. Nonnegotiable written contract for payment of money or property transferable by indorsement, see section 713 of this title. Obligation defined, see section 661 of this title. Property of any kind may be transferred, see section 441 of this title. Right arising out of obligation transferable, see section 712 of this title. Right of repossession can be transferred, see section 443 of this title. Suing on chose in action, see title 4, sections 122 to 124, 1522 and 1523. Transfer may be oral, when, see section 451 of this title. ARTICLE 3.— PRODUCTS OF THE MIND Sec. 381. How far the subject of ownership. 382. Joint authorship. 383. Transfer. 384. Effect of publication. Sec. 385. Subsequent inventor, author, and so forth. 386. Private writings. 381. How far the subject of ownership. — The author of any product of the mind, whether it is an invention, or a composition in letters or art, or a design, with or without delineation, or other graphical representation, has an exclusive ownership therein, and in the representation or expression thereof, which continues so long 84

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THE CIVIL CODE [T. 3, § 401 as the product and the representations or expressions thereof made by him remain in his possession. 382. Joint authorship. — Unless otherwise agreed, a product of the mind in the production of which several persons are jointly concerned, is owned by them as follows : 1. If the product is single, in equal proportions; 2. If it is not single, in proportion to the contribution of each. 383. Transfer. — The owner of any product of the mind, or of any representation or expression thereof, may transfer his property in the same. 384. Effect of publication. — If the owner of a product of the mind intentionally makes it public, a copy or reproduction may be made public by any person, without responsibility to the owner, subject to the law of copyright. Cbos s-Reference Copyright law, see section 391 of this title. 385. Subsequent inventor, author, and so forth. — If the owner of a product of the mind does not make it public, any other person subsequently and originally producing the same thing has the ,same right therein as the prior author, which is exclusive to the same extent against all persons except the prior author, or those claiming under him. 386. Private writings. — Letters and other private communications in writing belong to the person to whom they are addressed and delivered ; but they cannot be published against the will of the writer, except by authority of law. ARTICLE 4.— PATENTS, TRADE-MARKS, AND COPYRIGHTS 391. Patent, trade-mark, and copyright laws extended to Canal Zone. — The patent, trade-mark, and copyright laws of the United States shall have the same force and effect in the Canal Zone as in continental United States, and the district court is given the same jurisdiction in actions arising under such laws as is exercised by United States district courts. CKOSS-REFEaiENCES Products of the mind, see section 381 of this title. For patent laws of United States, see U.S. Code, title 35. For trade-mark laws of United States, see U.S. Code, title 15, chapter 3. For copyright laws of United States, see U.S. Code, title 17. CHAPTER 19.— MODES IN WHICH PROPERTY MAY BE ACQUIRED Section 401. Property, how acquired. — Property is acquired by: 1. Accession; 2. Transfer; S.Will; or 4. Succession. 85

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T. 3, § 411] THE CIVIL CODE CHAPTER 20.— ACCESSION Sec. Sec. 411. Fixtures. 412. What fixtures tenant may remove. 413. Accession by uniting several tilings. 414. Principal part, what. 415. Same. 416. Uniting materials and workmanship 417. Inseparable materials. 418. Materials of several owners. 419. Willful trespassers. 420. Owner may elect between the thing and its value. 421. Wrongdoer liable in damages. Section 411. Fixtures. — Wlien a person affixes his property to the land of another, without an agreement permitting him to remove it. the thing affixed, except as provided in the section next following, belongs to the owner of the land, unless he chooses to reciuire the former to remove it. Cross-Refeeence Fixtures, see section 257 of tliis title. 412. What fixtures tenant may remove. — A tenant may remove from the demised premises, any time during the continuance of his term, anything affixed thereto for the purposes of trade, manufacture, ornament, or domestic use, if iho, removal can be effected without injury to the premises, unless the thing has, by the manner in which it is affixed, become an integral part of the premises. 413. Accession by uniting several things. — When things belonging to different owners have been united so as to form a single thing, and cannot be separated without injury, the whole belongs to the owner of the thing which forms the principal part; who must, however, reimburse the value of the residue to the other owner, or surrender the whole to him. 414. Principal part, what. — That part is to be deemed the principal to which the other has been united only for the use, ornament, or completion of the former, unless the latter is the more valuable, and has been united without the knowledge of its owner, who may, in the latter case, require it to be separated and returned to him, although some injury should result to the thing to which it has been united. 415. Same. — If neither part can be considered the principal, within the rule prescribed by the next preceding section, the more valuable, or, if the values are nearly equal, the more considerable in bulk, is to be deemed the principal part. 416. Uniting materials and workmanship. — If one makes a thing from materials belonging to another, the latter may claim the thing on reimbursing the value of the workmanship, unless the value of the workmanship exceeds the value of the materials, in which ca.se the thing belongs to the maker, on reimbursing the value of the materials. 417. Inseparable materials. — Where one has made use of materials which in part belong to him and in part to another, in order to form a thing of a new description, without having destroyed any of the materials, but in such a way that they cannot be separated without inconvenience, the thing formed is common to both proprietors; in proportion, as respects the one, of the materials belonging 86

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THE CIVIL CODE [T. 3, § 432 to him, and as respects the other, of the materials belonging to him and the price of his workmanship. 418. Materials of several owners. — When a thing has been formed by the admixture of several materials of different owners, and neither can be considered the principal substance, an owner without whose consent the admixture was made may require a separation, if the materials can be separated without inconvenience. If they cannot be thus separated, the owners acquire the thing in common, in proportion to the quantity, quality, and value of their materials; but if the materials of one were far superior to those of the others, both in quantity and value, he may claim the thing on reimbursing to the others the value of their materials. 419. Willful trespassers. — The foregoing sections of this chapter are not applicable to cases in which one willfully uses the materials of another without his consent ; but, in such cases, the product belongs to the owner of the material, if its identity can be traced. 420. Owner may elect between the thing and its value. — In all cases where one whose material has been used without his knowledge, in order to form a product of a different description, can claim an interest in such product, he has an option to demand either restitution of his material in kind, in the same quantity, weight, measure, and quality, or the value thereof ; or where he is entitled to the product, the value thereof in place of the product. 421. Wrongdoer liable in damages. — One who wrongfully employs materials belonging to another is liable to him in damages, as well as under the foregoing provisions of this chapter. CHAPTER 21.— TRANSFER OF PROPERTY Aft. Sec. 1. Definition of transfer 431 2. What may be transferred 441 3. Mode of transfer 451 Art. Sec. 4. Interpretation of grants 461 5. Effect of transfer 47j 6. Gifts 4S1 ARTICLE 1.— DEFINITION OF TRANSFER Sec. 431. Transfer, what. Sec. 432. Voluntary transfer. Section 431. Transfer, what. — Transfer is an act of the parties, or of the law, by which the title to property is conveyed from one living person to another. CBO,SS-RbTE2BENCE8 Transfer, see sections 432 and 454 of this title. Transfer in writing is called a grant, see section 454 of this title. 432. Voluntary transfer.— A voluntary transfer is an executed contract, subject to all rules of law concerning contracts in general; except that a consideration is not necessary to its validity. CKOSS-RE^'BatENCES Gifts, see sections 481 et seq., of this title. Transfer, see sections 431 and 454 of this title. 87

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T.3, §441] THE OIVIL CODE ARTICLE 2.— WHAT MAY BE TRANSFERKED Sec. 441. What may be transferred. 442. Possibility. Sec. 443. Right of repossession can be transferred. 441. What may be transferred. — Property of any kind may be transferred, except as otherwise provided by the section next following. 442. Possibility. — A mere possibility, not coupled with an interest, cannot be transferred. Cross-Reference Mere possibility not deemed an interest, see section 293 of this title. 443. Right of repossession can be transferred. — A right of repossession for breach of condition subsequent, can be transferred. ARTICLE 3.— MODE OF TRANSFER Sec. 451. When oral. 452. When must be in writing 453. Transfer by sale, etc. 454. Grant, what. 455. Delivery necessary. Sec. 45G. Date. 457. Delivery to grantee is necessarily absolute. 458. Delivery in escrow. 459. Constructive ddivery. 451. When oral. — A transfer may be made without writing, in every case in which a writing is not expressly required by statute. Cross-References What contracts must be in writing, see sections 886 and 984 of this title. Fraudulent instruments and transfers, see sections 2761 and 2762 of this title. 452. When must be in writing. — An interest in an existing trust can be transferred only by operation of law, or by a written instrument, subscribed by the person making the transfer, or by his agent. 453. Transfer by sale, etc. — The mode of transferring other personal property by sale is regulated by chapter 34 of this title. 454. Grant, what. — A transfer in writing is called a grant or bill of sale. The term " grant ", in this and sections 455 to 472 of this title, includes both these instruments. Ceoss-Reftcrences Construction of grants, see sections 461 et seq., of this title. Transfer, see sections 431 and 432 of this title. 455. Delivery necessary. — A grant takes effect, so as to vest the interest intended to be transferred, only upon its delivery by the grantor. Cross-References Constructive delivery, see section 459 of this title. Contract in writing takes effect only from delivery, see section 888 of this title. 456. Date. — A grant duly executed is presumed to have been delivered at its date. 457. Delivery to grantee is necessarily absolute. — A grant cannot be delivered to the grantee conditionally. Delivery to him, or to 88

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THE CIVIL CODE [T. 3, § 466 his agent as such, is necessarily absolute, and the instrument takes effect thereupon, discharged of any condition on which the delivery was made. 458. Delivery in escrow. — A grant may be deposited by the grantor with a third person, to be delivered on performance of a condition, and, on delivery by the depositary, it will take effect. While in the possession of the third person, and subject to condition, it is called an escrow. 459. Constructive delivery. — Though a grant be not actually delivered into the possession of the grantee, it is yet to be deemed constructively delivered in the following cases : 1. Where the instrument is, by the agreement of the parties at the time of execution, understood to be delivered, and under such circumstances that the grantee is entitled to immediate delivery; or 2. Where it is delivered to a stranger for the benefit of the grantee, and his assent is shown, or may be presumed. ARTICLE 4.— INTERPRETATION OF GRANTS Sec. 465. Irreconcilable provisions. 466. Meaning of " heirs " and " Lssue ", in certain remainders. Sec. 461. Grants, how interpreted. 462. Limitations, how controlled. 463. Recitals, when resorted to. 464. Interpretation against grantor. 461. Grants, how interpreted. — Grants are to be interpreted in like manner with contracts in general, except so far as otherwise provided in this article. Cross-References Interpretation of contracts, see sections 901, 902 and 907 of this title. Word "grant" includes bill of sale, see section 454 of this title. 462. Limitations, how controlled. — A clear and distinct limitation in a grant is not controlled by other words less clear and distinct. 463. Recitals, when resorted to. — If the operative words of a grant are doubtful, recourse may be had to its recitals to assist the construction. Cboss-Referencb Interpretation of doubtful words, see section 920 of this title. 464. Interpretation against grantor. — A grant is to be interpreted in favor of the grantee, except that a reservation in any grant, and every grant by a public officer or body, as such, to a private party, is to be interpreted in favor of the grantor. 465. Irreconcilable provisions. — If several parts of a grant are are absolutely irreconcilable, the former part prevails. 466. Meaning of " heirs " and " issue ", in certain remainders. — Where a future interest is limited by a grant to take effect on the death of any person without heirs, or heirs of his body, or without issue, or in equivalent words, such words must be taken to mean successors, or issue living at the death of the person named as ancestor. Cboss-Refeeence "Heirs" and "issue", interpretation of, see section 586 of this title. 93083—34 7 80

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T. 3, § 471] THE CIVIL CODE ARTICLE 5.— EFFECT OF TRANSFER Sec. 471. What title passes. Sec. 472. Incidents. 471. What title passes. — A transfer vests in the transferee all the actual title to the thing transferred which the transferrer then has, unless a different intention is expressed or is necessarily implied. 472. Incidents. — The transfer of a thing transfers also all its incidents, unless expressly excepted; but the transfer of an incident to a thing does not transfer the thing itself. Cross-Refekbnch What passes, see section 2862 of this title. ARTICLE 6.— GIFTS Sec. 481. Gifts defined. 482. Gift, liow made. 483. Gift not revocable. 484. Gift in view of deatli, what. Sec. 485. When gift presumed to be in view of death. 486. Revocation of gift in view of death. 487. Effect of will upon gift. 488. When treated as legacy. 481. Gifts defined. — A gift is a transfer of personal property, made voluntarily, and without consideration. Ceoss-References Gift as fraud on creditors, see sections 2761 et seq., of this title. Voluntary transfers, see sections 432 and 2761 of this title. 482. Gift, how made. — A verbal gift is not valid, unless the means of obtaining possession and control of the thing are given, nor, if it is capable of delivery, unless there is an actual or symbolical delivery of the thing to the donee. 483. Gift not revocable. — A gift, other than a gift in view of death, cannot be revoked by the giver. Ceoss-Refeeencb Revoking gifts mortis causa, see section 486 of this title. 484. Gift in view of death, what. — A gift in view of death is one which is made in contemplation, fear, or peril of death, and with intent that it shall take effect only in case of the death of the giver. Ceoss-Re^tibench Revocation, see section 486 of this title. 485. When gift presumed to be in view of death. — A gift made during the last illness of the giver, or under circumstances which would naturally impress him with an expectation of speedy death, is presumed to be a gift in view of death. 486. Revocation of gift in view of death. — A gift in view of death may be revoked by the giver at any time, and is revoked by his recovery from the illness, or escape from the peril, under the presence of which it was made, or by the occurrence of any event which would operate as a revocation of a will made at the same time, but when 90

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THE CIVIL CODE [T. 3, § 495 the gift has been delivered to the donee, the rights of a bona fide purchaser from the donee before the revocation, shall not be affected by the revocation. CsOSS-'REFE&ETSiCE Gift inter vivos not revocable, see section 483 of this title. 487. Effect of will upon gift. — A gift in view of death is not affected by a previous will; nor by a subsequent will, unless it expresses an intention to revoke the gift. 488. When treated as legacy. — A gift in view of death must be treated as a legacy, so far as relates only to the creditors of the giver. CHAPTER 22.— PROOF AND ACKNOWLEDGMENT OF INSTRUMENTS Sec. be 491. By whom acknowledgments may taken in Canal Zone. By whom taken outside of Canal Zone. By whom taken in foreign country. Officers empowered to issue proper certificates. 495. Requisites for acknowledgment. 496. Officer must indorse certificate. General form of certificate. Form of acknowledgment by corporation. Form of certificate of acknowledgment by attorney in fact. Officers must affix their signatures. 501. Proof of execution, how made. 502. Witness must be personally known to officer. 503. Witness must prove, what. 492. 493 494, 497 498 499. 500. Sec. 504. Handwriting may be proved, when. 505. Evidence of handwriting must prove, what. 506. Certificate of proof. 507. Officers authorized to do certain things. 508. When instrument is improperly certified, party may have action to correct error. 509. In certain cases, parties Interested may obtain judgment of proof of an instrument. 510. Effect of judgment in such action. 511. Instruments heretofore made to be governed by then existing laws. 512. Deeds, etc., aflJecting land in District of Columbia or any Territory of United States. Section 491. By whom acknowledgments may be taken in Canal Zone. — The proof or acknowledgment of any instrument required by law to be proved or acknowledged may be made before the district judge, the clerk of the district court, a magistrate, or before any notary public of the Canal Zone. 492. By whom taken outside of Canal Zone. — The proof or acknowledgment of an instrument may be made outside of the Canal Zone, but within the United States, and within the jurisdiction of the oflScer, before the judge of any court of record or the clerk thereof or before any notary public within any State, Territory, District, or possession of the United States. 493. By whom taken in foreign country. — If an instrument is one executed in a foreign country, the same may be acknowledged before any diplomatic or consular officer or commercial agent of the United States accredited to such country or before any officer of such foreign country authorized to take acknowledgments, the signature and official character of such officer to be certified by a diplomatic, consular, or commercial official of the United States. 494. Officers empowered to issue proper certificates. — The officers authorized to take acknowledgments under sections 491 to 493 of this title are empowered to issue proper certificates of the same. 495. Requisites for acknowledgment. — The acknowledgment of an instrument must not be taken unless the officer taking it knows or 91

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T. 3, § 496] THE CIVIL CODE has satisfactory evidence, on the oath or affirmation of a credible witness, that the person making such acknowledgment is the individual who is described in and who executed the instrument; or, if executed by a corporation, that the person making such acknowledgment is the president or secretary of such corporation, or other person who executed it on its behalf. 496. Officer must indorse certificate. — An officer taking the acknowledgment of an instrument must indorse thereon or attach thereto a certificate substantially in the forms hereinafter prescribed. 497. General form of certificate. — The certificate of acknowledgment, unless it is otherwise in this chapter provided, must be substantially in the following form: "United States of America, Canal Zone, ss. On this day of , in the year , before me (here insert name and quality of the officer), personally appeared , known to me (or proved to me on the oath of ) to be the person whose name is subscribed to the within instrument, and acknowledged that he (she or they) executed the same " : Provided^ however, That any acknowledgment taken without the Canal Zone in accordance with the laws of the place where the acknowledgment is made, shall be sufficient in the Canal Zone: And Provided further, That the certificate of the clerk of a court of record of the county or district where such acknowledgment is taken, that the officer certifying to the same is authorized by law so to do, and that the signature of the said officer to such certificate is his true and genuine signature, and that such acknowledgment is taken in accordance with the laws of the place where the same is made, shall be prima facie evidence of the facts stated in the certificate of said clerk. 498. Form of acknowledgment by corporation. — The certificate of acknowledgment of an instrument executed by a corporation must be substantially in the following form : United States of America, Canal Zone, ss: On this day of , in the year , before me (here insert the name and quality of the officer), personally appeared , known to me (or proved to me on the oath of ) to be the president (or the secretary) of the corporation that executed the within instrument (where, however, the instrument is executed in behalf of the corporation by some one other than the president or secretary insert: known to me (or proved to me on the oath of ) to be the person who executed the within instrument on behalf of the corporation therein named and acknowledged to me that such corporation executed the same) . 499. Form of certificate of acknowledgment by attorney in fact. — The certificate of acknowledgment by an attorney in fact must be substantially in the following form : 92

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THE CIVIL CODE [T. 3, § 505 United States of America, Canal Zone, ss: On this day of , in the year , before me (here insert the name and quality of the officer), personally appeared , Icnown to me (or proved to me on tne oath of ) to be the person whose name is subscribed to the within instrument as the attorney in fact of , and acknowledged to me that he subscribed the name of thereto as principal, and his own name as attorney in fact. 500. Officers must affix their signatures. — Officers taking and certifying acknowledgments, or proof of instruments for record, must authenticate their certificates by affixing thereto their signatures, followed by the names of their offices ; also, their seals of office, if by the laws of the State or country where the acknowledgment or proof is taken, or by authority of which they are acting, they are required to have official seals. 501. Proof of execution, how made. — Proof of the execution of an instrument, when not acknowledged, may be made either: 1. By the party executing it, or either of them ; 2. By a subscribing witness ; or 3. By other witnesses, in cases mentioned in section 504 of this title. 502. Witness must be personally known to officer. — If by a subscribing witness, such witness must be personally known to the officer taking the proof to be the person whose name is subscribed to the instrument as a witness, or must be proved to be such by the oath of a credible witness. 503. Witness must prove, what. — The subscribing witness must prove that the person whose name is .subscribed to the instrument as a party is the person described in it, and that such person executed it, and that the witness subscribed his name thereto as a witness. 504. Handwriting may be proved, when. — The execution of an instrument may be e3tablished by proof of the handwriting of the party and of a subscribing witness, if there is one, in the following cases : 1. When the parties and all the subscribing witnesses are dead; 2. When the parties and all the subscribing witnesses are nonresidents of the Canal Zone ; 3. When the place of their residence is unknown to the party desiring the proof, and cannot be ascertained by the exercise of due diligence ; 4. When the subscribing witness conceals himself, or cannot be found by the officer by the exercise of due diligence in attempting to serve the subpena or attachment ; or 5. In case of the continued failure or refusal of the witness to testify, for the space of one hour, after his appearance. 505. Evidence of handwriting must prove, what. — The evidence taken under the next preceding section must satisfactorily prove to the officer the following facts : 93

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T. 3, § 506] THE CIVIL CODE (1) The existence of one or more of the conditions mentioned therein ; (2) That the witness testifying knew the per,son whose name purports to be subscribed to the instrument as a party, and is well acquainted with his signature, and that it is genuine ; (3) That the witness testifying personally Imew the person who subscribed the instrument as a witness, and is well acquainted with his signature, and that it is genuine ; and (4) The place of residence of the witness. 506. Certificate of proof. — An officer taking proof of the execution of any instrument must, in his certificate endorsed thereon or attached thereto, set forth all the matters required by law to be done or known by him, or proved, before him on the proceeding, together with the names of all the witnesses examined before him, their places of residence respectively, and the substance of their testimony. 507. Officers authorized to do certain things. — Officers authorized to take the proof of instruments are authorized in such proceedings : 1. To administer oaths or affirmations, as prescribed in section 2171 of title 4 ; 2. To employ and swear interpreters; 3. To issue subpenas, a,s prescribed in section 2042 of title 4; 4. To punish for contempt, as prescribed in sections 2046, 2048, and 2049 of title 4. The civil damages and forfeiture to the party aggrieved are prescribed in section 2047 of title 4. Cross-Refekence Damages for disobeying subpena, see title 4, section 2047. 508. When instrument is improperly certified, party may have action to correct error. — When the aclmowledgment or proof of the execution of an instrument is properly made, but defectively certified, any party interested may have an action in the district court to obtain a judgment correcting the certificate. 509. In certain cases, parties interested may obtain judgment of proof of an instrument. — Any person interested under an instrument entitled to be proved for record may institute an action in the district court against the proper parties to obtain a judgment proving such instrument. 510. Effect of judgment in such action. — A certified copy of the judgment in a proceeding instituted under section 508 or 509 of this title, showing the proof of the instrument, and attaclied thereto, entitles such instrument to record, with like effect as if acknowledged. 511. Instruments heretofore made to be governed by then existing laws. — The legality of the execution, acknowledgment, proof, form, or record of any instrument made before this title goes into effect, executed, acknowledged, proved, or recorded is not affected by anything contained in this chapter, but depends for its validity and legality upon the laws in force when the act was performed. 94

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THE CIVIL CODE [T. 3, § 522 512. Deeds, etc., affecting land in District of Columbia or any Territory of United States. — Deeds and other instruments affecting land situate in the District of Columbia or any Territory of the United States may be acknowledged in the Canal Zone before any notar}^ public or judge, appointed therein by proper authority, or by any officer therein who has ex officio the powers of a notary public : P7'ovided, That the certificate by such notary in the Canal Zone shall be accompanied by the certificate of the Governor or acting governor to the effect that the notary taking said acknowledgment was in fact the officer he purported to be; and any deeds or other instruments affecting lands so situate, so acknowledged since January 1, 1905, and accompanied by such certificate shall have the same effect as such deeds or other instruments hereafter so acknowledged and certified. (June 28, 1906, ch. 3585, 34 Stat. 552 [U.S. Code, title 48, sec. 1358] ; Feb. 27, 1933, ch. 128, sec. 310, 47 Stat. 1167.) CHAPTER 23.— EXECUTION AND REVOCATION OF WILLS Sec. 521. 522. 523. 524. 525. 526. 527. 528. 529. 530. 531. 532. 533. 534. 535. 536. 537. 588. 539. 540. 541. 542. 543. Who may make a will. Will, or part thereof, procured by fraud. Will of married woman. What may pass by will. Written will, how to be executed. Definition of an olographic will. Witness to add residence. Mutual will. Competency of subscribing witness. Gifts to subscribing witnesses void ; creditors competent witnesses. Subscribing witness entitled to his share by succession. Will made outside of Canal Zone. Will made in Canal Zone by alien. Republication by codicil. Nuncupative will, how to be executed. Requisites of valid nuncupative will. Proof of nuncupative wills. Probate of nuncupative wills. Written will, how revoked. Evidence of revocation. Revocation of duplicate. Revocation by subsequent will. Antecedent not revived by revocation of subsequent will. Sec. 544. Revocation by marriage and birth of issue. 545. Effect of marriage of man on his will. 546. Effect of marriage of woman on her will. 547. Revocation by marriage and birth of issue. 548. Contract of sale not revocation. 549. Mortgage not revocation of will. 550. Transfer, when not a revocation. 551. When it is a revocation. 552. Revocation of codicils. 553. Application of provisions as to revocations. 554. After-born child, unprovided for, to succeed. 555. Children or issue of children of testator unprovided for by his will. 556. Share of after-born child, out of what part of estate to be paid. 557. Advancement during lifetime of testator. 558. Distribution of estate when legatee dies before testator. 559. Restriction on bequests for charitable uses ; exceptions. 560. Execution of prior wills not affected. Section 521. Who may make a will. — Every person over the age of eighteen years, of sound mind, may, by last will, dispose of all his estate, and such estate not disposed of by will is succeeded to as provided in chapter 26 of this title, being chargeable in both cases with the payment of all the decedent's debts, as provided in Title 4, The Code of Civil Procedure. CBOSS-REFE3CEnsr CES Disposition of property in case of intestacy, see sections 632 et seq., of this title. Effect of marriage of man on his will, see section 545 of this title. Validity of will, see section 525 of this title. Wills of married women, see section 523 of this title. Wills of unmarried women revoked by marriage, see section 546 of this title. 522. Will, or part thereof, procured by fraud. — A will, or part of a will, procured to be made by duress, menace, fraud, or undue influfiR

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T. 3, § 523] THE CIVIL CODE ence, may be denied probate ; and a revocation, procured by the same means, may be declared void. Cross-Retekences Contesting probate of will, see title 4, sections 1231 et seq., and 1251 et seq. Revocation of will, see section 539 of this title. Undue influence as affecting contracts, see section 831 of this title. 523. Will of married woman. — A married woman may dispose of all her separate estate by will, without the consent of her husband, and may alter or revoke the will in like manner as if she were single. Her will must be executed and proved in like manner as other wills. 524. What may pass by will. — Every interest in property, to which heirs, husband, widow, or next of kin might succeed, may be disposed of by will, except as otherwise provided in sections 648 and 649 of this title. 525. Written will, how to be executed. — Every will, other than a nuncupative will, must be in writing; and every will, other than an olographic will, and a nuncupative will, must be executed and attested as follows : 1. It must be subscribed at the end thereof by the testator himself, or some person in his presence and by his direction must subscribe his name thereto ; 2. The subscription must be made in the presence of the attesting witnesses, or be acknowledged by the testator to them to have been made by him or by his authority ; 3. The testator must, at the time of subscribing or acknowledging the same, declare to the attesting witnesses that the instrument is his will; and 4. There must be two attesting witnesses, each of whom must sign the same as a witncvss, at the end of the will, at the testator's request and in his presence. Cboss-Refeeences Conjoint or mutual will, see section 528 of this title. Nuncupative will, see sections 535 et seq., of this title. Olographic will, see section 526 of this title. Witness to add residence, see section 527 of this title. 526. Definition of an olographic will. — An olographic will is one that is entirely written, dated, and signed by the hand of the testator himself. It is subject to no other form, and may be made in or out of the Canal Zone, and need not be witnessed. Cboss-Reference Proof in same manner as other private writing, see title 4, section 3223. 527. Witness to add residence. — A witness to a written will must write, with his name, his place of residence; and a person who subscribes the testator's name, by his direction, must write his own name as a witness to the will. But a violation of this section does not affect the validity of the will. 528. Mutual will. — A conjoint or mutual will is valid, but it mav be revoked by any of the testators in like manner with anj'^ other will. m

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THE CIVIL CODE [T. 3, § 536 529. Competency of subscribing witness. — If the subscribing witnesses to a will are competent at the time of attesting its execution, their subsequent incompetency, from whatever cause it may arise, does not prevent the probate and allowance of the will, if it is otherwise satisfactorily proved. 530. Gifts to subscribing witnesses void; creditors competent witnesses. — All beneficial legacies and gifts whatever, made or given in any will to a subscribing witness thereto, are void, unless there are two other competent subscribing witnesses to the same; but a mere charge on the estate of the testator for the payment of debts does not prevent his creditors from being competent witnesses to his will. 531. Subscribing witness entitled to his share by succession. — If a witness, to whom any beneficial legacy or gift, void by the next preceding section, is made, would have been entitled to any share of the estate of the testator, in case the will should not be established, he succeeds to so much of the share as would be distributed to him, not exceeding the bequest made to him in the will, and he may recover the same of the other legatees named in the will, in proportion to and out of the parts bequeathed to them. 532. Will made outside of Canal Zone. — A will made outside of the Canal Zone which might be proved and allowed by the laws of the State or country in which it was made, may be proved, allowed, and recorded in the Canal Zone, and shall have the same effect as if executed according to the laws of the Zone. Ckoss-Reference Probate of foreign wills, see title 4, sections 1241 et seq. 533. Will made in Canal Zone by alien. — A will made within the Canal Zone by a citizen or subject of another State or country, which is executed in accordance with the law of the State or country of which he is a citizen or subject, and which might be proved and allowed by the law of his own State or country, may be proved, allowed, and recorded in the Canal Zone, and shall have the same effect as if executed according to the laws of the Zone. 534. Republication by codicil. — The execution of a codicil, referring to a previous will, has the effect to republish the will, as modified by the codicil. 535. Nuncupative will, how to be executed. — A nuncupative will is not required to be in writing, nor to be declared or attested with any formalities. Cboss-Refebences Probating nuncupative wills, see sections 536 and 537 of this title. How admitted to probate, see title 4, section 1271. 536. Requisites of valid nuncupative wUl. — To make a nuncupative will valid, and to entitle it to be admitted to probate, the following requisites must be observed: (1) The estate bequeathed must not exceed in value the sum of $1,000.

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T. 3, § 537 TEE CIVIL CODE (2) It must be proved by two witnesses who were present at the making thereof, one of whom was asked by the testator, at the time, to bear witness that such was his will, or to that effect. (3) The decedent must, at the time, have been in actual military service in the field, or doing duty on shipboard at sea, and in either case in actual contemplation, fear, or peril of death, or the decedent must have been, at the time, in expectation of immediate death from an injury received the same day. 537. Proof of nuncupative wills. — No proof must be received of any nuncupative will, unless it is offered within six months after speaking the testamentary words, nor unless the words, or the substance thereof, were reduced to writing within thirty days after they were spoken. Cboss-Reference Probate of nuncupative will, see title 4, section 1271. 538. Probate of nuncupative wills. — No probate of any nuncupative will must be granted for fourteen days after the death of the testator, nor must any nuncupative will be at any time proved, unless the testamentary words, or the substance thereof, be first committed to writing, and process issued to call in the widow, or other persons interested, to contest the probate of such will, if they think proper. Cboss-Referencb Time of probate, see title 4, section 1272. 539. Written will, how revoked. — Except in the cases in this chapter mentioned, no written will, nor any part thereof, can be revoked or altered otherwise than : 1. By a written will, or other writing of the testator, declaring such revocation or alteration, and executed with the same formalities with which a will should be executed by such testator; or 2. By being burned, torn, canceled, obliterated, or destroyed, with the intent and for the purpose of revoking the same, by the testator himself, or by some person in his presence and by his direction. 540. Evidence of revocation. — When a will is canceled or destroyed by any person other than the testator, the direction of the testator, and the fact of such injury or destruction, must be proved by two witnesses. 541. Revocation of duplicate. — The revocation of a will, executed in duplicate, may be made by revoking one of the duplicates. 542. Revocation by subsequent will. — A prior will is not revoked by a subsequent will, unless the latter contains an express revocation, or provisions wholly inconsistent with the terms of the former will ; but in other cases the prior will remains effectual so far as consistent with the provisions of the subsequent will. 543. Antecedent not revived by revocation of subsequent will. — If, after making a will, the testator duly makes and executes a second will, the destruction, cancellation, or revocation of such second will does not revive the first will, unless it appears by the terms 08

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THE CIVIL CODE [T. 3, § 550 of such revocation that it was the intention to revive and give effect to the first will, or unless, after such destruction, cancellation, or revocation, the first will is duly republished. 544. Revocation by marriage and birth of issue. — If, after having made a will, the testator marries, and has issue of such marriage, born either in his lifetime or after his death, and the wife or issue survives him, the will is revoked, unless provision has been made for such issue by some settlement, or unless such issue are provided for in the will, or in such way mentioned therein as to show an intention not to make such provision; and no other evidence to rebut the presumption of such revocation can be received. 545. Effect of marriage of man on his will. — If, after making a will, the testator marries, and the wife survives the testator, the will is revoked, unless provision has been made for her by marriage contract, or unless she is provided for in the will, or in such way mentioned therein as to show an intention not to make such provision; and no other evidence to rebut the presumption of revocation can be received. 546. Effect of marriage of woman on her will. — If, after making a will, the testatrix marries, and the husband survives the testatrix the will is revoked, unless provision has been made for him by marriage contract, or unless he is provided for in the will, or in such way mentioned therein as to show an intention not to make such provision; and no other evidence to rebut the presumption of revocation can be received. 547. Revocation by marriage and birth of issue. — If, after making a will, the testatrix marries, and has issue of said marriage, born either in her lifetime or after her death, and the husband or issue survives her, the will is revoked, unless provision has been made for such issue by some settlement, or unless such issue are provided for in the will, or in such way mentioned therein as to show an intention not to make such provision ; and no other evidence to rebut the presumption of such revocation can be received. 548. Contract of sale not revocation. — An agreement made by a testator, for the sale or transfer of property disposed of by a will previously made, does not revoke such disposal; but the property passes by the will, subject to the same remedies on the testator's agreement, for a specific performance or otherwise against the legatees, as might be had against the testator's successors, if the same Iiad passed by succession. 549. Mortgage not revocation of will. — A charge or encumbrance upon any estate, for the purpose of securing the payment of money or the performance of any covenant or agreement, is not a revocation of any will relating to the same estate which was previously executed; but the legacies therein contained must pass, subject to such charge or encumbrance. 550. Transfer, when not a revocation. — A transfer, settlement, or other act of a testator, by which his interest in a thing previously disposed of by his will is altered, but not wholly divested, is not m

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T. 3, § 651] THE CIVIL CODE a revocation; but the will passes the property which would otherwise devolve by succession. Cboss-Refeeences Ademption of legacies, see section 602 of this title. Revocation, see sections 551 and 552 of this title. 551. When it is a revocation. — If the instrument by which an alteration is made in the testator's interest in a thing previously disposed of by his will expresses his intent that it shall be a revocation, or if it contains provisions wholly inconsistent with the terms and nature of the testamentary disposition, it operates as a revocation thereof, unless such inconsistent provisions depend on a condition or contingency by reason of which they do not take effect. 552. Revocation of codicils. — The revocation of a will revokes all its codicils. 553. Application of provisions as to revocations. — The provisions of this chapter in relation to the revocation of wills apply to all wills made by any testator living at the expiration of one j^ear from the time it takes effect. 554. After-bom child, unprovided for, to succeed. — Whenever a testator has a child born after the making of his will, either in his lifetime or after his death, and dies leaving such child unprovided for by any settlement, and neither provided for nor in any way mentioned in his will, the child succeeds to the same portion of the testator's property that he would have succeeded to if the testator had died intestate. Ceos s-Refebencb Succession by posthumous children, see sections 291, 590, and 650 of this title. 555. Children or issue of children of testator unprovided for by his will. — ^When any testator omits to provide in his will for any of his children, or for the issue of any deceased child, unless it appears that such omission was intentional, such child, or the issue of such child, has the same share in the estate of the testator as if he had died intestate, and succeeds thereto as provided in the next preceding section. 556. Share of after-born child, out of what part of estate to be paid. — When any share of the estate of a testator is assigned to a child born after the making of a willj or to a child, or the issue of a child, omitted in the will, as herembefore mentioned, the same must first be taken from the estate not disposed of by the will, if any; if that is not sufficient, so much as may be necessary must be taken from all the legatees, in proportion to the value they may respectively receive under the will, unless the obvious intention of the testator in relation to some specific bequest, or other provision in the will, would thereby be defeated ; in such case, such specific legacy 100

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THE CIVIL CODE [T. 3, § 560 or provision may be exempted from such apportionment, and a different apportionment, consistent with the intention of the testator, may be adopted. 557. Advancement during lifetime of testator. — If such children, or their descendants, so unprovided for, had an equal proportion of the testator's estate bestowed on them in the testator's lifetime, by way of advancement, they take nothing in virtue of the provisions of sections 554 to 556 of this title. Ceoss-Refeeences Advancements in cases of intestacy, see sections 642 to 646 of this title. Advancements, question of, wlien raised, see title 4, section 1641. 558. Distribution of estate when legatee dies before testator. — When any estate is bequeathed to any child or other relation of the testator, and the legatee dies before the testator, leaving lineal descendants, or any such child or other relation is named in a will as a legatee and is dead at the time the will is executed, but leaves lineal descendants surviving the testator, such descendants take the estate so given by the will in the same manner as the legatee would have done had he survived the testator. Cboss-Refebences " By right of representation," term defined, see section 650 of this title. Death of legatee, legacy fails when, see sections 594 and 595 of this title. 559. Restriction on bequests for charitable uses; exceptions. — No estate shall be bequeathed to any charitable or benevolent society or corporation, or to any person or persons in trust for charitable uses, except the same be done by will duly executed at least thirty days before the decease of the testator ; and if so made at least thirty days prior to such death, such legacy shall be valid : Provided^ That no such bequest shall collectively exceed one third of the estate of the testator, leaving legal heirs, and in such case a pro rata deduction from such bequests shall be made so as to reduce the aggregate thereof to one third of such estate ; and all dispositions of property made contrary hereto shall be void, and go to the residuary legatee, next of kin, or heirs, according to law: Provided^ however^ That nothing in this section contained shall apply to bequests or devises made by will executed at least six months prior to the death of a testator who leaves no parent, husband, wife, child, or grandchild, or when all of such heirs shall have by writing, executed at least six months prior to his death, waived the restriction contained herein. 560. Execution of prior wills not affected. — The provisions of this chapter do not impair the validity of the execution of any will made before it takes effect. 101

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T.3,§571] THE CIVIL CODE CHAPTER 24.— INTERPRETATION OF WILLS, AND EFFECT OF VARIOUS PROVISIONS Sec. 587. Words of donation and of limitation. 588. To wliat time words refer. 589. Bequest to a class. 590. When child born after testator's death takes under will. 591. Mistakes and omissions. 592. When bequests vest. 593. When cannot be divested. 594. Death of a legatee. 595. Interests in remainder are not affected. 596. Conditional bequests. 597. Condition precedent, what. Effect of condition precedent. Conditions precedent, when doomed performed. Conditions subsequent, what. Legatees take as tenants in common. Advancements, when ademptions. 603. Construction of prior wills not affected. 598. 599. 600. 601. 602. Sec. 571. Testator's intention to be carried out. 572. Intention to be ascertained from the Will. 573. Rules of interpretation. 574. Several instruments are to be taken together. 575. Harmonizing various parts. 576. In what case bequest not affected. 577. When ambiguous or doubtful. 578. Words taken in ordinary sense. 579. Words to receive an operative construction. 580. Intestacy to be avoided. 581. Effect of technical words. 582. Technical words not necessary. 583. Power to devise, how executed by terms of will. 584. Bequest of all of property. 585. Residuary clause. 586. *' Heirs ", " relatives ", " issue ", " descendants ", etc. Section 571. Testator's intention to be carried out. — A will is to be construed according to the intention of the testator. Where his intention cannot have effect to its full extent, it must have effect as far as possible. Cross-Referencks Declaration of testator as evidence, see section 572 of tliis title. Intention of testator, see section 622 of tliis title. 572. Intention to be ascertained from the will. — In case of uncertainty arising upon the face of a will, as to the application of any of its provisions, the testator's intention is to be ascertained from the words of the will, taking into view the circumstances under which it was made, exclusive of his oral declarations. Cross-Refebence Testator's declarations as to intention, see section 591 t>f tliis title. 573. Rules of interpretation. — In interpreting a will, subject to the law of the Canal Zone, the rules prescribed by the following sections of this chapter are to be observed, unless an intention to the contrary clearly appears. 574. Several instruments are to be taken together. — Several testamentary instruments, executed by the same testator, are to be taken and construed together as one instrument. 575. Harmonizing various parts. — All the parts of a will are to be construed in relation to each other, and so as, if possible, to form one consistent whole ; but where several parts are absolutely irreconcilable the latter must prevail. 576. In what case bequest not affected.— A clear and distinct bequest cannot be affected by any reasons assigned therefor, or by any other words not equally clear and distinct, or by inference or argument from other parts of the will, or by an inaccurate recital of or reference to its contents in another part of the will. Cboss-Refeejencb Intention of testator, see sections 572 et seq., of this title. 102

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THE CIVIL CODE [T. 3, § 58G 577. When ambiguous or doubtful. — Where the meaning of any part of a will is ambiguous or doubtful, it may be explained by any reference thereto, or a recital thereof, in another part of the will. 578. Words taken in ordinary sense. — The words of a will are to be taken in their ordinary and grammatical sense, unless a clear intention to use them in another sense can be collected, and that other can be ascertained. 579. Words to receive an operative construction. — The words of a will are to receive an interpretation which will give to every expression some effect, rather than one which will render any of the expressions inoperative. Cboss-Refe:rence Harmonizing various parts, see section 575 of this title. 580. Intestacy to be avoided. — Of two modes of interpreting a will, that is to be preferred which will prevent a total intestacy. 581. Effect of technical words. — Technical words in a will are to be taken in their technical sense, unless the context clearly indicates a contrary intention, or unless it satisfactorily appears that the will was drawn solely by the testator, and that he was unacquainted with such technical sense. Cross-Referenob Technical words, laow construed, see sections 11 and 911 of this title. 582. Technical words not necessary. — Technical words are not necessary to give effect to any species of disposition by a will. 583. Power to devise, how executed by terms of will. — Property embraced in a power to devise, passes by a will purporting to devise all the property of the testator. 584. Bequest of all of property. — A bequest of all of the testator's property, in express terms, or in any other terms denoting such intent, passes all the property which he was entitled to dispose of by will at the time of his death. Cboss-Refeben cb General and specific legacies, see section 611 of this title. 585. Residuary clause.— A bequest of the residue of the testator's personal property, passes all the personal property which he was entitled to bequeath at the time of his death, not otherwise effectually bequeathed by his will. 586. "Heirs", "relatives", "issue", "descendants", etc.— A testamentary disposition to " heirs ", " relations ", " nearest relations ", " representatives ", " legal representatives ", or " personal representatives " or " family ", " issue ", " descendants ", " nearest " or " next of kin " of any person, without other words of qualification, and when the terms are used as words of donation, and not of limitation, vests the property in those who would be entitled to succeed to 103

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T. 3, § 587] THE CIVIL CODE the property of such person, according to the provisions of chapter 26 of this title on succession. Cross-Ri:feeence "Issue ", interpretation of, see section 466 of this title. 587. Words of donation and of limitation. — The terms mentioned in the next preceding section are used as words of donation, and not of limitation, when the property is given to the person so designated, directly, and not as a qualification of an estate given to the ancestor of such person. 588. To what time words refer. — Words in a will referring to death or survivorship, simply, relate to the time of the testator's death, unless possession is actually postponed, when they must be referred to the time of possession. 589. Bequest to a class. — A testamentary disposition to a class includes every person answering the description at the testator's death; but when the possession is postponed to a future period, it includes also all persons coming within the description before the time to which possession is postponed. Ckoss-Reference Posthumous children, see section 590 of this title. 590. When child born after testator's death takes under will. — A child conceived before, but not born until after a testator's death, or any other period when a disposition to a class vests in right or in possession, takes, if answering to the description of the class. Ckoss-Refebences Child en ventre sa mere, see section 24 of this title. Succession by posthumous cliildren, see sections 291, 554, and 650 of this title. 591. Mistakes and omissions. — When, applying a will, it is found that there is an imperfect description, or that no person or property exactly answers the description, mistakes and omissions must be corrected, if the error appears from the context of the will or from extrinsic evidence; but evidence of the declarations of the testator as to his intentions cannot be received. Ceoss-Refexence Evidence of intention, see section 572 of this title. 592. When bequests vest. — Testamentary dispositions, including bequests to a person on attaining majority, are presumed to vest at the testator's death. 593. When cannot be divested. — A testamentary disposition, when vested, cannot be divested unless upon the occurrence of the precise contingency prescribed by the testator for that purpose. Cbos s-Refeken ce Bequest to a class, see section 589 of this title. 104

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THE CIVIL CODE [T. 3, § 603 594. Death of a legatee. — If a legatee dies during the lifetime of the testator, the testamentary disposition to him fails, unless an intention appears to substitute some other in his place, except as provided in section 558 of this title. 595. Interests in remainder are not affected. — The death of a legatee of a limited interest before the testator's death does not defeat the interests of persons in remainder, who survive the testator. 596. Conditional bequests. — A conditional disposition is one which depends upon the occurrence of some uncertain event, by which it is either to take effect or be defeated. Cboss-Reifebences Conditions of ownership, see sections 301 et seq., of this title. Conditional obligations, see sections 691 to 699 of this title. 597. Condition precedent, what. — A condition precedent in a will is one which is required to be fulfilled before a particular disposition takes effect. Cross-Reference Conditions precedent, what are, see sections 302 and 693 of this title. 598. Effect of condition precedent. — Wliere a testamentary disposition is made upon a condition precedent, nothing vests until the condition is fulfilled, excej^t where such fulfillment is impossible, in which case the disposition vests, unless the condition was the sole motive thereof, and the impossibility was unknown to the testator, or arose from an unavoidable event subsequent to the execution of the will. 599. Conditions precedent, when deemed performed. — A condition precedent in a will is to be deemed performed when the testator's intention has been substantially, though not literally, complied with. 600. Conditions subsequent, what. — A condition subsequent is where an estate or interest is so given as to vest immediately, subject only to be divested by some subsequent act or event. Ckoss-Refebence Conditions subsequent, see sections 302 and 695 of tliis title. 601. Legatees take as tenants in common. — A legacy given to more than one person vests in them as ov/ners in common. 602. Advancements, when ademptions. — Advancements or gifts are not to be taken as ademptions of general legacies, unless such intention is expressed by the testator in writing. Cross-Refebence Advancement in cases of intestacy, see sections 642 to 646 of this title. 603. Construction of prior wills not affected.— The provisions of this chapter do not affect the construction of any will executed before it takes effect. 83063 — 34 8 105

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T. 3, § 611] THE CIVIL CODE CHAPTER 25.— GENERAL PROVISIONS RELATING TO WILLS Sec. 611. Nature and designation of legacies. 612. Order of resort to estate for debts. 613. Same for legacies. 614. Legacies, how charged with debts. 615. Abatement. 616. Specific legacies. 617. Possession of legatees. 618. Bequest of interest. 619. Satisfaction. Sec. 620. Legacies, when due. 621. Interest. 622. Construction of these rules. 623. Executor according to the tenor. 624. Power given executor to appoint is invalid. 625. Executor not to act till qualified. 626. Liability of beneficiaries for testator's obligations. Section 611. Nature and designation of legacies. — Legacies are distinguished and designated, according to their nature, as follows: 1. A legacy of a particular thing, specified and distinguished from all others of the same kind belonging to the testator, is specific ; if such legacy fails, resort cannot be had to the other property of the testator; 2. A legacy is demonstrative when the particular fund or personal property is pointed out from which it is to be taken or paid ; if such fund or property fails, in whole or in part, resort may be had to the general assets, as in case of a general legacy ; 3. An annuity is a bequest of certain specified sums periodically; if the fund or property out of which they are payable fails, resort may be had to the general assets, as in case of a general legacy ; 4. A residuary legacy embraces only that which remains after all the bequests of the will are discharged ; 5. All other legacies are general legacies. Ceoss-Rbfe:bence Legacy and annuities, when due, see section 620 of this title. 612. Order of resort to estate for debts. — The property of a testator, except as otherwise specially provided in this title and Title 4, The Code of Civil Procedure, must be resorted to for the payment of debts, in the following order : (1) The property which is expressly appropriated by the will for the payment of the debts ; (2) Property not disposed of by the will; (3) Property which is devised or bequeathed to a residuary legatee; (4) Property which is not specifically devised or bequeathed; and (5) All other property ratably. Before any debts are paid, the expenses of the administration and the allowance to the family must be paid or provided for. 613. Same for legacies. — The property of a testator, except as otherwise specially provided in this title and Title 4, The Code of Civil Procedure, must be resorted to for the payment of legacies, in the following order: (1) The property which is expressly appropriated by the will for the payment of the legacies. (2) Property not disposed of by the will. (3) Property which is devised or bequeathed to a residuary legatee. (4) Property which is specifically devised or bequeathed. Cboss-Refeeences Payment of legacies, when legacies are due, see section 622 of this title. When legacies may be paid, see title 4, sections 1611 et seq. 106

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THE CIVIL CODE [T. 3, § 623 614. Legacies, how charged with debts. — Legacies to husband, widow, or kindred of any class are chargeable only after legacies to persons not related to the testator. 615. Abatement. — Abatement takes place in any class only as between legacies of that class, unless a different intention is expressed in the will. 616. Specific legacies. — In a specific legacy, the title passes by the will, but possession can onl}^ be obtained from the personal representative; and he may be authorized by the district court to sell the property devised and bequeathed in the cases herein provided. Cross-Rei'ebencb How title passes in cases of intestacy, see section 633 of this title. 617. Possession of legatees. — Wliere specific legacies are for life only, the first legatee must sign and deliver to the second legatee, or, if there is none, to the personal representative, an inventory of the property, expressing that the same is in his custody for life only, and that, on his decease, it is to be delivered and to remain to the use and for the benefit of the second legatee, or to the personal representative, as the case may be. 618. Bequest of interest. — In case of a bequest of the interest or income of a certain sum or fund, the income accrues from the testator's death. Cross-References Accumulations, see section 321 of this title. Annuities commence at testator's death, see section ()20 of this title. 619. Satisfaction. — A legacy, or a gift in contemplation, fear, or peril of death, may be satisfied before death. 620. Legacies, when due. — Legacies are due and deliverable at the expiration of one year after the testator's decease. Annuities commence at the testator's decease. Cross-Refeeence Legacies payable after four months, see title 4, section 1611. 621. Interest. — Legacies bear interest from the time when they are due and payable, except that legacies for maintenance, or to the testator's widow, bear interest from the testator's decease. 622. Construction of these rules. — Sections 618 to 621 of this title are in all cases to be controlled by a testator's express intention. Cross-Refeeencb Intention of testator, see section 571 of this title. 623. Executor according to the tenor. — Wliere it appears, by the terms of a will, that it was the intention of the testator to commit the execution thereof and the administration of his estate to an}^ person as executor, such person, although not named executor, is entitled to letters testamentary in like manner as if he had been named executor. Cross-Refeeence Api)ointment of executors, see title 4, sections 1281 et seq. 107

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T. 3, § 624] TEE CIVIL CODE 624. Power given executor to appoint is invalid. — An authority to an executor to appoint an executor is void. Ckoss-Referencb Executor of executor, see title 4, section 1287. 625. Executor not to act till qualified. — No person has any power, as an executor, until he qualifies, except that, before letters have been issued, he may pay funeral charges and take necessary measures for the preservation of the estate. CROSS-REFEatENCES Payment of debts, see section 612 of this title. Qualification of executor, see title 4, sections 1351 et seq. 626. Liability of beneficiaries for testator's obligations. — Those to whom property is given by will are liable for the obligations of the testator in the cases and to the extent prescribed by Title 4, The Code of Civil Procedure. CHAPTER 26.— SUCCESSION 635. 636. 637. 638. 639. Sec. 644. What are advancements. 645. Value of advancements, how determined. 646. When heir, advanced to, dies before decedent. 647. Inheritance of husband and wife from each other. 648. Community property on death of spouse. 649. Community property subject to administration ; exception ; husband's control after death of wife. 650. Inheritance by representation. 651. Aliens may inherit, when, and how. 652. Escheat of property. 653. Successor liable for decedent's obligations. 654. Person convicted of murder of decedent not to succeed. Sec. 631. Succession defined. 632. Intestate's estate, to whom passes. 633. Succession to and distribution of estate of deceased person. 634. Illegitimate children to inherit in certain events. Succession to illegitimate child. Degrees of kindred, how computed. Same ; direct and collateral consanguinity. Same ; direct line descending, and direct lino ascending. Same ; degrees in direct line. 640. Same ; degrees in collateral line. 641. Relatives of the half blood. 642. Advancements constitute part of distributive share. 643. Advancements, when too much, or not enough. Section 631. Succession defined. — Succession is the coming in of another to take the property of one who dies without disposing of it by will. 632. Intestate's estate, to whom passes. — The property of one who dies without disposing of it by will, passes to the heirs of the intestate, subject to the control of the district court, and to the possession of any administrator appointed by that court, for the purposes of administration. Cross-references Possession of personal representative, see title 4, sections 1440 and 1521. Proceedings to determine heirship, see title 4, section 1621. 633. Succession to and distribution of estate of deceased person. — When any person having title to any estate not otherwise limited by marriage contract, dies without disposing thereof by will, it is succeeded to and must be distributed, unless otherwise expressly provided in this title and Title 4, The Code of Civil Procedure, subject to the payment of his debts, in the following manner: 108

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THE CIVIL CODE [T. 3, § 624 1. If the decedent leaves a surviving husband or wife, and only one child, or the lawful issue of one child, in equal shares to the surviving husband, or wife and child, or issue of such child. If the decedent leaves a surviving husband or wife, and more than one child living, or one child living and the lawful issue of one or more deceased children, one third to the surviving husband or wife, and the remainder in equal shares to his children and to the lawful issue of any deceased child, by right of representation; but if there is no child of decedent living at his death, the remainder goes to all of his lineal descendants; and if all of the descendants are in the same degree of kindred to the decedent, they share equally, otherwise they take according to the right of representation. If the decedent leaves no surviving husband or wife, but leaves issue, the whole estate goes to such issue; and if such issue consists of more than one child living, or one child living and the lawful issue of one or more deceased children, then the estate goes in equal shares to the children living, or to the child living and the issue of the deceased child or children by right of representation; 2. If the decedent leaves no issue, the estate goes one half to the surviving husband or wife, and the other half to the decedent's father and mother in equal shares, and if either is dead the whole of said half goes to the other. If there is no father or mother, then one half goes in equal shares to the brothers and sisters of decedent and to the children or grandchildren of any deceased brother or sister by right of representation. If the decedent leaves no issue, nor husband nor wife, the estate must go to his father and mother in equal shares, or if either is dead then to the other ; 3. If there is neither issue, husband, wife, father, nor mother then in equal shares to the brothers and sisters of decedent and to the children or grandchildren of any deceased brother or sister, by right of representation; 4. If the decedent leaves a surviving husband or wife, and neither issue, father, mother, brother, sister, nor the children or grandchildren of a deceased brother or sister, the whole estate goes to the surviving husband or wife; 5. If the decedent leaves neither issue, husband, wife, father, mother, brother, nor sister, the estate must go to the next of kin, in equal degree, excepting that, when there are two or more collateral kindred, in equal degree, but claiming through different ancestors, those who claim through the nearest ancestor must be preferred to those claiming through an ancestor more remote; 6. If the decedent leaves several children, or one child and the issue of one or more children, and any such surviving child dies under age and not having been married, all the estate that came to the deceased child by inheritance from such decedent descends in equal shares to the other children of the same parent and to the issue of any such other children who are cfead by right of representation ; 7. If, at the death of such child, who dies under age, not having been married, all the other children of his parents are also dead, and any of them has left issue, the estate that came to such child by inheritance from his parent descends to the issue of all other 109

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T. 3, § 634] THE CIVIL CODE children of the same parent; and if all the issue are in the same degree of kindred to the child, they share the estate equally, otherwise they take according to the right of representation ; 8. If the deceased is a widow, or widower, and leaves no issue, and the estate, or any portion thereof, was common property of such decedent and his or her deceased spouse, while such spouse was living, such property goes in equal shares to the children of such deceased spouse and to the descendants of such children by right of representation, and if none, then one half of such common property goes to the father and mother of such decedent in equal shares, or to the survivor of them if either be dead, or if both be dead, then in equal shares to the brothers and sisters of such decedent and to the descendants of any deceased brother or sister by right of representation, and the other half goes to the father and mother of such deceased spouse in equal shares, or to the survivor of them if either be dead, or if both be dead, then in equal shares to the brothers and sisters of such deceased spouse and to the descendants of any deceased brother or sister by right of representation. If the estate, or any portion thereof, was separate property of such deceased spouse, while living, and came to such decedent from such spouse by descent or bequest, such property goes in equal shares to the children of such spouse and to the descendants of any deceased child by right of representation, and if none, then to the lather and mother of such spouse, in equal shares, or to the survivor of them if either be dead, or if both be dead, then in equal shares to the brothers and sisters of such spouse and to the descendants of any deceased brother or sister by right of representation. 9. If the decedent leaves no husband, wife, or kindred, and there are no heirs to take his estate or any portion thereof, under subdivision 8 of this section, the same escheats to the United States. Ceoss-Refe:bence8 Administration of intestates' estates, see title 4, sections 1303 and 1311 et seq. Escheat, proceedings on, see title 4, sections 1181 et seq. 634. Illegitimate children to inherit in certain events. — Every illegitimate child is an heir of the person who, in writing, signed in the presence of a competent witness, acknowledges himself to be the father of such child ; and in all cases is an heir of his mother ; and inherits his or her estate, in whole or in part, as the case may be, in the same manner as if he had been born in lawful wedlock, but he does not represent his father or mother by inheriting any part of the estate of his or her kindred, either lineal or collateral, unless, before his death, his parents shall have intermarried, and his father, after such marriage, acknowledges him as his child, or adopts him into his family; in which case such child and all the legitimate children are considered brothers and sisters, and on the death of either of them, intestate, and without issue, the others inherit his estate, and are heirs, as hereinbefore provided, in like manner as if all the children had been legitimate ; saving to the father and mother, respectively, their rights in the estates of all the children in like 110

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THE CIVIL CODE [T. 3, § G41 maimer as if all had been legitimate. The issue of all marriages null in law, or dissolved by divorce, are legitimate. Cboss-Repekencics Adoption of illegitimate child, see section 196 of this title. Children of annulled marriage legitate, see section 57 of this title. Divorce not to affect legitimacy, see section 118 of this title. 635. Succession to illegitimate child. — The estate of an illegitimate child, who, having title to any estate not otherwise limited by marriage contract, dies without disposing thereof by will, is succeeded to as if he had been born in lawful wedlock if he has been legitimated by a subsequent marriage of his parents, or adopted by his father as provided by section 196 of this title ; otherwise, it is succeeded to as if he had been born in lawful wedlock and had survived his father and all persons related to him only through his father. 636. Degrees of kindred, how computed. — The degree of kindred is established by the number of generations, and each generation is called a degree. 637. Same; direct and collateral consanguinity. — The series of degrees forms the line; the series of degrees between persons who descend from one another is called direct or lineal consanguinity; and the series of degrees between persons who do not descend from one another, but spring from a common ancestor, is called the collateral line or collateral consanguinity. 638. Same; direct line descending, and direct line ascending.— The direct line is divided into a direct line descending and a direct line ascending. The first is that which connects the ancestor with those who descend from him. The second is that which connects a person with those from whom he descends. 639. Same; degrees in direct line.— In the direct line there are as many degrees as there are generations. Thus, the son is, with regard to the father, in the first degree; the grandson in the second; and vice versa with regard to the father and grandfather toward the sons and grandsons. 640. Same; degrees in collateral line. — In the collateral line the degrees are counted by generations, from one of the relations up to the common ancestor, and from the common ancestor to the other relations. In such computation the decedent is excluded, the relative included, and the ancestor counted but once. Thus, brothers are related in the second degree ; uncle and nephew in the third degree ; cousins-german in the fourth, and so on. 641. Relatives of the half blood. — Kindred of the half blood inherit equally with those of the whole blood in the same degree, unless the inheritance come to the intestate by descent or gift of some one of his ancestors, in which case all those who are not of the blood of such ancestors must be excluded from such inheritance. Cross-Reference Kindred of half blood as administrators, see title 4, section 1312. Ill

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T. 3, § 642] THE CIVIL CODE 642. Advancements constitute part of distributive share. — Any estate given by the decedent in his lifetime as an advancement to any child, or other heir, is a part of the estate of the decedent for the purposes of division and distribution thereof among his heirs, and must be taken by such child, or other heir, toward his share of the estate of the decedent. Ckoss-Reference Advancements, see sections 557 and 602 of this title. 643. Advancements, when too much, or not enough. — If the amount of such advancement exceeds the share of the heir receiving the same, he must be excluded from any further portion in the division and distribution of the estate, but he must not be required to refund any part of such advancement; and if the amount so received is less than his share, he is entitled to so much more as will give him his full share of the estate of the decedent. 644. What are advancements. — All gifts and grants are made as advancements, if expressed in the gift or grant to be so made, or if charged in writing by the decedent as an advancement, or acknowledged in writing as such, by the child or other successor or heir. 645. Value of advancements, how determined. — If the value of the estate so advanced is expressed in the grant, or in the charge thereof made by the decedent, or in the aclinowledgment of the party receiving it, it must be held as of that value in the division and distribution of the estate ; otherwise, it must be estimated according to its value when given, as nearly as the same can be ascertained. 646. When heir, advanced to, dies before decedent. — If any child, or other heir receiving advancement, dies before the decedent, leaving heirs, the advancement must be taken into consideration in the division and distribution of the estate, and the amount thereof must be allowed accordingly by the representatives of the heirs receiving the advancement, in like manner as if the advancement had been made directly to them. 647. Inheritance of husband and wife from each other. — The provisions of the preceding sections of this chapter, as to the inheritance of the husband and wife from each other, apply only to the separate property of the decedents. 648. Community property on death of spouse. — Upon the death of either husband or wife, one half of the community property belongs to the surviving spouse; the other half is subject to the testamentary disposition of the decedent, and in the absence thereof goes to the surviving spouse, subject to the provisions of the section next following. 649. Community property subject to administration; exception; husband's control after death of wife. — Community property passing from the control of the husband by reason of his death is subject to administration, liis debts, family allowance, and the charges and expenses of administration : Provided., Jwioevei\ That the clothing of the decedent and the household effects not exceeding 112

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THE CIVIL CODE [T. 3, § 654 in value $2,500 shall go to the surviving wife without administration, and shall not be subject to the debts and allowance aforesaid. Community propertj^ passing from the control of the husband by virtue of testamentary disposition by the wife is subject to administration, his debts, and the charges and expenses of administration, but the husband, pending administration, shall retain the same power to sell, manage and deal with the community personal property as he had in her lifetime; and his possession and control of the community property shall not be transferred to the personal representative of the wife, except to the extent necessary to carry her will into effect. Ckoss-Reifebence Community property, defined, see sections 140 and 280 of this title. 650. Inheritance by representation. — Inheritance or succession " by right of representation " takes place when the descendants of anj'^ deceased heir take the same share or right in the estate of another person that their parents would have taken if living. Posthumous children are considered as living at tlie death of their parents. 651. Aliens may inherit, when, and how. — Resident aliens may take in all cases by succession as citizens; and no person capable of succeeding under the provisions of this chapter is precluded from such succession by reason of the alienage of any relative; but no nonresident foreigner can take by succession unless he appears and claims such succession within five years after the death of the decedent to whom he claims succession. Oross-Refekences See, also, section 262 of this title. Time to claim succession, see section 263 of this title. 652. Escheat of property. — If a person dies owning any property situated in the Canal Zone and leaving no heir, next of kin, legatee, or other person entitled thereto, such property shall escheat to the United States. (Dec. 29, 1926, ch. 19, sec. 17, 44 Stat. 930; Feb. 27, 1933, ch. 128, sec. 421, 47 Stat. 1182.) Cross-Refekences See, also, section 633 (9) of this title. Escheat, proceedings on, see title 4, sections 1181 et seq. 653. Successor liable for decedent's obligations. — Those who succeed to the property of a decedent are liable for his obligations in the cases and to the extent prescribed by Title 4, The Code of Civil Procedure. 654. Persons convicted of murder of decedent not to succeed. — No person who has been convicted of the murder of the decedent shall be entitled to succeed to any portion of his estate; but the portion thereof to which he would otherwise be entitled to succeed descends to the other persons entitled thereto under the provisions of this chapter. 113

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T. 3, § 661] THE CIVIL CODE CHAPTER 27.— OBLIGATIONS IN GENERAL Art. Sec. 1. Definition of obligations 661 2. Interpretation of obligations 671 Art. Sec. 3. Transfer of obligations 711 4. Extinction of obligations 721 ARTICLE 1.— DEFINITION OF OBLIGATIONS Sec. I Sec. 661. Obligation, what. | 662. How created and enforced. Section 661. Obligation, what. — An obligation is a legal duty, by which a j^erson is bound to do or not to do a certain thing. 662. How created and enforced. — An obligation arises either from : (1) The contract of the parties ; or (2) The operation of law. An obligation arising from operation of law may be enforced in the manner provided by law, or by civil action or proceeding. ARTICLE 2.— INTERPRETATION OF OBLIGATIONS A. General Rules of Interpretation Sec. 671. General rules. B. Joint oe Several Obligations 681. Obligations, joint or several, etc. 682. When joint. 683. Contribution between joint parties. C. Conditional Obligations 691. Obligation, when conditional. 692. Conditions, kinds of. 693. Condition precedent. 694. Conditions concurrent Sec. 695. 696. Conditions subsequent. Performance, etc., of conditions, when essential. 697. When performance, etc., excused. 698. Impossible or unlawful conditions void. 699. Conditions involving forfeiture, how construed. D. Alternative Obligations 701. Who has the right of selection. 702. Right of selection, how lost. 703. Alternatives indivisible. 704. Nullity of one or more of alternative obligations. A. GENERAL RULES OF INTERPRETATION 671. General rules. — The rules which govern the interpretation of contracts are prescribed by chapter 30 of this title. Other obligations are interpreted by the same rules by which statutes of a similar nature are interpreted. B. JOINT OR SEVERAL OBLIGATIONS 681. Obligations, joint or several, etc. — An obligation imposed upon several persons, or a right created in favor of several persons, may be: 1. Joint; 2. Several; or 3. Joint and several. 682. When joint. — An obligation imposed upon several persons, or a right created in favor of several persons, is presumed to be joint, and not several, except in the special cases mentioned in the chapter on the interpretation of contracts. This presumption, in the case of a right, can be overcome only by express words to the contrary. Cros s-Referen ces Promi.se joined in by several, all of whom receive some benefit, is presumed to he joint and several, see section 924 of this title. Promise in the singular, but executed by several, is presumed to he joint and several, see section 925 of this title. 114

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THE CIVIL CODE [T. 3, § 69C 683. Contribution between joint parties. — A party to a joint, or joint and several obligation, who satisfies more than his share of the claim against all, may require a proportionate contribution from all the parties joined with him. Cross-Referencb Surety acquires rights of creditors, see section 2145 of this title. C. CONDITIONAL OBLIGATIONS 691. Obligation, when conditional. — An obligation is conditional, when the rights or duties of any party thereto depend upon the occurrence of an uncertain event. 692. Conditions, kinds of. — Conditions may be precedent, concurrent, or subsequent. Ceos s-Refebeitces Conditional legacies, see sections 596 and 597 of this title. Conditions concuiTent, see section 694 of this title. Conditions of ownership, see sections 301 to 305 of this title. Conditions precedent, see section 693 of this title. Conditions subsequent, see section 695 of this title. 693. Condition precedent. — A condition precedent is one which is to be performed before some right dependent thereon accrues, or some act dependent thereon is performed. Cboss-Referenoe Conditions precedent, see sections 301 to 303, 597 and 744 of this title. 694. Conditions concurrent. — Conditions concurrent are those which are mutually def)endent, and are to be performed at the same time. Cboss-Reference Concurrent conditions, performance of, see section 744 of this title. 695. Conditions subsequent. — A condition subsequent is one referring to a future event, upon the happening of which the obligation becomes no longer binding upon the other party, if he chooses to avail himself of the condition. Cross-Refebencb Conditions subsequent, see sections 302 and 600 of this title. 696. Performance, etc., of conditions, when essential. — Before any party to an obligation can require another party to perform any act under it, he must fulfill all conditions precedent thereto imposed upon himself and must be able and offer to fulfill all conditions concurrent so imposed upon him on the like fulfillment by the other party, except as provided by the section next following. Ckos s-Refebences Concurrent or precedent conditions, perfonnance of, see section 744 of this title. Impossible conditions void, see section 698 of this title. 115

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T. 3, § 697] THE CIVIL CODE 697. When performance, etc., excused. — If a party to an obligation gives notice to another, before the latter is in default, that he ^^'ill not perform the same upon his part, and does not retract such notice before the time at which performance upon his part is due, such other party is entitled to enforce the obligation without previously performing or offering to perform any conditions upon his part in favor of the former party. Ceos s-Refekences Excuse of performance, see section 761 of this title. Refusal to accept performance before the time to perform, see section 764 of this title. 698. Impossible or unlawful conditions void. — A condition in a contract, the fulfillment of which is impossible or unlawful within the meaning of sections 851 to 855 of this title, or which is repugnant to the nature of the interest created by the contract, is void. Cros s-Refeeences Conditions, when impossible, see sections 852 et seq., of this title. Object of contracts, see sections 851 to 855 of this title. Unlawful conditions, see sections 303 et seq., of this title. 699. Conditions involving forfeiture, how construed. — A condition involving a forfeiture must be strictly interpreted against the party for whose benefit it is created. D. ALTERNATIVE OBLIGATIONS 701. Who has the right of selection. — If an obligation requires the performance of one of two acts, in the alternative, the party required to perform has the right of selection, unless it is otherwise provided by the terms of the obligation. 702. Right of selection, how lost. — If the party having the right of selection between alternative acts does not give notice of his selection to the other party within the time, if any, fixed by the obligation for that purpose, or, if none is so fixed, before the time at which the obligation ought to be performed, the right of selection passes to the other party. 703. Alternatives indivisible. — The party having the right of selection between alternative acts must select one of them in its entirety, and cannot select part of one and part of another without the consent of the other party. 704. Nullity of one or more of alternative obligations. — If one of the alternative acts required by an obligation is such as the law will not enforce, or becomes unlawful, or impossible of performance, the obligation is to be interpreted as though the other stood alone. ARTICLE 3.— TRANSFER OF OBLIGATIONS Sec. 711. Burden of obligation not transferable. 712. Rights arising out of obligation transferable. Sec. 713. Nonnegotiable transferred. instruments may be 711. Burden of obligation not transferable. — The burden of an obligation may be transferred with the consent of the party entitled to its benefit, bu*^ not otherwise. 116

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THE CIVIL CODE [T. 3, § 722 712. Rights arising out of obligation transferable.— A right arising out of an obligation is the property of the person to whom it is due, and may be transferred as such. Cross-Re:ference8 Assignment of things in action, see section 372 of this title. Incidents following things transferred, see section 472 of this title. Literary property is assignable, see section 383 of this title. Mere possibility cannot be transferred, see section 442 of this title. Nonnegotiable instrument transferable by indorsement, see section 713 of this title. Products of the mind, assignment of, see section 383 of this title. Property of any kind may be transferred, see section 441 of this title. 713. Nonnegotiable instruments may be transferred. — A nonnegotiable written contract for the payment of money or personal property may be transferred by indorsem.ent, in like manner with negotiable instruments. Such indorsement shall transfer all the rights of the assignor under the instrument to the assignee, subject to all equities and defenses existing in favor of the maker at the time of the indorsement. ARTICLE 4.— EXTINCTION OF OBLIGATIONS Sec. 721. 722. 723. 724. 725. 726. 727. 731, 732. 733. 734. 735. 736. 737. 738. 739. 740. 741. 742. 743. 744. 745. 746. 747. 748. A. Performance Obligation extinguished by performance. Performance by one of .several joint debtors. Performance to one of joint creditors. Effect of directions by creditors. Partial performance. Payment, what. Application of general performance. B. Offke OB" Perfokmancb Obligation extinguished by offer of performance. Offer of partial performance. By whom to be made. To whom to be made. Where offer may be made. When offer must be made. Same. Compensation after delay in performance. Offer to be made in good faith. Conditional offer. Ability and willingness essential. Production of thing to be delivered not necessary. Thing offered to be kept separate. Performance of condition precedent. Written receipts. Extinction of pecuniary obligation. Objections to mode of offer. Title to thing offered. Sec. 749. Custody of thing oflfered. 750. Effect of offer on accessories of obligation. 751. Creditor's retention of thing which he refuses to accept. C. Prevention of Performance or Offer 761. What excuses performance, etc. 762. Effect of prevention of performance. 763. Same. 764. Effect of refusal to accept performance before offer. D. Accord and Satisfaction 771. Accord, what. 772. Effect of accord. 773. Satisfaction, what. 774. Part performance. B. Novation 781. Novation, what. 782. Modes of novation. 783. Novation a contract. 784. Rescission of novation. F. RELEASE 791. Obligation extinguished by release. 792. Certain claims not affected by general release. 793. Release of one of several joint debtors. A. PERFORMANCE 721. Obligation extinguished by performance.— Full performance of an obligation, by the party whose duty it is to perform it, or by any other person on his behalf, and with his assent, if accepted by the creditor, extinguishes it. 722. Performance by one of several joint debtors. — Performance of an obligation by one of several persons who are jointly liable under it ex^^inguishes the liability of all. 117

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T. 3, § 723] THE CIVIL CODE 723. Performance to one of joint creditors. — An obligation in favor of joint creditors is extinguished by performance rendered to any of them, except in the case of a deposit made by joint owners, which is regulated by chapters 36 to 38 of this title on deposit. Cboss-Refekencb Performance to one of joint creditors, see section 1107 of tliis title. 724. Effect of directions by creditors. — If a creditor, or any one of two or more joint creditors, at any time directs the debtor to perform his obligation in a particular manner, the obligation is extinguished by performance in that manner, even though the creditor does not receive the benefit of such performance. 725. Partial performance. — A partial performance of an indivisible obligation extinguishes a corresponding proportion thereof if the benefit of such performance is voluntarily retained by the creditor, but not otherwise. If such partial performance is of such a nature that the creditor cannot avoid retaining it without injuring his own property, his retention thereof is not presumed to be voluntary. Cboss-Refekenob Effect of part performance, see sections 732, 774, and 2114 of this title. 726. Payment, what. — Performance of an obligation for the delivery of money only is called payment. Cross-Reperbnce Tender, effect of, see sections 746 and 750 of this title. 727. Application of general performance. — Where a debtor, under several obligations to another, does an act, by way of performance, in whole or in part, which is equally applicable to two or more of such obligations, such performance must be applied as follows : (1) If, at the time of performance, the intention or desire of the debtor that such performance should be applied to the extinction of any particular obligation, be manifested to the creditor, it must be so applied. (2) If no such application be then made, the creditor, within a reasonable time after such performance, may apply it toward the extinction of any obligation, performance of which was due to him from the debtor at the time of such performance; except that if similar obligations were due to him both individually and as a trustee, he must, unless otherwise directed by the debtor, apply the performance to the extinction of all such obligations in equal proportion; and an application once made by the creditor cannot be rescinded without the consent of the debtor. (3) If neither party makes such application within the time prescribed herein, the performance must be applied to the extinction of obligations in the following order; and, if there be more than one obligation of a particular class, to the extinction of all in that class, ratably : 1. Of interest due at the time of the performance. 118

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THE CIVIL CODE [T. 3, § 736 2. Of principal due at that time. 3. Of the obligation earliest in date of maturity. 4. Of an obligation not secured by a lien or collateral undertaking. 6. Of an obligation secured by a lien or collateral undertaking. B. OFFER OF PERFORMANCE 731. Obligation extinguished by offer of performance.— An obligation is extinguished by an offer of performance, made in conformity to the rules herein prescribed, and with intent to extinguish the obligation. Cros s-Refebences By whom offer may be made, see section 733 of this title. Duties of person making tender, see section 749 of this title. Tender of payment, see sections 746 and 750 of this title. Tender of article passes title, see sections 748 and 750 of this title. Objection to tender must be specified, see title 4, section 2153. Offer in writing equal to tender, payment or performance, see title 4, section 2151. Tender equivalent to payment on redemption from execution, see title 4, section 605. 732. Offer of partial performance. — An offer of partial performance is of no effect. Cboss-Referencb Part performance, effect of, see sections 725, 774, and 2114 of this title. 733. By whom to be made. — An offer of performance must be made by the debtor, or by some person on his behalf and with his assent. 734. To whom to be made. — An offer of performance must be made to the creditor, or to any one of two or more joint creditors, or to a person authorized by one or more of them to receive or collect what is due under the obligation, if such creditor or authorized person is present at the place where the offer may be made ; and if not, wherever the creditor may be found. Ceoss-Referencb Where offer may be made, see section 735 of this title. 735. Where offer may be made. — In the absence of an express provision to the contrary, an offer of performance may be made, at the option of the debtor : 1. At any place appointed by the creditor; 2. Wherever the person to whom the offer ought to be made can be found; 3. If such person cannot with reasonable diligence, be found within the Canal Zone, and within a reasonable distance from his residence or place of business, or if he evades the debtor, then at his residence or place of business, if the same can, with reasonable diligence, be found within the Canal Zone ; or 4. If this cannot be done, then at any place within the Canal Zone. 736. When offer must be made. — Where an obligation fixes a time for its performance, an offer of performance must be made at that time, within reasonable hours, and not before nor afterwards. 119

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T. 3, § 737] THE CIVIL CODE 737. Same. — Wliere an obligation does not fix the time for its performance, an offer of performance may be made at any time before the debtor, upon a reasonable demand, has refused to perform. 738. Compensation after delay in performance. — Where delay in performance is capable of exact and entire compensation, and time has not been expressl}^ declared to be of the essence of the obligation, an offer of performance, accompanied with an offer of such compensation, may be made at any time after it is due, but without prejudice to any rights acquired by the creditor, or by any other person, in the meantime. 739. Offer to be made in good faith. — An offer of performance must be made in good faith, and in such manner as is most likelj'^, under the circumstances, to benefit the creditor. 740. Conditional offer. — An offer of performance must be free from any conditions which the creditor is not bound, on his part, to perform. Cross-Refebence Offer of performance upon condition, see sections 744 and 745 of this title. 741. Ability and willingness essential. — An offer of performance is of no effect if the person making it is not able and willing to perform according to the offer. 742. Production of thing to be delivered not necessary. — The thing to be delivered, if any, need not in any case be actually produced, upon an offer of performance, unless the offer is accepted. 743. Thing offered to be kept separate. — A thing, when offered by way of performance, must not be mixed with other things from which it cannot be separated immediately and without difficulty. Cross-Refebence Custody of thing offered, see section 749 of this title. 744. Performance of condition precedent. — When a debtor is entitled to the performance of a condition precedent to, or concurrent with, performance on his part, he may make his offer to depend upon the due performance of such condition. Cross-references Conditions precedent defined, see sections 3,02, 597, and 693 of this title. Conditions subsequent defined, see sections 302, 600, and 695 of this title. Performance of conditions, see section 696 of this title. Unlawful and impossible conditions void, see sections 303 and 698 of this title. 745. Written receipts. — A debtor has a right to require from his creditor a Avritten receipt for any property delivered in performance of his obligation. Cboss-Referencb Whoever pays entitled to receipt, see title 4, section 2152. 746. Extinction of pecuniary obligation. — An obligation for the payment of money is extinguished by a due offer of payment, if the 120

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THE CI VIL CODE [T. 3, § 7G1 amount is immediately deposited in the name of the creditor, with some bank of deposit within the Canal Zone, of good repute, and notice thereof is given to the creditor. Ceoss-Referencej Tender stopping interest, see section 75i) of this title. 747. Objections to mode of offer. — All objections to the mode of an offer of performance, which the creditor has an opportunity to state at the time to the person making the offer, and which could be then obviated by him, are waived by the creditor, if not then stated. CEOS S-REFBaiENCB See, also, title 4, section 2153. 748. Title to thing offered. — The title to a thing duly offered in performance of an obligation passes to the creditor, if the debtor at the time signifies his intention to that effect. 749. Custody of thing offered. — The person offering a thing, other than money, by way of performance, must, if he means to treat it as belonging to the creditor, retain it as a depositary for hire, until the creditor accepts it, or until he has given reasonable notice to the creditor that he will retain it no longer, and, if with reasonable diligence he can find a suitable depositary therefor, until he has deposited it with such person. Ceoss-Referenoes Depositary for hire, see section 1132 of this title. Thing offered to be kept separate, see section 743 of this title. 750. Effect of offer on accessories of obligation. — An offer of pajanent or other performance, duly made, though the title to the thing offered be not transferred to the creditor, stops the running of interest on the obligation, and has the same effect upon all its incidents as a performance thereof. Cros s-Refebences Tender transfers title, see section 748 of this title. Offer in writing equivalent to tender, see title 4, section 2151. 751. Creditor's retention of thing which he refuses to accept. — If anything is given to a creditor by way of performance, which he refuses to accept as such, he is not bound to return it without demand ; but if he retains it, he is a gratuitous depositary thereof. Ceoss-Refebenc?b Gratuitous depositary, see sections 1121 et seq., of this title. C. PREVENTION OF PERFORMANCE OR OFFER 761. What excuses performance, etc. — The want of performance of an obligation, or of an offer of performance, in whole or in part, or any delay therein, is excused by the following causes, to the extent to which they operate: 93083—34 9 121

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T. 3, § 762] THE CIVIL CODE 1. When such performance or offer is prevented or delayed by the act of the creditor, or by the operation of law, even though there may have been a stipulation that this shall not be an excuse ; 2. When it is prevented or delayed by an irresistible, superhuman cause, or by the act of public enemies of the United States, unless the parties have expressly agreed to the contrary ; or 3. When the debtor is induced not to make it, by any act of the creditor intended or naturally tending to have that effect, done at or before the time at which such performance or offer may be made, and not rescinded before that time. Ceoss-Refeeench Excuse of performance, see section 697 of this title. 762. Effect of prevention of performance. — If the performance of an obligation be prevented by the creditor, the debtor is entitled to all the benefits which he would have obtained if it had been performed by both parties. 763. Same. — If performance of an obligation is prevented by any cause excusing performance, other than the act of the creditor, the debtor is entitled to a ratable proportion of the consideration to which he would have been entitled upon full performance, according to the benefit which the creditor receives from the actual performance. 764. Effect of refusal to accept performance before offer. — A refusal by a creditor to accept performance, made before an offer thereof, is equivalent to an offer and refusal, unless, before performance is actually due, he gives notice to the debtor of his willingness to accept it. Cross-Referencb Refusal to perform entitles the other party to enforce the obligation, without performance on his part, see section 697 of this title. D. ACCORD AND SATISFACTION 771. Accord, what. — An accord is an agreement to accept, in extinction of an obligation, something different from or less than that to which the person agreeing to accept is entitled. Cross-references Order on third person, effect of, see section 784 of this title. Release of obligations, see section 791 of this title. Substituting new obligation for existing one is novation, see sections 781 et seq., of this title. 772. Effect of accord. — Though the parties to an accord are boimd to execute it, yet it does not extinguish the obligation until it is fully executed. 773. Satisfaction, what. — Acceptance, by the creditor, of the consideration of an accord extinguishes the obligation, and is called satisfaction. Ceoss-Refeeencb Part performance, see section 774 of this title. 122

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THE CIVIL CODE [T. 3, § 793 774. Part performance. — Part performance of an obligation, either before or after a breach thereof, wlien expressly accepted by the creditor in writing, in satisfaction, or rendered in pursuance of an agreement in writing for that purpose, though without any new consideration, extinguishes the obligation. Ceoss-Refeeence Part performance, see sections 725, 732, and 2114 of this title. E. NOVATION 781. Novation, what. — Novation is the substitution of a new obligation for an existing one. Ckos s-Refekences Novation a contract, see section 783 of this title. Right to sue on contract made for one's benefit, see section 814 of this title. 782. Modes of novation. — Novation is made: 1. By the substitution of a new obligation between the same parties, with intent to extinguish the old obligation ; 2. By the substitution of a new debtor in place of the old one, with intent to release the latter; or 3. By the substitution of a new creditor in place of the old one, with intent to transfer the rights of the latter to the former. 783. Novation a contract. — Novation is made by contract, and is subject to all the rules concerning contracts in general. 784. Rescission of novation. — When the obligation of a third person, or an order upon such person is accepted in satisfaction, the creditor may rescind such acceptance if the debtor prevents such person from complying with the order, or from fulfilling the obligation ; or if, at the time the obligation or order is received, such person is insolvent, and this fact is unknown to the creditor, or if, before the creditor can with reasonable diligence present the order to the person upon whom it is given, he becomes insolvent. F. RELEASE 791. Obligation extinguished by release. — An obligation is extinguished by a release therefrom given to the debtor by the creditor, upon a new consideration, or in writing, with or without new consideration. Cross-Refekencb Writing imports a consideration, see section 870 of this title. 792. Certain claims not affected by general release. — A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor. 793. Release of one of several joint debtors. — A release of one of two or more joint debtors does not extinguish the obligations of any 123

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T. 3, t} 801] THE CIVIL CODE of the others, unless they are mere guarantors; nor does it affect tlieir right to contribution from him. Ceoss-References Guarantor's liability discharged by what dealings with debtor, see section 2111 ol: this title. nights of sureties, see section 2141 of this title. CHAPTER 28.— NATURE OF A CONTRACT Art. Sec. 1. Definition SOI 2. Pcuties 811 a. Consent 821 Art. Sec. 4. Object 851 5. CouslJiration 8(51 ARTICLE 1.— DEFINITION Sec. I Sec. 801. Contract, what. ' 802. Essential elements of contract. Section 801. Contract, what. — A contract is an agreement to do or not to do a certain thing. Cboss-Refeeenoes Object of a contract, see sections 851 to 855 of this title. Parties to a contract, see sections 811 to 814 of this title. 802. Essential elements of contract. — It is essential to the existence of a contract that there should be : 1. Parties capable of contracting ; 2. Their consent; 3. A lawful object; and 4. A sufficient cause or consideration. Ckoss-Refeeences Consent, see sections 821 to 835 of this title. Con.sideration, see sections 801 to 871 of this title. Requisites of object, see section 852 of this title. Unlawful contracts, see section 931 of this title. ARTICLE 2.— PARTIES Sec. 811. Who may contract. 812. Minors, etc. 813. Identification of parties necessary. Sec. 814. When contract for heneflt of third person may be enforced. 811. Who may contract. — All persons are capable of contracting, except minors and persons of unsound mind. Cross-Refeirenoes Contracts of infants, see sections 25 et seq., and 982 of this title. Contracts of married women, see sections 134, 135, and 143 of this title. Contracts of persons of unsound mind, see sections 30 et soq., of this title. 812. Minors, etc. — Minors, and persons of unsound mind, have only such capacity as is defined by chapter 2 of this title. CBOSS-REFBatENCB Powers of minors, see sections 25 et seq., of this title. 124

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THE CIVIL CODE [T. 3, § 823 813. Identification of parties necessary. — It is essential to the validity of a contract, not only that the parties should exist, but that it should be possible to identify them. 814. When contract for benefit of third person may be enforced. — A contract, made expressly for the benefit of a third jierson, may be enforced by him at any time before the parties thereto rescind it. ARTICLE 3.— CONSENT Sec. R21. Essentials of consent. 8-2. Consent, when voidable. 823. Apparent consent, wln^n not free. 824. When cleomed to have been obtained l>y fraud and so forth. 825. Duress, what. 826. Menace, what. 827. Fraud, actual or constructive. 828. Actual fraud, what. 829. Constructive fraud. 830. Actual fraud a question of fact. 831. Undue influence, what. 832. Mistalie, what. 833. Mistalie of fact. 834. Mistake of law. Sec. 835. Mistake of foreitrn laws. 830. Mutuality of consent. 837. Communication of consent. 838. Mode of communicating acceptance of proposal. 839. When communication deemed complete. 840. Acceptance by performance of conditions. 841. Acceptance must be absolute. S42. Revocation of proposal. 843. Revocation, how made. 844. Ratification of contract void for want of consent. 845. Assumption of obligation by acceptance of benefits. 821. Essentials of consent. — The consent of the parties to a contract must be : i. Free; 2. Mutual; and 3. Communicated by each to the other. Cboss-Refekences Consent, when not free, and effect, see sections 822 and 823 of this title. Consent, when not mutual, see section 836 of this title. Consent, how communicated, see section 837 of this title. 822. Consent, when voidable. — A consent which is not free is nevertheless not absolutely void, but may be rescinded by the parties, in the manner prescribed by sections 951 to 954 of this title. Choss-Referen ce Recission of contracts, see sections 951 et seq., and 2723 et seq., of this title. 823. Apparent consent, when not free. — An apparent consent is not real or free when obtained through : 1. Dure.ss; 2. Menace; 3. Fraud; 4. Undue influence; or 5. Mistake. Ckoss-Reiebences Duress, defined, see section 825 of this title. Menace, defined, see section S2G of this title. Fraud, defined, see section 827 of this title. Undue influence, defined, see section 831 of this title. Mistfike, defined, see section 832 of this title. Rescission, where consent obtained by mistake, duress, menace, fraud, or undue influence, see section 952 of this title. 125

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T. 3, § 824] THE CIVIL CODE 824. When deemed to have been obtained by fraud, etc. — Consent is deemed to have been obtained through one of the causes mentioned in the next preceding section, only when it woiUd not have been given had such cause not existed. 825. Duress, what. — Duress consists in: 1. Unlawful confinement of the person of the party, or of the husband or wife of such party, or of an ancestor, descendant, or adopted child of such party, husband, or wife; 2. Unlawful detention of the property of any such person; or 3. Confinement of such person, lawful in form, but fraudulently obtained, or fraudulently made unjustly harassing or oppressive. Cross-Reference Rescission of contract for duress, see section 952 of this title. 826. Menace, what. — Menace consists in a threat : 1. Of such duress as is specified in subdivisions 1 and 3 of the next preceding section; 2. Of unlawful and violent injury to the person or property of any such person as is specified in the next preceding section ; or 3. Of injury to the character of any such person. Cuoss-Reference Rescission of contract for menace, see section 952 of tliis title. 827. Fraud, actual or constructive. — Fraud is either actual or constructive. Cross-Reference Rescission of contract for fraud, see section 952 of this title. 828. Actual fraud, what. — Actual fraud, within the meaning of this article, consists in any of the following acts, committed by a party to the contract, or with his connivance, with intent to deceive another party thereto, or to induce him to enter into the contract : 1. The suggestion, as a fact, of that which is not true, by one who does not believe it to be true; 2. The positive assertion, in a manner not warranted by the information of the person making it, of that which is not true, though he believes it to be true; 3. The suppression of that which is true, by one having knowledge or belief of the fact; 4. A promise made without any intention of performing it; or 5. Any other act fitted to deceive. Cboss-Refebbnces Deceit, see sections 972 and 973 of this title. Fraudulent instruments and transfers, see sections 2761 ct seq., of this title. Rescission of contracts for fraud, see section 952 of this title. 829. Constructive fraud. — Constructive fraud consists: 1. In any breach of duty which, without an actually fraudulent intent, gains an advantage to the person in fault, or any one claiming under him, by misleading another to his prejudice, or to the prejudice of any one claiming under him; or 126

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TEE CIVIL CODE [T. 3, § 836 2. In any such act or omission as the law specially declares to be fraudulent, without respect to actual fraud. Ckoss-Refeuencb Rescission of contract for fraud, see section 952 of this title. 830. Actual fraud a question of fact. — Actual fraud is always a question of fact. 831. Undue influence, what. — Undue influence consists: 1. In the use, by one in whom a confidence is reposed by another, or who holds a real or apparent authority over him, of such confidence or authority for the purpose of obtaining an unfair advantage over him; 2. In taking an unfair advantage of another's weakness of mind ; or 3. In taking a grossly oppressive and unfair advantage of another's necessities or distress. Cros s-R EFEBENCES Rescission of contracts, see sections 952 and 2721 of this title. Undue influence vitiating will, see section 522 of this title. 832. Mistake, what. — Mistake may be either of fact or law. 833. Mistake of fact. — Mistake of fact is a mistake, not caused by the neglect of a legal dut}^ on the part of the person making the mistake, and consisting in : 1. An unconscious ignorance or forgetfulness of a fact past or present, material to the contract ; or 2. Belief in the present existence of a thing material to the contract which does not exist, or in the past existence of such a thing, which has not existed. Cross-Referencb Rescission of contract for mistake, see section 952 of this title. 834. Mistake of law. — Mistake of law constitutes a mistake, within the meaning of this article, only when it arises from : 1. A misapprehension of the law by all parties, all supposing that they knew and understood it, and all making substantial!}^ the same mistake as to the law ; or 2. A misapprehension of the law by one party, of which the others are aware at the time of contracting, but which they do not rectify. Cross-Referbnce Rescission of contract for mistake, see section 952 of this title. 835. Mistake of foreign laws. — Mistake of foreign laws is a mistake of fact. Cross-Rbferbncb Foreign laws, how proved, see title 4, sections 1926 and 1927. _ 836. Mutuality of consent. — Consent is not mutual unless the parties all agree upon the same thing in the same sense. But in certain cases defined by the chapter on interpretation, they are to be deemed so to agree without regard to the fact. Cross-Reference Interpretation of contracts, see sections 901 et seq., of this title. 127

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T. 3, § 837] THE CIVIL CODE 837. Communication of consent.-— Consent can be communicated with effect, only by some act or omission of the part}^ contracting, by wliicli he intends to communicate it, or which necessarily tends to sucli communication. 838. Mode of communicating acceptance of proposal. — If a proposal prescribes any conditions concerning the communication of its acceptance, the proposer is not bound unless they are conformed to; but in other cases any reasonable and usual mode may be adopted. 839. When communication deemed complete. — Consent is deemed to be fully communicated between the parties as soon as the party accepting a proposal has put his acceptance in the course of transmission to the proposer, in conformity to the next preceding section. 840. Acceptance by performance of conditions. — Performance of the conditions of a proposal, or the acceptance of the consideration offered with a proposal, is an acceptance of the proposal. 841. Acceptance must be absolute. — An acceptance must be absolute and unqualified, or must include in itself an acceptance of that character vfhich the proposer can separate from the rest, and which will conclude the person accepting. A qualified acceptance is a new proposal. 842. Revocation of proposal. — A proposal may be revoked at any time before its acceptance is communicated to the proposer, but not afterwards. 843. Revocation, how made. — A proposal is revoked : 1. By communication of notice of revocation by the proposer to the otlier party, in the manner prescribed by sections 83T to 839 of this title, before his acceptance has been communicated to the former ; 2. By the lapse of the time prescribed in such proposal for its acceptance, or if no time is so prescribed, the lapse of a reasonable time without communication of the acceptance; 3. By the failure of the acceptor to fulfill a condition precedent to acceptance; or 4. By the death or insanity of the proposer. 844. Ratification of contract void for want of consent. — A contract which is voidable solely for want of due consent, ma}^ be ratified by a subsequent consent. 845. Assumption of obligation by acceptance of benefits. — A voluntary acceptance of the benefit of a transaction is equivalent to a consent to all the obligations arising from it, so far as the facts are known, or ought to be known, to the person accepting. Cross-Refebence He who takes benefit must bear burden, see section 2843 of this title. 128

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Sec. 80 1. Object, what. 852. Requisites of object. 853. Impossibility, what. THE CIVIL CODE [T. 3, § 861 ARTICLE 4.— OBJECT Sec. 854. When contract wholly void. 855. When contract parti:"illy void. 851. Object, what.— The object of a contract is the thing which it is agreed, on the part of the party receiving the consideration, to do or not to do. Cross-Refebences Unlawful conditions, see section 698 of this title. UulawiUl contracts, see sections 852 and 981 et seq., of this title. 852. Requisites of object.— The object of a contract must be lawful when the contract is made, and possible and ascertainable by the time the contract is to be performed. Ceoss-References Essential elements of contract, see section 802 of this title. Unlawful contracts, see sections 931 et seq., of this title. 853. Impossibility, what.— Everything is deemed possible except that which is impossible in the nature of things. 854. When contract wholly void.— Where a contract has but a single object, and such object is unlawful, whether in whole or in part, or wholly impossible of performance, or so vaguely expressed as to be wholly unascertainable, the entire contract is void. Cross-Refeeence Consideration illegal in part, see sections 855 and 864 of this title. 855. When contract partially void.— Where a contract has several distinct objects, of which one at least is lawful, and one at least is unlawful, in whole or in part, the contract is void as to the latter and valid as to the rest. Cboss-Refeeences Contract illegal in part, see section 864 of this title. Provision in, impossible of performance, eftect of, see section 869 of this title. ARTICLE 5.— CONSIDERATION Sec. Sec. 861. Good consideration, what. 862. How far lesal or moral obligation is a good consideration. 863. Consideration lawful. 864. Effect of its illegality. 865. Consideration executed or executory. 866. Executory consideration. 867. How ascertained. 868. Effect of impossibility of ascertaining consideration. 869. Same. 870. Written instrument presumptive evidence of consideration. 871. Burden of proof to invalidate sufficient consideration. 861. Good consideration, what.— Any benefit conferred, or agreed to be conferred, upon the promisor, by any other person, to which the promisor is not lawfully entitled, or any prejudice suffered, or agreed to be suffered, by such person, other than such as he is at the tinie of consent lawfully bound to suffer, as an inducement to the promisor, is a good consideration for a promise. 129

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T. 3, § 862] TEE CIVIL CODE 862. How far legal or moral obligation is a good consideration. — An existing legal obligation resting upon the promisor, or a moral obligation originating in some benefit conferred upon the promisor, or prejudice suffered by the promisee, is also a good consideration for a promise, to an extent corresponding with the extent of the obligation, but no further or otherwise. 863. Consideration lawful. — The consideration of a contract must be lawful within the meaning of section 931 of this title. Ceoss-Reference Unlawful contracts, see sections 931 et seq., of this title. 864. Effect of its illegality. — If any part of a single consideration for one or more objects, or of several considerations for a single object, is unlawful, the entire contract is void. Ceos s-Refeeence Consideration illegal in part, see sections 854 and 855 of this title. 865. Consideration executed or executory. — A consideration may be executed or executory, in whole or in part. Insofar as it is executory it is subject to the provisions of sections 851 to 855 of this title. 866. Executory consideration. — When a consideration is executory, it is not indispensable that the contract should specify its amount or the means of ascertaining it. It may be left to the decision of a third person, or regulated by any specified standard. 867. How ascertained. — When a contract does not determine the amount of the consideration, nor the method by which it is to be ascertained, or when it leaves the amount thereof to the discretion of an interested party, the consideration must be so much money as the object of the contract is reasonably worth. 868. Effect of impossibility of ascertaining consideration. — Where a contract provides an exclusive method by which its consideration is to be ascertained, which method is on its face impossible of execution, the entire contract is void. 869. Same. — Where a contract provides an exclusive method by which its consideration is to be ascertained, which method appears possible on its face, but in fact is, or becomes, impossible of execution, such provision only is void. Cross-Refeeencb Effect of partial invalidity of contract, see section 855 of this title. 870. Written instrument presumptive evidence of consideration. — A written instrument is presumptive evidence of a consideration. Cr.OSS-REFERENCES Distinction between sealed and unsealed instruments abolished, see section 890 of this title. Presumption of consideration for negotiable instrument, see section 2351 of this title. 130

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THE CIVIL CODE [T. 3, § 886 871. Burden of proof to invalidate sufficient consideration.— The burden of showinf;^ a want of consideration sufficient to support an instrument lies with the party seeking to invalidate or avoid it. CrO SS-ReFEKEN CE3 Presumption of consideration for written contract, see title 4, section 2007. CHAPTER 29.— MANNER OF CREATING CONTRACTS Sec. 881. Contracts, express or implied. 882. Express contracts, what. 883. Implied contract, wl)at. 884. What contracts may bo oral. 885. Contract not in writing through fraud, may be enforced against fraudulent party. Sec. 886. What contracts must be written. 887. Effect of written contracts. 888. Contract in writing, talies effect when. 889. Provisions on delivery of grants to apply. 890. Distinctions between sealed and unsealed instruments abolished. Section 881. Contracts, express or implied. — A contract is either express or implied. 882. Express contracts, what. — An express contract is one the terms of which are stated in words. 883. Implied contract, what. — An implied contract is one the existence and terms of which are manifested by conduct. Ckoss-Referencb Obligations imposed l)y law, see sections 971 et seq., of this title. 884. What contracts may be oral. — All contracts may be oral, except such as are specially required by statute to be in writing. Cross-Reference Contracts when to be in writing, see sections 885, 886, and 984 of this title. 885. Contract not in writing through fraud, may be enforced against fraudulent party. — Where a contract, which is required by law to be in writing, is prevented from being put into writing by the fraud of a party thereto, any other party who is by such fraud led to believe that it is in writing, and acts upon such belief to his prejudice, may enforce it against the fraudulent party. 886. What contracts must be written. — The following contracts are invalid, unless the same, or some note or memorandum thereof, is in writing and subscribed to by the party to be charged, or by his agent : 1. An agreement that by its terms is not to be performed within a year from the making thereof; 2. A special promise to answer for the debt, default, or miscarriage of another, except in the cases provided for in section 2074 of this title ; 3. An agreement made upon consideration of marriage other than a mutual promise to marry ; 4. An agreement for the leasing of real property for a longer period than one year, and such agreement, if made by an agent of the party sought to be charged, is invalid, unless the authority of the agent is in writing, subscribed by the party sought to be charged ; 131

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T. 3, § 887] THE CIVIL CODE 5. An agreement authorizing or employing an agent or broker to purchase or sell real estate for compensation or a commission ; 6. An agreement which by its terms is not to be performed during the lifetime of the promisor, or an agreement to bequeath any property, or make any provision for any person by will. Cross-Rejfeeences Contracts to sell or sales of goods or clioses in action, see section 984 of this title. Fraudulent transfers, see section 2762 of this title. Guaranty, see sections 2073 et seq., of this title. Oral authorization, sufficiency of, see section 1626 of this title. Power of attorney to execute mortgage, see section 2242 of this title. Statute of frauds, see title 4, sections ^015 to 2018. 887. Effect of written contracts. — The execution of a contract in writing, whether the law requires it to be written or not, supersedes all the negotiations or stipulations concerning its matter which preceded or accompanied the execution of the instrument. Cuds S-IIEFS31EN CES Writing supersedes oral stipulations, see section 905 of this title. Agreement reduced to writing deemed whole, see title 4, section 1874. 5. Contract in writing, takes effect when. — A contract in writing takes effect upon its delivery to the party in whose favor it is made, or to his agent. Ceoss-Referencb Delivery of ti'ansfers in writing, ."^ee generally section 435 of this title. 889. Provisions on delivery of grants to apply. — The provisions of sections 451 and 454 to 459 of this title, concerning the delivery of grants, absolute and conditional, apply to all written contracts. Cboss-Referencb Mode of transfer, see sections 451 et seq., of this title. 890. Distinctions between sealed and unsealed instruments abolished. — All distinctions between sealed and unsealed instruments are abolished. CHAPTER 30.— INTERPRETATION OF CONTRACTS Sec. 015. Interpretation in sense in wliicli promisor lielievcd promisee to rely. 916. Particular clauses subordinate to general intent. 917. Contract, partly written and partly printed. 9 IS. Repugnancies, how reconciled. 919. Inconsistent words rejected. 920. Words to be taken most stronKly against whom. 921. Reasonable stii'Ulations, when implied. 922. Necessary incidents implied. 923. Time of performance of contract. 924. Wlien joint and several. 925. Same. 92(5. Kxecuted and executory contracts, what. Sec. 901. Uniformity of interpretation. 902. Contracts, how to be interpreted. 903. Intention of parties, liow ascertained. 904. Intention to be ascertained from language. 905. Interpretation of written contracts. 906. Writing, when disregarded. 907. Effect to be given to every part of contract. 908. Several contracts, when taken together. 909. Interpretation in favor of contract. 910. Words to be understood in the usual sense. 911. Technical words. 912. Law of place. 913. Contracts explained by circumstances. 914. Contract restricted to its evident object. Section 901. Uniformity of interpretation. — All contracts, whether public or private, are to be interpreted by the same rules, except as otherwise provided by this title. L32

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THE CIVIL CODE [T. 3, § 910 902. Contracts, how to be interpreted. — A contract must be so interpreted as to give effect to the mutual intention of the parties as it existed at the time of contracting, so far as tlie same is ascertainable and lawful. Cboss-References Contract restricted to its evident object, see section 914 of this title. Parol evidence to prove intention, see title 4, sections 1872 et seq. 903. Intention of parties, how ascertained. — For the purpose of ascertaining the intention of the parties to a contract, if otherwise doubtful, the rules given in this chapter are to be applied. Ceoss-Refeeenoes Construction against party causing ambiguity, see section 920 of this title. Parol evidence with respect to writings, see title 4, sections 1872 and 3874. 904. Intention to be ascertained from language. — The language of a contract is to govern its interpretation, if the language is clear and explicit, and does not involve an absurdity. 905. Interpretation of written contracts, — When a contract is reduced to writing, the intention of the parties is to be ascertained from the writing alone, if possible; subject, however, to the other provisions of this chapter. Ckoss-References Writing supersedes oral negotiations, see section 887 of this title. Agreement reduced to writing deemed the whole, see title 4, section 1874. Parol evidence in construing writings, see title 4, sections 1872 et seq. 906. Writing, when disregarded. — When, through fraud, mistake, or accident, a written contract fails to express the real intention of the parties, such intention is to be regarded, and the erroneous parts of the Avriting disregarded. Cross-Refeeences Principles governing in revising contract, see section 2713 of this title. Revising contract for fraud or mistake, see section 2711 of this title. Evidence of circumstances, see title 4, sections 1874 and 1878. 907. Effect to be given to every part of contract. — The whole of a contract is to be taken together, so as to give effect to every part, if reasonably practicable, each clause helping to interpret the other. Cross-Refeeences See, also, title 4, section 1876. Repugnancies and inconsistencies in, see sections 918 and 919 of this title. 908. Several contracts, when taken together. — Several contracts relating to the same matters, between the same parties, and made as parts of substantially one transaction, are to be taken together. 909. Interpretation in favor of contract. — A contract must receive such an interpretation as will make it lawful, operative, definite, reasonable, and capable of being carried into effect, if it can be done without violating the intention of the parties. 910. Words to be understood in the usual sense. — The words of a contract are to be understood in their ordinary and popular sense, 133

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T. 3, § 911] THE CIVIL CODE rather than according to their strict legal meaning; unless used by the parties in a technical sense, or unless a special meaning is given to them by usage, in which case the latter must be followed. Cross-Reference Technical words, see title 4, sections 7 and 1S79. 911. Technical words. — Technical words are to be interpreted as usually understood by persons in the profession or business to which they relate, unless clearly used in a different sense. Ckoss-Refebenoe Technical words, how construed, see sections 11 and 581 of this title. 912. Law of place. — A contract is to be interpreted according to the law and usage of the place where it is to be performed ; or, if it does not indicate a place of performance, according to the law and usage of the place where it is made. Cross-Refebences Usage, see title 4, section 1888. Construction of language as relating to place where used, see title 4, section 1875. 913. Contracts explained by circumstances. — A contract may be explained by reference to the circumstances under which it was made, and the matter to which it relates. Cboss-Refekencb Contract may be explained by circumstances, see title 4, sections 1874 and 1878. 914. Contract restricted to its evident object. — However broad may be the terms of a contract, it extends only to those things concerning which it appears that the parties intended to contract. 915. Interpretation in sense in which promisor believed promisee to rely. — If the terms of a promise are in any respect ambiguous or uncertain, it must be interpreted in the sense in which the promisor believed, at the time of making it, that the promisee understood it. Cross-Referbnces Interpretation against promisor, see section 920 of this title. What construction preferred, see title 4, section 1882. 916. Particular clauses subordinate to general intent. — Particular clauses of a contract are subordinate to its general intent. Cross-Refekencb Repugnancies and inconsistencies, see sections 918 and 919 of this title. 917. Contract, partly written and partly printed. — Where a contract is partly written and partly printed, or where part of it is 134

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THE CIVIL CODE [T. 3, § 923 written or printed under the special directions of the parties, and with a special view to their intention, and the remainder is copied from a form originally prepared without special reference to the particular parties and the particular contract in c^uestion, the written })arts control the printed parts, and the parts which are purely original control those which are copied from a form. And if the two are absolutely repugnant, the latter must be so far disregarded. 918. Repugnancies, how reconciled. — Repugnancy in a contract must be reconciled, if possible, by such an interpretation as will give some effect to the repugnant clauses, subordinate to the general intent and purpose of the whole contract. Cboss-Referencej Inconsistent words rejected, see section 919 of this title. 919. Inconsistent words rejected. — Words in a contract which are wholly inconsistent with its nature, or with the main intention of the parties, are to be rejected. Cboss-Refeeence Repugnancies, how reconciled, see section 918 of this title. 920. Words to be taken most strongly against whom. — In cases of uncertainty not removed by the preceding rules, the language of a contract should be interpreted most strongly against the party who caused the uncertainty to exist. The promisor is presumed to be such party; except in a contract between a public officer or body, as such, and a private party, in which it is presumed that all uncertainty was caused by the private party. Cross-Res'erences Interpretation in sense promisor believed promisee to rely, see section 915 of this title. Interpretation of doubtful words, see section 463 of this title. 921. Reasonable stipulations, when implied. — Stipulations which are necessary to make a contract reasonable, or conformable to usage, are implied, in respect to matters concerning which the contract manifests no contrary intention. 922. Necessary incidents implied. — All things that in law or usage are considered as incidental to a contract, or as necessary to carry it into effect, are implied therefrom, unless some of them are expressly mentioned therein, when all other things of the same class are deemed to be excluded. Ckoss-Refeebncb Incident follows principal, see sections 472 and 2862 of this title. 923. Time of performance of contract. — If no time is specified for the performance of an act required to be performed, a reasonable time is allowed. If the act is in its nature capable of being done 135

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T. 3, § 924] THE CIVIL CODE instantly — as, for example, if it consists in the payment of money only — it must be performed immediately upon the thing to be done being exactly ascertained. Ceoss-Refeeence Delay in, where time not of essence, see section 738 of this title. 924. When joint and several. — Where all the parties who unite in a promise receive some benefit from the consideration, whether past or present, their promise is presumed to be joint and several. 925. Same. — A promise, made in the singular number, but executed by several persons, is j^resumed to be joint and several. CbOS S-Re1!'JUUEN ce Contracts, joint and several, see sections 681 et seq., of this title. 926. Executed and executory contracts, what. — An executed contract is one, the object of which is fully performed. All others are executory. CHAPTER 31.— UNLAWFUL CONTRACTS Sec. 931. What is unlawful. 932. Certain contracts unlawful. 933. Contract fixing damages, void. 934. Exception. Sec. 935. Contract in restraint of trade, void. 936. Exception in favor of partnership arransements. 937. Contract in restraint of marriago, void. Section 931. What is unlawful. — That is not lawful which is : 1. Contrary to an express provision of law ; 2. Contrary to the policy of express law, though not expressly prohibited; or 3. Otherwise contrary to good morals. Ckoss-References Conditions, when void, see sections 303 to 305 of this title. Contract obtained through duress, menace, fraud, undue influence, or mistake, see section 823 of this title. Contracts in restraint of marriage, see section 937 of this title. Contracts in restraint of trade, see section 935 of this title. Duress, see section 825 of this title. Fraud, see sections 827 et seq., of this title. Menace, see section 826 of this title. Mistake, see section 832 of this title. Undue influence, see section 831 of this title. 932. Certain contracts unlawful. — All contracts which have for their object, directly or indirectly, to exempt anyone from responsibility for his own fraud, or willful injury to the person or property of another, or violation of law, whether willful or negligent, are against the policy of the law. Cuoss-Refebenoes Carrier cannot exempt himself from liability for negligent or wrongful acts, see section 1475 of this title. Fraud, see section 827 of this title. 136

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THE CIVIL CODE [T. 3, § 952 933. Contract fixing damages, void. — Every contract by which the amount of damag-e to be paid, or other compensation to be made, for a breacli of an obligation, is determined in anticipation thereof, is to that extent void, except as expressly provided in the section next following. 934. Exception. — The parties to a contract may agree therein upon an amount which shall be presumed to be the amount of damage sustained by a breach thereof, when, from the nature of the case, it would be impracticable or extremely difficult to fix the actual damage. 935. Contract in restraint of trade, void. — Every contract by which anj^one is restrained from exercising a lawful profession, trade, or business of any kind, otherwise than as provided by sections 936 and 937 of this title, is to that extent void. 936. Exception in favor of partnership arrangements, — Partners may, upon or in anticipation of a dissolution of the partnership, agree that none of them will carry on a similar business within the same city or town where the partnership business has been transacted, or within a specified part thereof. 937. Contract in restraint of marriage, void. — Every contract in restraint of the marriage of any person, other than a minor, is void. Ckoss-Refebencb Conditions in restraint of marriage, see section 304 of this title. CHAPTER 32.— EXTINCTION OF CONTRACTS Art. Sec. 1. In general 941 2. Rescission 951 Art. 3. Alteration Sec. md cancelation J)ei ARTICLE 1.— IN GENERAL Section 941. Contract, how extinguished. — A contract may be extinguished in like manner with any other obligation, and also in the manner prescribed by this chapter. Ceoss-Reference Cancelation of instruments, see sections 2731 et seq., of this title. ARTICLE 2.— RESCISSION Sec. 951. Rescission extinguishes contract. 952. Wlieu party may rescind. Sec. 953. 954. When stipulation.s against right to rescind do not defeat it. Rescission, how effected. 951. Rescission extinguishes contract. — ^A contract is extinguished by its rescission. 952. When party may rescind. — A party to a contract may rescind the same in the following cases only : 1. If the consent of the party rescinding, or of any party jointly contracting with him, was given by mistake, or obtained through 93083—34-10 137

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T. 3, § 953] TBE CIVIL CODE duress, menace, fraud, or undue influence, exercised by or with the connivance of the party as to whom he rescinds, or of any other party to the contract jointly interested with such party; 2. If, through the fault of the party as to whom he rescinds, the consideration for his obligation fails, in whole or in part ; 3. If such consideration becomes entirely void from any cause; 4. If such consideration, before it is rendered to him, fails in a material respect, from any cause; or 5. By consent of all the other parties. Cross-References Cancelation of instruments, see sections 2731 et seq., of this title. Contract not free, when obtained by mistake, duress, menace, fraud, or undue influence, see section 823 of this title. False representation, rescission of insurance policy for, see section 1920 of this title. Falsity of warranty, rescission of insurance policy for, see section 1909 of this title. Rescission, see sections 2721 et seq., of this title. Stipulation against right to rescind, see section 953 of this title. Violation of material warranty, rescission of insurance policy for, see section 1958 of this title. 953. When stipulations against right to rescind do not defeat it. — A stipulation that errors of description shall not avoid a contract, or sliall be the subject of compensation, or both, does not take away the right of rescission for fraud, nor for mistake, where such mistake is in a matter essential to the inducement of the contract, and is not capable of exact and entire compensation. 954. Rescission, how effected. — Rescission, when not effected by consent, can be accomplished only by the use, on the part of the party rescinding, of reasonable diligence to comply with the following rules : 1. He must rescind promptly, upon discovering the facts which entitle him to rescind, if he is free from duress, menace, undue influence, or disability, and is aware of his right to rescind ; and 2. He must restore to the other party everything of value which he has received from him under the contract; or must offer to restore the same, upon condition that such party shall do likewise, unless the latter is unable or positively refuses to do so. Cross-Referenoe Rescission of contracts, see sections 2721 to 2723 of this title. ARTICLE 3.— ALTERATION AND CANCELATION Sec. 961. Alteration of verbal contract. 962. Written contracts, how modified. 963. Extinction by cancelation, etc. Sec. 964. Extinction by unauthorized alteration. 96.5. Alteration of duplicate, not to prejudice. 961. Alteration of verbal contract. — A contract not in writing may be altered in any respect by consent of the parties, in writing. 138

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THE CIVIL CODE [T. 3, § 973 without a new consideration, and is extinguished thereby to the extent of the new alteration. Cross-Keference Altered writing, who to explain, see title 4, section 2032. 962. Written contracts, how modified. — A contract in writing may be altered by a contract in writing, or by an executed oral agreement, and not otherwise. CllO'SS-IlEKERENCES Cancelation of contracts, see sections 2731 et seq., of this title. Parol evidence to alter writings, see section 9D5 of this title ; and title 4, section 1874. 963. Extinction by cancelation, etc. — The destruction or cancelation of a written contract, or of the signature of the parties liable thereon, with intent to extinguish the obligation thereof, extinguislies it as to all the parties consenting to the act. 964. Extinction by unauthorized alteration. — The intentional destruction, cancelation, or material alteration of a written contract, by a party entitled to any benefit under it, or with his consent, extinguishes all the executory obligations of the contract in his favor, against parties who do not consent to the act. 965. Alteration of duplicate, not to prejudice. — Where a contract is executed in duplicate, an alteration or destruction of one copy, while the other exists, is not within the provisions of the next preceding section. CHAPTER 33.— OBLIGATIONS IMPOSED BY LAW Sec. 971. Abstinence from injury. 972. Fraudulent deceit. 978. Deceit, what. 974. Deceit upon the public, etc. 975. Restoration of thing wrongfully acquired. Sec. 976. When demand necessary. 977. Responsibility for willful acts, negligence, etc. 978. other obligations. Section 971. Abstinence from injury. — Every person is bound, without contract, to abstain from injuring the person or property of another, or infringing upon any of his rights. 972. Fraudulent deceit. — One who willfully deceives another with intent to induce him to alter his position to his injury, or risk, is liable for any damage which he thereby suffers. Cboss-Reference Fraud, see sections 827 et seq., of this title. 973. Deceit, what. — A deceit, within the meaning of the next preceding section, is either : 1. The suggestion, as a fact, of that which is not true, by one who does not believe it to be true; 2. The assertion, as a fact, of that which is not true, by one who has no reasonable ground for believing it to be true ; 139

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T. 3, § 974] TEE CIVIL CODE 3. The suppression of a fact, by one who is bound to disclose it, or who gives information of other facts which are likely to mislead for want of communication of that fact; or 4. A promise made without any intention of performing it. Ceoss-Refeeence Fraud, actual or constructive, see sections 827 et seq., of this title. 974. Deceit opoii the public, etc. — One who practices a deceit with intent to defraud the public, or a particular class of persons, is deemed to have intended to defraud every individual in that class, who is actually misled by the deceit. 975. Restoration of thing wrongfully acquired. — One who obtains a thing without the consent of its owner, or by a consent afterwards rescinded, or by an unlawful exaction which the owner could not at the time prudently refuse, must restore it to the person from whom it was thus obtained, unless he has acquired a title thereto superior to that of such other person, or unless the transaction was corrupt and unlawful on both sides. 976. When demand necessary. — The restoration required by the next preceding section must be made without demand, except where a thing is obtained by mutual mistake, in which case the party obtaining the thing is not bound to return it until he has notice of the mistake. 977. Responsibility for willful acts, negligence, etc. — Everyone is responsible, not only for the result of his willful acts, but also for an injury occasioned to another by his want of ordinary care or skill in the management of his property or person, except so far as the latter has willfully brought the injury upon himself. Want of ordinary care on the part of the injured person shall not bar a recovery, but the damages shall be diminished by the court or jury in proportion to the want of ordinary care attributable to such person. The extent of liability in the cases covered by this section is defined by the chapter on compensatory relief. Ckoss-Reference Coinpensatory relief, see sections 2621 et seq., of this title. 978. Other obligations. — Other obligations are prescribed by chaptei s 2 to 26 of this title, 140

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THE CIVIL CODE [T. 3, § 982 CHAPTER 34.— SALES OF GOODS Sec. 981. Contracts to sell and sales. '.)S2. Capacity ; liabilities for necessaries. 983. Form of contract or sale. 984. Statute of frauds. 985. Existing and future goods. 986. Undivided shares. 987. Destruction of goods sold. 988. Destruction of goods contracted to bo sold. 989. Deflnitiou and ascertainment of price. 990. Sale at a valuation. 991. Ettoct of condition. 992. Definition of express warranty. 993. Implied warranties of title. 991. Implied warranty in sale by description. 995. Implied warranties of quality. 996. Implied warranties in sale by sample. 997. No property passes until goods are ascertained. 998. Property in specific goods passes when parties so intend. 999. Rules for ascertaining intention. 1000. Ilesorvatiou of right of possession or property when goods are shipped. 1001. Sale by auction. 1002. Risk of loss. 1003. Sale by person not the owner. 1004. Sale by one having a voidable title. 1005. Sale by seller in possession of goods already sold. 1006. Creditors' rights against sold goods in seller's possession. 1007. Definition of negotiable documents of title. 1008. Negotiation of negotiable documents Ijy delivery. 1009. Negotiation of negotiable documents by indorsement. 1010. Negotiable documents of title marked '• Not Negotiable." 1011. Transfer of nonnegotiable documents. 1012. Who may negotiate a document. 1013. Rights of person to whom document has been negotiated. 1014. Rights of person to whom document has been transferred. 1015. Transfer of negotiable document without indorsement. 1016. Warranties on sale of documents. 1017. Indorser not a guarantor. 1018. When negotiation not impaired by fraud, mistake, or duress. 1019. Attachment or levy upon goods for which a negotiable document has been issued. Sec. 1020. Creditor's remedies to reach negotiable documents. 1021. Seller must deliver and buyer accept goods. 1022. Delivery and payment are concurrent conditions. 1023. Place, time, and manner of delivery. 1024. Delivery of wrong quantity. 1025. Delivery in installments. 1026. Delivery to a carrier on behalf of the buyer. 1027. Right to examine the goods. 1028. What constitutes acceptance. 1029. Acceptance does not bar action for damages. 1030. Buyer is not bound to return goods wrongly delivered. 1031. Buyer's liability for failing to accept delivery. 1032. Definition of unpaid seller. 1033. Remedies of an unpaid seller. 1034. When right of lien may be exercised. 1035. Lien after part delivery. 1036. When lien is lost. 1037. Seller may stop goods on buyer's insolvency. 1038. When goods are in transit. 1039. Ways of exercising the right to stop. 1040. When and how resale may be made. 1041. When and how the seller may rescind the sale. 1042. Effect of sale of goods subject to lien or stoppage in transitu. 1043. Action for the price. 1044. Action for damages for nonacceptance of the goods. 1045. When seller may rescind contract or sale. 1046. Action for converting or detaining goods. 1047. Action for failing to deliver goods. 1048. Specific performance. 1049. Remedies for breach of warranty. 1050. Interest and special damages. 1051. Variation of implied obligations. 1052. Rights may be enforced by action. 1053. Rule for cases not provided for by this chapter. 1054. Provisions not applicable to mortgages. 1055. Definitions. 1058. Chapter does not apply to existing sales or contracts to sell. 1057. No repeal of warehouse laws. Note.— Tliis chapter was derived primarily from the Uniform Sales Act. Section 981. Contracts to sell and sales. — 1. A contract to sell goods is a contract whereby the seller agrees to transfer the property in goods to the buyer for a consideration called the price. 2. A sale of goods is an agreement whereby the seller transfers the property' in goods to the buyer for a consideration called the price. 3. A contract to sell or a sale may be absolute or conditional. 4. There maj^ be a contract to sell or a sale between one part owner and another. 982. Capacity; liabilities for necessaries. — Capacity to buy and sell is regulated by the general law concerning capacity to contract, and to transfer and acquire property. Where necessaries are sold and delivered to an infant, or to a person who by reason of mental 141

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T. 3, § 983] THE CIVIL CODE incapacity or drunkenness is incompetent to contract, he must pay a reasonable price therefor. Necessaries in this section mean goods suitable to the condition in life of such infant or other person, and to his actual requirements at the time of delivery. 983. Form of contract or sale. — Subject to the provisions of this chapter and of any statute in that behalf, a contract to sell or a sale may be made in writing (either with or without seal), or by word of mouth, or partly in writing and partly by word of mouth, or may be inferred from the conduct of the parties. 984. Statute of frauds. — A contract to sell or a sale of any goods or choses in action of the value of $50 or upwards shall not be enforceable by action unless the buyer shall accept part of the goods or choses in action so contracted to be sold or sold, and actually receive the same, or give something in earnest to bind the contract, or in part payment, or unless some note or memorandum in writing of the contract or sale be signed by the party to be charged or his agent in that behalf. 2. The provisions of this section apply to every such contract or sale, notwithstanding that the goods may be intended to be delivered at some future time or may not at the time of such contract or sale be actually made, procured, or provided, or fit or ready for delivery, or some act may be requisite for the making or completing thereof, or rendering the same fit for delivery; but if the goods are to be manufactured by the seller especially for the buyer and are not suitable for sale to others in the ordinary course of the seller's business, the provisions of this section shall not apply. 3. There is an acceptance of goods within the meaning of this section when the buyer, either before or after delivery of the goods, expresses by words or conduct his assent to becoming the owner of those specific goods. CrfoSS-IvEFERENCE What contracts must be written, in general, see section 886 of this title. 985. Existing and future goods. — 1. The goods which form the subject of a contract to sell may be either existing goods, owned or possessed by the seller, or goods to be manufactured or acquired by the seller after the making of the contract to sell, in this chapter called " future goods." 2. There may be a contract to sell goods, the acquisition of which by the seller depends upon a contingency Avhich may or may not happen. 3. Where the parties purport to effect a present sale of future goods, the agreement operates as a contract to sell the goods. 986. Undivided shares. — 1. There may be a contract to sell or a sale of an undivided share of goods. If the parties intend to effect a present sale, the buyer, by force of the agreement, becomes an owner in common with the owner or owners of the remaining shares. 2. In the case of fungible goods, there may be a sale of an undivided share of a s])ecific mass, though the seller purports to sell and the buyer to buy a definite number, weight or measure of the goods in the mass, and though the number, weight or measure of the 142

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TEE CIVIL CODE [T. 3, § 989 goods in the mass, is micletermined. By such a sale the buyer becomes owner in common of such a share of the mass as the number, weight, or measure bought bears to the number, weight, or measure of the mass. If the mass contains less than the number, weight, or measure bought, the buyer becomes the owner of the whole mass and the seller is bound to make good the deficiency from similar goods unless a contrary intent appears. 987. Destruction of goods sold. — 1. Wliere the parties purport to sell specific goods, and the goods without the knowledge of the seller have wholly perished at the time when the agreement is made, the agreement is void. 2. Where the parties purport to sell specific goods, and the goods without the knowledge of the seller have perished in part or have wholly or in a material part so deteriorated in quality as to be substantially changed in character, the buyer may at his option treat the sale — fa) As avoided, or (b) As transferring the property in all of the existing goods or in so much thereof as have not deteriorated, and as binding the buyer to pay the full agreed price if the sale was indivisible, or to pay the agreed price for the goods in which the property passes if the sale was divisible. 988. Destruction of goods contracted to be sold. — 1. Where there is a contract to sell specific goods, and subsequently, but before the risk passes to the buyer, without any fault on the part of the seller or the buyer, the goods wholly perish, the contract is thereby avoided. 2. Where there is a contract to sell specific goods, and subsequently, but before the risk passes to the buyer, without any fault of the seller or the buyer, part of the goods perish or the whole or a material part of the goods so deteriorate in quality as to be substantially changed in character, the buyer may at his option treat the contract — (a) As avoided, or (b) As binding the seller to transfer the property in all of the existing goods, or in so much thereof as have not deteriorated, and as binding the buyer to pay the full agreed price if the contract was indivisible, or to pay the agreed price for so much of the goods as the seller, by the buyer's option, is bound to transfer if the contract was divisible. 989. Definition and ascertainment of price. — 1. The price may be fixed by the contract, or may be left to be fixed in such manner as may be agreed, or it may be determined by the course of dealing between the parties. 2. The price may be made payable in any personal property. 3. Where transferring or promising to transfer any interest in real estate constitutes the whole or part of the consideration for transferring or for promising to transfer the property in goods, this chapter shall not apply. 4. Where the price is not determined in accordance with the foregoing provisions the buyer must pay a reasonable price. What is a reasonable price is a question of fact dependent on the circumstances of each particular case. 143

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T. 3, § 990] THE CIVIL CODE 990. Sale at a valuation. — 1. Where there is a contract to sell or a sale of goods at a price or on terms to be fixed by a third person, and such third person without fault of the seller or tlie buyer, cannot or does not fix the price or terms, the contract or the sale is thereby avoided; but if the goods or any part thereof have been delivered to and appropriated by the buyer he must pay a reasonable price therefor. 2. Where such third person is prevented from fixing the price or terms by fault of the seller or the buyer, the party not in fault may have such remedies against the party in fault as are allowed by the appropriate parts of this chapter. 991. Effect of condition. — 1. Where the obligation of either party to a contract to sell or a sale is subject to any condition which is not performed, such party may refuse to proceed with the contract or sale or he may waive performance of the condition. If the other party has promised that the condition should happen or be performed, such first mentioned party may also treat the nonperformance of the condition as a breach of warranty. 2. Where the property in the goods has not passed, the buyer may treat the fulfillment by the seller of his obligation to furnish goods as described and as warranted expressly or by implication in the contract to sell as a condition of the obligation of the buyer to perform his promise to accept and pay for the goods. 992. Definition of express warranty. — Any affirmation of fact or any promise by the seller relating to the goods is an express warranty if the natural tendency of such affirmation or promise is to induce the buyer to purchase the goods, and if the buyer purchases the goods relying thereon. No affirmation of the value of the goods, nor any statement purporting to be a statement of the seller's opinion only shall be construed as a warranty. 993. Implied warranties of title. — In a contract to sell or a sale, unless contrary intention appears, there is 1. An implied warranty on the part of the seller that in case of a sale he has a right to sell the goods, and that in case of a contract to sell he will have a right to sell the goods at the time when the property is to pass; 2. An implied warranty that the buyer shall have and enjoy quiet possession of the goods as against any lawful claims existing at the time of the sale; 3. An implied warranty that the goods shall be free at the time of the sale from any charge or encumbrance in favor of any third person, not declared or known to the buyer before or at the time when the contract or sale is made. 4. This section shall not, however, be held to render liable a marshal, auctioneer, mortgagee, or other person professing to sell by virtue of authority in fact or law goods in which a third person has a legal or equitable interest. 994. Implied warranty in sale by description. — Where there is a contract to sell or a sale of goods by description, there is an implied warranty that the goods shall correspond with the description and 144

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THE CIVIL CODE [T. 3, § 998 if the contract or sale be by sample, as well as by description, it is not suflicient that the bulk of the goods corresponds with the sample if the goods do not also correspond with the description. 995. Implied warranties of quality. — Subject to the provisions of this chapter and of any statute in that behalf, there is no implied warrant}^ or condition as to the quality or fitness for any particular purpose of goods supplied under a contract to sell or a sale, except as follows : 1. Where the buyer, expressly or by implication, makes known to the seller the particular purpose for which the goods are required, and it ap^^ears that the buyer relies on the seller's skill or judgment (whether he be the grower or manufacturer or not), there is an implied warranty that the goods shall be reasonably fit for such purpose. 2. Where the goods are bought by description from a seller who deals in goods of that description (whether he be the grower or manufacturer or not), there is an implied warranty that the goods shall be of merchantable quality. 3. If the buyer has examined the goods, there is no implied warranty as regards defects which such examination ought to have revealed. 4. In the case of a contract to sell or a sale of a specified article under its patent or other trade name, there is no implied warranty as to its fitness for any particular purpose. 5. An implied w^arranty or condition as to quality or fitness for a particular purpose may be annexed by the usage of trade. 6. x\n express warranty or condition does not negative a warranty or condition implied under this chapter unless inconsistent therewith. 996. Implied warranties in sale by sample. — In the case of a contract to sell or a sale by sample : (a) There is an implied warranty that the bulk shall correspond with the sample in quality. (b) There is an implied warranty that the buyer shall have a reasonable opportunity of comparing the bulk with the sample, except so far as otherwise provided in subdivision 3 of section 1027 of this title. (c) If the seller is a dealer in goods of that kind, there is an implied warranty that the goods shall be free from any defect rendering them unmerchantable which would not be apparent on reasonable examination of the sample. 997. No property passes until goods are ascertained. — Where there is a contract to sell unascertained goods no property in the goods is transferred to the buyer unless and until the goods are ascertained, but property in an undivided share of ascertained goods may be transferred as provided in section 986 of this title. 998. Property in specific goods passes when parties so intend. — 1. Where there is a contract to sell specific or ascertained goods, the property in them is transferred to the buyer at such time as the parties to the contract intend it to be transferred. 145

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T. 3, § 999] THE CIVIL CODE 2. For the purpose of ascertaining the intention of the parties, regard shall be had to the terms of the contract, the conduct of the parties, usages of trade, and the circumstances of the case. 999. Rules for ascertaining intention. — Unless a different intention appears, the following are rules for ascertaining the intention of the parties as to the time at which the property in the goods is to pass to the buyer : liuLE 1. Where there is an unconditional contract to sell specific goods, in a deliverable state, the property in the goods passes to the buyer when the contract is made and it is immaterial whether the time of payment, or the time of delivery, or both, be postponed. Rule 2. AVhere there is a contract to sell specific goods and the seller is bound to do something to the goods, for the purpose of putting them into a deliverable state, the property does not pass until such thing be done. Rule 3. 1. When goods are delivered to the buyer " on sale or return," or on otlier terms indicating an intention to make a present sale, but to give the bu3^er an option to return the goods instead of paying the price, the property passes to the buyer on delivery, but he may revest the property in the seller by returning or tendering the goods within the time fixed in the contract, or, if no time has been fixed, within a reasonable time. 2. When goods are delivered to the buyer on approval or on trial or on satisfaction, or other similar terms, the property therein passes to the buyer — (a) When he signifies his approval or acceptance to the seller or does any other act adopting the transaction ; (b) If he does not signify his approval or acceptance to the seller, but retains the goods without giving notice of rejection, then if a time has been fixed for the return of the goods, on the expiration of such time, and, if no time has been fixed, on the expiration of a reasonable time. What is a reasonable time is a question of fact. Rule 4. 1. Where there is a contract to sell unascertained or future goods by description, and goods of that description and in a deliverable state are unconditionally appropriated to the contract, either by the seller v/ith the assent of the buyer, or by the buyer with the assent of the seller, the property in the goods thereupon ]:)asses to the buyer. Such assent may be expressed or implied, and may be given either before or after the appropriation is made. 2. Where, in pursuance of a contract to sell, the seller delivers the goods to the buyer, or to a carrier or other bailee (whether named by the buj^er or not) for the purpose of transmission to or holding for the buyer, he is presumed to have unconditionally appro))riated the goods to the contract, except in the cases provided for in the next rule and in section 1000 of this title. This presumption is applicable, although by tlie terms of the contract the buyer is to ])a3'^ the price before receiving delivery of the goods and the goods are marked with the words " collect on delivery " or their equivalents. Rule 5. If tlie contract to sell requires the seller to deliver the goods to the buyer, or at a particular place, or to pay the freight or cost of transportation to the buyer, or to a particular place, the 146

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THE CIVIL CODE T. 3, § 1001] property does not pass until the goods have been delivered to the buyer or reached the place agreed upon. 1000. Reservation of right of possession or property when goods are shipped. — 1. Where there is a contract to sell specific goods, or where goods are subsequently appropriated to the contract, the seller may, by the terms of the contract or appropriation, reserve the right of possession or property in the goods until certain conditions have been fulfilled. The right of possession or property may be thus reserved notwithstanding the delivery of the goods to the buyer or to a carrier or other bailee for the purpose of transmission to the buyer. 2. Where goods are shipped, and by the bill of lading the goods are deliverable to the seller or his agent, or to the order of the seller or of his agent, the seller thereby reserves the i)roperty in the goods. But if, except for the form of the bill of lading the property would have passed to the buyer on shiijment of the goods, the seller's property in the goods shall be deemed to be only for the purpose of securing performance by the buyer of his obligations under the contract. 3. Where goods are shipped, and by the bill of lading the goods are deliverable to the order of the buyer or of his agent, but possession of the bill of lading is retained by the seller or his agent, the seller thereby reserves a right to the possession of the goods as against the buyer. 4. Where the seller of goods draws on the buyer for the price and transmits the bill of exchange and bill of lading together to the buyer to secure acceptance or payment of the bill of exchange, the buyer is bound to return the bill of lading if he does not honor the bill of exchange, and if he wrongfully retains the bill of lading he acquires no added right thereby. If, however, the bill of lading provides that the goods are deliverable to the buyer or to the order of the buyer, or is indorsed in blank, or to the buyer by the consignee named therein, one who purchases in good faith, for value, the bill of lading, or goods from the buyer will obtain the property in the goods, although the bill of exchange has not been honored, \)vovided that such purchaser has received delivery of the bill of lading indorsed by the consignee named therein, or of the goods, without notice of the facts making the transfer wrongful. 1001. Sale by auction. — In the case of sale by auction — 1. Where goods are put up for sale by auction in lots each lot is the subject of a separate contract of sale. 2. A sale by auction is complete when the auctioneer announces its completion by the fall of the hammer, or in other customary manner. Until such announcement is made, any bidder may retract his bid; and the auctioneer may withdraw the goods from sale unless the auction has been announced to be without reserve. 3. A right to bid may be reserved expressly by or on behalf of the seller. 4. Where notice has not been given that a sale by auction is subject to a right to bid on behalf of the seller, it shall not be lawful for the seller to bid himself or to employ or induce any person to bid at such sale on his behalf, or for the auctioneer to employ or induce 147

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T. 3, § 1002] T3E CIVIL CODE any person to bid at such sale on behalf of the seller or knowingly to take any bid from the seller or any person employed by him. Any sale contravening this rule may be treated as fraudulent by the buyer. 1002. Risk of loss. — Unless otherwise agreed, the goods remain at the seller's risk until the property therein is transferred to the buyer, but when the property therein is transferred to the buyer the goods are at the buyer's risk whether delivery has been made or not, except that — (a) Where delivery of goods has been made to the buyer, or to a bailee for the buyer, in pursuance of the contract and the property in the goods has been retained by the seller merely to secure performance by the buyer of his obligations under the contract, the goods are at the buyer's risk from the time of such delivery. (b) Where delivery has been delayed through the fault of either buyer or seller the goods are at the risk of the party in fault as regards any loss which might not have occurred but for such fault. 1003. Sale by person not the owner. — 1. Subject to the provisions of this chapter, where goods are sold by a person who is not the owner tliereof, and who does not sell them under the authority or with the consent of the owner, the buyer acquires no better title to the goods than the seller had, unless the owner of the goods is by his conduct precluded from denying the seller's authority to sell. 2. Nothing in this chapter, however, shall affect — (a) The provisions of any factors' acts, recording acts, or any enactment enabling the apparent owner of goods to dispose of them as if he were the true owner thereof. (b) The validity of any contract to sell or sale under any special common law or statutory power of sale or under the order of a court of competent jurisdiction. 1004. Sale by one having a voidable title. — Where the seller of goods has a voidable title thereto, but his title has not been avoided at the time of the sale, the buyer acquires a good title to the goods, provided he buys them in good faith, for value, and without notice of the seller's defect of title. 1005. Sale by seller in possession of goods already sold. — "^Vliere a person having sold goods continues in possession of the goods, or of negotiable documents of title to the goods, the delivery or transfer by that person, or by an agent acting for him, of the goods or documents of title under any sale, pledge, or other disposition thereof, to any person receiving and paying value for the same in good faith and without notice of the previous sale, shall have the same effect as if the person making the delivery or transfer were expressly authorized by the owner of the goods to make the same. 1006. Creditors' rights against sold goods in seller's possession. — Where a person having sold goods continues in possession of the goods, or of negotiable documents of title to the goods and such retention of possession is fraudulent in fact or is deemed fraudulent under any rule of law, a creditor or creditors of the seller may treat the sale as void. 148

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THE CIVIL CODE tT. 3. § 1012 1007. Definition of negotiable documents of title.— A document of title in which it is stated that the goods referred to therein will be delivered to the bearer, or to the order of any person named in such document is a negotiable document of title. 1008. Negotiation of negotiable documents by delivery.— A negotiable document of title may be negotiated by delivery — (a) Where, by the terms of the document, the carrier, warehouseman, or other bailee issuing the same undertakes to deliver the goods to the bearer ; or (b) Where, by the terms of the document, the carrier, warehouseman, or other bailee issuing the same undertakes to deliver the goods to the order of a specified person, and such person or a subsequent indorsee of the document has indorsed it in blank or to bearer. Where, by the terms of a negotiable document of title, the goods are deliverable to bearer or where a negotiable document of title has been indorsed in blank or to bearer, any holder may indorse the same to himself or to any other specified person, and in such case the document shall thereafter be negotiated only by the indorsement of such indorsee. 1009. Negotiation of negotiable documents by indorsement. — A negotiable document of title may be negotiated by the indorsement of the person to whose order the goods are by the terms of the document deliverable. Such indorsement maj be in blank, to bearer or to a specified person. If indorsed to a specified person, it may be again negotiated by the indorsement of such person in blank, to bearer or to another specified person. Subsequent negotiation may be made in like manner. lOiO. Negotiable documents of title marked "not negotiable." — If a document of title which contains an undertaking by a carrier, warehouseman, or other bailee to deliver the goods to the bearer, to a specified person or order, or to the order of a specified person, or which contains words of like import, has placed upon it the words " not negotiable ", " nonnegotiable ", or the like, such a documxcnt may nevertheless be negotiated by the holder and is a negotiable document of title within the meaning of this chapter. But nothing in this chapter contained shall be construed as limiting or defining the effect upon the obligations of the carrier, warehouseman, or other bailee issuing a document of title of placing thereon the words " not negotiable ", " nonnegotiable ", or the like. 1011. Transfer of nonnegotiable documents. — A document of title which is not in such form that it can be negotiated by delivery may be transferred by the holder by delivery to a purchaser or donee. A nonnegotiable document cannot be negotiated, and the indorsement of such a document gives the transferee no additional right. 1012. Who may negotiate a document. — A negotiable document of title may be negotiated — (a) By the owner thereof, or (b) By any person to whom the possession or custody of the document has been entrusted by the owner, if, by the terms of the 149

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T. 3, § 1013] THE CIVIL CODE document the bailee issuing the document undertakes to deliver the goods to the order of the person to whom the possession or custody of the document has been entrusted, or if at the time of such entrusting the document is in such form that it may be negotiated by delivery. 1013. Rights of person to whom document has been negotiated. — A person to whom a negotiable document of title has been duly negotiated acquires thereby — (a) Such title to the goods as the person negotiating the document to him had or had ability to convey to a purchaser in good faith for value and also such title to the goods as the person to whose order the goods were to be delivered by the terms of the document had or had ability to convey to a purchaser in good faith for value, and (b) The direct obligation of the bailee issuing the document to hold possession of the goods for him according to the terms of the document as iwWy as if such bailee had contracted directly with him. 1014. Rights of person to whom document has been transferred. — A person to whom a document of title has been transferred, but not negotiated, acquires thereby, as against the transferor, the title to the goods, subject to the terms of an}^ agreement with the transferor. If the document is nonnegotiable, such person also acquires the right to notify the bailee who issued the document of the transfer thereof, and thereby to acquire the direct obligation of such bailee to hold pos-:ession of the goods for him according to the terms of the document. Prior to the notification of such bailee by the transferor or transferee of a nonnegotiable document of title, the title of the transferee to the goods and the right to acquire the obligation of such bailee may be defeated by the levy of an attachment of execution upon the goods by a creditor of the transferor, or by a notification to such bailee by the transferor or a subsequent purchaser from the transferor of a subsequent sale of the goods by the transferor. 1015. Transfer of negotiable document without indorsement. — Where a negotiable document of title is transferred for value by delivery, and the indorsement of the transferor is essential for negotiation, the transferee acquires a right against the transferor to compel him to indorse the document unless a contrary intention appears. The negotiation shall take eifect as of the time when the indorsement is actually made. 1016. Warranties on sale of document. — A person who for value negotiates or transfers a document of title by indorsement or delivery, including one who assigns for value a claim secured by a document of title unless a contrary intention appears, warrants: (a) That the document is genuine; (b) That he has a legal right to negotiate or transfer it; (c) That he has knowledge of no fact which would impair the validity or worth of the document; and (d) That he has a riglit to transfer the title to the goods and that the goods are merchant!il)le or fit for a particular purpose, whenever such warranties would have been implied if the contract of the 150

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THE CIVIL CODE [T. 3, § 1023 parties had been to transfer without a document of title the goods represented thereby. 1017. Indorser not a guarantor. — The indorsement of a document of title shall not make the indorser liable for any failure on the part of the bailee who issued the document or previous indorsers thereof to fulfill their respective obligations. 1018. When negotiation not impaired by fraud, mistake, or duress. — The validity of the negotiation of a negotiable document of title is not impaired by the fact that the negotiation was a breach of duty on the part of the person making the negotiation, or by the fact that the owner of the document was induced by fraud, mistake or duress to entrust the possession or custody thereof to such person, if the person to whom the document was negotiated or a person to whom the document was subsequently negotiated paid value therefor, without notice of the breach of duty, or fraud, mistake or duress. 1019. Attachment or levy upon goods for which a negotiable document has been issued. — If goods are delivered to a bailee by the owner or by a person whose act in conveying the title to them to a purchaser in good faith for value would bind the owner and a negotiable document of title is issued for them they cannot thereafter, while in the possession of such bailee, be attached by garnishment or otherwise be levied upon under an execution unless the document be first surrendered to the bailee or its negotiation enjoined. The bailee shall in no case be compelled to deliver up the actual possession of the goods until the document is surrendered to him or impounded by the court. 1020. Creditor's remedies to reach negotiable documents. — A creditor whose debtor is the owner of a negotiable document of title shall be entitled to such aid from courts of appropriate jurisdiction by injunction and otherwise in attaching such document or in satisfying the claim by means thereof as is allowed at law or in equity in regard to property which cannot be readily attached or levied upon by ordinary legal process. 1021. Seller must deliver and buyer accept goods. — It is the duty of the seller to deliver the goods, and of the buyer to accept and pay for them, in accordance with the terms of the contract to sell or sale. 1022. Delivery and payment are concurrent conditions.— Unless otherwise agreed, delivery of the goods and payment of the price are concurrent conditions ; that is to say, the seller must be ready and willing to give possession of the goods to i\\Q buyer in exchange for the price and the buyer must be ready and willing to pay the price in exchange for possession of the goods. 1023. Place, time, and manner of delivery. — 1. Whether it is for the buyer to take possession of the goods or for the seller to send them to the buyer is a question depending in each case on the contract, express or implied, between the parties. Apart from any such contract, express or implied, or usage of trade to the contrary, the place of delivery is the seller's place of business if he have one, 151

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[T. 3, § 1012 THE CIVIL CODE and if not his residence ; but in case of a contract to sell or a sale of specific goods, which to the knowledge of the parties when the contract or the sale was made were in some other place, then that place is the place of delivery. 2. Where by a contract to sell or a sale the seller is bound to send the goods to the buyer, but no time for sending them is fixed, the seller is bound to send them within a reasonable time. 3. Where the goods at the time of sale are in the possession of a third i^erson, the seller has not fulfilled his obligation to deliver to the buyer unless and until such third person acknowledges to the buyer that he holds the goods on the buyer's behalf; but as against all others than the seller the buyer shall be regarded as having received delivery from the time when such third person first has notice of the sale. Nothing in this section, however, shall affect the operation of the issue or transfer of any document of title to goods. 4. Demand or tender of delivery may be treated as ineffectual unless made at a reasonable hour. What is a reasonable hour is a question of fact. 5. Unless otherwise agreed, the expenses of and incidental to putting the goods into a deliverable state must be borne by the seller. 1024. Delivery of wrong quantity. — 1. Where the seller delivers to the buyer a quantity of goods less than he contracted to sell, the buyer may reject them, but if the buyer accepts or retains the goods so delivered, knowing that the seller is not going to perform the contract in full, he must pay for them at contract rate. If, however, the buyer has used or disposed of the goods delivered before he knows that the seller is not going to perform his contract in full, the buyer shall not be liable for more than the fair value to him of the goods so received. 2. Where the seller delivers to the buyer a quantity of goods larger than he contracted to sell, the buyer may accept the goods included in the contract and reject the rest, or he may reject the whole. If the buyer accepts the whole of the goods so delivered he must pay for them at the contract rate. 3. Where the seller delivers to the buyer the goods he contracted to sell mixed with goods of a different description not included in the contract, the buyer may accept the goods which are in accordance with the contract and reject the rest, or he may reject the whole. 4. The provisions of this section are subject to any usage of trade, special agreement, or course of dealing between the parties. 1025. Delivery in installments. — 1. Unless otherwise agreed, the buyer of goods is not bound to accept delivery thereof by installments. 2. Where there is a contract to sell goods to be delivered by stated installments, which are to be separately paid for, and the seller makes defective deliveries in respect of one or more installments, or the buyer neglects or refuses to take delivery of or pay for one or more installments, it depends in each case on the terms of the contract and the circumstances of the case whether the breach of contract is so material as to justify the injured party in refusing to proceed further and suing for damages for breach of the entire 152

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THE CIVIL CODE [T. 3, § 1029 contract, or whether the breach is severable, giving rise to a claim for compensation, but not to a right to treat the whole contract as broken. 1026. Delivery to a carrier on behalf of the buyer. — 1. Where, in pursuance of a contract to sell or a sale, the seller is authorized or required to send the goods to the buyer, delivery of the goods to a carrier, whether named by the buyer or not, for the purpose of transmission to the buyer is deemed to be a delivery of the goods to the buyer, except in the cases provided for in section 999 of this title, rule five, or unless a contrary intent appears. 2. Unless otherwise authorized by the buyer, the seller must make such contract with the carrier on behalf of the buyer as may be reasonable, having regard to the nature of the goods and the other circumstances of the case. If the seller omit so to do, and the goods are lost or damaged in course of transit, the buyer may decline to treat the delivery to the carrier as a delivery to himself, or may hold the seller responsible in damages. 3. Unless otherwise agreed, where goods are sent by the seller to the buyer under circumstances in which the seller knows or ought to know that it is usual to insure, the seller must give such notice to the buyer as may enable him to insure them during their transit, and, if the seller fails to do so, the goods shall be deemed to be at his risk during such transit. 1027. Right to examine the goods. — 1. Where goods are delivered to the buyer, which he has not previously examined, he is not deemed to have accepted them unless and until he has had a reasonable opportunity to examine them for the purpose of ascertaining whether they are in conformity with the contract. 2. Unless otherwise agreed, when the seller tenders delivery of goods to the buyer, he is bound, on request, to afford the buyer a reasonable opportunity of examining the goods for the purpose of ascertaining whether they are in conformity with the contract. 3. Where goods are delivered to a carrier by the seller, in accordance with an order from or agreement with the buyer, upon the terms that the goods shall not be delivered by the carrier to the buyer until he has paid the price, whether such terms are indicated by marking the goods with the words " collect on delivery," or otherwise, the buyer is not entitled to examine the goods before payment of the price in the absence of agreement permitting such examination. 1028. What constitutes acceptance. — The buyer is deemed to have accepted the goods when he intimates to the seller that he has accepted them, or when the goods have been delivered to him and he does any act in relation to them which is inconsistent with the ownership of the seller, or when, after the lapse of a reasonable time, he retains the goods without intimating to the seller that he has rejected them. 1029. Acceptance does not bar action for damages. — In the absence of express or implied agreement of the parties, acceptance of the goods by the buyer shall not discharge the seller from liability in damages or other legal remedy for breach of any promise or warranty in the contract to sell or the sale. But, if, after acceptance of 93083—34 H 153

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T. 3, § 1030] THE CIVIL CODE the goods, the buyer fails to give notice to the seller of the breach of any promise or warranty within a reasonable time after the buyer knows, or ought to know, of such breach, the seller shall not be liable therefor. 1030. Buyer is not bound to return goods wrongly delivered. — Unless otherwise agreed, where goods are delivered to the buyer, and he refuses to accept them, having the right so to do, he is not bound to return them to the seller, but it is sufficient if he notifies the seller that he refuses to accept them. 1031. Buyer's liability for failing to accept delivery. — ^When the seller is ready and willing to deliver the goods, and requests the buyer to take delivery, and the buyer does not within a reasonable time after such request take delivery of the goods, he is liable to the seller for any loss occasioned by his neglect or refusal to take delivery, and also for a reasonable charge for the care and custody of the goods. If the neglect or refusal of the buyer to take delivery amounts to a repudiation or breach of the entire contract, the seller shall have the rights against the goods and on the contract hereinafter provided in favor of the seller when the buyer is in default. 1032. Definition of unpaid seller. — 1. The seller of goods is deemed to be an unj^aid seller within the meaning of this chapter: (a^ When the whole of the price has not been paid or tendered. (b) When a bill of exchange or other negotiable instrument has been received as conditional payment, and the condition on which it was received has been broken by reason of the dishonor of the instrument, the insolvency of the buyer, or otherwise. 2. In this part of this chapter the term " seller " includes an agent of the seller to whom the bill of lading has been indorsed, or a consignor or agent who has himself paid, or is directly responsible for, the price, or any other person who is in the position of a seller. 1033. Remedies of an unpaid seller. — 1. Subject to the provisions of this chapter, notwithstanding that the property in the goods may have passed to the buyer, the unjiaid seller of the goods, as such has : (a) A lien on the goods or right to retain them for the price while he is in possession of them; (b) In case of the insolvency of the buyer, a right of stopping the goods in transitu after he has parted with the possession of them; (c) A right of resale as limited by this chapter; (d) A right to rescind the sale as limited by this chapter. 2. Where the property in goods has not passed to the buyer, the unpaid seller has, in addition to his other remedies, a right of withholding delivery similar to and coextensive with his rights of lien and stoppage in transitu where the property has passed to the buyer. 1034. When right of lien may be exercised. — 1. Subject to the provisions of this chapter, the unpaid seller of goods who is in possession of them is entitled to retain possession of them until payment or tender of the price in the following cases, namely : (a) Where the goods have been sold without any stipulation as to credit; 154

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THE CIVIL CODE [T. 3, § 1038 (b) Where the goods have been sold on credit, but the term of credit has expired ; (c) Where the buyer becomes insolvent. 2. The seller may exercise his right of lien notwithstanding that he is in jDossession of the goods as agent or bailee for the buyer. 1035. Lien after part delivery. — Where an unpaid seller has made part delivery of the goods, he may exercise his right of lien on the remainder, unless such part delivery has been made under such circumstances as to show an intent to waive the lien or right of retention. 1036. When lien is lost. — 1. The unpaid seller of goods loses his lien thereon : (a) When he delivers the goods to a carrier or other bailee for the purpose of transmission to the buyer without reserving the property in the goods or the right to the possession thereof; (b) When the buyer or his agent lawfully obtains possession of the goods ; (c) By waiver thereof. 2. The unpaid seller of goods, having a lien thereon, does not lose his lien by reason only that he has obtained judgment or decree for the price of the goods. 1037. Seller may stop goods on buyer's insolvency. — Subject to the provisions of this chapter, when the buyer of goods is or becomes insolvent, the unpaid seller who has parted with the possession of the goods has the right of stopping them in transitu, that is to say, he may resume possession of the goods at any time while they are in transit, and he will then become entitled to the same rights in regard to the goods as he would have had if he had never parted with the possession. 1038. When goods are in transit. — 1. Goods are in transit within the meaning of the next preceding section : (a) From the time when they are delivered to a carrier by land or water, or other bailee for the purpose of transmission to the buyer, until the buyer, or his agent in that behalf, takes delivery of them from such carrier or other bailee ; (b) If the goods are rejected by the buyer, and the carrier or other bailee continues in possession of them, even if the seller has refused to receive them back. 2. Goods are no longer in transit within the meaning of the next preceding section : (a) If the buyer, or his agent in that behalf, obtains delivery of the goods before their arrival at the appointed destination ; (b) If, after the arrival of the goods at the appointed destination, the carrier or other bailee acknowledges to the buyer or his agent that he holds the goods on his behalf and continues in possession of them as bailee for the buyer or his agent; and it is immaterial that a further destination for the goods may have been indicated by the buyer ; (c) If the carrier or other bailee wrongfully refuses to deliver the goods to the buyer or his agent in that behalf. 155

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T. 3, § 1039] THE CIVIL CODE 3. If the goods are delivered to a ship chartered by the buyer, it is a question depending on the circumstances of the particular case whether they are in the possession of the master as a carrier or as agent of the buyer. 4. If part delivery of the goods has been made to the buyer, or his agent in that behalf, the remainder of the goods may be stopped in transitu, unless such part delivery has been made under such circumstances as to show an agreement with the buyer to give up possession of the whole of the goods. 1039. Ways of exercising the right to stop. — 1. The unpaid seller may exercise his right of stoppage in transitu either by obtaining actual possession of the goods or by giving notice of his claim to the carrier or other bailee in whose possession the goods are. Such notice may be given either to the person in actual possession of the goods or to his principal. In the latter case the notice, to be effectual, must be given at such time and under such circumstances that the principal, by the exercise of reasonable diligence, may prevent a delivery to the buyer. 2. When notice of stoppage in transitu is given by the seller to the carrier, or other bailee in possession of the goods, he must redeliver the goods to, or according to the directions of, the seller. The expenses of such delivery must be borne by the seller. If. however, a negotiable document of title representing the goods has been issued by the carrier or other bailee, he shall not be obliged to deliver or justified in delivering the goods to the seller unless such document is first surrendered for cancelation. 1040. When and how resale may be made. — 1. Where the goods are of a perishable nature, or where the seller expressly reserves the right of resale in case the buyer should make default, or where the buyer has been in default in the payment of the price an unreasonable time, an unpaid seller having a right of lien or having stopped the goods in transitu may resell the goods. He shall not thereafter be liable to the original buyer upon the contract to sell or the sale or for any profit made by such resale, but may recover from the buyer damages for any loss occasioned by the breach of the contract or the sale. 2. Where a resale is made, as authorized in this section, the buyer acquires a good title as against the original buyer. 3. It is not essential to the validity of a resale that notice of an intention to resell the goods be given by the seller to the original buyer. But where the right to resell is not based on the perishable nature of the goods or upon an express provision of the contract or the sale, the giving or failure to give such notice shall be relevant in any issue involving the question whether the buyer had been in default an unreasonable time before the resale was made. 4. It is not essential to the validity of a resale that notice of the time and place of such resale should be given by the seller to the original buyer. 5. The seller is bound to exercise reasonable care and judgment in making a resale, and subject to this requirement may make a resale either by public or private sale. 156

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THE CIVIL CODE [T. 3, § 1043 1041. When and how the seller may rescind the sale. — 1. An unpaid seller having a right of lien or having stopped the goods in transitu, may rescind the transfer of title and resume the property in the goods, where he expressly reserved the right to do so in case the buyer should make default, or where the buyer has been in default in the payment of the price an unreasonable time. The seller shall not thereafter be liable to the buyer upon the contract to sell or the sale, but may recover from the buyer damages for any loss occasioned by the breach of the contract or the sale. 2. The transfer of title shall not be held to have been rescinded by an unpaid seller until he has manifested by notice to the buyer or by some other overt act an intention to rescind. It is not necessary that such overt act should be communicated to the buyer but the giving or failure to give notice to the buyer of the intention to rescind shall be relevant in any issue involving the question whether the buyer had been in default an unreasonable time before the right of rescission was asserted. 1042. Effect of sale of goods subject to lien or stoppage in transitu. — Subject to the provisions of this chapter, the unpaid seller's right of lien or stoppage in transitu is not affected by any sale, or other disposition of the goods which the buyer may have made, unless the seller has assented thereto. If, however, a negotiable document of title has been issued for goods, no seller's lien or right of stoppage in transitu shall defeat the right of any purchaser for value in good faith to whom such document has been negotiated, whether such negotiation be prior or subsequent to the notification to the carrier, or other bailee who issued such document, of the seller's claim to a lien or right of stoppage in transitu. 1043. Action for the price. — 1. Where, under a contract to sell or a sale, the property in the goods has passed to the buyer, and the buyer wrongfully neglects or refuses to pay for the goods according to the terms of the contract or the sale, the seller may maintain an action against him for the price of the goods. 2. Where, under a contract to sell or a sale, the price is payable on a day certain, irrespective of delivery or of transfer of title, and the buyer wrongfully neglects or refuses to pay such price, the seller may maintain an action for the price, although the property in the goods has not passed, and the goods have not been appropriated to the contract. But it shall be a defense to such an action that the seller at any time before judgment in such action has manifested an inability to perform the contract or the sale on his part or an intention not to perform it. 3. Although the property in the goods has not passed, if they can not readily be resold for a reasonable price, and if the provisions of subdivision 4 of the section next following are not applicable, the seller may offer to deliver the goods to the buyer, and if the buyer refuses to receive them, may notify the buyer that the goods are thereafter held by the seller as bailee for the buyer. Thereafter the seller may treat the goods as the buyer's and may maintain an action for the price. 157

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T. 3, § 1044 J THE CIVIL CODE 1044. Action for damages for nonacceptaiice of the goods. — 1. Where the buyer wrongfully neglects or refuses to accept and pay for the goods, the seller may maintain an action against him for damages for nonacceptance. 2. The measure of damages is the estimated loss directly and naturally resulting, in the ordinar}^ course of events, from the buyer's breach of contract. 3. Where there is an available market for the goods in ([uestion, the measure of damages is, in the absence of special circiniistances, showing proximate damage of a greater amount, the difference between the contract price and the market or current price at the time or times when the goods ought to have been accepted, or, if no time was fixed for acceptance, then at the time of the refusal to accept. 4. If, while labor or expense of material amount are necessary on the part of the seller to enable him to fulfill his obligations under the contract to sell or the sale, the buyer repudiates the contract or the sale, or notifies the seller to proceed no further therewith, the buyer shall be liable to the seller for no greater damages than the seller would have suffered if he did nothing toward carrying out the contract or the sale after receiving notice of the buyer's repudiation or countermand. The profit the seller would have made if the contract or the sale had been fully performed shall be considered in estimating such damages. 1045. When seller may rescind contract or sale. — Where the goods have not been delivered to the buyer, and the buyer has repudiated the contract to sell or sale, or has manifested his inability to perform his obligations thereunder, or has committed a material breacli thereof, the seller may totally rescind the contract or the sale by giving notice of his election so to do to the buyer, 1046. Action for converting or detaining goods. — Where the property in the goods has passed to the buyer and the seller wrongfully neglects or refuses to deliver the goods, the buyer may maintain any action allowed by law to the owner of goods of similar kind when wrongfully converted or withheld. 1047. Action for failing to deliver goods. — 1. Where the property in the goods has not passed to the buyer, and the seller wrongfully neglects or refuses to deliver the goods, the buyer may maintain an action against the seller for damages for nondelivery, 2. The measure of damages is the loss directly and naturally resulting in the ordinary course of events from the seller's breach of contract. 3. Where there is an available market for the goods in question, the measure of damages, in the absence of special circumstances showing proximate damages of a greater amount, is the difference between the contract price and the market or current price of the goods at the time or times when they ought to have been delivered, or, if no time was fixed, then at the time of the refusal to deliver. 1048. Specific performance. — AVhere the seller has broken a contract to deliver specific or ascertained goods, a court having the powers of a court of equity may, if it thinks fit, on the api^lication 158

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THE CIVIL CODE [T. 3, § 1049 of the buyer, by its judgment or decree, direct that the contract shall be performed specitically, without giving the seller the option of retaining the goods on payment of damages. The judgment or decree may be unconditional, or upon such terms and conditions as to damages, payment of the price and otherwise, as to the court may seem just. Cro s s -R efeben ce Specific performance of obligations genemlly, see sections 2701 et seq., of this title. 1049. Remedies for breach of warranty. — 1. Where there is a breach of warranty by the seller, the buyer may, at his election : (a) Accept or keep the goods and set up against the seller the breach of warranty by way of recoupment in diminution or extinction of the price ; (b) Accept or keep the goods and maintain an action against the seller for damages for the breach of warranty; (c) Refuse to accept the goods, if the property therein has not passed, and maintain an action against the seller for damages for the breach of warranty ; (d) Rescind the contract to sell or the sale and refuse to receive the goods, or if the goods have already been received, return them or offer to return them to the seller and recover the price or any part thereof which has been paid. 2. When the buyer has claimed and been granted a remedy in any one of these ways, no other remedy can thereafter be granted. 3. Where the goods have been delivered to the buyer, he cannot rescind the sale if he knew of the breach of warranty when he accepted the goods, or if he fails to notify the seller within a reasonable time of the election to rescind, or if he fails to return or to offer to return the goods to the seller in substantially as good condition as they were in at the time the property was transferred to the buyer. But if deterioration or injury of the goods is due to the breach of warranty, such deterioration or injury shall not prevent the buyer from returning or offering to return the goods to the seller and rescinding the sale. 4. Where the buyer is entitled to rescind the sale and elects to do so, the buyer shall cease to be liable for the price upon returning or offering to return the goods. If the price or any part thereof has already been paid, the seller shall be liable to repay so much thereof as has been paid, concurrently with the return of the goods, or immediately after an offer to return the goods in exchange for repayment of the price. 5. Where the buyer is entitled to rescind the sale and elects to do so, if the seller refuses to accept an offer of the buyer to return tlie goods, the buyer shall thereafter be deemed to hold the goods as bailee for the seller, but subject to a lien to secure the repayment of any portion of the price which has been paid, and with the remedies for the enforcement of such lien allowed to an unpaid seller by section 1033 of this title. 6. The measure of damages for breach of warranty is the loss directly and naturally resulting, in the ordinary course of events, from the breach of warranty. 159

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T. 3, § 1050] THE CIVIL CODE 7. In the case of breach of warranty of quality, such loss, in the absence of special circumstances showing proximate damage of a greater amount, is the difference between the value of the goods at the time of delivery to the buyer and the value they would have had if they had answered to the warranty. 1050. Interest and special damages. — Nothing in this chapter shall affect the right of the buyer or the seller to recover interest or special damages in any case where by law interest or special damages may be recoverable, or to recover money paid where the consideration for the payment of it has failed. 1051. Variation of implied obligations. — Where any right, duty, or liability would arise under a contract to sell or a sale by implication of law, it may be negatived, or varied by express agreement or by the course of dealing between the parties, or by customs, if the custom be such as to bind both parties to the contract or the sale. 1052. Rights may be enforced by action. — Where any right, duty, or liability is declared by this chapter, it may, unless otherwise by this chapter provided, be enforced by action. 1053. Rule for cases not provided for by this chapter. — In any case not provided for in this chapter, the rules of law and equity, including the law merchant, and in particular the rules relating to the law of principal and agent and to the effect of fraud, misrepresentation, duress or coercion, mistake, or other invalidating cause, shall continue to apply to contracts to sell and sales of goods. 1054. Provisions not applicable to mortgages. — The provisions of this chapter relating to contracts to sell and to sales do not appl3\ unless so stated, to any transaction in the form of a contract to sell or a sale which is intended to operate by way of mortgage, pledge, charge, or other security. 1055. Definitions. — 1. In this chapter, unless the context or subject matter otherwise requires : " Action " includes counterclaim, set-off, and suit in equity. " Buyer " means a person who buys or agrees to buy goods or any legal successor in interest of such person. " Defendant " includes a plaintiff against whom a right of set-off or counterclaim is asserted. " Delivery " means voluntary transfer of possession from one person to another. " Divisible contract to sell or sale " means a contract to sell or a sale in which by its terms the price for a portion or portions of the goods less than the whole is fixed or ascertainable by computation. " Document of title to goods " includes any bill of lading, dock warrant, warehouse receipt or order for the delivery of goods, or any other document used in the ordinary course of business in the sale or transfer of goods, as proof of the possession or control of the goods, or authorizing or purporting to authorize the possessor of the document to transfer or receive, either by indorsement or by delivery, goods represented by such document. " Fault " means wrongful act or default. 160

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THE CIVIL CODE [T. 3, § 1057 " Fungible goods " means goods of which any unit is from its nature or by mercantile usage treated as the equivalent of any other unit. " Future goods " means goods to be manufactured or acquired by the seller after the making of the contract of sale. " Goods " includes all chattels personal other than things in action and money. The term includes emblements, industrial growing crops, and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale. " Order " in sections of this chapter relating to documents of title means an order by indorsement on the document. " Person " includes a corporation or partnership or two or more persons having a joint or common interest. " Plaintiff " includes defendant asserting a right of set-off or counterclaim. " Property " means the general property in goods, and not merely a special property. " Purchases " includes taking as a mortgagee or as a pledgee. " Purchaser " includes mortgagee and pledgee. " Quality of goods " includes their state or condition. " Sale " includes a bargain and sale as well as a sale and delivery. " Seller " means a person who sells or agrees to sell goods, or any legal successor in the interest of such person. '"' Specific goods " means goods identified and agreed upon at the time a contract to sell or a sale is made. 2. A thing is done " in good faith " within the meaning of this chapter when it is in fact done honestly, whether it be done negligently or not. 3. A person is insolvent within the meaning of this chapter who either has ceased to pay his debts in the ordinary course of business or cannot pay his debts as they become due, whether he has committed an act of bankruptcy or not, and whether he is insolvent within the meaning of the federal bankruptcy law or not. 4. Goods are in a " deliverable state " within the meaning of this chapter when they are in such a state that the buyer would, under the contract, be bound to take delivery of them. 1056. Chapter does not apply to existing sales or contracts to sell. — None of the provisions of this chapter shall apply to any sale, or to any contract to sell, made prior to the taking effect of this chapter. 1057. No repeal of warehouse laws. — Nothing in this chapter shall be construed to repeal or limit any of the provisions of sections 1141 to 1193 of this title. lUi

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T. 3. § 1061] THE CIVIL CODE CHAPTER 35.— CONDITIONAL SALES Retaking possession. Notice of intention to retake. Redemption. Compulsui-y resale by seller. Resale at option of parties. Proceeds of resale. Deflcioncy on resale. Rights of parties where there is no resale. Election of remedies. Recovery of part payments. Waiver of statutory protection. Loss and increase. Rules for cases not provided for. Sec. Sec. lOGl. Definitions. 1073. 1062. Primary rights of seller. 1074. 1063. Primary rights of buyer. 1075. 1004. Conditional sales valid except as 1076. otherwise provided. 1077. 1065. Conditional sales void as to certain 1078. persons. 1079. 1066. Place of filing. lOSO. 1067. Conditional sale of goods for resale. 106S. Filing. 1081. lOGJ). Refiling. 1082. 1070. Cancelation of contract. 1083. 1071. Prohibition of removal or sale with1084. out notice. 1085. 1072. Fraudulent injury, concealment, removal, or sale. Note. — This chapter was derived from the Uniform Conditional Sales Act. Section 1061. Definitions. — In this chapter " conditional sale " means (1) any contract for the sale of goods under which possession is delivered to the buyer and the property in the goods is to vest in the buyer at a subsequent time upon the payment of part or all of the price, or upon the performance of any other condition or the happening of any contingency; or (2) any contract for the bailment or leasing of goods by which the bailee or lessee contracts to pay as compensation a sum substantially equivalent to the value of the goods, and by which it is agreed that the bailee or lessee is bound to become, or has the option of becoming the owner of such goods upon full compliance with the terms of the contract. " Buyer " means the person who buys or hires the goods covered by the conditional sale, or any legal successor in interest of such person. " Goods " means all chattels personal other than things in action and money, and includes emblements, industrial growing crops, and things attached to or forming a part of land wdiich are agreed to be severed before sale or under the conditional sale. " Performance of the condition " means the occurrence of the event npon which the property in the goods is to vest in the buyer, whether such event is the performance of an act by the buyer or the happening of a contingency. " Person " includes an individual, j)artnership, corporation, and any other association. " Purchase " includes mortgage and pledge. " Purchaser " includes mortgagee and pledgee. " Seller " means the person who sells or leases the goods covered by the conditional sale, or any legal successor in intei-est of such person. 1062. Primary rights of seller. — The buyer shall be liable to the seller for the ])urchase price, or for instalhuents thereof, as the same shall become due, and for breach of all promises made by him in the conditional sale contract, whether or not the property in the goods has passed to the buyer. 1063. Primary rights of buyer.— The buyer shall have the right when not in default to retain jwssession of the goods, and he shall also have the right to acquire the property in the goods on the 162

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THE CIVIL CODE [T. 3, § 1069 performance of the conditions of the contract. The seller shall be liable to the buyer for the breach of all promises and warranties, express or implied, made in the conditional sale contract, whether or not the property in the goods has passed to the buyer. 1064. Conditional sales valid except as otherwise provided. — Every provision in a conditional sale reserving property in the seller after possession of the goods is delivered to tlie buyer, shall be valid as to all persons, except as hereinafter otherwise provided. 1065. Conditional sales void as to certain persons. — Every provision in a conditional sale reserving property in the seller shall be void as to an}^ purchaser from or creditor of the buyer, who, without notice of such provision, purchases the goods or acquires by attachment or levy a lien upon them, before the contract or a copy thereof shall be filed as hereinafter provided. This section shall not apply to conditional sales of goods for resale. 1066. Place of filing. — The conditional sale contract or a copy thereof shall be filed in the office of the registrar of property of the Canal Zone. Cross-Refebencb Clerk of district court as ex-offlcio registrar of property, see title 4, section 967. 1067. Conditional sale of goods for resale. — Wlien goods are delivered under a conditional sale contract and the seller expressly or impliedly consents that the buyer may resell them prior to performance of the condition, the same shall be valid whether filed or not except that the reservation of property shall be void against purchasers from the buyer in good faith for value and without actual knowledge of the condition of such contract. 1068. Filing. — The registrar of property shall mark upon contract or copy filed with him the day and hour of filing and shall file the contract or copy in his office for public inspection. He shall keep a separate book in which he shall enter the names of the seller and buyer, the date of the contract, the day and hour of filing, a brief description of the goods, the price named in the contract, and the date of cancellation thereof. Such book shall be indexed under the names of both seller and buyer. For filing and entering such contract or copy, or any assignment of such a contract, the registrar shall be entitled to a fee of 50 cents. 1069. Refiling. — The filing of conditional sale contracts provided for in sections 1065 and 10G6 of this title shall be valid for a period of three years only. The validity of the filing may in each case be extended for successive additional periods of one year from the date of refiling by filing a copy of the original contract within thirty days next preceding the expiration of each period, with a statement attached signed by the seller, showing that the contract is in force and the amount remaining to be paid thereon. Such copy, with statement attached, shall be filed and entered in the same manner as a contract or copy filed and entered for the first time, and the registrar of property shall be entitled to a like fee as upon the original filing. 163

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T. 3, § 1070] THE CIVIL CODE 1070. Cancelation of contract. — After the performance of the condition, upon written demand delivered personally or by registered mail by the buyer or any other person having an interest in the goods, the seller shall execute, acknowledge, and deliver to the demandant a statement that the condition in the contract has been performed. If for ten days after such demand the seller fails to mail or deliver such a statement of satisfaction, he shall forfeit to the demandant $5 and be liable for all damages suffered. Upon presentation of such statement of satisfaction the registrar of property shall file the same and note the cancellation of tlie contract and the date thereof on the margin of the page where the contract has been entered. For filing and entering the statement of satisfaction the filing officer shall be entitled to a fee of 25 cents. 1071. Prohibition of removal or sale without notice. — Unless the contract otherwise provides, the buyer may, without the consent of the seller, remove the goods from the Canal Zone and sell, mortgage, or otherwise dispose of his interest in them; but prior to the performance of the condition, no such buyer shall remove the goods from the Canal Zone, except for temporary uses for a period of not more than thirty days, unless the buyer not less than thirty days before such removal shall give the seller personally or by registered mail written notice of the place to which the goods are to be removed and the approximate time of such intended removal; nor prior to the performance of the conditions shall the buyer sell, mortgage, or otherwise dispose of his interest in the goods, unless he, or the person to whom he is about to sell, mortgage, or otherwise dispose of the same, shall notify the seller in writing personally or by registered mail of the name and address of the person to whom his interest in the goods is about to be sold, mortgaged, or otherwise transferred, not less than ten days before such sale, mortgage, or other disposal. If any buyer does so remove the goods, or does so sell, mortgage, or otherwise dispose of his interest in them without such notice or in violation of the contract, the seller may retake possession of the goods and deal with them as in case of default in payment of part or all of the purchase price. 1072. Fraudulent injury, concealment, removal, or sale. — When, prior to the performance of the condition, the buyer maliciously or with intent to defraud, shall injure, destroy, or conceal the goods, or remove them from the Canal Zone, without having given the notice required by the next preceding section, or shall sell, mortgage, or otherwise dispose of such goods under claim of full ownership, he shall be ^lilty of a crime and upon conviction thereof shall be imprisoned in jail for not more than one year or be fined not more than $500 or both. 1073. Retaking possession.— Wlien the buyer shall be in default in the payment of any sum due under the contract, or in the performance of any other condition which the contract requires him to perform in order to obtain the property in the goods, or in the performance of any promise, the breach of which is by the contract expressly made a ground for the retaking of the goods, the seller may retake possession thereof. Unless the goods can be retaken 164

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THE CIVIL CODE [T. 3, § 1076 without breach of the peace, they shall be retaken by legal process; but nothing herein shall be construed to authorize a violation of the criminal law. 1074. Notice of intention to retake. — Not more than forty nor less than twenty days prior to the retaking, the seller, if he so desires, may serve upon the buyer personally or by registered mail a notice of intention to retake the goods on account of the buyer's default. The notice shall state the default and the period at the end of which the goods will be retaken, and shall briefly and clearly state what the buyer's rights under this chapter will be in case they are retaken. If the notice is so served and the buyer does not perform the obligations in which he has made default before the day set for retaking, the seller may retake the goods and hold them subject to the provisions of sections 1076 to 1080 of this title regarding resale, but without any right of redemption. 1075. Redemption. — If the seller does not give the notice of intention to retake described in the next preceding section, he shall retain the goods for ten days after the retaking within the Canal Zone, during which period the buyer, upon payment or tender of the amount due under the contract at the time of retaking and interest, or upon performance or tender of performance of such other condition as may be named in the contract as precedent to the passage of the property in the goods, or upon performance or tender of l^erformance of any other promise for the breach of which the goods were retaken, and upon payment of the expenses of retaking, keeping, and storage, may redeem the goods and become entitled to take possession of them and to continue in the performance of the contract as if no default had occurred. Upon written demand delivered personally or by registered mail by the buyer, the seller shall furnish to the buyer a written statement of the sum due under the contract and the expense of retaking, keeping, and storage. For failure to furnish such statement within a reasonable time after demand, the seller shall forfeit to the buyer $10 and also be liable to him for all damages suffered because of such failure. If the goods are perishable so that retention for ten days as herein prescribed would result in their destruction or substantial injury, the provisions of this section shall not apply, and the seller may resell the goods immediately upon their retaking. 1076. Compulsory resale by seller. — If the buyer does not redeem the goods within ten days after the seller has retaken possession, and the buyer has paid at least 50 per centum of the purchase price at the time of the retaking the seller shall sell them at public auction in the Canal Zone, such sale to be held not more than thirty days after the retaking. The seller shall give to the buyer not less than ten days' written notice of the sale, either personally or by registered mail, directed to the buyer at his last known place of business or residence. The seller shall also give notice of the sale by at least three notices posted in different public places within the Zone, at least five days before the sale. If at the time of the retaking $500 or more has been paid on the purchase price, the seller shall also give notice of the stale at least five days before the sale by publi165

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T. 3, § 1077] THE CIVIL CODE cation in a newsj^aper having a general circulation within the Canal Zone. The seller may bid for the goods at the resale. 1077. Resale at option of parties. — ^If the buyer has not paid at least 50 per centum of the purchase price at the time of the retaking, the seller shall not be under a duty to resell the goods as prescribed in the next preceding section, unless the buyer serves upon the seller, within ten days after the retaking, a written notice demanding a resale, delivered personally or by registered mail. If such notice is served, the resale shall take place within thirty days after the service, in the manner, at the place, and upon the notice prescribed in the next preceding section. The seller may voluntarily resell the goods for account of the buyer on compliance with the same requirements. 1078. Proceeds of resale. — The proceeds of the resale shall be applied (1) to the payment of the expenses thereof, (2) to the payment of the expenses of retaking, keeping, and storing the goods, (3) to the satisfaction of the balance due under the contract. Any sum remaining after the satisfaction of such claims shall be paid to the buyer. 1079. Deficiency on resale. — If the proceeds of the resale are not sufficient to defray the expenses thereof, and also the expenses of retaking, keeping, and storing the goods and the balance due upon the purchase price, the seller may recover the deficiency from the buyer, or from any one who has succeeded to the obligations of the buyer. 1080. Rights of parties where there is no resale. — Where there is no resale the seller may retain the goods as his own property without obligation to account to the buyer except as provided in section 1082 of this title, and the buyer shall be discharged of all obligation. 1081. Election of remedies. — After the retaking of possession as provided in section 1073 of this title the buyer shall be liable for the price only after a resale and only to the extent provided in section 1079 of this title. Neither the bringing of an action by the seller for the recovery of the whole or any part of the price, nor the recovery of judgment in such action, nor the collection of a portion of the price, shall be deemed inconsistent with a later retaking of the goods as provided in section 1073. But such right of retaking shall not be exercised by the seller after he has collected the entire price or after he has claimed a lien upon the goods, or attached them, or levied upon them as the goods of the buyer. 1082. Recovery of part payments. — If the seller fails to comply with the provisions of sections 1075 to 1078 and 1080 of this title, after retaking the goods, the buyer may recover from the seller his actual damages, if any, and in no event less than one fourth of the sum of ail payments which have been made under the contract, with interest. 1083. Waiver of statutory protection. — No act or agreement of the buyer before or at the time of the making of the contract, nor any agreement or statement by tlic buyer in such contract, shall constitute a valid waiver of the provisions of sections 1075 to 1078 166

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THE CIVIL CODE [T. 3, § 1092 and 1082 of this title ; except that the contract may stipulate that on such default of the buyer as is provided for in section 1073 of this title, the seller may rescind the conditional sale, either as to all the goods or as to any part thereof for which a specific price was fixed in the contract. If the contract thus provides for rescission, the seller at his option may retake such goods without complying with or being bound by the provisions of section 1074 to 1082 of this title, as to the goods retaken, upon crediting the buyer with the full purchase price of those goods. So much of this credit as is necessary to cancel any indebtedness of the buyer to the seller shall be so applied, and the seller shall repay to the buyer on demand any surplus not so required. 1084. Loss and increase. — After the delivery of the goods to the buyer and prior to the retaking of them by the seller, the risk of injury and loss shall rest upon the buyer. The increase of the goods shall be subject to the same conditions as the original goods. 1085. Rules for cases not provided for. — In any case not provided for in this chapter the rules of law and equity, including the law merchant, and in particular those relating to principal and agent and to the effect of fraud, misrepresentation, duress or coercion, mistake, or other invalidating cause, shall continue to apply to conditional sales. CHAPTER 36.— DEPOSIT IN GENERAL Art. Sec. I Art. Sec. 1. Nature and creation of deposit — 109 i I 2. Obligations of tlie depositary 1101 ARTICLE 1.— NATURE AND CREATION OF DEPOSIT Sec. 1091. Deposit, kinds of. 1092. Voluntary deposit, how made. 1093. Involuntary deposit, how made. Sec. 1094. Duty of involuntary depositary. 1U95. Deposit for keeping, what. 1096. Deposit for exchange, what. Section 1091. Deposit, kinds of. — A deposit may be voluntary or involuntary ; and for safe-keeping or for exchange. Cross-Refebences Common cari-iers, see sections 1391 et seq., of this title. Deposit for exchange, see section 1096 of this title. Deposit foihire, see sections 1131 et seq., of this title. Deposit for keeping, see sections 1111 et seq., of this title. Gratuitous deposit, and incidents, see sections 1121 et seq., of this title. Hiring, see sections 1271 et seq., of this title. Innkeepers, see sections 1201 and 1202 of this title. Loan for exchange, see section 1251 of this title. Loan for use, see sections 1231 et seq.. of this title. Loan of money, see section 1261 of this title. Pledge, see sections 2281 et seq., of this title. 1092. Voluntary deposit, how made. — A voluntary deposit is made by one giving to another, with his consent, the possession of personal property to keep for the benefit of the former, or of a third party. The person giving is called the depositor, and the person receiving the depositary. Ceoss-References Finder of lost articles, see sections 1211 et seq., of this title. Obligations of depositary, see sections 1101 et seq., of this title. 167

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T. 3, § 1093] THE CIVIL CODE 1093. Involuntary deposit, how made. — An involuntary deposit is made : 1. By the accidental leaving or placing of personal property in the possession of any person, without negligence on the part of its owner; or 2. In cases of fire, shipwreck, inundation, insurrection, riot, or like extraordinary emergencies, by the owner of personal property committing it, out of necessity, to the care of any person. CKOSS-REaiSENCES Degree of care requisite, see section 1123 of this title. Duties of depositary, when cease, see section 1124 of this title. Involuntary deposit in cases of emergency must be accepted, see section 1094 of this title. Involuntary deposit is gratuitous, see section 1122 of this title. 1094. Duty of involuntary depositary. — The person with whom a thing is deposited in the manner described in the next preceding section is bound to take charge of it, if able to do so. 1095. Deposit for keeping, what. — A deposit for keeping is one in which the depositary is bound to return the identical thing deposited. CBOSS-REFEEtENCB Deposit for keeping, see sections 1111 et seq., of this title. 1096. Deposit for exchange, what. — A deposit for exchange is one in which the depositary is only bound to return a thing corresponding in kind to that which is deposited. Ceoss-Refebences Deposit for exchange transfers title, see section 1221 of this title. Loan for exchange, see sections 1251 et seq., of this title. ARTICLE 2.— OBLIGATIONS OF THE DEPOSITARY Sec. 1101. Depositary must deliver on demand. 1102. No obligation to deliver without demand. 110.3. Place of delivery. 1104. Notice to owner of adverse claim. Sec. 1105. Notice to owner of tbing wrongfully detained. 1106. Delivery of thing owned jointly, etc. 1107. Joint deposits by more than one person. 1101. Depositary must deliver on demand. — A depositary must deliver the thing to the person for whose benefit it was deposited, on demand, whether the deposit was made for a specified time or not, unless he has a lien upon the thing deposited, or has been forbidden or prevented from doing so by the real owner thereof, or by the act of the law, and has given the notice required by section 1104 of this title. Cboss-References Care required of depositary, see section 1132 of this title. Delivery, see sections 1102 and 1106 of this title. For a general lien on personality dependent upon possession, see section 2311 of this title. Lien of innkeepers, see section 1201 of this title. Notice of adverse proceedings, see section 1104 of this title. 168

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THE CIVIL CODE [T. 3, § 1111 1102. No obligation to deliver without demand. — A depositary is not bound to deliver a thing deposited without demand, even where the deposit is made for a specified time, 1103. Place of delivery. — A depositary must deliver the thing deposited at his residence or place of business, as may be most convenient for him. Ceoss-Refekence Delivery on sales, see sections 1021 et seq., of this title. 1104. Notice to owner of adverse claim. — A depositary must give prompt notice to the person for whose benefit the deposit was made, of any proceedings taken adversely to his interest in the thing deposited, which may tend to excuse the depositary from delivering the thing to him. 1105. Notice to owner of thing wrongfully detained. — A depositary who believes that a thing deposited with him is wrongfully detained from its true owner, may give him notice of the deposit ; and if within a reasonable time afterwards he does not claim it, and sufficiently establish his right thereto, and indemnify the depositary against the claim of the depositor, the depositary is exonerated from liability to the person to whom he gave the notice, upon returning the thing to the depositor, or assuming, in good faith, a new obligation changing his position in respect to the thing, to his prejudice. 1106. Delivery of thing owned jointly, etc. — If a thing deposited is owned jointly or in common by persons who cannot agree upon the manner of its delivery, the depositary may deliver to each his proper share thereof, if it can be done without injury to the thing. 1107. Joint deposits by more than one person. — When a deposit is made in the name of two or more persons, deliverable or payable to either or to their survivor or survivors, such deposit or any part thereof, or increase thereof, may be delivered or paid to either of said persons or to the survivor or survivors in due course of business. CEOSS-REa'EIRBNCE Performance to one of joint creditors, see section 723 of this title. CHAPTER 37.— DEPOSIT FOR KEEPING Art. Sec. 1. General provisions 1111 2. Gratuitous deposit 1121 3. storage 1131 Art. Sec. 4. Wareliousemen 1141 5. Innkeepers 1201 6. Finding 1211 ARTICLE 1.— GENERAL PROVISIONS Sec. 1115. Sale of thing in danger of perishing. 1116. Injury to or loss of thing deposited. 1117. Service rendered by depositary. 1118. Liability of depositary. Sec. 1111. Depositor must idemnify depositary. 1112. Obligation of depositary of animals. 1113. Obligations as to use of thing deposited. 1114. Liability for damage arising from wrongful use. Section 1111. Depositor must indemnify depositary. — A depositor must indemnify the depositary : 1. For all damage caused to him by the defects or vices of the thing deposited; and 93083—34 12 1^9

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T. 3, § 1112] THE CIVIL CODE 2. For all expenses necessarily incurred by him about the thing, other than such as are involved in the nature of the undertaking. Cross-Refekence Lender's liability for defects in articles borrowed, see section 1240 of tliis title. 1112. Obligation of depositary of animals. — A depositary of living animals must provide them with suitable food and shelter, and treat them kindly. Cros s-Refereince Lien of keepers of livestock, see section 2311 of tbis title. 1113. Obligations as to use of thing deposited. — A depositary may not use the thing deposited, or permit it to be used, for any purpose, without the consent of the depositor. He may not, if it is purposely fastened by the depositor, open it without the consent of the latter, except in case of necessity. Cross-Refeeences Hiring; definition of term, see sections 1271 et seq., of tbis title. Liability for wrongful use, see section 1114 of tbis title. 1114. Liability for damage arising from wrongful use. — A depositary is liable for any damage happening to the thing deposited, during his wrongful use thereof, unless such damage must inevitably have happened though the property had not been thus used. 1115. Sale of thing in danger of perishing. — If a thing deposited is in actual danger of perishing before instructions can be obtained from the depositor, the depositary may sell it for the best price obtainable and retain the proceeds as a deposit, giving immediate notice of his proceedings to the depositor. Ceoss-Re:feeence Sale of perisbables, see section 1137 of tbis title. 1116. Injury to or loss of thing deposited. — If a thing is lost or injured during its deposit, and the depositary refuses to inform the depositor of the circumstances under wdiich the loss or injury occurred, so far as he has information concerning them, or willfully misrepresents the circumstances to him, the depositary is presumed to have willfully, or by gross negligence, permitted the loss or injury to occur. 1117. Service rendered by depositary. — So far as any service is rendered by a depositary, or required from him, his duties and liabilities are prescribed by chapters 41 to 43 of this title on employment and service. 1118. Liability of depositary. — The liability of a depositary for negligence cannot exceed the amoimt which he is informed by the depositor, or has reason to suppose, the thing deposited to be worth. 170

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THE CIVIL CODE [T. 3, §1132 ARTICLE 2.— GRATUITOUS DEPOSIT Sec. 1121. Gratuitous deposit, what. 1122. Nature of involuntary deposit. Spc. 112;5. Degrpe of care required of gratuitous depositary. 1124. Ilis duties cease, when. 1121. Gratuitous deposit, what. — Grjituitous deposit is a deposit for which tlie depositary receives no consideration beyond the mere possession of the thing deposited. Cross-Reference Degree of care necessary, see section 1123 of this title. 1122. Nature of involuntary deposit. — An involuntary deposit is gratuitous, the depositary being entitled to no reward. Cross-Reference Involuntary deposit, defined, see section 1093 of this title. 1123. Degree of care required of gratuitous depositary. — A gratuitous depositary must use at least slight care for the preservation of the thing deposited. 1124. His duties cease, when. — The duties of a gratuitous depositary cease : 1. Upon his restoring the thing deposited to its owner; or 2. Upon his giving reasonable notice to the owner to remove it, and the owner failing to do so within a reasonable time. But an involuntary depositary, under subdivision 2 of section 1093 of this title, cannot give such notice until the emergency which gave rise to the deposit is past. ARTICLE 3.— STORAGE Sec. 1131. Deposit for hire. 11.32. Degree of care required of depositary for hire. 1133. Rate of compensation for fraction of week, etc. Sec. 1134. Termination of deposit. 113.5. Same. llo6. Lien for storage charges, advances, insurance, and expenses. 1137. Storage property to be sold. 1131. Deposit for hire. — A deposit not gratuitous is called storage. The depositary in such case is called a depositary for hire. Cross-Refeeences Hiring, in general, see section 1271 of this title. Warehousemen, see sections 1141 et seq., of this title. 1132. Degree of care required of depositary for hire. — A depositary for hire must use at least ordinary care for the preservation of the thing deposited. Cross-References Care required of a hirer, see section 1:74 of this title. Common carriers, see sections 1411, 1431 and 1491 of this title. Liability of warehousemen, see sections 1435 and 1436 of this title. 171

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T. 3, § 1133] THE CIVIL CODE 1133. Rate of compensation for fraction of week, etc. — In the absence of a different agreement or usage, a depositary for hire is entitled to one week's hire for the sustenance and shelter of living animals during any fraction of a week, and to half a month's hire for the storage of any other property during any fraction of a halfmonth. 1134. Termination of deposit. — In the absence of an agreement as to the length of time during which a deposit is to continue, it may be terminated by the depositor at any time, and by the depositary upon reasonable notice. 1135. Same. — Notwithstanding an agreement respecting the length of time during which a deposit is to continue, it may be terminated by the depositor on paying all that would become due to the depositary in case of the deposit so continuing. 1136. Lien for storage charges, advances, insurance, and expenses. — A depositary for hire has a lien for storage charges and for advances and insurance incurred at the request of the depositor, and for money necessarily expended in and about the care, preservation, and keeping of the property stored, and he also has a lien for money advanced at the request of the depositor, to discharge a prior lien, and for the expenses of a sale where default has been made in satisfying a valid lien. The rights of the depositary for hire to such lien are regulated by chapters 62 et seq., of this title, on liens : Provided^ however^ That such lien may be enforced in the manner provided by sections 1169, 1171 and 1172 of this title, relating to warehousemen. 1137. Storage property to be sold. — If from any cause other than want of ordinary care and diligence on his part, a depositary for hire is unable to deliver perishable property, baggage, or luggage received by him for storage, or to collect his charges for storage due thereon, he may cause such property to be sold to satisfy his lien for storage in accordance with the provisions of sections 1169 to 1172 of this title relating to warehousemen. Cboss-References Sale by pledgee, see sections 2295 et seq., of this title. Sale extinguishes lien, see section 2222 of this title. Sale of perishables, see section 1115 of this title. Sale of personalty to enforce, see section 2313 of this title. Warehousemen, see sections 1141 et seq., of this title. ITS

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THE CIVIL CODE [T. 3, § 1142 ARTICLE 4.~WAREH0USBMEN Sec. 1141. 1142. 1143. 1144. 1145. 1146. 1147. 1148. 1149. 11. "lO. 1J51. 1152. 1153. 1154. 1155. 1156. 1157. 1158. 1159. 1160. 1161. 1162. 1163. 1164. 1165. 1166. Persons who may issue receipts. Form of receipts. Negotiable and nonnegotiable receipts. Duplicate receipts must be so marked. ' not negotiable." warehouseman to warehouseman In liability for misFailure to mark Obligation of deliver. Ju.stiflcation of delivering. Warehouseman's delivery. Negutiable receipts must be canceled or marked when goods or part thereof are delivered. Altered receipts. Lost or dostioyed receipts. Effect of duplicate receipts. Warehouseman cannot set up title in himself. Interpleader of adverse claimants. Warehouseman has reasonable time to determine validity of claims. Adverse title is no defense except as above provided. Liability for nonexistence or misdescription of goods. Liability for care of goods. Goods must be kept separate. Commingled goods and warehouseman's liability therefor. Attachment or levy upon goods for which a negotiable receipt has been issued. Creditors' remedies to reach negotiable receipts. What claims are included in the warehouseman's lien. Against what property the lien may be enforced. How the lien may be lost. Negotiable receipt must state charges for which lien is claimed. Sec. 1167. Warehouseman need not deliver until lien is satisfied. 1168. Warehouseman's lien does not preclude other remedies. 1169. Satisfaction of lien by sale. 1170. Perishable and hazardous goods. 1171. Other methods of enforcing liens. 1172. Effect of sale. 1173. Negotiation of negotiable receipts hy delivery and by indorsement. 1174. Transfer of receipts. 1175. Who may negotiate a receipt. 1176. Rights of person to whom a receipt has been negotiated. 1177. Rights of person to whom a receipt has been transferred. 1178. Transfer of negotiable receipt without endorsement. 1179. Warranties on sale of receipt. 1180. Indorser not a guarantor. 1181. No warranty implied from accepting payment of a debt. 1182. When negotiation not impaired by fraud, mistake, or duress. 1183. Subsequent negotiation. 1184. Negotiation defeats vendor's lien. 1185. Issue of receipt for goods not received. 1186. Issue of receipt containing false statement. 1187. Issue of duplicate receipts not so marked. 1188. Issue for warehouseman's goods of receipts which do not state that fact. 1189. Delivery of goods without obtaining negotiable receipt. 1190. Negotiation of receipt for mortgaged goods. 1191. When rules of common law still applicable. 1192. Definitions. 1193. Application to existing receipts. Ckoss-Reference Nothing in the chapter on sales of goods is to be construed to repeal or limit this article, see section 1057 of this title. 1141. Persons who may issue receipts. — Warehouse receipts may be issued by any warehouseman. 1142. Form of receipts. — Warehouse receipts need not be in any particular form, but every such receipt must embody within its written or printed terms — (a) The location of the warehouse where the goods are stored; (b) The date of issue of the receipt ; (c) The consecutive number of the receipt; (d) A statement whether the goods received will be delivered to the bearer, to a specified person, or to a specified person or his order ; (e) The rate of storage charges ; (f) A description of the goods or of the packages containing them ; (g) The signature of the warehouseman, which may be made by his authorized agent ; (h) If the receipt is issued for goods of which the warehouseman is owner, either solely or jointly or in common with others, the fact of such ownership ; and 173

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T. 3, § 1143] THE CIVIL CODE (i) A statement of the amount of advances made and of liabilities incurred for which the warehouseman claims a lien. If the precise amount of such advances made or of such liabilities incurred is, at the time of the issue of the receipt, unknown to the warehouseman or to his agent who issues it, a statement of the fact that advances have been made or liabilities incurred and tlie purpose thereof is sufficient. A warehouseman shall be liable to any person injured thereby, for all damage caused by the omission from a negotiable receipt of any of the foregoing terms. A warehouseman may insert in a receipt, issued by him, any other terms and conditions, provided that such terms and conditions shall not — (a) Be contrary to the provisions of this article. (b) In anywise impair his obligation to exercise that decree of care in the safe-keeping of the goods intrusted to him which a reasonably careful man would exercise in regard to similar goods of his own. 1143. Negotiable and nonnegotiable receipts. — A receipt in which it is stated that the goods received will be delivered to the depositor, or to any other specified person, is a nonnegotiable receipt. A receipt in which it is stated that the goods received will be delivered to the bearer or to the order of any person named in such receipt is a negotiable receipt. No provision shall be inserted in a negotiable receipt that it is nonnegotiable. Such provision, if inserted, shall be void. 1144. Duplicate receipts must be so marked. — When more than one negotiable receipt is issued for the same goods, the word " duplicate " shall be plainly placed upon the face of every such receipt except the one hrst issued. A warehouseman shall be liable for all damage caused by his failure so to do to any one who purchased the subsequent receipt for value supposing it to be an original, even though the purchase be after the deliveiy of the goods by the warehouseman to the holder of the original receipt. 1145. Failure to mark "not negotiable." — A nonnegotiable receipt shall have plainl}'' placed upon its face by the warehouseman issuing it " nonnegotiable " or " not negotiable." In case of the warehouseman's failure so to do, a holder of the receipt who purchased it for value supposing it to be negotiable ma}'-, at his option, treat such receipt as imposing upon the warehouseman the same liabilities he would have incurred had the receipt been negotiable. This section shall not apply, however, to letters, memoranda, or written acknowledgments of an informal character. 1146. Obligation of warehouseman to deliver. — A warehouseman, in the absence of some lawful excuse provided by this article, is bound to deliver the goods upon a demand made either by the holder of a receipt for the goods or by the depositor, if such demand is accompanied with — (a) An offer to satisfy the warehouseman's lien; 174

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THE CIVIL CODE [T. 3, § 1149 (b) An offer to surrender the receipt if negotiable, with such indorsement as would be necessary for the negotiation of the receipt; and (c) A readiness and willingness to sign, when the goods are delivered, and acknowledgment that they have been delivered, if such signature is requested by the warehouseman. In case the warehouseman refuses or fails to deliver the goods in compliance with a demand by the holder or depositor so accompanied, the burden shall be upon the warehouseman to establish the existence of a lawful excuse for such refusal. 1147. Justification of warehouseman in delivering. — A warehouseman is justified in delivering the goods, subject to the provisions of sections 1148 to 1150 of this title, to one who is — (a) The person lawfully entitled to the possession of the goods, or his agent ; (b) A person who is either himself entitled to delivery by the terms of a nonnegotiable receipt issued for the goods, or who has written authority from the person so entitled either indorsed upon the receipt or written upon another paper; or (c) A person in possession of a negotiable receipt by the terms of which the goods are deliverable to him or order or to bearer, or which has been indorsed to him or in blank by the person to whom delivery was promised by the terms of the receipt or by his mediate or immediate indorsee. 1148. Warehouseman's liability for misdelivery. — Where a warehouseman delivers the goods to one who is not in fact lawfully entitled to the possession of them, the warehouseman shall be liable as for conversion to all having a right of property or possession in the goods if he delivered the goods otherwise than as authorized by subdivisions (b) and (c) of the next preceding section and though he delivered the goods as authorized by said subdivisions he shall be so liable, if prior to such delivery he had either — (a) Been requested, by or on behalf of the person lawfully entitled to a right of property or possession in the goods, not to make such delivery; or (b) Had information that the delivery about to be made was to one not lawfully entitled to the possession of the goods. 1149. Negotiable receipts must be canceled or marked when goods or part thereof are delivered. — Except as provided in section 1172 of this title, w4iere a warehouseman delivers goods for which he had issued a negotiable receipt, the negotiation of which would transfer the right to the possession of the goods, and fails to take up and cancel the receipt, he shall be liable to anyone who purchases for value in good faith such receipt, for failure to deliver the goods to him, whether such purchaser acquired title to the receipt before or after the delivery of the goods by the warehouseman. Except as provided in said section 1172, where a warehouseman delivers part of the goods for which he had issued a negotiable receipt and fails either to take up and cancel such receipt, or to place plainly upon it a statement of what goods or packages have 175

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T. 3, § 1150] TBE CIVIL CODE been delivered he shall be liable, to anyone who purchases for value in good faith such receipt, for failure to deliver all the goods specified in the receipt, whether such purchaser acquired title to the receipt before or after the delivery of any portion of the goods by the warehouseman. 1150. Altered receipts. — The alteration of a receipt shall not excuse the warehouseman who issued it from any liability if such alteration was — (a) Immaterial; ^b) Authorized; or (c) Made without fraudulent intent. If the alteration was authorized, the warehouseman shall be liable according to the terms of the receipt as altered. If the alteration was unauthorized, but made without fraudulent intent, the warehouseman shall be liable acording to the terms of the receipt, as they were before alteration. Material and fraudulent alteration of a receipt shall not excuse the warehouseman who issued it from liability to deliver, according to the terms of the receipt as originally issued, the goods for which it was issued, but shall excuse him from any other liability to the person who made the alteration and to any person who took with notice of the alteration. Any purchaser of the receipt for value without notice of the alteration shall acquire the same rights against the warehouseman which such purchaser would have acquired if the receipt had not been altered at the time of the purchase. 1151. Lost or destroyed receipts. — ^Where a negotiable receipt has been lost or destroyed, a court of competent jurisdiction may order the delivery of the goods upon satisfactory proof of such loss or destruction and upon the giving of a bond with sufficient sureties to be approved by the court to protect the warehouseman from any liability or expense, which he or any person injured by such delivery may incur by reason of the original receipt remaining outstanding. The court may also in its discretion order the payment of the warehouseman's reasonable costs and counsel fees. The delivery of the goods under an order of the court as provided in this section shall not relieve the warehouseman from liability to a person to whom the negotiable receipt has been or shall be negotiated for value without notice of the proceedings or of the delivery of the goods. 1152. Effect of duplicate receipts. — A receipt upon the face of which the word " duplicate ' is plainly placed is a representation and warranty by the warehouseman that such receipt is an accurate copy of an original receipt properly issued and uncanceled at the date of the issue of the duplicate, but shall impose upon him no other liability. 1153. Warehouseman cannot set up title in himself. — No title or right to the possession of the goods, on the part of the warehouseman, unless such title or right is derived directly or indirectly from a transfer made by the depositor at the time of or subsequent to the deposit for storage, or from the warehouseman's lien, shall excuse 176

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THE CIVIL CODE [T. 3, § 1159 the warehouseman from liability for refusing to deliver the goods according to the terms of the receipt. 1154. Interpleader of adverse claimants. — If more than one person claim the title or possession of the goods, the warehouseman may, either as a defense to an action brought against him for nondelivery of the goods, or as an original suit, whichever is appropriate, require all known claimants to interplead. 1155. Warehouseman has reasonable time to determine validity of claims. — If someone other than the depositor or person claiming under him has a claim to the title or possession of the goods, and the warehouseman has information of such claim, the warehouseman shall be excused from liability for refusing to deliver the goods, either to the depositor or person claiming under him or to the adverse claimant, until the warehouseman has had a reasonable time to ascertain the validity of the adverse claim or to bring legal proceedings to compel all claimants to interplead. 1156. Adverse title is no defense except as above provided.-— Except as provided in sections 1154 and 1155 of this title and in sections 1147 and 1172 of this title, no right or title of a third person shall be a defense to an action brought by the depositor or person claiming under him against the warehouseman for failure to deliver the goods according to the terms of the receipt. 1157. Liability for nonexistence or misdescription of goods. — A warehouseman shall be liable to the holder of a receipt, issued by him or on his behalf by an agent or employee the scope of whose actual or apparent authority includes the issuing of warehouse receipts, for clamages caused by the nonexistence of the goods or by the failure of the goods to correspond with the description thereof in the receipt at the time of its issue. If, however, the goods are described in a receipt merely by a statement of marks or labels upon them, or upon packages containing them, or by a statement that the goods are said to be goods of a certain kind, or that the packages containing the goods are said to contain goods of a certain kind, or by words of like purport, such statements, if true, shall not make liable the warehouseman issuing the receipt, although the goods are not of the kind which the marks or labels upon them indicate, or of the kind they were said to be by the depositor. 1158. Liability for care of goods. — A warehouseman shall be liable for any loss or injury to the goods caused by his failure to exercise such care in regard to them as a reasonably careful owner of similar goods would exercise, but he shall not be liable, in the absence of an agreement to the contrary, for any loss or injury to the goods which could not have been avoided by the exercise of such care. 1159. Goods must be kept separate. — Except as provided in the section next following, a warehouseman shall keep the goods so far separate from goods of other depositors, and from other goods of the same depositor for which a separate receipt has been issued, as to permit at all times the identification and redelivery of the goods deposited . 177

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T. 3, § 1160] THE CIVIL CODE 1160. Commingled goods and warehouseman's liability therefor. — If authorized by agreement or by custom, a warehouseman may mingle fungible goods with other goods of the same kind and grade. In such case the various depositors of the mingled goods shall own the entire mass in common, and each depositor shall be entitled to such portion thereof as the amount deposited by him bears to the whole. The warehouseman shall be severally liable to each depositor for the care and redelivery of his share of such mass to the same extent and under the same circumstances as if the goods had been kept separate. 1161. Attachment or levy upon goods for which a negotiable receipt has been issued. — If goods are delivered to a warehouseman by the owner or by a person whose act in conveying the title to them to a purchaser in good faith for value would bind the owner, and a negotiable receipt is issued for them, they cannot thereafter, while in the possession of the warehouseman, be attached by garnishment or otherwise, or be levied upon under an execution, unless the receipt be first surrendered to the warehouseman, or its negotiation enjoined. The warehouseman shall in no case be compelled to deliver up the actual possession of the goods until the receipt is surrendered to him or impounded by the court. 1162. Creditors' remedies to reach negotiable receipts. — A creditor whose debtor is the owner of a negotiable receipt shall be entitled to such aid from courts of appropriate jurisdiction, by injunction and otherwise, in attaching such receipt or in satisfying the claim by means thereof as is allowed at law or in equity, in regard to property which cannot readily be attached or levied upon by ordinary legal process. 1163. What claims are included in the warehouseman's lien. — Subject to the provisions of section IIGG of this title, a warehouseman shall have a lien on goods deposited or on the proceeds thereof in his hands, for all lawful charges for storage and preservation of the goods; also for all lawful claims for money advanced, interest, insurance, transportation, labor, weighing, coopering and other charges and expenses in relation to such goods; also for all reasonable charges and expenses for notice, and advertisements of sale, and for sale of the goods where default has been made in satisfying the warehouseman's lien. 1164. Against what property the lien may be enforced. — Subject to the provisions of section llGG of this title, a warehouseman's lien may be enforced — (a) Against all goods, whenever deposited, belonging to the person who is liable as debtor for the claims in regard to which the lien is asserted; and (b) Against all goods belonging to others which have been deposited at any time by the person who is liable as debtor for the clamis in regard to which the lien is asserted, if such person had been so intrusted with the possession of the goods that a pledge of the same by him at the time of the deposit to one who took the goods in good faith for value would have been valid. 178

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THE CIVIL CODE [T. 3, § 11G9 1165. How the lien may be lost. — A warehouseman loses his lien upon goods — (a) By surrendering possession thereof; or (b) By refusing to deliver the goods when a demand is made with which he is bound to comply under the provisions of this article. 1166. Negotiable receipt must state charges for which lien is claimed. — If a negotiable receipt is issued for goods, the warehouseman shall have no lien thereon, except for charges for storage of those goods subsequent to the date of the receipt, unless the receipt expressly enumerates other charges for which a lien is claimed. In such case there shall be a lien for the charges enumerated so far as they are w'ithin tha terms of section 1163 of this title, although the amount of the charges so enumerated is not stated in the receipt. 1167. Warehouseman need not deliver until lien is satisfied. — A warehouseman having a lien valid against the person demanding the goods may refuse to deliver the goods to him until the lien is satisfied. 1168. Warehouseman's Men does not preclude other remedies. — Whether a warehouseman has or has not a lien upon the goods, he is entitled to all remedies allowed by law to a creditor against his debtor for the collection from the depositor of all cluirges and advances wdiich the depositor has expressly or impliedly contracted with the warehouseman to pay. 1169. Satisfaction of lien by sale. — A warehouseman's lien for a claim which has become due may be satisfied as follows : The warehouseman shall give a written notice to the person on whose account the goods are held, and to any other person known by the w^arehouseman to claim an interest in the goods. Such notice shall be given by delivery in person or by registered letter addressed to the last known place of business or abode of the person to be notified. The notice shall contain : (a) An itemized statement of the warehouseman's claim, showing the sum due at the time of the notice and the date or dates when it became due ; (b) A brief description of the goods against which the lien exists; (c) A demand that the amount of the claim as stated in the notice, and of such further claim as shall accrue, shall be paid on or before a day mentioned, not less than ten days from the delivery of the notice if it is personally delivered, or from the time when the notice should reach its destination, according to the due course of post, if the notice is sent by mail; and (d) A statement that unless the claim is paid within the time specified the goods w^ill be advertised for sale and sold by acution at a specified time and place. In accordance with the terms of a notice so given, a sale of the goods by auction may be had to satisfy any valid claim of the warehouseman for which he has a lien on the goods. The sale shall be had in the place where the lien was acquired, or, if such a place is manifestly unsuitable for the purpose, at the nearest suitable place. 179

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T. 3, § 1170] TEE CIVIL CODE After the time for the payment of the claim specified in the notice to the depositor has elapsed, a notice of the sale, describing the goods to be sold, and stating the name of the owner or person on whose account the goods are held, and the time and place of the sale, shall be posted for two consecutive weeks on the bulletin board of each post office of the Canal Zone. The sale shall not be held less than fifteen days from the time when such notices were posted. From the proceeds of such sale the warehouseman shall satisfy his lien, including the reasonable charges of notice and sale. The balance, if any, of such proceeds shall be held by the warehouseman, and delivered on demand to the person to whom he would have been bound to deliver or justified in delivering the goods: Provided, however, That in case any such balance shall not be claimed by the rightful owner within one month from the day of said sale, the same shall be paid to the collector of the Panama Canal; and if the same be not claimed by the owner thereof or his legal representatives within one year thereafter, the same shall be covered into the Treasury of the United States as miscellaneous receipts. At any time before the goods are so sold any person claiming a right of property or possession therein may pay the warehouseman the amount necessary to satisfy his lien and to pay the reasonable expenses and liabilities incurred in serving and posting notices and preparing for the sale up to the time of such payment. The warehouseman shall deliver the goods to the person making such payment if he is a person entitled, under the provisions of this article, to the possession of the goods on payment of the charges thereon. Otherwise the warehouseman shall retain possession of the goods according to the terms of the original contract of deposit. 1170. Perishable and hazardous goods. — sif goods are of a perishable nature, or by keeping will deteriorate greatly in value, or by their odor, leakage, inflammability, or explosive nature will be liable to injure other property, the warehouseman may give such notice to the owner, or to the person in whose name the goods are stored, as is reasonable and possible under the circumstances, to satisfy the lien upon such goods and to remove them from the warehouse, and in the event of the failure of such person to satisfy the lien and to remove the goods within the time so specified, the warehouseman may sell the goods at public or private sale without posting notices. If the warehouseman after a reasonable effort is unable to sell such goods, he may dispose of them in any lawful manner, and shall incur no liability by reason thereof. The proceeds of any sale made under the terms of this section shall be disposed of in the same way as the proceeds of sales made under the terms of the next preceding section. 1171. Other methods of enforcing liens. — The remedy for enforcing a lien herein provided does not preclude any other remedies allowed by law for the enforcement of a lien against personal property nor bar the right to recover so much of the warehouseman's claim as shall not be paid by the proceeds of the sale of the property. 1172. Effect of sale. — After goods have been lawfully sold to satisfy a warehouseman's lien, or have been lawfully sold or disposed of because of their perishable or hazardous nature, the warehouse180

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THE CIVIL CODE [T. 3, § 1177 man shall not thereafter be liable for failure to deliver the goods to the depositor, or owner of the goods, or to a holder of the receipt given for the goods when they were deposited, even if such receipt be negotiable. 1173. Negotiation of negotiable receipts by delivery and by indorsement.— A negotiable receipt may be negotiated by delivery — (a) Where, by the terms of the receipt, the warehouseman undertakes to deliver the goods to the bearer ; or (b) Where, by the terms of the receipt, the warehouseman undertakes to deliver the goods to the order of a specified person, and such person or a subsequent indorsee of the receipt has indorsed it in blank or to bearer. Where, by the terms of a negotiable receipt, the goods are deliverable to bearer or where a negotiable receipt has been indorsed in blank or to bearer, any holder may indorse the same to himself or to any other specified person, and in such case the receipt shall thereafter be negotiated only by the indorsement of such indorsee. A negotiable receipt may be negotiated by the indorsement of the person to whose order the goods are, by the terms of the receipt, deliverable. Such indorsement may be in blank, to bearer or to a specified person. If indorsed to a specified person, it may be again negotiated by the indorsement of such person in blank, to bearer or to another specified person. Subsequent negotiation may be made in like manner. 1174. Transfer of receipts. — A receipt which is not in such form that it can be negotiated by delivery may be transferred by the holder by delivery to a purchaser or donee. A nonnegotiable receipt cannot be negotiated, and the indorsement of such a receipt gives the transferee no additional right. 1175. Who may negotiate a receipt. — A negotiable receipt may be negotiated — By any person in possession of the same, however such possession may have been acquired, if, by the terms of the receipt, the warehouseman undertakes to deliver the goods to the order of such person or if at the time of negotiation the receipt is in such form that it may be negotiated by delivery. 1176. Rights of person to whom a receipt has been negotiated. — A person to whom a negotiable receipt has been duly negotiated acquires thereby — (a) Such title to the goods as the person negotiating the receipt to him had or had ability to convey to a purchaser in good faith for value, and also such title to the goods as the depositor or person to whose order the goods were to be delivered by the terms of the receipt had or had ability to convey to a purchaser in good faith for value; and (b) The direct obligation of the warehouseman to hold possession of the goods for him according to the terms of the receipt as fully as if the warehouseman had contracted directly with him. 1177. Rights of person to whom a receipt has been transferred. — A person to whom a receipt has been transferred but not negotiated 181

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T. 3, § 1178] TEE CIVIL CODE acquires thereby, as against the transferor, the title to the goods, subject to the terms of any agreement with the transferor. If the receipt is nonnegotiable, such person also acquires the right to notify the warehouseman of the transfer to him of such receipt, and thereby to acquire the direct obligation of the warehouseman to hold possession of the goods for him according to the terms of the receipt. Prior to the notification of the warehouseman by the transferor or transferee of a nonnegotiable receipt, the title of the transferee to the goods and the right to acquire the obligation of the warehouseman may be defeated by the levy of an attachment or execution upon the goods by a creditor of the transferor, or by a notification to the warehouseman by the transferor, or a subsequent purchaser from the transferor of a subsequent sale of the goods by the transferor. 1178. Transfer of negotiable receipt without indorsement. — Where a negotiable receipt is transferred for value by delivery, and the indorsement of the transferor is essential for negotiation, the transferee acquires a right against the transferor to compel him to indorse the receipt, unless a contrary intention appears. The negotiation shall take effect as of the time when the indorsement is actually made. 1179. Warranties on sale of receipt. — A person who for value negotiates or transfers a receipt by indorsement or delivery, including one who assigns for value a claim secured by a receipt, unless a contrary intention appears, warrants — (a) That the receipt is genuine; (b) That he has a legal right to negotiate or transfer it; (c) That he has knowledge of no fact which would impair the validity or worth of the receipt ; and (d) That he has a right to transfer the title to the goods, and that the goods are merchantable or fit for a particular purpose whenever such warranties would have been implied, if the contract of the parties had been to transfer without a receipt the goods represented thereby. 1180. Indorser not a guarantor. — The indorsement of a receipt shall not make the indorser liable for any failure on the part of the warehouseman or previous indorsers of the receipt to fulfill their I'espective obligations. 1181. No warranty implied from accepting payment of a debt. — A mortgagee, pledgee, or holder for security of a receipt who in good faith demands or receives ]:)ayment of the debt for which such receipt is security, whether from a party to a draft drawn for such debt or from any other person, shall not by so doing be deemed to represent or to warrant the genuineness of such receipt or the quantity or quality of the goods therein described. 1182. When negotiation not impaired by fraud, mistake, or duress. — The validity of the negotiation of a receipt is not impaired by the fact that such negotiation was a breach of duty on the part of the person making the negotiation, or by the fact that the owner of the receipt was deprived of the possession of the same by loss, 182

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THE CIVIL CODE [T. 3, § 1187 theft, fraud, accident, mistake, duress, or conversion, if the person to whom the receipt was negotiated, or a person to whom the receipt was subsequently negotiated, paid value therefor, in good faith, without notice of the breach of duty, or loss, theft, fraud, accident, mistake, duress, or conversion. 1183. Subsequent negotiation. — Wliere a person having sold, mortgaged, or pledged goods which are in a warehouse and for which a negotiable receipt has been issued, or having sold, mortgaged, or pledged the negotiable receipt representing such goods, continues in possession of the negotiable receipt, the subsequent negotiation thereof by that person under any sale, or other disposition thereof to any person receiving the same in good faith, for value and without notice of the previous sale, mortgage, or pledge, shall have the same effect as if the first purchaser of the goods or receipt had expressly authorized the subsequent negotiation. 1184. Negotiation defeats vendor's lien. — Where a negotiable receipt has been issued for goods, no seller's lien or right of stoppage in transitu shall defeat the rights of any purchaser for value in good faith to whom such receipt has been negotiated, whether such negotiation be prior or subsequent to the notification to the warehouseman who issued such receipt of the seller's claim to a lien or right of stoppage in transitu. Nor shall the warehouseman be obliged to deliver or be justified in delivering the goods to an unpaid seller unless the receipt is first surrendered for cancelation. 1185. Issue of receipt for goods not received. — A warehouseman, or any officer, agent, or servant of a warehouseman, who issues or aids in issuing a receipt knowing that the goods for which such receipt is issued have not been actually received by such warehouseman, or are not under his actual control at the time of issuing such receipt, shall be guilty of a crime, and upon conviction sliall be punished for each offense by imprisonment in jail for not more than one year, or by a fine of not more than $1,000, or by both. 1186. Issue of receipt containing false statement.— A warehouseman, or any officer, agent, or servant of a warehouseman, who fraudulently issues or aids in fraudulently issuing a receipt for goods knowing that it contains any false statement, shall be guilty of a crime, and upon conviction shall be punished for each offense by imprisonment in jail for not more than one year, or by a fine of not more than $1,000, or by both. 1187. Issue of duplicate receipts not so marked. — A warehouseman, or any officer, agent, or servant of a warehouseman, who issues or aids in issuing a duplicate or additional negotiable receipt for goods knowing that a former negotiable receipt for the same goods or any part of them is outstanding and uncanceled, without plainly placing upon the face thereof the^ word " Duplicate," except in the case of a lost or destroyed receipt after proceedings as provided for in section 1151 of this title, shall be guilty of a crime, and upon J'.onviction shall be punished for each offense by imprisonment in jail for not more than one year, or by a fine of not more than $1,000, or by both. 183

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T. 3, § 1188] THE CIVIL CODE 1188. Issue for warehouseman's goods of receipts which do not state that fact. — Where there are deposited with or held by a warehouseman goods of which he is owner, either solely or jointly or in common with others, such warehouseman, or any of his officers, agents, or servants who, knowing this ownership, issues or aids in issuing a negotiable receipt for such goods which does not state such ownership, shall be guilty of a crime, and upon conviction shall be punished for each offense by imprisonment in jail for not more than one year, or by a fine of not more than $1,000, or by both. 1189. Delivery of goods without obtaining negotiable receipt. — A warehouseman, or any officer, agent, or servant of a warehouseman who delivers goods out of the possession of such warehouseman, knowing that a negotiable receipt the negotiation of which would transfer the right to the possession of such goods is outstanding and uncanceled, without obtaining the possession of such receipt at or before the time of such delivery, shall, except in the cases provided for in sections 1151 and 1172 of this title, be found guilty of a crime, and upon conviction shall be punished for each offense by imprisonment in jail for not more than one year, or by a fine of not more than $1,000, or by both. 1190. Negotiation of receipt for mortgaged goods. — Any person who deposits goods to which he has not title, or upon which there is a lien or mortgage, and who takes for such goods a negotiable receipt which he afterwards negotiates for value with intent to deceive and without disclosing his want of title or the existence of the lien or mortgage, shall be guilty of a crime, and upon conviction shall be punished for each offense by imprisonment in jail for not more than one year, or by a fine of not more than $1,000, or by both. 1191. When rules of common law still applicable. — In any case not provided for in this article, the rules of law and equity, including the law merchant, and in particular the rules relating to the law of principal and agent and to the effect of fraud, misrepresentation, duress, or coercion, mistake, or other invalidating cause, shall govern. 1192. Definitions. — (1) In this article, unless the context or subject matter otherwise requires — "Action " includes counterclaim, set-off, and suit in equity. " Delivery " means voluntary transfer of possession from one person to another. " Fungible goods " means goods of which any unit is, from its nature or by mercantile custom, treated as the equivalent of any other unit. " Goods " means chattels or merchandise in storage, or which has been or is about to be stored. " Holder " of a receipt means a person who has both actual possession of such receipt and a right of property therein. " Order " means an order by indorsement on the receipt. " Owner " does not include mortgagee or pledgee. " Person " includes a corporation or partnership or two or more persons having a joint or common interest. To " purchase " includes to take as mortgagee or as pledgee. " Purchaser " includes mortgagee and pledgee. 184

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THE CIVIL CODE [T. 3, § 1211 " Receipt " means a warehouse receipt. " Value " is any consideration sufficient to support a simple contract. An antecedent or preexisting obligation, whether for money or not, constitutes value where a receipt is taken either in satisfaction thereof or as security therefor. " Warehouseman " means a person lawfully engaged in the business of storing goods for profit. (2) A thing is done " in good faith " within the meaning of this article, when it is in fact done honestly, whether it be done negligently or not. 1193. Application to existing receipts. — The provisions of this article do not apply to receipts made and delivered prior to the taking effect of this article. ARTICLE 5— INNKEEPERS Sec. 1202. Unclaimed baggage may be sold at auction ; notice. Sec. 1201. Hotels have lien on baggage of guests ; may sell baggage ; residue ; baggage not belonging to guest. 1201. Hotels have lien on baggage of guests; may sell baggage; residue; baggage not belonging to guest. — Hotel, inn, boarding house, and lodging house keepers shall have a lien upon the baggage and other property belonging to or legally under the control of their guests, or boarders, or lodgers which may be in such hotel, inn, or boarding or lodging house for the proper charges due from such guests, or boarders, or lodgers, for their accommodation, board and Todging, and room rent, and such extras as are furnished at their request, and for all money paid for or advanced to such guests, or boarders or lodgers, and for the costs of enforcing such lien, with the right to the possession of such baggage and other property until such charges and moneys are paid. And unless such charges and moneys shall be paid when the same become due, said hotel, inn, boarding house, or lodging house keeper may sell said baggage and property under the conditions prescribed in sections 1169 to 1172 of this title relating to warehousemen. 1202. Unclaimed baggage may be sold at auction; notice. — Whenever any trunk, carpetbag, valise, box, bundle, or other baggage has heretofore come, or shall hereafter come into the possession of the keeper of any hotel, inn, boarding or lodging house, and has remained or shall remain unclaimed for a period of three months, such keeper shall proceed to sell the same under the conditions prescribed in sections 1169 to 1172 of this title relating to warehousemen. ARTICLE 6.— FINDING Sec. 1211. Obligation of finder. 1212. Finder of goods or money, or saving animals, duty of. 121.3. Claimant to prove ownership. 1214. Reward, etc., to finder. 1215. Finder may put thing found on storage. Sec. 1216. When finder may sell the thing found. 1217. How sale is to be made. 1218. Property vests in finder, when ; liability of finder to owner. 1219. Thing abandoned. 1211. Obligation of finder. — One who finds a thing lost is not bound to take charge of it, but if he does so he is thenceforward 93083 — 34-13 185

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T. 3, § 1212] THE CIVIL CODE a depositary for the owner, with the rights and obligations of a depositary for hire. Cboss-Refe3ience Depositary for hire, see sections 1132 et seq., of this title. 1212. Finder of goods or money, or saving animals, duty of. — If the finder of a thing, other than a domestic animal, takes possession thereof, or if a person saves any such animal from drowning or starvation, he must, within a reasonable time, inform the owner thereof, if known, and make restitution to him upon demand, without compensation, except a reasonable charge for saving and caring therefor. If the owner is not known to such finder or saver, he must, within five days, file an affidavit with the magistrate of the subdivision in which the finding or saving took place, particularly describing the property and the time, place, and circumstances under which it was found or saved. 1213. Claimant to prove ownership. — The finder of a thing may, in good faith, before giving it up, require reasonable proof of ownership from any person claiming it. 1214. Reward, etc., to finder. — The finder of a thing is entitled to compensation for all expenses necessarily incurred by him in its preservation, and for any other service necessarily performed by him about it, and to a reasonable reward for keeping it. 1215. Finder may put thing found on storage. — The finder of a thing may exonerate himself from liability at any time by placing it on storage with any responsible person of good character, at a reasonable expense. 1216. When finder may sell the thing found. — The finder of a thing may sell it, if it is a thing which is commonly the subject of sale, when the owner cannot, with reasonable diligence, be found, or, being found, refuses upon demand to pay the lawful charges of the finder, in the following cases — 1. When the thing is in danger of perishing or of losing the greater part of its value ; or 2. When the lawful charges of the finder amount to two thirds of its value. 1217. How sale is to be made. — A sale under the provisions of the next preceding section must be made in the same manner as the sale of a thing pledged. CEOSS-IIeFEBEN CE Sale of pledge, sec sections 2295 et seq., of this title. 1218. Property vests in finder, when; liability of finder to owner. — If no owner appears within six months after such finding or saving and oft'ers reasonable proof of his ownership, and compensates, or in good faith offers to compensate, the finder or saver for the expense necessarily incurred by him, then such property vests ifi such finder or saver. IS9

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THE CIVIL CODE [T. 3, SI 2.30 1219. Thing abandoned. — The provisions of this article have no application to thin<;s which have been intentionally abandoned by their owners. CHAPTER 38— DEPOSIT FOR EXCHANGE Section 1221. Relations of the parties. — A deposit for exchange transfers to the depositary the title to the thing deposited, and creates between him and the depositor the relation of debtor and creditor merely. CR08S-REa?ERBN CES Deposit for exchange, defined, see section 109G of this title. Loan I'or excliangc, see sections 1251 et seq., of (his litle. CHAPTER .39.— LOAN Art. Sec. 1. Loan for use 1231 2. Loan for exchaiijie 1251 Art. Sec. 3. Loan of money 1261 ARTICLE 1.— LOAN FOR USE Sec. 1231. 1232. 1233. 1:^34. 1235. Loan, what. Title to property lent. Care required of borrower. Same. Degree of skill. 1236. Borrower, when to repair injuries. 1237. Use of thing lent. Sec. 1238. Relencling forbidden. 1230. Borrower, when to bear expenses. 1240. Lender liable for defects. 1241. Lender may require return of thiuf lent. 1242. When returnable without demand. 1243. Place of return. Section 1231. Loan, what. — A loan for use is a contract by which one gives to another the temporary possession and use of personal property, and the latter agrees to return the same thing to him at a future time, without reward for its use. 1232. Title to property lent.— A loan for use does not transfer the title to the thing; and all its increase during the period of the loan belongs to the lender. Ceoss-Refebence Title to thing lent on loan for exchange, see section 1253 of this title. 1233. Care required of borrower. — A borrower for use must use great care for the preservation in safety and in good condition of the thing lent. 1234. Same. — One who borrows a living animal for use must treat it with great kindness and provide everything necessary and suitable for it. Cross-Refeeiencb Depositary of living animals for keeping, see section 1112 of this title. 1235. Degree of skill. — A borrower for use is bound to have and to exercise such skill in the care of the thing lent as he causes the lender to believe him to possess. 1236. Borrower, when to repair injuries. — A borrower for use must repair all deteriorations or injuries to the thing lent which are occasioned by his negligence, however slight. 187

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T. 3, § 1237] THE CIVIL CODE 1237. Use of thing lent.— The borrower of a thing for use may use it for such purposes only as the lender might reasonably anticipate at the time of lending. Ceoss-Rei'^erence Releuding forbidden, see section 1238 of this title. 1238. Relending forbidden.— The borrower of a thing for use must not part with it to a third person, without the consent of the lender. 1239. Borrower, when to bear expenses.— The borrower of a thing for use must bear all its expenses during the loan, except such as are necessarily incurred by him to preserve it from unexpected and unusual injury. For such expenses he is entitled to compensation from the lender, who may, however, exonerate himself bv surrendering the thing to the borrower. Cross-Refeeencb Liability for expenses, see section 1253 of this title. 1240. Lender liable for defects. — The lender of a thing for use must indemnify the borrower for damage caused by defects or vices in it, which he knew at the time of lending, and concealed from the borrower. Cross-Referen ces Indemnity to depositary, see section 1111 of this title. Loan for exchange, see sections 1251 and 1255 of this title. 1241. Lender may require return of thing lent. — The lender of a thing for use may at any time require its return, even though he lent it for a specified time or purpose. But if, on the faith of such an agreement, the borrower has made such arrangements that a return of the thing before the period agreed upon would cause him loss, exceeding the benefit derived by him from the loan, the lender must indemnify him for such loss, if he compels such return, the borrower not having in any manner violated his duty. 1242. When returnable without demand. — If a thing is lent for use for a specified time or purpose, it must be returned to the lender without demand, as soon as the time has expired, or the purpose has been accomplished. In other cases it need not be returned until demanded. 1243. Place of return. — The borrower of a thing for use must return it to the lender, at the place contemplated by the parties at the time of lending; or if no particular place was so contemplated by them, then at the place where it was at the time. ARTICLE 2.— LOAN FOR EXCHANGE Soc. 12.51. Loan for exchange, what. 1252. Same. 1253. Title to property lent. Sec. 1254. Contract cannot be modified by lender. 1255. Certain sections applicable. 1251. Loan for exchange, what. — A loan for exchange is a contract by which one delivers personal property to another, and the 188

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TBB CIVIL CODE [T. 3. § 1264 latter agrees to return to the lender a similar thing at a future time, without reward for its use. Ceoss-Refebencb Loan of money as a loan for exchange, see section 1261 of this title. 1252. Same. — A loan, which the borrower is allowed by the lender to treat as a loan for use, or for exchange, at his option, is subject to all the provisions of this article. 1253. Title to property lent. — By a loan for exchange the title to the thing lent is transferred to the borrower, and he must bear all its expenses, and is entitled to all its increase. Ceoss-Refeeences Liability for expenses, see section 1239 of this title. Title to property lent, see section 1232 of this title. 1254. Contract cannot be modified by lender. — A lender for exchange cannot require the borrower to fulfill his obligations at a time, or in a manner, different from that which was originally agreed upon. 1255. Certain sections applicable. — Sections 1240, 1242, and 1243 of this title apply to a loan for exchange. ARTICLE 3.— LOAN OF MONEY Sec. 1261. Loan of money, defined. 1262. Loan to be repaid in current money. 1263. Loan presumed to be on interest. 1264. Interest, what. 1265. Annual rate. Sec. 1266. Legal interest. 1267. Usurious contracts ; principal only, recoverable. 1268. Recovery of usurious interest paid. 1269. Evidence of usury. 1261. Loan of money, defined. — A loan of money is a contract by which one delivers a sum of money to another, and the latter agrees to return at a future time a sum equivalent to that which he borrowed. A loan for mere use is governed by the article on loan for use. Ceoss-Refebence Interest, see sections 1263 et seq., of this title. 1262. Loan to be repaid in current money. — A borrower of money, unless there is an express contract to the contrary, must pay the amount due in such money as is current at the time when the loan becomes due, whether such money is worth more or less than the actual money lent. 1263. Loan presumed to be on interest. — Whenever a loan of money is made, it is presumed to be made upon interest, unless it is otherwise expressly stipulated at the time in writing. Ceoss-Refeeenob Tender of performance stops interest, see section 750 of this title. 1264. Interest, what. — Interest is the compensation allowed by law or fixed by the parties for the use, or forebearance, or detention of money. 189

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T. 3, § 1265] THE CIVIL CODE Cboss-Refkkences Interest as damages, see sections 2631 et seq., of this title. Interest in actions ex delicto, see section 2032 ot tliis title. Legacies, interest on. see section 6-;i of tins title. Liability of trustee for interest, see sections IHoO and 1565 of this title. Si*eciul partner may receive interest, see section 1826 of this title. Claims against decedent's estate interest on, see title 4, sections 1476 and 1591. P^secutor chargeable for interest arising out of estate, see title 4, .section 15U2. 1265. Annual rate. — When a rate of interest is prescribed by a law or contract, without specifying the period of time by which such rate is to be calculated, it is to be deemed an annual rate. Ceoss-Refeeenoes Interest as damages, see sections 2631 et seq., of tliis title. Rate of interest after breach of contract, see section 2633 of this title. 1266. Legal interest. — No rate of interest shall be allowed in excess of 6 per centum per annum upon any contract for the use or detention of money, unless the same is in writing and the interest agreed upon must not exceed 12 per centum per annum. 1267. Usurious contracts; principal only, recoverable. — All contracts whatsoever which may in any wa}'^, directly or indirectly, violate the next preceding section by stipulating for a greater rate of interest than 12 per centum per annum, shall be void and of no effect for the amount or value of the interest only; JDiit the principal sum of money or value of the contract may be received and recovered. 1268. Recovery of usurious interest paid. — When the interest received or collected for the use or detention of money exceeds the rate of 12 per centum per annum, it shall be deemed to be usurious, and the person or persons paying the same, or their legal representatives, may recover from the person, firm, or corporation receiving such interest, the amount of the interest so received or collected, in any court of competent jurisdiclion, witliin two years from the date of the payment of such interest. 1269. Evidence of usury. — No evidence of usury shall be received on the trial of any case unless the same shall be pleaded and verified by the affidavit of the party wi.shing to avail himself of such defense. CHAPTER 40.— HIRING Sec. 1271. ITiriiif,', what. \'2~'l. I'loilucts of thing. 1273. Quiet posscssiun. 1274. Dcsrt'c of care, etc., on part of hirer. 1275. Must repair injuries, etc. 1276. Tliins let for a particular purpose. 1277. When letter may terminate the hiring. 1278. Hirer may terminate the hiring, when. Sec. 1270. Wlion hiring terminates. 1280. When terminated hy death, etc., of party. 12S1. Apportionment of hire. 12SL'. Obliuations of letter of personal property. 12.s:i. Ordinary expen.ses. 12S-J. E.xtraordiiiarv expenses. 1285. Return of thing hired. Section 1271. Hiring, what. — Hiring is a contract by which one gives to another the temporary possession and use of property, other 190

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THE CIVIL CODE [T. 3, § 1278 than money, for reward, and the latter agrees to return the same to the former at a future time. Ceoss-Reference Hiring personalty, see sections 1282 et seq., of this title. 1272. Products of thing. — The products of a thing hired, during the hiring, belong to the hirer. 1273. Quiet possession. — An agreement to let upon hire binds the letter to secure to the hirer the quiet possession of the thing hired during the term of the hiring, against all persons lawfully claiming the same. Cross-Reifeben'ces Duty of letter of personalty likewise, section 12S2 of this title. Termination of hiring for want of quiet enjoyment, see section 1278 of this title. 1274. Degree of care, etc., on part of hirer. — The hirer of a thing must use ordinary care for its preservation in safety and in good condition. Cross-Reiference Care required of deposit.'iry for hire, see section 1132 of this title. 1275. Must repair injuries, etc. — The hirer of a thing must repair all deteriorations or injuries thereto occasioned by his want of ordinary care. Cross-Refekences Duty of letter to repair, see section 1282 of this title. Hirer may make repairs and recover from letter when, see section 1284 of this title. Termination of hiring where hirer does not make repairs, see section 1277 of this title. 1276. Thing let for a particular purpose. — When a thing is let for a particular purpose the hirer must not use it for any other purpose ; and if he does, he is liable to the letter for all damages resulting from such use, or the letter may treat the contract as thereby rescinded. Cross-Reference Right to terminate hiring, see section 1277 of this title. 1277. When letter may terminate the hiring.— The letter of a thing may terminate the hiring and reclaim the thing before the end of the term agreed upon : 1. l^Tien the hirer uses or permits a use of the thing hired in a manner contrary to the agreement of the parties ; or 2. When the hirer does not, within a reasonable time after request, make such repairs as he is boimd to make. Cross-Reiference Termination of hiring, see section 1276 of this title. 1278. Hirer may terminate the hiring, when. — The hirer of a thing may terminate the hiring before the end of the term agreed upon: 191

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T. 3, § 1279] THE CIVIL CODE 1. When the letter does not, within a reasonable time after request, fulfill his obligations, if any, as to placing and securing the hirer in the quiet possession of the thing hired, or putting it into good condition, or repairing; or 2. When the greater part of the thing hired, or that part which was and which the letter had at the time of the hiring reason to believe was the material inducement to the hirer to enter into the contract, perishes from any other cause than the want of ordinary care of the hirer. Cross-References Repair of premises, see section 1282 of this title. Right of hirer to quiet enjoyment, see section 1273 of this title. 1279. When hiring terminates. — The hiring of a thing terminates : 1. At the end of the term agreed upon ; 2. By the mutual consent of the parties ; 3. By the hirer acquiring a title to the thing hired superior to that of the letter; or 4. By the destruction of the thing hired. 1280. When terminated by death, etc., of party. — If the hiring of a thing is terminable at the pleasure of one of the parties, it is terminated by notice to the other of his death or incapacity to contract. In other cases it is not terminated thereby. 1281. Apportionment of hire. — When the hiring of a thing is terminated before the time originally agreed upon, the hirer must pay the due proportion of the hire for such use as he has actually made of the thing, unless such use is merely nominal and of no benefit to him. ' Ceoss-Referencb For the compensation to which a depositary for hire is entitled upon a termination of the deposit, see sections 1133 to 1135 of this title. 1282. Obligations of letter of personal property. — One who lets personal property must deliver it to the hirer, secure his quiet enjoyment thereof against all lawful claimants, put it into a condition fit for the purpose for which he lets it, and repair all deteriorations thereof not occasioned by the fault of the hirer and not the natural result of its use. CbOS 8-R EIFEBEN CES Quiet enjoyment, see sections 1273 and 3278 of this title. Repair of premises, see sections 1275 and 1278 of this title. 1283. Ordinary expenses. — A hirer of personal property must bear all such expenses concerning it as might naturally be foreseen to attend it during its use by him. All other expenses must be borne by the letter. 1284. Extraordinary expenses. — If a letter failed to fulfill his obligations, as prescribed by section 1282 of this title, the hirer, after giving him notice to do so, if such notice can conveniently be given, 198

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THE CIVIL CODE [T. 3, § 1312 may expend any reasonable amount necessary to make good the letter's default, and may recover such amount from him. 1285. Return of thing hired. — At the expiration of the term for which personal property is hired, the hirer must return it to the letter at the place contemplated by the parties at the time of hiring; or, if no particular place was so contemplated by them, at the place at which it was at that time. CHAPTER 41.— SERVICE WITH EMPLOYMENT Art. Sec. 1. Application and scope of chapters 41 to 43 of this title 1291 2. Definition of employment 1301 Art. Sec. 3. Obligations of employer 1311 4. Obligations of employee 1321 5. Termination of employment 1341 ARTICLE 1.— APPLICATION AND SCOPE OF CHAPTERS 41 TO 43 OF THIS TITLE Sec. 1291. No application to Canal or Railroad employees. Sec. 1292. Scope of chapter. 1313. Employer to indemnify for his own negligence. Section 1291. No application to Canal or Railroad employees. — This chapter and chapters 42 and 43 of this title shall have no application to the United States Government, or the Panama Railroad Company, or to their employees as concerns such employment. 1292. Scope of chapter. — The scope of this chapter is not confined to servants, but includes factors, brokers, carriers, agents, and all similar classes of persons. ARTICLE 2.— DEFINITION OF EMPLOYMENT 1301. Einployment, what.— The contract of employment is a contract by which one, who is called the employer, engages another, who is called the employee, to do something for the benefit of the employer or of a third person. ARTICLE 3.— OBLIGATIONS OF EMPLOYER Sec. Sec. 1311. When employer must indemnify employee. 1312. When employer not bound to indemnify employee. 1311. When employer must indemnify employee. — An employer must indemnify his employee, except as prescribed in the section next following, for all that he necessarily expends or loses in direct consequence of the discharge of his duties as such, or of his obedience to the directions of the employer, even though unlawful, unless the employee, at the time of obeying such directions, believed them to be unlawful. 1312. When employer not bound to indemnify employee.— An employer is not bound to indemnify his employee for losses suffered by the latter in consequence of the ordinary risks of the business in which he is employed nor in consequence of the negligence of another person employed by the same employer in the same general business, unless the negligence causing the injury was committed in the performance of a duty the employer owes by law to the employee, or unless the employer has neglected to use ordinary care 193

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T. 3, § 1313] THE CIVIL CODE in the selection of the culpable employee: Provided^ nevertheless^ That the employer shall be liable for such injury when the same results from the wrongful act, neglect, or defraud of any agent or officer of such employer, superior to the employee injured, or of a person employed by such employer having the right to control or direct the services of such employee injured, and also when such injury results from the wrongful act, neglect, or default of a coemployee engaged in another department of labor from that of the employee injured, or employed upon a machine or other appliance other than that upon which the employee injured is employed. Knowledge by an employee injured of the defective or unsafe character or condition of any machinery, ways, appliances or structures of such emploj'er shall not be a bar to recovery for any injury or death caused thereby, unless it shall also appear that such employee fully understood, comprehended and appreciated the dangers incident to the use of such defective machinery, ways, appliances or structures, and thereafter consented to use the same, or continued in the use thereof. Any contract or agreement, express or implied, made by any such employee to waive the benefits of this section, or any part thereof, shall be null and void, and this section shall not be construed to deprive any such employee or his personal representative of any right or remedy to which he is now entitled under the laws of the Canal Zone. The rules and principles of law as to contributory negligence which apply to other cases shall apply to cases arising under this section, except insofar as the same are herein modified or changed. 1313. Employer to indemnify for his own negligence. — An employer must in all cases indemnify his emploj^ee for losses caused by the former's want of ordinary care. ARTICLE 4.— OBLIGATIONS OF EMPLOYEE Sec. 1321. Duties of gratuitous employee. 1322. Same. 1323. Same. 1324. Duties of employee for reward. 1325. Duties of employee for liis benefit. 1326. Employee must obey employer. 1327. Employee to conform to usage. 1328. Degree of skill required. Sec. 1329. Must use what skill he has. 1330. What belongs to employer. 1331. Duty to account. 1332. Employee not bound to deliver without demand. 1333. Preference to be given to employers. 1334. Responsibility for negligence. 1335. Surviving_ employee. 1336. Confidential employment. 1321. Duties of gratuitous employee. — One who, without consideration, undertakes to do a service for another, is not bound to perform the same, but if he actually enters upon its performance, he must use at least slight care and diligence therein. 1322. Same. — One who, by his own special request, induces another to intrust him with the performance of a service, must perform the same fully. In other cases, one who undertakes a gratuitous service may relinquish it at any time. 1323. Same. — A gratuitous employee, who accepts a written power of attorney, must act under it so long as it remains in force, or until he gives notice to his employer that he will not do so. 194

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THE CIVIL CODE [T. 3, § 1334 1324. Duties of employee for reward. — One who, for a good consideration, agrees to serve another, must perform the service, and must use ordinary care and diligence therein, so long as he is thus emplo3'ed. 1325. Duties of employee for his own benefit. — One who is employed at his own ro(iuest to (]o that wliich is more for his own advantage than for that of his eujployer, must use great care and diligence therein to protect the interest of the latter. 1326. Employee must obey employer. — An employee must substantially comply with all the directions of his employer concerning the service on which he is engaged, except where such obedience is impossible or unlawful, or would impose new and unreasonable burdens upon the employee. 1327. Employee to conform to usage. — An employee must perform his service in conformity to the usage of the place of performance, unless otherwise directed by his employer, or, unless it is impracticable, or manifestly injurious to his employer to do so. 1328. Degree of skill required. — An employee is bound to exercise a reasonable degree of skill, unless his employer has notice, before employing him, of his want of skill. 1329. Must use what skill he has. — An employee is always bound to use such skill as he possesses, so far as the same is required, for the service specified. 1330. What belongs to employer. — Everything which an employee acquires by virtue of his employment, except the conq)ensation, if any, which is due to him from his employer, belongs to the latter, whether acquired lawfully or unlawfully, or during or after the expiration of the term of his employment. 1331. Duty to account. — An employee must, on demand, render to his employer just accounts of all his transactions in the course of his service, as often as may be reasonable, and must, without demand, give prompt notice to his emploj^er of everything which he receives for his account. 1332. Employee not bound to deliver without demand. — An employee who receives anything on account of his employer, in any capacity other tlian that of a mere servant, is not bound to deliver it to him until demanded, and is not at liberty to send it to him from a distance, without demand, in any mode involving greater risk than its retention by the employee himself. 1333. Preference to be given to employers. — An employee who has any business to transact on his own account, similar to that intrusted to him by his employer, must always give the latter the preference. 1334. Responsibility for negligence. — An employee who is guilty of a culpable degree of negligence is liable to his em])loyer for the damage thereby caused to the latter; and the employer is liable to him, if the service is not gratuitous, for the value of such services only as are properly rendered. 195

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T. 3, § 1335] THE CIVIL CODE 1335. Surviving employee. — Where service is to be rendered by two or more persons jointly, and one of them dies, the survivor must act alone, if the service to be rendered is such as he can rightly perform without the aid of the deceased person, but not otherwise. 1336. Confidential employment. — The obligations peculiar to confidential employments are defined in chapters 49 and 60 of this title on trusts. ARTICLE 5.— TERMINATION OF EMPLOYMENT Sec. 1345. Termination by employer. 1346. Termination by employee. 1347. Compensation due on dismissal. 1348. Compensation due on quitting. Sec. 1341. Employment, how terminated. 1342. Same. 1343. Continuance of service in certain cases. 1344. Terms of employment. 1341. Employment, how terminated. — Every employment in which the power of the employee is not coupled with an interest in its subject is terminated by notice to him of: 1. The death of the employer ; or 2. His legal incapacity to contract. 1342. Same. — Every employment is terminated: 1. By the expiration of its appointed term ; 2. By the extinction of its subject; 3. By the death of the employee ; or 4. By his legal incapacity to act as such. 1343. Continuance of service in certain cases. — An employee, unless the term of his service has expired, or unless he has a right to discontinue it at any time without notice, must continue his service after notice of the death or incapacity of his employer, so far as is necessary to protect from serious injury the interests of the employer's successor in interest, until a reasonable time after notice of the facts has been communicated to such successor. The successor must compensate the employee for such service according to the terms of the contract of employment. 1344. Terms of employment. — An employment, having no specified terms, may be terminated at the will of either party, on notice to the other. Employment for a specified term shall mean an employment for a period greater than one month. 1345. Termination by employer. — An employment, for a specified term, may be terminated at any time by the employer, in case of any willful breach of duty by the employee in the course of his employment, or in case of his habitual neglect of his duty or continued incapacity to perform it. 1346. Termination by employee. — An employment, for a specified term, may be terminated by the employee at any time, in case of any willful or permanent breach of the obligations of his employer to him as an employee. 1347. Compensation due on dismissal. — An employee who is not employed for a specified term, dismissed by his employer, is entitled to compensation for services rendered up to the time of such dismissal. 196

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THE CIVIL CODE [T. 3, § 1306 1348. Compensation due on quitting. — An employee who is not employed for a specified term and who quits the service of his employer, is entitled to compensation for services rendered up to the time of such quitting. CHAPTER 42.— PARTICULAR EMPLOYMENTS Art. Sec. 1. Master and servant 1351 2. Agents 1361 Alt. Sec. 3. Factors 1371 CROSS-REP'EmENCE This chapter not applicable to Canal or Railroad employees, see section 1291 of this title. ARTICLE 1.— MASTER AND SERVANT Sec. 1351. Servant, what. 1352. Term of hiring 1353. Same. Sec. 1354. Renewal of hiring. 1355. Servant to pay over without demand. 135G. When servant may be discharged. Section 1351. Servant, what. — A servant is one who is employed to render personal service to his employer, otherwise than in the pursuit of an independent calling, and who in such service remains entirely under the control and direction of the latter, who is called his master. Cross-Referbnces Employer and employee, generally, see sections 1301 et seq., of this title. Obligations of employee, see sections 1321 et seq., of this title. Obligations of employer, see sections 1311 et seq., of this title. 1352. Term of hiring. — A servant is presumed to have been hired for such length of time as the parties adopt for the estimation of wages. A hiring at a yearly rate is presumed to be for one year; a hiring at a daily rate, for one day; a hiring by piecework, for no specified term. 1353. Same. — In the absence of any agreement or custom as to the term of service, the time of payment, or rate or value of wages, a servant is presumed to be hired by the month, at a monthly rate of reasonable wages, to be paid when" the service is performed. 1354. Renewal of hiring.— Where, after the expiration of an agreement respecting the wages and the term of service, the parties continue the relation of master and servant, they are presumed to have renewed the agreement for the same wages and term of service. 1355. Servant to pay over without demand.— A servant must deliver to his master, as soon as with reasonable diligence he can find him, everything that he receives for his account, without demand; but he is not bound, without orders from his master, to send anything to him through another person. 1356. When servant may be discharged.— A master may discharge any servant, other than an apprentice, whether engaged for a fixed term or not : 1. If he is guilty of misconduct in the course of his service, or of gross immorality, though unconnected with the same ; or 197

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T. 3, § 1361] THE CIVIL CODE 2. If, being employed about the person of the master, or in a confidential position, the master discovers that he has been guilty of misconduct, before or after the commencement of his service, of such a nature that, if the master had known or contemplated it, he would not have so employed him. ARTICLE 2.— AGENTS Sec. 1361. Agent to conform to his authority. i;i62. Must lieep his principal informed. Sec. 3 363. CoIIectins asent. 1364. Responsibility of subagcnt. 1361. Agent to conform to his authority. — An agent must not exceed the limits of his actual authority, as defined by chapter 51 of this title on agency. Cross-Refebencbs Actual authority, see section 1633 of this title. Agency, see sections 1611 et seq., of this title. Ostensible authority, see section 1634 of this title. 1362. Must keep his principal informed. — An agent must use ordinary diligence to keep his principal informed of his acts in the course of the agency. 1363. Collecting agent. — An agent employed to collect a negotiable instrument must collect it promptly, and take all measures necessary to charge the parties thereto, in case of its dishonor; and, if it is a bill of exchange, must present it for acceptance with reasonable diligence. 1364. Responsibility of subagent. — A mere agent of an agent is not responsible as such to the principal of the latter. ARTICLE 3.— FACTORS Sec. 1371. Factor, what. 1372. Obedience required from factor. 1373. Sales on credit. Sec. 1374. uii(h' niaranty Liability of fac(or ciimmissioii. 1375. Fi'ctor ciinnot relieve himself from liability. 1371. Factor, what. — A factor is an agent who, in the ]:)ursuit of an independent calling, is employed by another to sell property for him, and is vested by the latter with the possession or control of the property, or authorized to receive payment therefor from the imrchaser. ^, CEOSS-REI'EltElNCES Factor, what, see section 1701 of this title. Factor's authority, see sections 1702 and 1703 of this tide. Factor's lien, see section 2314 of this title. Factor's power to pledge principal's goods, see sections 1702 and 2280 of this title. 1372. Obedience required from factor. — A factor must obey the instructions of his principal to the same extent as any other employee, notwith.'danding any advances he may have made to his principal upon the property consigned to him, except that if the principal forbids him to sell at the market price, he may, nevertheless, sell for 108

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THE CIVIL CODE [T. 3, § 1391 his reimbursement, after giving to his principal reasonable notice of his intention to do so, and of tlie time and place of sale, and proceeding in all respects as a pledgee. 1373. Sales on credit. — A factor may sell property consigned to him on such credit as is usual; but, having once agreed with the purchaser upon the term of credit, may not extend it. Cboss-Refebence Authority to sell on credit, see section 1702 of this title. 1374. Liability of factor under guaranty commission. — A factor who charges his principal with a guaranty commission upon a sale, thereby assumes absolutely to pay the price when it falls due, as if it were a debt of his own, and not as a mere guarantor for the purchaser ; but he does not thereby assume any additional responsibility for the safety of his remittance of the proceeds. 1375. Factor cannot relieve himself from liability. — A factor who receives property for sale, under a general agreement or usage to guarantee the sales or the remittance of the proceeds, cannot relieve himself from responsibility therefor without the consent of his principal. CHAPTER 43.— SERVICE WITHOUT EMPLOYMENT Section 1381. — Voluntary interference with property. — One who officiously, and without the consent of the real or apparent owner of a thing, takes it into his possession for the purpose of rendering a service about it, must complete such service, and use ordinary care, diligence, and reasonable skill about the same. He is not entitled to any compensation for his service or expenses, except that he may deduct actual and necessary expenses incurred by him about such service from any profits which his service has caused the thing to acquire for its owner, and must account to the owner for the residue. Ckoss-Refeeence Gratuitous carriers, see section 1394 of this title. CHAPTER 44.— CARRIAGE IN GENERAL Sec. 1391. Contract of carriage. 1392. Different kinds of carriers. 1393. Application of chapters 44 to 48 of this title to marine carriers. Sec. 1394. Obligations of gratuitous carriers. 1395. Obligations of gratuitous carrier who has begun to carry. Section 1391. Contract of carriage. — The contract of carriage is a contract for the conveyance of property, persons, or messages, from one place to another. Ceoss-Refeeences Carriage of messages, see section 1461 of this title. Carriage of persons, see sections 1401 et seq., of this title. Carriage of property, see sections 1421 et seq., of this title. Common carriers, defined, see section 1471 of this title. Gratuitous carriers of passengers, care required of, see sections 1394 and 1395 of this title. 199

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T. 3, § 1392] THE CIVIL CODE 1392. Different kinds of carriers.— Carriage is either: 1. Inland; or 2. Marine. 1393. Application of chapters 44 to 48 of this title to marine carriers. — This chapter and chapters 45 to 48 of this title, with the exception of section 1441 of this title, shall have no application to marine carriers. Marine carriers, within the meaning of this section, shall include carriers upon the ocean, upon arms of the sea, and those transiting the Canal from ocean to ocean. Ceoss-Refeeence Inland carriers of property, rights and duties of, see sections 1491 et seq., of tliis title. 1394. Obligations of gratuitous carriers. — Carriers without reward are subject to the same rules as employees without reward, except so far as is otherwise provided by this chapter and chapters 45 to 48 of this title. Ceos s-Refeeences Gratuitous carriers, see sections 1395, 1401, and 1431 of this title. Service without employment, see section 1381 of this title. 1395. Obligations of gratuitous carrier who has begun to carry. — A carrier without reward, who has begun to perform his undertaking, must complete it in like manner as if he had received a reward, unless he restores the person or thing carried to as favorable a position as before he commenced the carriage. Ceoss-Res'ebences Compare with section 1401 of this title. Gratuitous carriers, see sections 1394, 1401 and 1431 of this title. CHAPTER 45.— CARRIAGE OF PERSONS Art. Sec. I Art. Sec. 1. Gratuitous carriage of persons 1401 ' 2. Carriage for reward 1411 ARTICLE 1.— GRATUITOUS CARRIAGE OF PERSONS Section 1401. Degree of care required. — A carrier of persons without reward must use ordinary care and diligence for their safe carriage. Cboss-Reifebences Carriers of persons, generally, see sections 1481 et seq., of this title. Duty of gratuitous employee, generally, see sections 1321, 1322, and 1381 of this title. Gratuitous carriers, see sections 1394, 1395 and 1431 of this title. ARTICLE 2.— CARRIAGE FOR REWARD Sec. 1411. Gpnoral duties of carrier. 1412. Vehicles. 141.3. Not to overload his vehicle. Sec. 1414. Tr(>atment of pnsspngers. 1415. Rate of speed and delays. 1411. General duties of carrier. — A carrier of persons for reward must use the utmost care and diligence for their safe carriage, must 200

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THE CIVIL CODE [T. 3, § 1433 provide everything necessary for that purpose, and must exercise to that end a reasonable degree of skiU. Cboss-Refesenob Limiting liability by contract, see sections 1474 to 1476 of this title. 1412. Vehicles. — A carrier of persons for reward is bound to provide vehicles safe and fit for the purposes to which they are put, and is not excused for default in this respect by any degree of care. 1413. Not to overload his vehicle. — A carrier of persons for reward must not overcrowd or overload his vehicle. 1414. Treatment of passengers. — A carrier of persons for reward must give to passengers all such accommodations as are usual and reasonable, and must treat them with civility, and give them a reasonable degree of attention. 1415. Rate of speed and delays. — A carrier of persons for reward must travel at a reasonable rate of speed, and without any unreasonable delay, or deviation from his proper route. CHAPTER 46.— CARRIAGE OF PROPERTY Art. Sec. 1. Goneral definitions 1421 2. Obligations of carrier 1431 Art. Sec. .3. Bills of lading 1441 4. Freightage 1451 ARTICLE 1.— GENERAL DEFINITIONS Section 1421. Freight, consignor, and so forth, what. — Property carried is called freight; the reward, if any, to be paid for its carriage is called freightage ; the person who delivers the freight to the carrier is called the consignor; and the person to whom it is to be delivered is called the consignee. Cross-Res'erence Freightage, questions relating to, see section 1451 of this title. ARTICLE 2.— OBLIGATIONS OF CARRIER Sec. 1431. Care and diligence required of carriers. 1432. Carrier to obey directions. 1433. Conflict of orders. Sec. 1434. Delivery of freight. 1435. Notice when freight not delivered. 1436. When consignee does not accept. 1431. Care and diligence required of carriers. — A carrier of property for reward must use at least ordinary care and diligence in the performance of all his duties. A carrier without reward must use at least slight care and diligence. Cross-Refeeences Alteration of liability by agreement, see sections 1474 et seq., of this title. Gratuitous carriers, see sections 1394, 1395, and 1401 of this title. 1432. Carrier to obey directions. — A carrier must comply with the directions of the consignor or consignee to the same extent that an employee is bound to comply with those of his employer. 1433. Conflict of orders. — When the directions of a consignor and and consignee are conflicting, the carrier must comply with those of 93083—34-14 2m.

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T. 3, § 1434] THE CIVIL CODE the consignor in respect to all matters except the delivery of the freight, as to which he must comply with the directions of the consignee, unless the consignor has specially forbidden the carrier to receive orders from the consignee inconsistent with his own. 1434. Delivery of freight. — A carrier of property must deliver it to the consignee, at the place to which it is addressed, in the manner usual at that place. Ceoss-Refebencb Damages for carrier's breach of obligation to deliver, see section 2655 of this title. 1435. Notice when freight not delivered. — If, for any reason, a carrier does not deliver freight to the consignee or his agent personally, he must give notice to the consignee of its arrival, and keep the same in safety, upon his responsibility as a warehouseman, until the consignee has had a reasonable time to remove it. If the place of residence or business of the consignee be unknown to the carrier, he may give the notice by letter dropped in the nearest post otfice. Cross-Refeeence Damages for breach jof obligation to deliver, see sections 2G55 and 2656 of this title. 1436. When consignee does not accept. — If a consignee does not accept and remove freight within 72 hours after the carrier has fulfilled his obligation to deliver, or duly offered to fulfill the same, the rights and duties of the carrier shall thereafter be the same as those of a warehouseman as provided in sections 1141 to 1193 of this title. ARTICLE 3.— BILLS OF LADING 1441. Application of Federal Bill of Lading Act to shipments wholly within Canal Zone. — The Federal Bill of Lading Act (U.S. Code, title 49, sees. 81 to 124) is hereby made applicable to shipments wholly within the Canal Zone. Note. — The text of the act above referred to is shown in the appendix at page 999. ARTICLE 4.— FREIGHTAGE Sec. 1451. When freightage is to be paid. 1452. Consignor, when liable for freightage. 1453. Consignee, when liable. 1454. Natural increase of freight. 1455. Apportionment by contract. 1456. Same. Sec. 1457. Apportionment according to distance. 1458. Freight carried further than agreed, etc. 1459. Carrier's lien for froightage, services, and advances. 1451. When freightage is to be paid. — A carrier may require his freightage to be paid upon his receiving the freight ; but if he does not demand it then, he cannot until he is ready to deliver the freight to the consignee. Cross-Reference Freightage;, defined, see section 1421 of this title. 202

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THE CIVIL CODE [T. 3, § 1461 1452. Consignor, when liable for freightage. — The consignor of freight is presumed to be liable for the freightage, but if the contract between him and the carrier provides that the consignee shall pay it, and the carrier allows the consignee to take the freight, he cannot afterwards recover the freightage from the consignor. 1453. Consignee, when liable. — The consignee of freight is liable for the freight«ige, if he accepts the freight with notice of the intention of the consignor that he should pay it. 1454. Natural increase of freight. — No freightage can be charged upon the natural increase of freight. 1455. Apportionment by contract. — If freightage is apportioned by a bill of lading or other contract made between a consignor and carrier, the carrier is entitled to payment, according to the apporti(mment, for so much as he delivers. 1456. Same. — If a part of the freight is accepted by a consignee, without specific objection that the rest is not delivered, the freightage must be apportioned and paid as to that part, though not apportioned in the original contract. 1457. Apportionment according to distance. — >If a consignee voluntarily receives freight at a place short of the one appointed for deliver}', the carrier is entitled to a just proportion of the freightage, according to distance. If the carrier, being ready and willing, offers to complete the transit, he is entitled to the full freightage. If he does not thus offer completion, and the consignee receives the freight only from necessity, the carrier is not entitled to any freightage, 1458. Freight carried further than agreed, etc. — If freight is carried further, or more expeditiously, than was agreed upon by the parties, the carrier is not entitled to additional compensation, and cannot refuse to deliver it, on the demand of the consignee, at the place and time of its arrival. 1459. Carrier's lien for freightage, services, and advances. — A carrier has a lien for freightage and for services rendered at rccpiest of shipper or consignee in and about the transportation, care, and preservation of the property, and he also has a lien for money advanced at request of shipper or consignee to discharge a prior lien. His rights to such lien are regulated by chapters 62 to G5 of this title on liens: Provided., however.^ That such lion may be enforced in the manner provided by sections 1169 to 1172 of this title relating to warehousemen. Cbos s-Reference Liens, generally, see sections 2171 et seq., of this title. CHAPTER 47.— CARRIAGE OF MESSAGES Section 1461. Degree of care and diligence required. — A carrier of messages for reward must use great care and diligence in the transmission and delivery of messages. 2m

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T. 3, § 1471] THE CIVIL CODE CHAPTER 48.— COMMON CARRIERS Art. Sec. 1. Common carriers in general 1471 2. Common carriers of persons 1481 Art. 3. Common carriers of property Sec. 1491 ARTICLE 1.— COMMON CARRIERS IN GENERAL Sec. 1471. 1471i. 1473. 1474. Common carrier, wliat. Obligation to accept freight. Compensation. Obligations of carrier altered by agreement. only Sec. 1475. Certain agreements void. 1476. Effect of written contract. 1477. Loss of valuable letters. Section 1471. Common carrier, what. — Everyone who offers to the public to carry persons, property, or messages is a common carrier of whatever he thus offers to carry. CeOSS-RE3'ERENCE8 Carriage, in general, see sections 1391 et seq., of this title. Marine carriers, defined, see section 1393 of this title. Rights and liabilities of carriers ; see Carriers of persons, sections 1481 et seq., of this title. Carriers of property, sections 1491 et seq., of this title. 1472. Obligation to accept freight. — A common carrier must, if able to do so, accept and carry whatever is offered to him, at a reasonable time and place, of a kind that he undertakes or is accustomed to carry. Ceos s-Refeken ce Damage for failure to accept freight, see section 2654 of this title. 1473. Compensation. — A common carrier is entitled to a reasonable compensation and no more, which he may require to be paid in advance. If payment thereof is refused, he may refuse to carry. Cross-Refekencb Lien Tor freightage, services, and advances, see section 14.59 of this title. 1474. Obligations of carrier altered only by agreement. — The obligations of a common carrier cannot be limited by general notice on his part, but may be limited by special contract. Ckoss-References Compare with sections 1476 and 1494 of this title. Limiting liability by special contract, see section 1475 of this title. 1475. Certain agreements void. — A common carrier cannot be exonerated, by any agreement made in anticipation thereof, from liability for the gross negligence, fraud, or willful wrong of himself or his servants. Ceoss-Reference Contract exempting one from liability for negligent or unlawful acts, illegal, .see section 9.32 of this title. 1476. Effect of written contract. — A passenger, consignor, or consignee, by accepting a ticket, bill of lading, or written contract for carriage, with a knowledge of its terms, assents to the rate of hire. 204

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THE CIVIL CODE [T. 3, § 1485 the time, place, and manner of delivery therein stated; and also to the limitation stated therein upon the amount of the carrier's liability in case property carried in packages, trunks, or boxes, is lost or injured, when the value of such property is not named ; and also to the limitation stated therein to the carrier's liability for loss or injury to live animals carried. But his assent to any other modification of the carrier's obligations contained in such instrument can be manifested only by his signature to the same. 1477. Loss of valuable letters. — A common carrier is not responsible for loss or miscarriage of a letter, or package having the form of a letter, containing money or notes, bills of exchange, or other papers of value, unless he be informed at the time of its receipt of the value of its contents. Cross-references Consignor of valuables to declare their nature, see section 1494 of this title. Contract limiting loss where value not stated, see section 1476 of this title. ARTICLE 2.— COMMON CARRIERS OF PERSONS Sec. 1484. Ejection of passengers. 1485. Fare not payable after ejection. Sec. 14S1. Liability for luggage. 1482. Regulations for conduct of business. 1483. Fare, when payable. 1481. Liability for luggage. — The liability of a carrier for luggage received by him with a passenger is the same as that of a common carrier of property. Cross-Reference Liability of carriers, generally, see section 1491 of this title. 1482. Regulations for conduct of business. — A common carrier of persons may make rules for the conduct of his business, and may require passengers to conform to them, if they are lawful, public, uniform in their application, and reasonable. Ckoss-Reterence Ejection of passenger not conforming to regulations, see section 1484 of this title. 1483. Fare, when payable. — A common carrier may demand the fare of passengers, either at starting or at any subsequent time. 1484. Ejection of passengers. — ^A passenger who refuses to pay his fare or to conform to any lawful regulation of the carrier, may be ejected from the vehicle by the carrier. But this must be done with as little violence as possible, and at any usual stopping place or near some dwelling house. Cross-Referencb Power to make rules for regulation of business, see section 1482 of this title. 1485. Fare not payable after ejection. — After having ejected a passenger, a carrier has no right to require the payment of any part of his fare. 205

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T. 3, § 1491] TEE CIVIL CODE ARTICLE 3.— COMMON CARRIERS OF PROPERTY Sec. 1491. Liability of inland carriers for loss. 1492. When exemptions do not apply. 14!Ki. Liability for delay. 14'.i4. Consignor of valuables to declare their nature. Sec. 1495. Delivery of freight beyond usual route. 1496. Proof to be given in case of loss. 1497. Carrier's services, otlier than carriage and delivery. 1491. Liability of inland carriers for loss. — Unless the consignor accompanies the freiglit and retains exclusive control thereof, an inland common carrier of property is liable, from the time that he accepts until he relieves himself from liability pursuant to sections 1434 to 143G of this title, for the loss or injury thereof from any cause whatever, except — 1. An inherent defect, vice, or wealcness, or a spontaneous action, of the property itself; 2. The act of a public enemy of the United States ; 8. The act of the law ; or 4. Any irresistible superhuman cause. ; CK0SS-ReFB21ENCES Liability as warehnusciimn, see section 1435 of tliis title. Termination of liability, see sections 1434 to 1436 of this title. 1492. When exemptions do not apply. — A common carrier is liable, even in the cases excepted by the next preceding section, if his want of ordinary care exposes the property to the cause of the loss. 1493. Inability for delay. — A common carrier is liable for delay only when it is caused by his want of ordinary care and diligence. CkOSS-KeI'EIIKNCE Delay in c.iri'iaKe, liability fur, see sections 1415 and 2050 of this title. 1494. Consignor of valuables to declare their nature. — A common carrier of gold, silver, platinum, or precious stones, or of imitations thereof, in a manufactured or unmanufactured state; of time])ieces of any description; of negotiable paper or other valuable writings; of pictures, glass, or chinaware; of statuary, silk or laces; OY of plated ware of any kind, is not liable for more than $50 upon the loss or injury of any one package of such articles, unless he has notice, n])on his "receipt thereof, by mark upon the package or other,\ase, of the nature of the freight; nor is such carrier liable upon any package carried for more than the value of the articles named in the receipt or the bill of lading. Cboss-Refeirencbs Contract limiting loss where value not declared, see section 1476 of this title. Letters or packages containing valuables, liability for loss of, see section 1477 of this title. 1495. Delivery of freight beyond usual route.— If a common carrier accepts freight for a place beyond his usual route, he must, unless he stipulates otherwise, deliver it at the end of his route in that direction to some other competent carrier carrying to the place of address, or connect(Hl with t^iose who thus carry, and his liability ceases upon making such delivery. 206

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THE CIVIL CODE [T. 3, § 1505 Ceoss-Re^'Ebenob Delivery, in general, see section 1434 of this title. 1496. Proof to be given in case of loss. — If freight addressed to a place beyond the usual route of the common carrier who first received it is lost or injured, he must, within a reasonable time after demand, give satisfactory proof to the consignor that the loss or injury did not occur while it was in his charge, or he will be himself liable therefor. 1497. Carrier's services, other than carriage and delivery.— In respect to any service rendered by a common carrier about freight, other than its carriage and delivery, his rights and obligations ardefined by the chapters on deposit and the chapters on service. Ceoss-References Deposit, see sections 1091 et seq., of this title. Service, see sections 1301 et seq., of this title. CHAPTER 49.— TRUSTS IN GENERAL Art. Sec. 1. Nature and creation of a trust 1501 2. Obligations of trustees 1521 Art. Sec. 3. Obligations of third persons 1541 ARTICLE I.— NATURE AND CREATION OF A TRUST Sec. 1501. Trusts classified. 1502. Voluntary trust, what. 1503. Involuntary trust, what. 1504. Parties to the contract. 1505. What constitutes one a trustee. 1506. For what purpose a trust may be created. Sec. 1507. Voluntary trust, how created as to trustor. 1508. HdW created as to trustee. 1509. Involuntary trustee, who is. 1510. Involuntary trust resulting fraud, mistake, etc. from Section 1501. Trusts classified. — A trust is either — 1. Voluntary; or 2. Involuntary. 1502. Voluntary trust, what. — A voluntary trust is an obligation arising out of a personal confidence reposed in, and voluntarily accepted by, one for the benefit of another. 1503. Involuntary trust, what. — An involuntary trust is one which is created by operation of law. Ckoss-Refebence Involuntary trust, see sections 1509, 1510 and 1541 of this title. 1504. Parties to the contract. — The person whose confidence creates a trust is called the trustor; the person in whom the confidence is reposed is called the trustee; and the person for whose benefit the trust is created is called the beneficiary. 1505. What constitutes one a trustee. — Everyone who voluntarily assumes a relation of personal confidence with another is deemed a trustee, within the meaning of this chapter, not only as to the person who reposes such confidence, but also as to all persons of whose affairs he thus acquires information which was given to such person in the 207

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T. 3, § 1506] THE CIVIL CODE like confidence, or over whose affairs he, by such confidence, obtains any control. 1506. For what purpose a trust may be created. — A trust may be created for any purpose for which a contract may lawfully be made, except as otherwise prescribed by the chapter on transfer of property. 1507. Voluntary trust, how created as to trustor. — A voluntary trust is created, as to the trustor and beneficiary, by any words or acts of the trustor, indicating with reasonable certainty — 1. An intention on the part of the trustor to create a trust; and 2. The subject, purpose, and beneficiary of the trust. Ceoss-Refeeencbjs Creation of involuntary trust, see sections 1509 and 1510 of this title. Trusts for benefit of third persons, see section 1552 of this title. 1508. How created as to trustee. — A voluntary trust is created, as to the trustee, by any words or acts of his indicating, with reasonable certainty — 1. His acceptance of the trust, or his acknowledgment, made upon suflBcient consideration, of its existence; and 2. The subject, purpose, and beneficiary of the trust. 1509. Involuntary trustee, who is. — One who wrongfully detains a thing is an involuntary trustee thereof, for the benefit of the owner. Cross-Reifeeences Compensation of involuntary trustee, see sections 1582 and 1583 of this title. Involuntary trustee, who is, see sections 1503 and 1541 of this title. 1510. Involuntary trust resulting from fraud, mistake, etc. — One who gains a thing by fraud, accident, mistake, undue influence, the violation of a trust, or other wrongful act, is, unless he has some other and better right thereto, an involuntary trustee of the thing gained, for the benefit of the person who would otherwise have had it. Cross-references Compensation of involuntary trustee, see sections 1582 and 1583 of this title. Involuntary trustee, who is, see sections 1503, 1509 and 1541 of this title. ARTICLE 2.— OBLIGATIONS OF TRUSTEES Sec. 1521. Trustee's obligation to good faith. 1522. Trustee not to use property for Ills own profit. 1523. Certain transactions forbidden. 1524. Trustee's influence not be used for his advantage. 1525. Trustee not to assume a trust adverso to interest of beneficiary. 1526. To disclose adverse interest. Sec. 1527. Trustee guilty of fraud, when. 1528. Presumption asuinst trustees. 1529. Trustee mingling trust property with his own. 1530. Measure of liability for breach of trust. 1531. Same. 1532. Cotrustoos, liow far liable for each other. 1521. Trustee's obligation to good faith. — In all matters connected with his trust, a trustee is bound to act in the highest good faith toward his beneficiary, and may not obtain any advantage therein over the latter by the slightest misrepresentation, concealment, threat, or adverse pressure of any kind. 208

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THE CIVIL CODE [T. 3, § 1528 1522. Trustee not to use property for his own profit. — A trustee may not use or deal with the trust property for his own profit, or for any other purpose unconnected with the trust, in any manner. Ceoss-Reterences Presumption of undue influence on transactions between the trustee and beneficiary, see section ]528 of this title. Purchaser from trustee charged with the trust when, see section 1541 of this title. Violations of duties by trustee are fraudulent, see section 1527 of this title. 1523. Certain transactions forbidden. — Neither a trustee nor any of his agents may take part in any transaction concerning the trust in which he or anyone for Avhom he acts as agent has an interest, present or contingent, adverse to that of his beneficiary, except as follows : 1. When the beneficiary, having capacity to contract, with a full knowledge of the motives of the trustee, and of all other facts concerning the transaction which might affect his own decision, and without the use of any influence on the part of the trustee, permit^ him to do so ; 2. When the beneficiary not having capacity to contract, th* proper court, upon the like information of the facts, grants the lik* permission; or 3. When some of the beneficiaries having capacity to contract, and some not having it, the former grant permission for themselves, and the proper court for the latter, in the manner above prescribed. Cross-Refeeences Duty to inform beneficiary of adverse interest, see section 1526 of this title. Undertaking inconsistent trust, see section 1525 of this title. 1524. Trustee's influence not to be used for his advantage. — A trustee may not use the influence which his position gives him to obtain any advantage from his beneficiary. 1525. Trustee not to assume a trust adverse to interest of beneficiary. — No trustee, so long as he remains in the trust, may undertake another trust adverse in its nature to the interest of his beneficiary in the subject of the trust, without the consent of the latter. Ckoss-Refeubnces Compare section 1523 of this title. Removal of trustee, see sections 1594 and 1595 of this title. Trustee's duty to disclose adverse interest, see section 1526 of this title. 1526. To disclose adverse interest. — If a trustee acquires any interest, or becomes charged with any duty, adverse to the interest of his beneficiary in the subject of the trust, he must immediately inform the latter thereof, and may be at once removed. 1527. Trustee guilty of fraud, when. — Every violation of the provisions of sections 1521 to 1526 of this title is a fraud against the beneficiary of a trust. 1528. Presumption against trustees. — All transactions between a trustee and his beneficiary during the existence of the trust, or while 209

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T. 3, § 1529] THE CIVIL CODE the influence acquired by the trustee remains, by which he obtains any advantage from his beneficiary, are presumed to be entered into by the latter without sufficient consideration, and under undue influence. 1529. Trustee mingling trust property with his own. — A trustee who willfully and unnecessaril}^ mingles the trust property with his own, so as to constitute himself in appearance its absolute owner, is liable for its safety in all events, and for the value of its use. 1530. Measure of liability for breach of trust. — A trustee who uses or disposes of the trust property, contrary to section 1522 of this title, may, at the option of the beneficiary, be required to account for all profits so made, or to pay the value of its use, and, if he has disposed thereof, to replace it, with its fruits, or to account for its proceeds, with interest. Cross-References Degree of diligence requisite, see section 1562 of this title. Liability for noninvestnient of funds, see section 1565 of this title. 1531. Same. — A trustee who uses or disposes of the trust property in any manner not authorized by the trust, but in good faith, and with intent to serve the interests of the beneficiary, is liable only to make good whatever is lost to the beneficiary by his error. 1532. Cotrustees, how far liable for each other. — A trustee is responsible for the wrongful acts of a cotrustee to which he consented, or which, by his negligence, he enabled the latter to commit, but for no others. Cross-Reference Compare with section 1572 of this title. ARTICLE 3.— OBLIGATIONS OF THIRD PERSONS Sec. 1541. Third persons, when involuntary trustees. Sec. 1542. When third person must see to application of trust property. 1541. Third persons, when involuntary trustees. — Everyone to whom property is transferred in violation of a trust, holds the same as an involuntary trustee under such trust, unless he purchased it in good faith, and for a valuable consideration. Cross-Reference Involuntary trustees, who are, see sections 1503, 1509 and 1510 of this title. 1542. When third person must see to application of trust property. — One who actually and in good faith transfers any money or other property to a trustee, as such, is not bound to see to the application tliereof, and his rights can in no way be prejudiced by a misapplication thereof by the trustee. Other persons must, at their peril, see to the proper application of money or other property paid or delivered by them. 210

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THE CIVIL CODE [T. 3, § 15C1 CHAPTER 50.— TRUSTS FOR BENEFIT OF THIRD PERSONS Art. Sec. 1. Nature and creation of the trust1551 'J.. Oblijiations of tnist(H?s 1561 '^. Towers of trustees 1571 4. Uishts of trustees 1581 Art. 5. Termination of tlie trust (i. Succession or appointment of new trustees Sec. 15!)1 100 1 ARTICLE 1.— NATURE AND CREATION OF THE TllUST Sec. 1551. Wlio are trustees within scope of this cliapter. 1552. Creation of trust. Sec. ]55;5. Trustees appointed by court. 15.54. Declaration of trust. 1555. Same. Section 1551. Who are trustees within scope of this chapter. — The provisions of this chapter apply only to express trusts, created for the benefit of another than the trustor, and in which the title to the trust property is vested in the trustee ; not including, however, those of executors, administrators, and guardians, as such. 1552. Creation of trust. — The mutual consent of a trustor and trustee creates a trust of which the beneficiary may take advantage at any time prior to its rescission. CR08S-REIFE3iENCES Promise for bouodt of third person, see section 814 of this title. Revoljiug trust, beneficiary's consent necessary, see section 1592 of this title. 1553. Trustees appointed by court. — When a trustee is appointed by a court or public officer, as such, such court or officer is the trustor, within the meaning of the next preceding section. 1554. Declaration of trust. — The nature, extent, and object of a trust are expressed in the declaration of trust. 1555. Same. — All declarations of a trustor to his trustees, in relation to the trust, before its acceptance by the trustees, or any of them, are to be deemed part of the declaration of the trust, except that when a declaration of trust is made in writing, all previous declarations by the same trustor are merged therein. ARTICLE 2.— OBLIGATIONS OF TRUSTEES Sec. 1561. Trustees must obey declaration of trust. 1562. Degree of care and diligence in execution of trust. 1563. Duty of trustee as to appointment of successor. Sec. 1564. 1565. 1566. Investment of money by trustee. Interest, simple or compound, on omission to invest trust moneys. Purchase by trustee of claims against trust fund. 1561. Trustees must obey declaration of trust. — A trustee must fulfill the purpose of the trust, as declared at its creation, and must follow all the directions of the trustor given at that time, except as modified by the consent of all parties interested, in the same manner, and to the same extent, as an employee. Ckoss-Rb2ferenoes Authority of trustee, generally, see section 1571 of this title. Trustee not to profit or lose, see title 4, section 1563. 211

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T. 3, § 1562] TEB CIVIL CODE 1562. Degree of care and diligence in execution of trust. — A trustee, whether he receives any compensation or not, must use at least ordinary care and diligence in the execution of his trust. Cross-Refekence Obligations of trustees, see, generally, sections 1521 et seq., of this title. 1563. Duty of trustee as to appointment of successor. — If a trustee procures or assents to his discharge from his office, before his trust is fully executed, he must use at least ordinary care and diligence to secure the appointment of a trustworthy successor before accepting his own final discharge. CROSS-liBFEnENCE Succession or appointment of new trustees, see sections 1601 et seq., of this title. 1564. Investment of money by trustee. — A trustee must invest money received by him under the trust, as fast as he collects a sufficient amount, in such manner as to afford reasonable security and interest for the same. Cross -Rei-'erence Liability for interest or failure to invest funds, see sertion 1505 of this title. 1565. Interest, simple or compound, on omission to invest trust moneys. — If a trustee omits to invest the trust moneys according to the next preceding section, he must pay simple interest thereon, if such omission is negligent merely, and compound interest if it is willful. Cross-Reference Trustee's liability for interest, compare with section 1530 of this title. 1566. Purchase by trustee of claims against trust fund. — A trustee cannot enforce any claim against the trust property which he purchases after or in contemplation of his appointment as trustee; but he may be allowed, by any competent court, to charge to the tru.st property what he has in good faith paid for the claim, upon discharging the same. Cross-Re!ference Purchasing debts against the trust estate prohibited, see section 1523 of this title. ARTICLE 3.— POWERS OF TRUSTEES Sec. 1571. Trustee's powers as agent. 1572. All must act. Sec. 1573. Discrelioiuiry powers. 1571. Trustee's powers as agent. — A trustee is a general agent for the trust property. His authority is such as is conferred upon him by the declaration of trust and by this chapter, and none other. His acts, within the scope of his authority, bind the trust property to the same extent as the acts of an agent bind his principal. Cross-Reiferences Agent's acts binding principal, see sections 1651 et seq., of this title. For what purposes trusts may be created, see section 1500 of this title. Powers to two or more trustees, see section 1572 of this title, 212

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THE CIVIL CODE [T. 3, § 1583 1572. All must act. — Where there are several cotrustees, all must unite in any act to bind the trust property, unless the declaration of trust otherwise provides. Ceoss-Reterences Liability for acts of cotrustee, see section 1532 of this title. Survival of trust, see section 1602 of this title. Executors, when one or majority may act, sec title 4, section 1289. 1573. Discretionary powers. — A discretionary power conferred upon a trustee is presumed not to be left to his arbitrary discretion, but nia}^ be controlled by the proper court if not reasonably exercised, unless an absolute discretion is clearly conferred by the declaration of trust. ARTICLE 4.— RIGHTS OF TRUSTEES Sec. 1583. Involuntary trustee. Sec. 1.'">S1. Indemnification of trustee. 15S2. Compensation of trustee. 1581. iRdemnification of trustee. — A trustee is entitled to the repayment, out of the trust property, of all expenses actually and properly incurred by him in the performance of his trust. He is entitled to the repayment of even unlawful expenditures, if they were productive of actual benefit to the estate. Cross-Reference Reimbursement on purchase of claims against estate, see section 1566 of this title. 1582. Compensation of trustee. — Except as provided in section 1672 of title 4, when a declaration of trust is silent upon the subject of compensation the trustee is entitled to the same compensation as an executor. If it specifies the amount of his compensation, he is entitled to the amount thus specified and no more. If it directs that he shall be allowed a compensation but does not specify the rate or amount, he is entitled to such compensation as may be reasonable under the circumstances. If there are two or more trustees, the compensation shall be apportioned among the trustees according to the services rendered by them respectively. Cross-Reference Involuntary trustee entitled to no compensation when, see section 1583 of this title. Compensation of executors, see title 4, section 1567. 1583. Involuntary trustee. — An involuntary trustee, who becomes such through his own fault, has none of the rights mentioned in this article. Cross-Referencb Involuntary trustee, defined, see sections 1503, 1509 and 1510 of this title. 213

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T. 3, § 1591] TUB CIVIL CODE ARTICLE 5.— TEKMINATION OF THE TRUST Sec. 1391. Trust, Low ( xtiDgui.shed. 1592. Not revocable. 1593. Trustee!s office, how racatod. Sec. 15S>4. Trustee, how discharged. 1505. Removal l)y district court. 1591. Trust, how extinguished. — A trust is extinguished by the entire fulfilhnent of its object, or by such object beconiinoimpossible or unlawful. 1592. Not revocable. — A trust cannot be revoked by the trustor after its acceptance, actual or presumed, by the trustee and beneficiaries, except by the consent of all the beneficiaries, unless the declaration of trust reserves a power of revocation to the trustor, and in that case the power must be strictly pursued. 1593. Trustee's office, how vacated. — The office of a trustee is vacated — 1. By his death ; or 2. By his discharge. 1594. Trustee, how discharged. — A trustee can be discharged from his trust only as follows : 1. By the extinction of the trust ; 2. By the completion of his duties under the trust ; 3. By such means as may be prescribed by the declaration of trust; 4. By the consent of the beneficiary, if he have capacity to contract; 5. By the judgment of a competent tribunal, in a direct proceeding for that purpose, that he is of unsound mind ; or 6. By the district court. 1595. Removal by district court. — The district court may remove any trustee who has violated or is unfit to execute the trust, or may accept the resignation of a trustee. CROSS-REnrERENCE Removal for adverse interest, see section 1526 of this title. ARTICLE G.— SUCCESSION OR APPOINTMENT OF NEW TRUSTEES court to appoint trustee Sec. Soc. 1601. Appointment of trustee by court to 1003. District till vacancy. when. 3G02. Survivorship between cotrustees. 1601. Appointment of trustee by court to fill vacancy. — The district court must appoint a trustee whenever there is a vacancy, and the declaration of trust does not provide a practical method of appointment. In all cases of appointment of any trustee or trustees by any court, if the cestui que trustent, or any one of them are of the age of fourteen years, they, or the one or more of them of the age of fourteen years, may make nomination, to the court, and unless such nominee or nominees are incompetent, upon one or more of the grounds of incompetency specified in Title 4, The Code of Civil Procedure, to discharge the duties of trustee, the court must appoint such nominee, or nominees, as trustee, or trustees, as the case may be. 214

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THE CIVIL CODE [T. 3, § 1616 1602. Survivorship between cotrustees. — On the death, renunciation, or discharge of one of several cotrustees the trust survives to the others. 1603. District court to appoint trustee when. — When a trust exists without any appointed trustee, or where all the trustees renounce, die, or are discharged, the district court must appoint another trustee and direct the execution of the trust. The court may, in its discretion, appoint the original number, or any less number of trustees. CHAPTER 51.— AGENCY IN GENERAL Art. Sec. \. Definition of agency 1611 2. Auttiority of acents 1621 3. Mutual obligations of principals and third persons 1631 Art. Sec. 4. Obligations of agents to third persons 1671 .5. Delegation of agency 1681 6. Termination of agency 1091 ARTICLE 1.— DEFINITION OF AGENCY Sec. 1014. Agency, actual or ostensible. IfilS. Actual agency. 1616. Ostensible agency. Sec. 1611. Agency, what. 1G12. Who may appoint, and who may be an agent. 161.3. Agents, general or special. Section 1611. Agency, what. — An agent is one who represents another, called the principal, in dealings with third persons. Such representation is called agency. Cross-Refekences Agents, see sections 1361 to 1364 of this title. Factors, see sections 1371 et seq., of this title. 1612. Who may appoint, and who may be an agent. — Any person having capacity to contract may appoint an agent, and any person may be an agent. 1613. Agents, general or special. — An agent for a particular act or transaction is called a special agent. All others are general agents. 1614. Agency, actual or ostensible. — An agency is either actual or ostensible. Ceoss-Refekences Actual agent's authority, see sections 1632, 1633, and 1636 of this title. Ostensible agent's authority, see sections 1632, 1634 to 1636, and 1655 of this title. 1615. Actual agency. — An agency is actual when the agent is really employed by the principal. 1616. Ostensible agency. — An agency is ostensible when the principal intentionally, or by want of ordinary care, causes a third person to believe another to be his agent who is not really employed by him. Cross-Reference Compare section 1634 of this title. ?J5

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T. 3, §1621] THE CIVIL CODE ARTICLE 2.— AUTHORITY OF AGENTS Sec. 1621. What authority may be conferred. 1622. Agent may perform acts required of principal by this title. 1623. Agent cannot have authority to defraud principal. 1624. Creation of agency. 1625. Consideration unnecessary. 1626. Form of authority. 1627. Ratification of part of a transaction. 1628. Ratiflcation of agent's act. 1629. When ratiflcation void. 1630. Ratiflcation not to work injury to third persons. 1631. Rescission of ratiflcation. 1632. Measure of agent's authority. 1633. Actual authority, what. Sec. 1634. Ostensible authority, what. 1635. Agent's authority as to persons having notice of restrictions upon it. 1636. Agent's necessary authority. 1637. Agent's power to disobey instructions. 1638. Authority to be construed by its specific rather than by. its general terms. 1639. Exceptions to general authority. 1640. What included in authority to sell personal property. 1641. Authority of general agent to receive price of property. 1642. Authority of special agent to receive price. 1621. What authority may be conferred. — An agent may be authorized to do any acts which his principal might do, except those to which the latter is bound to give his personal attention. Cross-Reference Delegation of authority by agent, see sections 1681 to 1683 of this title. 1622. Agent may perform acts required of principal by this title. — Every act which, according to this title, may be done by or to any person, may be done by or to the agent of such person for that purpose, unless a contrary intention clearly appears. 1623. Agent cannot have authority to defraud principal. — An agent can never have authority, either actual or ostensible, to do an act which is, and is known or suspected by the person with whom he deals, to be a fraud upon the principal. 1624. Creation of agency. — An agency may be created, and an authority may be conferred by a precedent authorization or a subsequent ratification. 1625. Consideration unnecessary. — A consideration is not necessary to make an authority, whether precedent or subsequent, binding upon the principal. 1626. Form of authority. — An oral authorization is sufficient for any purpose, except that an authority to enter into a contract required by law to be in writing can only be given by an instrument in writing. Ceoss-Refeeences Power of attorney to execute mortgage, see section 2212 of this title. Statute of frauds, see sections 886 and 984 of this title. 1627. Ratification of part of a transaction. — Ratification of part of an indivisible transaction is a ratification of the whole. 1628. Ratification of agent's act. — A ratification can be made only in the manner that would have been necessary to confer an original authority for the act ratified, or where an oral authorization would suffice, by accepting or retaining the benefit of the act with notice thereof. Ckoss-Refekenc?es Ratification of part, see section 1627 of this title. Ratification is not binding, and may be rescinded, if made without full knowledge of the facts, see section 1631 of this title. 216

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THE CIVIL CODE [T. 3, § 1637 1629. When ratification void. — A ratification is not valid unless, at the time of ratifying the act done, the principal has power to confer authority for such an act. 1630. Ratification not to work injury to third persons.— No unauthorized act can be made valid, retroactively, to the prejudice of third persons, withcrut their consent. 1631. Rescission of ratification. — A ratification may be rescinded when made without such consent as is required in a contract, or with an imperfect Iniowledge of the material facts of the transaction ratified, but not otherwise. 1632. Measure of agent's authority. — An agent has such authority as the principal, actually or ostensibly, confers upon him. Ceoss-Reiferences Actual agent, defined, see section 1615 of this title. Extent of authority, see sections 1635 to 1637 and 1651 of this title. Ostensible agency, see sections 1634 to 1636, 1651 and 1655 of this title. 1633. Actual authority, what. — Actual authority is such as a principal intentionally confers upon the agent, or intentionally, or by want of ordinary care, allows the agent to believe himself to possess. 1634. Ostensible authority, what. — Ostensible authority is such as a principal, intentionally or by want of ordinary care, causes or allows a third person to believe the agent to possess. Cross-Reifeeencbs Estoppel from a subsequent ratification, see sections 1624, 1628 and 1629 to 1631 of this title. Ostensible agent, defined, see section 1616 of this title. 1635. Agent's authority as to persons having notice of restrictions upon it. — Every agent has actually such authority as is defined by this chapter and chapter 52 of this title, unless specially deprived thereof by his principal, and has even then such authority ostensibly, except as to persons who have actual or constructive notice of the restriction upon his authority. Cross-Rbfekbnce Extent of authority, see sections 1632, 1636, 1637 and 1651 of this title. 1636. Agent's necessary authority. — An agent has authority — 1. To do everything necessary or proper and usual, in the ordinary course of business, for effecting the purpose of his agency ; and 2. To make a representation respecting any matter of fact, not including the terms of his authority, but upon which his right to use his authority depends, and the truth of which cannot be determined by the use of reasonable diligence on the part of the person to whom the representation is made. ChOS S-REFE31EN CB Extent of authority, see sections 1632, 1635, 1637 and 1651 of this title. 1637. Agent's power to disobey instructions. — An agent has power to disobey instructions in dealing with the subject of the 93083—34 15 217

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T. 3, § 1638] THE CIVIL CODE agency, in cases where it is clearly for the interests of his principal that he should do so, and there is not time to communicate with the principal. CROSS-RETirKENCE Extent of authority, see sections 1632. 1635, 1636 and 1651 of this title. 1638. Authority to be construed by its specific rather than by its general terms. — When an authority is given partly in general and partly in specific terms, the general authority gives no higher powers than those specifically mentioned. 1639. Exceptions to general authority. — An authority expressed in general terms, however broad, does not authorize an agent — 1. To act in his own name, unless it is the usual course of business to do so ; 2. To define the scope of his agency ; or 3. To do anv act which a trustee is forbidden to do bj'' sections 1521 to 1532 of this title. Ckoss-References Defining scope of agency, see section 1636 of this title. Obligation of trustees, see sections 1521 to 1532 of this title. 1640. What included in authority to sell personal property. — An authority to sell personal property includes authority to warrant the title of the principal and the quality and quantity of the property. 1641. Authority of general agent to receive price of property. — A general agent to sell, who is intrusted by the principal with the possession of the thing sold, has authority to receive the price. Cross-Reference Agent to collect, see section l.'>63 of this title. 1642. Authority of special agent to receive price. — A special agent to sell has autliority to receive the price on delivery of the thing sold, but not afterwards. ARTICLE 3. MUTUAL OBLIGATIONS OF PRINCIPALS AND THIRD PERSONS Sec. 1651 Sec. 1656. When exclusive credit is given to iiKent. 1G57. IJiRlits of person who deals with ;iL:(>nt without Ivnowledge of agency. In.stiuini lit intended to bind principal diK^s l)ind liim. Principal's responsibility for agent's negligence, wrongful act, or omission. Same. 1658. 1 659. 1660. Principal, how affected by acts of agent within the scope of his authority. 1652. Principal, when bound by incomplete execution of authority. 1653. Notice to agent, when notice to principal. 1654. Obligation of principal when agent exceeds his authority. 1655. For acts done under a merely ostensible authority. 1651. Principal, how affected by acts of agent within the scope of his authority. — An agent represents his principal for all purposes within the scope of his actual or ostensible authority, and all the rights and liabilities which would accrue to the agent from transactions within such limit, if they had been entered into on his own account, accrue to the principal. Cross-Referenoe Extent of agent's authority, see sections 1632, and 1635 tp 1637 of tl^is title. »8

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THE CIVIL CODE [T. 3, § 16G(J 1652. Principal, when bound by incomplete execution of authority. — A principal is bound by an incomplete execution of an authority when it is consistent with the whole purpose and scoi)e thereof, but not otherwise. 1653. Notice to agent, when notice to principal. — As against a principal, both principal and agent are deemed to have notice of whatever either has notice of, and ought, in good faith and the exercise of ordinary care and diligence, to communicate to the other. 1654. Obligation of principal when agent exceeds his authority. — When an agent exceeds his authority, his principal is bound by his authorized acts so far only as they can be plainly sepai'ated from those which are unauthorized. 1655. For acts done under a merely ostensible authority. — A principal is bound by acts of his agent, under a merely ostensible authority, to those persons only who have in good faith, and without want of ordinary care, incurred a liability or parted with value, upon the faith thereof. Cross-Reference Ostensible authority, see sections 1634 to 1636 of this title. 1656. When exclusive credit is given to agent. — If exclusive credit is given to an agent by the person dealing witli him, his principal is exonerated by payment or other satisfaction made by him to his agent in good faith, before receiving notice of the creditor's election to hold him responsible. 1657. Rights of person who deals with agent without knowledge of agency. — One who deals with an agent without knowing or having reason to believe that the agent acts as such in the transaction, may set off against any claim of the principal arising out of the same, all claims which he might have set off against the agent before notice of the agency. 1658. Instrument intended to bind principal does bind him. — An instrument within the scope of his authority by which an agent intends to bind his principal, does bind him if such intent is plainly inferable from the instrument itself. 1659. Principars responsibility for agent's negligence, wrongful act, or omission. — Unless required by or under the authority of law to employ that particular agent, a principal is responsible to third persons for the negligence of his agent in the transaction of the business of the agency, including wrongful acts committed by such agent in and as a part of the transaction of such business, and for his willful omission to fulfill the obligations of the principal. 1660. Same. — A principal is responsible for no other w^rongs committed by his agent than those mentioned in the next preceding section, unless he has authorized or ratified them, even though they are committed while the agent is engao-ed in his service. 219

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T. 3, § 1671] THE CIVIL CODE ARTICLE 4.— OBLIGATIONS OF AGENTS TO THIRD PERSONS Sec. 1671. Warranty of authority. 1G72. Agent's responsibility to third persons. Sec. 1673. Obligation of agent to surrender property to third person. 1674. This article subject to chapter on persons. 1671. Warranty of authority. — One who assumes to act as an agent thereby warrants, to all who deal with him in that capacity, that he has the authority which he assumes. Ceoss-Refekence Damages for breach of warranty of authority, see section 2657 of this title. 1672. Agent's responsibility to third persons. — One who assumes to act as an agent is responsible to third persons as a principal for his acts in the course of his agency, in any of the following cases, and in no others : 1. When, with his consent, credit is given to him personally in a transaction ; 2. When he enters into a written contract in the name of his principal, without believing, in good faith, that he has authority to do so; or 3. When his acts are wrongful in their nature. 1673. Obligation of agent to surrender property to third person. — If an agent receives anything for the benefit of his principal, to the possession of which another person is entitled, he must, on demand, surrender it to such person, or so much of it as he has under his control, at the time of demand, on bein^ indemnified for any advance which he has made to his principal, m good faith, on account of the same ; and is responsible therefor, if, after notice from the owner, he delivers it to his principal. Ceoss-Reference Compare with sections on deposit, see sections 1101, 1104, and 1105 of this title. 1674. This article subject to chapter on persons. — The provisions of this article are subject to the provisions of sections 21 to 34 of this title. ARTICLE 5.— DELEGATION OP AGENCY Sec. 1683. Subagent, rightfully appointed, represents principal. Sec. 1681. Agent's delegation of his powers. 1682. Agent's unauthorized employment of subagent. 1681. Agent's delegation of his powers. — An agent, unless specially forbidden by his principal to do so, can delegate his powers to another person in any of the following cases, and in no others — 1. When the act to be done is purely mechanical ; 2. When it is such as the agent cannot himself, and the subagent can lawfully perform ; 3. When it is the usage of the place to delegate such powers ; or 4. When such delegation is specially authorized by the principal. 220

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THE CIVIL CODE [T. 3, § llOU 1682. Agent's unauthorized employment of subagent. — If an agent employs a subagent without authority, the former is a principal and the latter his agent, and the principal of the former has no connection with the latter. Cross-Referenck As to liability of agent of an agent to principal, see section 1364 of this title. 1683. Subagent, rightfully appointed, represents principal. — A subagent, lawfully appointed, represents the principal in like manner with the original agent ; and the original agent is not responsible to third persons for the acts of the subagent. ARTICLE 6.— TERMINATION OF AGENCY Sec. I Sec. 1691. Termination of agency. I 1692. Same. 1691. Termination of agency. — An agency is terminated, as to every person having notice thereof, by — 1. The expiration of its term; 2. The extinction of its subject; 3. The death of the agent; 4. His renunciation of the agency ; or 5. The incapacity of the agent to act as such. 1692. Same. — Unless the power of an agent is coupled with an interest in the subject of the agency, it is terminated, as to every person having notice thereof, by — 1. Its revocation by the principal; 2. His death; or 3. His incapacity to contract. CHAPTER 52.— FACTORS Sec. I Sec. 1701. Factor, what. 1703. Ostensible authority. 1702. Actual authority of factor. I Section 1701. Factor, what. — A factor is an agent, as defined by section 1371 of this title. 1702. Actual authority of factor. — In addition to the authority of agents in general, a factor has actual authority from his principal, unless specially restricted — 1. To insure property consigned to him uninsured; 2. To sell, on credit, anything intrusted to him for sale, except such things as it is contrary to usage to sell on credit; but not to pledge, mortgage, or barter the same; and 3. To delegate his authority to his partner or servant, but not to any person in an independent employment. Ceoss-Reference Sale on credit by factor, see section 1373 of this title. 1703. Ostensible authority. — A factor has ostensible authority to deal with the property of his principal as his own, in transactions with persons not having notice of the actual ownership. 221

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T. 3, § 1711] THE CIVIL CODE CHAPTER 53.— PARTNERSHIP IN GENERAL Art. Sec. 1. What constitutos a i>nrln(>r.ship__ 1711 2. I'aitiiershii) pioijcrty 1721 Art. Sec. ."1. Miilu;il obligation of partniMs ITol -1. lUiuiuciaiiou ot paitnersliip 1741 ARTICLE 1.— WHAT CONSTITUTES A PARTNERSHIP See. J 711. Partnersbip, what. 1712. Shipowners. Sec. 1713. Furuiation of partiier.sliip. Section 1711. Partnership, what. — Partnership is the association of two or more persons, for the piirpo.se of carrying" on business together, and dividing its profits between them. Cross-References Dividing pvolits implies divisiou of losses, see section 1724 oi tliis title. General partnersliip, what, see section 1751 of tliis title. 1712. Shipowners. — Part owners of a ship do not, by simply using it in a joint enterprise, become partners as to the ship. 1713. Formation of partnership. — A partnership can be formed only by the consent of all the parties thereto, and therefore no new partner can be admitted into a partnership without the consent of eveiy existing member thereof. Ceoss-Reference Formation of special partnership, see sections 1811 et seq., of this title. ARTICLE 2.— PARTNERSHIP PROPERTY See. 1721. Partnership property, what. 1722. Partner's interest in partnership property. 1723. Partner's share in profits and losses. 1724. When division of losses implied. Sec. 1725. Partner may require application of partnership property to payment of debts. 172G. Wl;at property is partner.ship property by presumption. 1721. Partnership property, what. — The property of a partnership consists of all that is contributed to the coinmon stock at the formation of the partnership, and all that is subsequently acquired thereby. 1722. Partner's interest in partnership property. — The interest of each member of a partnership extends to every portion of its property. 1723. Partner's share in profits and losses. — In the absence of any agreement on the subject the sliiires of partners in the profit or loss of the business are equal, and the share of each in the partnership property is the value of his original contributions, increased or diminished by his share of profit or loss. Cboss-Refeeence Accounting between partners, see section 1733 of this title. 1724. When division of losses implied. — An agreement to divide the profits of a business implies an agreement for a corresponding division of its losses, unless it is otherwise expressly stipulated. 222

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THE CIVIL CODE [T. 3, § 1741 1725. Partner may require application of partnership property to payment of debts. — Each member of a partnership may require its property to be applied to the discliarge of its debts, and has a lien upon the shares of the other partners for this purpose, and for the payment of the general balance, if any, due to him. 1726. What property is partnership property by presumption.— Property acquired with partnership funds is presumed to be partnership l^ropert3^ ARTICLE 3.— MUTUAL OBLIGATION OF PARTNERS Sec. 1731. Partners trustees for each other. 1732. Good faith to be observed between them. Sec. 1733. Mutual liability of partners to account. 1734. No compensation for services to firm. 1731. Partners trustees for each other. — The relations of partners are confidential. They are trustees for each other within the meaning of chapter 49 of this title, and their obligations as such trustees are defined by that chapter. Cross-Reference For chapter 49, see sections 1501 et seq., of this title. 1732. Good faith to be obsei-ved between them. — In all proceedings connected with the formation, conduct, dissolution, and liquidation of a partnership, every partner is bound to act in the highest good faith toward his copartners. He may not obtain any advantage over them in the partnership affairs by the slightest misrepresentation, concealment, threat, or adverse pressure of any kind. Cross-Ret'erences In what business partner may not engage, see section 1772 of this title. Mutual obligations of partners, see sections 1771 et seq., of this title. Partner's act in bad faith, effect of, see section 1764 of this title. Fraud in affairs of partnership, see title 5, section 704. 1733. Mutual liability of partners to account. — Each member of a partnership must account to it for everything that he receives on account thereof, and is entitled to reimbursement therefrom for everything that he properly expends for the benefit thereof, and to be indemnified thereby for all losses and risks which he necessarily incurs on its behalf. Cross-Reference Partner's acts bind firm, see section 1762 of this title. 1734. No compensation for services to firm. — A partner is not entitled to any compensation for services rendered by him to the partnership, except by special agreement. ARTICLE 4.— RENUNCIATION OF PARTNERSHIP Sec. 1741. Renunciation of future profits exonerates from liability. Sec. 1742. Effect of renunciation. 1741. Renunciation of future profits exonerates from liability. — A partner may exonerate himself from all future liability to a third person, on account of the partnership, by renouncing, in good faith, 223

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T. 3, § 1742] THE CIVIL CODE all participation in its future profits, and giving notice to such third person, and to his own copartners, that he has made such renunciation, and that, so far as may be in his power, he dissolves the partnership and does not intend to be liable on account thereof for the future. Ckoss-Re:ference Dissolution of partnership, see sections 1791 et seq., of tliis title. 1742. Eflfect of renunciation. — After a partner has given notice of his renunciation of the partnership, he can not claim any of its subsequent profits, and his copartners may proceed to dissolve the partnership. Cboss-Re^-eeences Dissolution of partnership, see section 1791 of this title. Liquidation of partnership, see sections 1801 et seq., of this title. CHAPTER 54.— GENERAL PARTNERSHIP Art. Sec. | Art. Sec. 1. What is a general partnership 1751 j 4. Liability of partners 17S1 2. Powers and authority of partners. 1761 5. Termination of partnership 1791 3. Mutual obligations of partners 1771 I 6. Liquidation 1801 ARTICLE 1.— WHAT IS A GENERAL PARTNERSHIP Section 1751. General partnership, what. — Every partnership that is not formed in accordance with the law concerning special partnerships, and every special partnership, so far only as the general partners are concerned, is a general partnership. Ckoss-Refekences Partnership, what, see section 1711 of this title. Special partnerships, see section iSll to 1844 of this title. Special partnership becomes general partnership when, see section 1843 of this title. ARTICLE 2.— POWERS AND AUTHORITY OF PARTNERS 1761. Power of majority of partners. 1762. Authority of individual partners. Sec. 1763. What authority partner has not. 1764. Partner's acts in bad faith, when ineffectual. 1761. Power of majority of partners. — Unless otherwise expressly stipulated, the decision of the majority of the members of a general partnership binds it in the conduct of its business. Cboss-Restebence Powers, rights, and duties of special partners, see sections 1821 et seq., of this title. 1762. Authority of individual partner. — Every general partner is agent for the partnership in the transaction of its business, and has authority to do whatever is necessary to cari'y on such business in the ordinary manner, and for this purpose may bind his copartners by an agreement in writing. Cross-References Common liability for losses, see section 1733 of this title. Liability of partners for each other's acts, see section 1782 of this title. Declarations of partners, admissibility of, see title 4, section 1888. 224

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THE CIVIL CODE [T. 3, § 1774 1763. What authority partner has not. — A partner, as such, has not authority to do any of the following acts unless his copartners have wholly abandoned the business to him or are incapable of acting : 1. To make an assignment of the partnership property or any portion thereof to a creditor, or to a third person in trust for the benefit of a creditor, or of all creditors; 2. To dispose of the good will of the business ; 3. To dispose of the whole of the partnership property at once, unless it consists entirely of merchandise; 4. To do any act which would make it impossible to carry on the ordinary business of the partnership ; 5. To confess a judgment; 6. To submit a partnership claim to arbitration ; or 7. To do any other act not within the scope of section 1762 of this title. 1764. Partner's acts in bad faith, when ineffectual. — A partner is not bound by any act of a copartner, in bad faith toward him, though within the scope of the partner's powers, except in favor of persons who have in good faith parted with value in reliance upon such act. Ckoss-Refekences Good faith, duty to observe, see section 1732 of this title. Liability of partners for each other's acts, see section 17S2 of this title. Partners are trustees for each other, see section 1731 of this title. ARTICLE 3.— MUTUAL OBLIGATIONS OF PARTNERS Sec. I Sec. 1771. Profits of individual partner. 1773. In what he may engage. 177-'. In what business partner may not 1774. Must account to Arm for profits, engage. I 1771. Profits of individual partner. — All profits made by a general partner, in the course of any business usually carried on by the partnership, belong to the firm. Cros s-Refeeencb Mutual obligations of partners, see sections 1731 et seq., of this title. 1772. In what business partner may not engage. — A general partner who agrees to give his personal attention to the business of the partnership may not engage in any business which gives him an interest adverse to that of the partnership or which prevents him from giving to such business all the attention wliich would be advantageous to it. Ceos s-Refekence Accounting by partner, see section 1774 of this title. 1773. In what he may engage. — A partner may engage in any separate business except as otherwise provided by sections 1771 and 1772 of this title. 1774. Must account to firm for profits. — A general partner transacting business contrary to the provisions of this article may be 225

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T. 3, §1781] THE CIVIL CODE required by any copartner to account to the partnership for the profits of such business. ARTICLE 4.— LIABILITY OF PARTNERS Sec. 1781. Liability of partners to third persons. 1782. Liability for each other's acts as agents. Sec. 1783. Liability of one held out as partner. 1784. No one liable as partner unless held out as such. 1781. Liability of partners to third persons. — Every general partner is liable to third persons for all the obligations of the partnership, jointly with his copartners. Ckoss-Refeeences As to joint and several obligations generally, see sections 681 et seq., of this title. Effect of release of one of several joint debtors, see section 793 of this title. Liability of general partners in special partnership, see section 1831 of this title. Liability of special partners, see section 1832 of this title. Proceedings against joint debtors generally, see title 4, sections 901 et seq. Special partner liable as general partner when, see section 1833 of this title. 1782. Liability for each other's acts as agents. — The liability of general partners for each other's acts is defined by chapter 51 of this title on agency. Ckoss-References Acts a partner is not authorized to do, see section 1763 of this title. Authority of individual partner, see section 1762 of this title. Effect of acts of partner done in bad faith, see section 1764 of this title. Agency, see sections 1611 to 1692 of this title. Declarations of partners, admissibility of, see title 4, section 1888. 1783. Liability of one held out as partner. — Anyone permitting himself to be represented as a partner, general or special, is liable, as such, to third persons to whom such representation is communicated, and who, on the faith thereof, give credit to the partnership. 1784. No one liable as partner unless held out as such. — No one is liable as a partner who is not such in fact, except as provided in the next preceding section. ARTICLE 5.— TERMINATION OF PARTNERSHIP Sec. 1791. liur.ition of partnership. 1792. Total dissolution of partnership. 1793. Partial dissolution. Sec. 1794. Partner entitled to dissolution. 1795. Notice of termination. 1796. Notice by change of name. 1791. Duration of partnership. — If no term is prescribed by agreement for its duration, a general partnership continues until dissolved by a partner or by operation of law. Cross-references Dissolution of special partnership, see section 1843 of this title. Liquidation of partnership, .see sections 18U1 et seq., of this title. Renunciation of partnership by partner, see sections 1741 and 1742 of this title. 1792. Total dissolution of partnership. — A general partnership is dissolved as to all the partners — 226

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THE CIVIL CODE [T. 3, § 17U(i 1. By lapse of the time prescribed by agreement for its duration ; 2. By the expressed will of any partner, if there is no such agreement; 3. By the death of a partner; 4. By the transfer to a person, not a partner, of the interest of any partner in the partnership property; 5. By war, or the prohibition of commercial intercourse between the country in which one partner resides and that in which another resides; or 6. By a judgment of dissolution. Cross-Reifekences Partner's power aftor dissolution of firm, see sections 1801 et seq., of this title. Renunciation of partnership by partner, see sections 1741 and 1742 of this title. Special partnership, dissolution of, see section 1843 of this title. Rights and duties of survivor, see title 4, section 1525. 1793. Partial dissolution. — A general partnership may be dissolved, as to himself only, by the expressed will of any partner, notwithstanding his agreement for its continuance, subject, however, to liability to his copartners for any damage caused to them thereby, unless the circumstances are such as entitle him to a judgment of dissolution. 1794. Partner entitled to dissolution. — A general partner is entitled to a judgment of dissolution — 1. When he, or another partner, becomes legally incapable of contracting ; 2. When another partner fails to perform his duties under the agreement of partnership, or is guilty of serious misconduct; or 3. When the business of the partnership can be carried on only at a permanent loss. Ceo ss-Refeeej^ CE Dissolution on renunciation of partnership by copartner, see section 1742 of this title. 1795. Notice of termination. — The liability of a general partner for the acts of his copartners continues, even after a dissolution of the copartnership, in favor of persons who have had dealings with and given credit to the partnership during its existence, until they have had personal notice of the dissolution; and in favor of other persons until such dissolution has been advertised in a newspaper printed in English and of general circulation in the Canal Zone, to the extent in either case to which such persons part with value in good faith, and in the belief that such partner is still a member of the firm. Ceoss-Refebence Compare section 1843 of this title. 1796. Notice by change of name. — A change of the partnership name, which plainly indicates the withdrawal of a partner, is sufficient notice of the fact of such withdrawal to all persons to whom 227

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T. 3, § 1801] THE CIVIL CODE it is communicated ; but a change in the name, which does not contain such an indication, is not notice of the withdrawal of any partner. ARTICLE 6.— LIQUIDATION Sec. Sec. 1804. Powers of partners in liquidation. 1805. What partner may do in liquidation. oec. 1801. Powers of partners after dissolution. 1802. Who may act in liquidation. 1803. Who may not act in liquidation. 1801. Powers of partners after dissolution. — After the dissolution of a partnership, the powers and authority of the partners are such only as are prescribed by this article. Ckoss-Refekences Dissolution of partnership, see sections 1791 et seq., of this title. Rights and duties of surviving partner, see title 4, section 1525. Interests of estate in partnership, see title 4, section 1505. 1802. Who may act in liquidation. — Any member of a general partnership may act in liquidation of its affairs, except as provided by the section next following. 1803. Who may not act in liquidation. — If the liquidation of a partnership is committed, by consent of all the partners, to one or more of them, the others have no right to act therein ; but their acts are valid in favor of persons parting with value, in good faith, upon credit thereof. 1804. Powers of partners in liquidation. — A partner authorized to act in liquidation may collect, compromise, or release any debts due to the partnership, pay or compromise any claims against it, and dispose of the partnership property. Ckoss-Res'ekence Powers and duties of surviving partner in liquidation, see title 4, section 1525. 1805. What partner may do in liquidation. — A partner authorized to act in liquidation may indorse, in the name of the firm, promissory notes or other obligations held by the partnership for the purpose of collecting the same, but he cannot create any new obligation in its name or revive a debt against the firm, by an acknowledgment, when an action thereon is barred under the provisions of Title 4, The Code of Civil Procedure. CHAPTER 55.— SPECIAL PARTNERSHIP Art. Sec. 1. Formation 1811 2. Powers, rights, and duties of partners 1821 Art. Sec. 3. Liability of partners 1831 4. Alteration and dissolution 1841 ARTICLE 1.— FORMATION Sec. 1811. Formation of special partnership. 1812. Of what to consist. 1813. Certified statement. 1814. Acknowledged and recorded ; false statement. Sec. 1815. Aflldavit as to sums contributed. 1816. No partnership until compliance. 1817. Renewal of special partnership. Section 1811. Formation of special partnership. — A special partnership may be formed by two or more persons, in the manner and 228

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THE CIVIL CODE [T. 3, § 1821 with the effect prescribed in this chapter, for the transaction of any business except banking or insurance by an insurer. Ceoss-Reiferencb No partnership until compliance with law, see section 1816 of this title, 1812. Of what to consist. — A special partnership may consist of one or more persons called general partners, and one or more pers(ms called special partners. 1813. Certified statement. — Persons desirous of forming a special partnership must severally sign a certificate, stating : 1. The name under which the partnership is to be conducted ; 2. The general nature of the business intended to be transacted ; 3. The names of all the partners, and their residences, specifying which are general and which are special partners ; 4. The amount of capital which each special partner has contributed to the common stock; 5. The periods at which such partnership will begin and end. 1814. Acknowledged and recorded; false statement. — Certificates under the next preceding section must be acknowledged by all the partners, before the clerk of the district court and filed in his oiRce, and shall be open to public inspection. If any false statement is made in any such certificate, all the persons interested in the partnership are liable, as general partners, for all the engagements thereof. Cross-references Liability for false statements, see section 1832 of this title. Liability for unintentional acts, see section 1833 of this title. 1815. Affidavit as to sums contributed. — An affidavit of each of the partners, stating that the sums specified in the certificate of the partnership as having been contributed by each of the special partners, have been actually and in good faith paid, in the lawful money of the United States, must be filed in the same office with the original certificate. 1816. No partnership until compliance. — No special partnership is formed until the provisions of sections 1811 to 1815 of this title are complied with. 1817. Renewal of special partnership. — Every renewal or continuance of a special partnership must be certified, filed, and verified in the same manner as upon its original formation. Cross-Refebencje Compare with section 1841 of this title. ARTICLE 2.— POWERS, RIGHTS, AND DUTIES OF PARTNERS Sec. 1821. Who to do business. 1822. Special partners may advise. 1823. May loan money ; insolvency. 1824. General partners may sue and be sued. Sec. 1825. Withdrawal of capital. 1826. Interest and profits. 1827. Result of withdrawing capital. 1828. Preferential transfer void. 1821. Who to do business. — The general partners only have authority to transact the business of a special partnership. 229

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T. 3, § 1822] THE CIVIL CODE 1822. Special partners may advise. — A special partner may at all times investigate the partnership affairs, and advise his partners, or their agents, as to their management. 1823. May loan money; insolvency. — A special partner may lend money to the partnership, or advance money for it, and take from it security therefor, and as to such loans or advances has the same rights as any other creditor; but in case of the insolvency of the partnership, all other claims which he may have against it must be postponed until all other creditors are satisfied. 1824. General partners may sue and be sued.— In all matters relating to a special partnership, its general partners may sue aud be sued alone, in the same manner as if there were no special partners. 1825. Withdrawal of capital. — No special partner, under any pretense, may withdraw any part of the capital invested by him in the partnership, during its continuance. Ckoss-Refekencb Withdia%val of capital, sec section 1827 of this title. 1826. Interest and profits. — A special partner may receive such lawful interest and such proportion of profits as may be agreed upon, if not paid out of the capital invested in the partnershi]) by him, or by some other special partner, and is not bound to refund the same to meet subsequent losses. 1827. Result of withdrawing capital. — If a special partner withdraws capital from the firm, contrary to the provisions of this article, he thereby becomes a general partner. Cboss-Reference Withdrawal of capital, see section 1825 of this title. 1828. Preferential transfer void. — Every transfer of the property of a special partnership, or of a partner therein, made after or in contemplation of the insolvency of such partnershi]i or partner with intent to give a preference to any creditor of such partnership or pai'tner over any other creditor of such partnrrshiji, is void against the creditors thereof; and every judgment conf<>sse(l, lien createil, or security given, in like manner and with the like intent, is in like manner void. ARTICLE 3. LIABILITY OF PARTNERS S(>c. 5S31. Liability of partners. 1.S32. Of special partners. 1833. Liability for unintentional act. See. 1834. Who may question existence of special partnership. 1831. Liability of partners. — The general partners in a special j^artnership ai-e lialile to Ihi^. same extent as j>artiiers in a general partnersliip. Cross-Reference Liability of general pailners, see section 1781 of tliis title. 230

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THE CIVIL CODE [T. 3, § 1841 1832. Of special partners. — The contribution of a special partner to the capital of the firm, and the increase thereof, is liable for its debts, but he is not otherwise liable therefor, except as follows : 1. If he has willfully made or permitted a false or materially defective statement in the certificate of the partnership, the affidavit filed therewith, or the published announcement thereof, he is liable, as a general partner, to all creditors of the firm ; 2. if he has willfully interfered with the business of the firm, except as permitted in sections 1821 to 1828 of this title, he is liable in like manner ; or 3. If he has willfully joined in or assented to an act contrary to any of the provisions of said sections 1821 to 1828, he is liable in like manner. Cboss-Re^'eirence False certificate, see section 1814 of tliis title. 1833. Liability for unintentional act. — When a special partner has unintentionally done any of the acts mentioned in the next preceding section, he is liable, as a general partner, to any creditor of the firm who has been actually misled thereby to his prejudice. CrO SS-ReFEREN CES False statement in certificate, see sections 1814 and 1832 of this title. Liability of general partners, see section 1781 of this title. 1834. Who may question existence of special partnership. — One who, upon making a contract with a partnership, accepts from or gives to it a written memorandum of the contract, stating that the partnership is special, and giving the names of the special partners, cannot afterwards charge the persons thus named as general partners upon that contract, by reason of an error or defect in the proceedings for the creation of the special partnership, prior to the acceptance of the memorandum, if an effort has been made by the partners, in good faith, to form a special partnership in the manner required by sections 1811 to 1817 of this title. ARTICLE 4.— ALTERATION AND DISSOLUTION Sec. 1841. When special partnership becomes general. 1842. How new special partners may be admitted. Sec. 1843. Dissolution of special partnership ; notice. 1844. The name of a special partner not used, unless. 1841. When special partnership becomes general. — A special partnership becomes general if, within ten days after any partner withdraws from it, or any new partner is received into it, or a change is made in the nature of its business or in its name, a certificate of such fact, duly verified and signed by one or more of the partners, is not filed with the clerk of the district court. Cross-Refeeence Partner withdrawing capital becomes general partner, see section 1827 of this title.

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T. 8, § 1842] THE CIVIL CODE 1842. How new special partners may be admitted. — New special partners may be admitted into a special partnership upon a certificate, stating the names, residences, and contributions to the common stock of each of such partners, signed by each of them, and by the general partners, verified, acknowledged, and filed with the clerk of the district court. 1843. Dissolution of special partnership; notice. — A special partnership is subject to dissolution in the same manner as a general partnership, except that no dissolution, by the act of the partners, is complete until a notice thereof has been filed and recorded in the office of the clerk of the district court, and published once in each week, for four successive weeks, in a newspaper of general circulation in the Canal Zone. Cross-Referencb Dissolution of general partnership, see section 1792 of this title. 1844. The name of a special partner not used, unless. — The name of a special partner must not be used in the firm name of partnership, unless it be accompanied with the word " limited." CHAPTER 56.— INSURANCE IN GENERAL Art. Sec. 1. Definition of insurance 1851 2. What may be insured 1861 3. Parties to contract 1871 4. Insurable interest 1881 5. Concealment and representations. 1901 6. The policy 1931 Art. Sec. 7. Warranties 1951 8. Premium 1971 9. Loss 1981 10. Notice of loss 1991 11. Double insurance 2001 12. Reinsurance 2011 Cboss-Refekencb Foreign insurance companies, see sections 221 et seq., of this title. ARTICLE 1.— DEFINITION OF INSURANCE Section 1851. Insurance, what. — Insurance is a contract whereby one undertakes to indemnify another against loss, damage, or liability, arising from an unknown or contingent event. Cross-Rbteeencb Reinsurnnce, contract of, see section 2011 of this title. ARTICLE 2.— WHAT MAY BE INSURED Sec. 1861. What events may be insured against. 1862. Insurance of lottery or lottery prize unauthorized. Sec. 1863. All subject to this chapter. 1861. What events may be insured against. — Any contingent or unknown event, whether past or future, which may damnify a person having an insurable interest, or create a liability against him, may be insured against, subject to the provisions of this chapter. Cross-References Insurable interest, see sections 1881 et seq., of this title. Insurable interest in expectancy or inchoate interest, see sections 1882 and 1884 of this title. 232

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THE CIVIL CODE [T. 3, § 1875 1862. Insurance of lottery or lottery prize unauthorized. — The next preceding section does not authorize an insurance for or against the drawing of any lottery, or for or against any chance or ticket in a lottery drawing a prize. Cboss-References Fire insurance, see sections 2021 et seq., of this title. Life and health insurance, see sections 2031 et seq., of this title. 1863. All subject to this chapter. — All kinds of insurance, other than marine insurance, are subject to the provisions of this chapter. ARTICLE 3.— PARTIES TO CONTRACT Sec. 1871. Designation of parties. 1872. Who may insure. 1873. Who may be insured. Sec. 1874. 1875. Assignment to mortgagee of policy on thing Insured. New contract between insurer and assignee. 1871. Designation of parties. — The person who undertakes to indemnify another by a contract of insurance is called the insurer, and the person indemnified is called the insured. 1872. Who may insure. — Anyone capable of making a contract may be an insurer, subject to the restrictions imposed by special statutes upon foreign corporations, nonresidents, and others. Ceoss-Refeeencb Regulation of foreign insurance companies, see sections 221 et seq., of this title. 1873. Who may be insured. — Anyone except a public enemy may be insured. 1874. Assignment to mortgagee of policy on thing insured. — Unless the policy otherwise provides, where a mortgagor of property effects insurance in his own name providing that the loss shall be payable to the mortgagee, or assigns a policy of insurance to a mortgagee, the insurance is deemed to be upon the interest of the mortgagor, who does not cease to be a party to the original contract, and any act of his, prior to the loss, which would otherwise avoid the insurance will have the same effect, although the property is in the hands of the mortgagee, but any act which, under the contract of insurance, is to be performed by the mortgagor, may be performed by the mortgagee therein named, with the same effect as if it had been performed by the mortgagor. 1875. New contract between insurer and assignee. — If an insurer assents to the transfer of an insurance from a mortgagor to a mortgagee, and, at the time of his assent, imposes further obligations on the assignee, making a new contract with him, the acts of the mortgagor cannot affect his rights. 93083—34-16

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T. 3, § 1881] TBB CIVIL CODE ARTICLE 4.— INSURABLE INTEREST Sec. 1881. Insurable Interest, what. 1882. In what may consist. 1883. Interest of carrier or depositary. 1884. Mere expectancies. 1885. Measure of interest in property. 1886. Insurance without interest, illegal. Sec. 188S. Effect of transfm-. 1889. Transfer after loss. 1890. Exception in the case of several subjects in one policy. 1891. In the case of transfer between cotenants. 1887. When interest must exist. I 1892. Policy, when void. 1881. Insurable interest, what.— Every interest in property, or any relation thereto, or liability in respect thereof, of such a nature that a contemplated peril might directly damnify the insured is an insurable interest. Cross-Refekences Assignment to one without insurable interest, see section 2033 of this title. Bailees or carriers, see section 1883 of this title. Effect of transfer of interest, see section 1888 of this title. Extent of insurable interest, see section 1885 of this title. Insurable interest in expectancy or inchoate interest, see sections 1861, 1882, and 1884 of this title. Insurable interest in life or health, see section 2032 of this title. Insurance without insurable interest is void, see section 1886 of this title. Partner, see section 1935 of this title. Stating insurer's interests in policy, see sections 1908 and 1932 of this title. Stipulation for payment irrespective of insurable interest is void, see section 1892 of this title. When insurable interest must exist, see section 1887 of this title. 1882. In what may consist. — An insurable interest in property may consist in : 1. An existing interest; 2. An inchoate interest founded on an existing interest ; or 3. An expectancy, coupled with an existing interest in that out of which the expectancy arises. Cross-References Insurable interest in expectancy or inchoate intei-est, see sections 1861 and 1884 of this title. What events may be insured against, see section 1S(!1 of this title. 1883. Interest of carrier or depositary. — A carrier or depositary of any kind has an insurable interest in a thing held by him as such, to the extent of its value. 1884. Mere expectancies. — A mere contingent or expectant interest in anything, not founded on an actual right to the thing, nor upon any valid contract for it, is not insurable. Cross-Refeeences Insurable interest in expectancy or inchoate interest, see section 1882 of this title. Unknown or contingent event, insurance against, see section 18G1 of this title. 1885. Measure of interest in property. — The measure of an insurable interest in property is the extent to which the insured might be damnified by loss or injury thereof. Cross-Re:!' erence Insurance without interest, see section 1886 of this title. 234

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THE CIVIL CODE [T. 3, § 1892 1886. Insurance without interest, illegal. — The sole object of insurance is the indcinnitj^ of the insured, and if he has no insurable interest the contract is void. CitOSS-REFERENCE Stipulation for payment irrespective of interest is void, see section 1892 of this title. 1887. When interest must exist. — An interest insured must exist when the insurance takes effect, and when the loss occurs, but need not exist in the meantime. 1888. Effect of transfer. — Except in the cases specified in sections 1889 to 1891 of this title, and in the cases of life, accident, and health insurance, a change of interest in any part of a thing insured, unaccompanied by a corresponding change of interest in the insurance, suspends the insurance to an equivalent extent, until the interest in the thing and the interest in the insurance are vested in the same person. Cboss-Rejfekences Transfer by coowner or partner, see section 1891 of this title. Transfer of life-insurance policy, see section 2033 of this title. Transfer of thing insured does not transfer policy, see section 1938 of this title. 1889. Transfer after loss. — A change of interest in a thing insured, after the occurrance of an injury which results in a loss, does not affect the right of the insured to indemnity for the loss. 1890. Exception in the case of several subjects in one policy. — A change of interest in one or more of several distinct things, separately insured by one policy, does not avoid the insurance as to the others. 1891. In the case of transfer between cotenants. — A transfer of interest by one of several partners, joint owners, or owners in common, who are jointly insured, to the others, does not avoid an insurance, even though it has been agreed that the insurance shall cease upon an alienation of the tiling insured. ( 'bo s s-Refekbnce Insurance by partner or cotenant, see section 1935 of this title. 1892. Policy, when void. — Every stipulation in a policy of insurance for the payment of loss whether the person insured has or has not any interest in the property insured, or that the policy shall be received as proof of such interest and every policy executed by way of gaming or wagering, is void. Cross-Refeeencb Insurance wilhout interest is illegal, see section 188G of this title. 235

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T. 3, § 1901] THE CIVIL CODE ARTICLE 5.— CONCEALMENT AND REPRESENTATIONS Sec. 1001. Concealment, what. 1902. Effect of concealment. 1903. What must be disclosed. 1904. Matters which need not be communicated without Inquiry. 1905. Test of materiality. 1906. Matters which each is bound to know. 1907. Waiver of communication. 190S. Interest of insured. 1909. Fraudulent warranty. 1910. Matters of opinion. 1911. Representation, how made. Sec. 1912. When made. 1913. How interpreted. 1914. Representation as to future. 1915. How may affect policy. 1916. When may be withdrawn. 1917. Time intended by representation. 1918. Representing Information. 1919. Falsity. 1920. Effect of falsity. 1921. Materiality. 1922. Application of provisions of this article. 1923. Right to rescind. 1901. Concealment, what. — A neglect to communicate that which a party knows, and ought to communicate, is called a concealment. Cross-Refeeencb " Party " refers to either party to the contract, see section 1903 of this title. 1902. Effect of concealment. — ^A concealment, whether intentional or unintentional, entitles the injured party to rescind a contract of insurance. 1903. What must be disclosed. — Each party to a contract of insurance must communicate to the other, in good faith, all facts within his knowledge which are or which he believes to be material to the contract, and which the other has not the means of ascertaining, and as to which he makes no warranty. 1904. Matters which need not be communicated without inquiry. — Neither party to a contract of insurance is bound to communicate information of the matters following, except in answer to the inquiries of the other : 1. Those which the other knows; 2. Those which, in the exercise of ordinary care, the other ought to know, and of which the former has no reason to suppose him ignorant ; 3. Those of which the other waives communication ; 4. Those which prove or tend to prove the existence of a risk excluded by a warranty, and which are not otherwise material; and 5. Those which relate to a risk excepted from the policy, and which are not otherwise material. Cboss-Refebences Facts covered by warranty, see section 1909 of this title. Information as to nature of amount of interest, see section 1908 of this title. Matters of opinion, see section 1910 of this title. Waiver of communication, see section 1907 of this title. 1905. Test of materiality. — Materiality is to be determined not by the event, but solely by the probable and reasonable influence of the facts upon the party to whom the communication is due, in forming his estimate of the disadvantages of the proposed contract or in making his inquiries. Ckoss-Referencb Materiality of renresentation, see section 1921 of this title. 236

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TEE CIVIL CODE [T. 3, § 1916 1906. Matters which each is bound to know. — Each party to a contract of insurance is bound to know all the general causes which are ojDen to his inquiry, equally with that of the other, and which may affect either the political or material perils contemplated ; and all general usages of trade. 1907. Waiver of communication. — The right to information of material facts may be waived, either by the terms of insurance or by neglect to make inquiries as to such facts, where they are distinctly implied in other facts of which information is communicated. 1908. Interest of insured. — Information of the nature or amount of the interest of one insured need not be communicated unless in answer to an inquiry, except as prescribed by section 1932 of this title. 1909. Fraudulent warranty. — An intentional and fraudulent omission, on the part of one insured, to communicate information of matters proving or tending to prove the falsity of a warranty, entitles the insurer to rescind. Ceoss-References Effect of concealment, see section 1902 of this title. Warranties, see sections 1951 et seq., of this title. 1910. Matters of opinion. — Neither party to a contract of insurance is bound to communicate, even upon inquiry, information of his own judgment upon the matters in question. 1911. Representation, how made. — A representation may be oral or written. 1912. When made. — A representation may be made at the same time with issuing the policy, or before it. Ckoss-Ret'erence Warranties, see sections 1951 and 1952 of this title. 1913. How interpreted. — The language of a representation is to be interpreted by the same rules as the language of contracts in general. Cross-Referencb Interpretation of contracts, see sections 901 et seq., of this title. 1914. Representation as to future. — A representation as to the future is to be deemed a promise, unless it appears that it was merely a statement of belief or expectation. 1915. How may affect poKcy. — A representation cannot be allowed to qualify an express provision in a contract of insurance, but it may qualify an implied warranty. 1916. When may be withdrawn. — A representation may be tered wards. altered or withdrawn before the insurance is effected, but not after237

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T. 3, § 1917] THE CIVIL CODE 1917. Time intended by representation. — The completion of the contract of insurance is the time to which a representation must be presumed to refer. 1918. Representing information. — When a person insured has no personal knowled<.';e of a fact, he may nevertheless repeat information which he has upon the subject, anci which he believes to be true, with the explanation that he does so on the information of others, or he may submit the information, in its whole extent, to the insurer; and in neither case is lie responsible for its truth, unless it proceeds from an anent of the iiisured, whose duty it is to give the intelligence. 1919. Falsity. — A representation is to be deemed false when the facts fail to corres|)ond with its assertions or stipulations. 1920. Effect of falsity. — If a representation is false in a material point, Avhetlier affirmative or promissory, the injured party is entitled to rescind the contract from the time when the representation becomes false. 1921. Materiality. — The materiality of a representation is determined b}^ the same rule as the materiality of a concealment. Cross-References Materiality of representation, how deteruiined. see section 1W5 of this title. Violation of material warranty, see section 1958 of this litle. 1922. Application of provisions of this article. — The provisions of this article a]jj)ly as well to a modification of a contract of insurance as to its original formation. 1923. Right to rescind. — Whenever a right to rescind a contract of insurance is given to the insurer by any provision of this chapter, such right may be exercised at any time previous to the commencement of an action on the contract. ARTICLE 6.— THE FOLIC Y Sec. lii.'Jl. Policy, what. 1J|."{2. Wliat must bo spocifinl in n policy. l!i:;8. Wliosp interest is covered. ]it."!4. Insurance hy agent or trustee. 1!)"..'>. Insurance by part owner. lU'.W. General terms. 1937. Successive owners. Sec. 1J)3S. Transfer of Ihe tliinK Insured. ID.'JO. Open and valued policies. 1040. Open policy, what. I'M I. Valiie.i policy, wliat. iniL'. I'lUnniim policy, vvli.at. 194:5. KQect of receipt. 1944. Agreement not to transfer. 1931. Policy, what. — The written instrument, in which a contract of insurance is set forth, is called a policy of insurance. 1932. What must be specified in a policy. — A policy of insurance must specify : 1. The parties between whom the contract is made; 2. The rate of premium; 3. The ])roperty or life insured; 4. The interest of the insured in property insured, if he is not the absolute owner thereof; 5. The risks insured against; and G. The period during which the insurance is to continue. 238

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THE CIVIL CODE [T. 3, § 1943 1933. Whose interest is covered.— When the name of the person intended to be insured is specified in a policy, it can be applied only to his own proper interest. CE0SS-RE!FE3tENCE8 Insurable interest, generally, see section 1881 of this title. Stating interest of insured, see section 1908 of thi!^ title. 1934. Insurance by agent or trustee.— When an insurance is made by an agent or trustee, the fact that his principal or beneficiary is the person really insured may be indicated by describing him as agent or trustee, or by other general words in the policy. 1935. Insurance by part owner.— To render an insurance, effected by one partner or part owner, applicable to the interest of his copartners, or of other part owners, it is necessary that the terms of the policy should be such as are applicable to the joint or common interest. Cboss-Reference Transfer by coowner, see section 1S91 of this title. 1936. General terms.— When the description of the insured in a policy is so general that it may comprehend any person or any class of persons, he only can claim the benefit of the policy who can show that it was intended to include him. 1937. Successive owners.— A policy may be so framed that it will inure to the benefit of whomsoever, during the continuance of the risk, may become the owner of the interest insured. 1938. Transfer of the thing insured.— The mere transfer of a thing insured does not transfer the policy, but suspends it until the same person becomes the owner of both the policy and the thing insured. Cross-reference Transfer of interest, see sections 1888 et seq., of this title. 1939. Open and valued policies.— A policy is either open or valued. 1940. Open policy, what.— An open policy is one in which the value of the thing insured is not agreed upon, but is left to be ascertained in case of loss. 1941. Valued policy, what.— A valued policy is one which expresses on its face an agreement that the thing insured shall be valued at a specified sum. 1942. Running policy, what. — A running poHcy is one which contemplates successive insurances, and which provides that the object of the policy may be from time to time defined, especially as to the subjects of insurance, by additional statements or indorsements. 1943. Effect of receipt. — An acknowledgment in a policy of the receipt of premium is conclusive evidence of its payment, so far as ^9

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T. 3, § 1944] THE CIVIL CODE to make the policy binding, notwithstanding any stipulation therein that it shall not be binding until the premium is actually paid. Cross-Refesence Premiums, in general, see sections 1971 et seq., of this title. 1944. Agreement not to transfer. — An agreement made before a loss, not to transfer the claim of a person insured against the insurer, after the loss has happened, is void. ARTICLE 7.— WARRANTIES Sec. 1951. Warranty, express or implied. 1952. Form. 1958. Express warranties to be in policy. 1954. Past, present, and future warranties. 1955. Express warranty, what constitutes. Sec. 1956. Warranty as to the future. 1957. Performance excused. 1958. What acts avoid the policy. 1959. Policy may provide for avoidance. 1960. Breach without fraud. 1951. Warranty, express or implied. — A warranty is either express or implied. Cboss-Referencb Express warranties to be in policy, see section 1953 of this title. 1952. Form. — No particular form of words is necessary to create a warranty. 1953. Express warranties to be in policy. — Every express warranty, made at or before the execution of a policy, must be contained in the policy itself, or in another instrument signed by the insured and referred to in the policy, as making a part of it. Ceoss-Refeeench Representations, see sections 1911 et seq., of this title. 1954. Past, present, and future warranties. — A warranty may relate to the past, the present, the future, or to any or all of these. 1955. Express warranty, what constitutes. — A statement in a policy, of a matter relating to the person or thing insured, or to the risk, as a fact, is an express warranty thereof. 1956. Warranty as to the future. — A statement in a policy, which imports that it is intended to do or not to do a thing which matelially affects the risk, is a warranty that such act or omission shall take place. 1957. Performance excused. — When before the time arrives for the performance of a warranty relating to the future, a loss insured against happens, or performance becomes unlawful at the place of the contract, or impossible, the omission to fulfill the warranty does not avoid the policy. Ceoss-Refeeencb Rescinding contract of insurance, see section 1923 of this title. 1958. What acts avoid the policy. — The violation of a material warranty, or other material provision of a policy, on the part of either party thereto, entitles the other to rescind. Cboss-Re:feeench Test of the materiality of a representation, see section 1921 of this title. 240

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THE CIVIL CODE [T. 3, § 1975 1959. Policy may provide for avoidance. — A policy may declare that a violation of specified provisions thereof shall avoid it; otherwise the breach of an immaterial provision does not avoid the policy. 1960. Breach without fraud. — A breach of warranty, without fraud, merely exonerates an insurer from the time that it occurs, or where it is broken in its inception prevents the policy from attaching to the risk. Ceoss-Refesienob Breach of warranty without fraud, return of premium, see section 1973 of this title. ARTICLE 8.— PREMIUM Sec. 1971. Return of premium. 1972. When not allowed. 1973. Return for fraud. Sec. 1974. Overinsurance by several insurers. 1975. Contribution. 1976. Proportionate contribution. 1971. Return of premium. — Where the insurance is made for a definite period of time and the insured surrenders his policy, he is entitled to a return of such proportion of the premium above the customary short rate premium as corresponds with the unexpired time, after deducting from the whole premium any claim for loss or damage under the policy which has previously accrued. Ceoss-Referetmce Return for fraud, see section 1973 of this title. 1972. When not allowed. — If a peril insured against has existed, and the insurer has been liable for any period, however short, the insured is not entitled to return of premiums so far as that particular risk is concerned. 1973. Return for fraud. — A person insured is entitled to a return of the premium when the contract is voidable, on account of the fraud or misrepresentation of the insurer, or on account of facts, of the existence of which the insured was ignorant without his fault ; or when, by any default of the insured other than actual fraud, the insurer never incurred any liability under the policy. Ceoss-Referenob Return of premium, see section 1971 of this title. 1974. Overinsurance by several insurers. — In case of an overinsurance by several insurers, the insured is entitled to a ratable return of the premium, proportioned to the amount by which the aggregate sum insured in all the policies exceeds the insurable value of the thing at risk. Ceoss-Reteeenob Double insurance, defined, see section 2001 of this title. 1975. Contribution. — When an overinsurance is effected by simultaneous policies, the insurers contribute to the premium to be returned in proportion to the amount insured by their respective policies. Ceoss-Reference Contribution in cases of double insurance, see section 2002 of this title. 241

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T. 3, § 1976] THE CIVIL CODE 1976. Proportionate contribution. — When an overinsurance is effected by successive policies, those only contribute to a return of the premium who are exonerated by prior insurance from the liability assumed by them, and in proportion as the sum for which the premium was paid exceeds the amount for which, on account of prior insurance, they could be made liable. ARTICLE 9.— LOSS Sec. 19S1. Perils, remote and proximate. 1982. Loss incurred in rescue from peril. Sec. l!)83. 1984. Excepted perils. Negligence and fraud. 1981. Perils, remote and proximate. — An insurer is liable for a loss of which a peril insured against was the proximate cause, although a peril not contemplated by the contract may have been a remote cause of the loss ; but he is not liable for a loss of which the peril insured against was only a remote cause. CROSS-REafERENCE Negligence of insured, see section 1984 of this title. 1982. Loss incurred in rescue from peril. — An insurer is liable where the thing insured is rescued from a peril insured against, that would otherAvise have caused a loss, if in the course of such rescue the thing is exposed to a peril not insured against, which permanently deprives the insured of its possession, in whole or in part ; or where a loss is caused by efforts to rescue the thing insured from a peril insured against. 1983. Excepted perils. — Where a peril is specially excepted in a contract of insurance, a loss, which would not have occurred but for such peril, is thereby excepted, although the immediate cause of the loss was a peril which was not excepted. 1984. Negligence and fraud. — An insurer is not liable for a loss caused by the willful act of the insured ; but he is not exonerated by the negligence of the insured, or of his agents or others. ARTICLE 10.— NOTICE OF LOSS Sec, 1994. Waiver of defects in notice, etc. 1995. Waiver of delay. 1996. Certificate, when dispensed with. Sec. 1991. Notice of loss. 1992. Time for giving notice of accidents, etc. 1993. Preliminary proofs. 1991. Notice of loss. — In case of loss upon an insurance against fire, an insurer is exonerated if notice thereof be not given to him by some person insured, or entitled to the benefit of the insurance, without unnecessary delay. 1992. Time for giving notice of accident, etc. — No conditions, stipulations, or agreements contained in any application for insurance in any casualty or accident insurance company, or contained in any policy issued by any such company, or in any way made by any such company, limiting the time within which notice of the accident or injury, or death, shall be given to such company to a period of less than twenty days after the happening of the accident, or injury, or 242

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THE CIVIL CODE [T. 3. § 2011 death, shall be valid. Said notice may be given to the company insuring, at any time within twenty days after the happening of the accident, or injury, or death, and shall be valid and binding on the compau}'^; and notice deposited in tlie mails i)roperly addressed within tile time stated is suilicient, though it does not reach the insurer within that time. 1993. Preliminary proofs. — When preliminary proof of loss is required by a jjolicy, the insured is not bound to give such proof as would be necessary in a court of justice; but it is sufficient for him to give the best evidence which he has in his power at the time. 1994. Waiver of defects in notice, etc. — All defects in a notice of loss, or in preliminary proof thereof, which the insured might remedy, and which the insurer omits to specify to him, without unnecessary delay, as grounds of objection, are waived. 1995. Waiver of delay. — Delay in the presentation to an insurer of notice or proof of loss is waived, if caused by any act of his, or if he omits to make objection promptly and specifically upon that ground. 1996. Certificate, when dispensed with. — If a policy requires, by way of preliminary proof of loss, the certificate or testimony f)f a person other than the insured, it is sufficient for the insured to use reasonable diligence to procure it, and in case of the refusal of such person to give it, then to furnish reasonable evidence to the insurer that such refusal was not induced b}^ any just grounds of disbelief in the facts necessary to be certified. ARTICLE 11.— DOUBLE INSURANCE Sec. 2001. Double insurance. Sec. 2002. Contribution in case of double insur2001. Double insurance. — A double insurance exists where the same person is insured by several insurers separately in respect to the same subject and interest. 2002. Contribution in case of double insurance. — In case of double fire insurance, each insurer must contribute ratably toward the loss, without regard to the dates of the several policies. Ceoss-References Return of premium by successive insurers, see sections 1974 and 1976 of this title. Insurers in separate policies may be joined, see title 4, section 139. ARTICLE 12.— REINSURANCE Sec. 2011. Reinsurance, what. 2012. Disclosures required. Sec. 2013. Reinsurance presumed to be against liability. 2014. Original insured has no interest. 2011. Reinsurance, what. — A contract of reinsurance is one by which an insurer procures a third person to insure him against loss or liability by reason of such original insurance. 243

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T. 3, § 2012] THE CIVIL CODE 2012. Disclosures required. — Where an insurer obtains reinsurance, he must communicate all the representations of the original insured, and also all the knowledge and information he possesses, whether jDreviously or subsequently acquired, which are material to the risk. 2013. Reinsurance presumed to be against liability. — A reinsurance is presumed to be a contract of indemnity against liability and not merely against damage. 2014. Original insured has no interest. — The original insured has no interest in a contract of reinsurance. CHAPTER 57.— FIRE INSURANCE 2021. Alteration increasing risk. 2022. Alteration not increasing rislJ. 2023. Acts of insured. 2024. Measure of indemnity. Sec. 2025. Value of interest in policy of insurance ; how may be fixed ; total or partial loss. Ckoss-Rb:ferences Chapter 56 of this title is also applicable to fire insurance, see section 1863 of this title. Foreign insurance companies, see sections 221 et seq., of this title. Injury to or destruction of insured property, see title 5, section 705. Section 2021. Alteration increasing risk. — An alteration in the use or condition of a thing insured from that to which it is limited by the policy, made without the consent of the insurer, by means within the control of the insured, and increasing the risk, entitles an insurer to rescind a contract of fire insurance. 2022. Alteration not increasing risk. — An alteration in the use or condition of a thing insured from that to which it is limited b)'^ the policy, which does not increase the risk, does not affect a contract of fire insurance. 2023. Acts of insured. — A contract of fire insurance is not affected by any act of the insured subseq^uent to the execution of the policy, w^hich does not violate its provisions, even though it increases the risk and is the cause of a loss. 2024. Measure of indemnity. — ^If there is no valuation in the policy, the measure of indemnity in an insurance against fire is the expense it would be to the insured at the time of the commencement of the fire to replace the thing lost or injured in the condition in which it was at the time of the injury; but the effect of a valuation in a policy of fire insurance is the same as in a policy of marine insurance. 2025. Value of interest in policy of insurance; how may be fixed; total or partial loss. — Whenever the insured desires to have a valuation named in his policy, insuring any building or structure against fire, he may require such building or structure to be examined by the insurer, and the value of the insured's interest therein shall be thereupon fixed by the parties. The cost of such examination shall be paid for by the insured. A clause shall be inserted in such policy stating substantially that the value of the insured's interest in such building or structure has been thus fixed. In the absence of any 244

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THE CIVIL CODE [T. 3, § 2033 change increasing the risk without the consent of the insurer or of fraud on the part of the insured, then, in case of a total loss under such policy, the whole amount so insured upon the insured's interest in such building or structure, as stated in the policy upon which the insurers have received a premium, shall be paid, and in case of a partial loss the full amount of the partial loss shall be so paid, and in case there are two or more policies covering the insured's interest therein, each policy shall contribute pro rata to the payment of such whole or partial loss. But in no case shall the insurer be required to pay more than the amount thus stated in such policy. This section shall not prevent the parties from stipulating in such policies concerning the repairing, rebuilding, or replacing buildings or structures wholly or partially damaged or destroyed. CHAPTER 58.— LIFE AND HEALTH INSURANCE Sec. 2031. Insurance upon life, when payable. 2032. Insurable interest. 2033. Assignee, etc., of life policy need have no interest. 2034. Notice of transfer. Sec. 2035. Measure of indemnity. 2036. Disposition by beneficiary of interest in installment. 2037. Payment of proceeds of policy. Cross-References Chapter 56 of this title is also applicable to life insurance, see section 1S63 of this title. Foreign insurance companies, see sections 221 et seq., of this title. Section 2031. Insurance upon life, when payable. — An insurance upon life may be made payable on the death of the person, or on his surviving a specified period, or periodically so long as he shall live, or otherwise contingently on the continuance or determination of life. 2032. Insurable interest. — Every person has an insurable interest in the life and health — 1. Of himself; 2. Of any person on whom he depends wholly or in part for education or support; 3. Of any person under a legal obligation to him for the payment of money, or respecting property or services, of which death or illness might delay or prevent the performance ; and 4. Of any person upon whose life any estate or interest vested in him depends. Ceo s s-Referen cb Insurable interest, generally, see sections 1881 et seq., of this title, 2033. Assignee, etc., of life policy need have no interest. — A policy of insurance upon life or health may pass by transfer, will, or succession to any person, whether he has an insurable interest or not, and such person may recover upon it whatever the insured might have recovered. Cross-Reference Compare section 1888 of this title. 245

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T. 3, § 2034] THE CIVIL CODE 2034. Notice of transfer. — Notice to an insurer of a transfer or bequest thereof is not necessary to preserve the validity of a policy of insurance upon life or health, unless thereby expressly i-equired. 2035. Measure of indemnity. — Unless the interest of a person insured is susceptible of exact pecuniary measurement, the measure of indemnity under a policy of insurance upon life or health is the sum fixed in the policy. 2036. Disposition by beneficiary of interest in installment. — The beneficiary under a policy of life insurance, providing for the payment of the proceeds thereof in periodical installments, may be restrained from disposing of or encumbering his interest in any such installment, prior to the date when it shall become due and paj^able by the insurer, by a condition or stipulation in the policy. 2037. Payment of proceeds of policy. — The proceeds of every policy of insui'ance due on the death of insured shall by the insurer be paid either to the beneficiary designated therein, or, if no beneficiary is designated therein, to the estate of insured ; or, if the policy has been assigited, to the assignee thereof ; and such payment shall satisfy all obligations of the insurer with respect to said policy. CHAPTER 59.— INDEMNITY Sec. i Sec. 2041. Indemnity, what. 2047. Kules for interpreting agreement of 2042. Indemnity for a future wrongful act void. 2043. Indemnity for a past wrongful act valid. 2044. Indemnity extends to acts of agents. 2045. Indemnity to several. 2046. Person indemnifying liaiilo jointly or severally with person indemniticd. indemnity. 2048. Roimbursemont of person indemnifying other. 2049. Bail, what. 2050. How regulated. Section 2041. Indemnity, what. — Indemnity is a contract by which one engages to save another from a legal consequence of the conduct of one of the parties, or of some other person. Cboss-References Guaranty, see sections 2061 et seq., of this tif Ic Suretyship, see sections 2121 et seq., of this title. 2042. Indemnity for a future wrongful act void. — An agreement to indemnify n person against an act thereafter to be done, is void, if the act be known by such person at the time of doing it to be unlawful. 2043. Indemnity for a past wrongful act valid. — An agreement to indemnify a person against an act alieatly done, is valid, even though the act was known to be wrongful, unless it was a felony. 2044. Indemnity extends to acts of agents. — An agreement to indemnify against the acts of a certain person, ap])lies not only to his acts and their consequences, but also to those of liis agents. 2045. Indemnity to several. — An agreement to indemnify several persons applies to each, unless a contrary intention appears. 246

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THE CIVIL CODE [T. 3, § 2050 2046. Person indemnifying liable jointly or severally with person indemnified. — One wlio indemnifies another aji^ainst an act to be done by the hitter is liable jointly with the person indemnified, and separately, to every person injured by such act. 2047. Rules for interpreting agreement of indemnity. — In the interpretation of a contract of indemnity the following rules are to be applied, unless a contrary intention appears — 1. Upon an indemnity against liability, expressly, or in other equivalent terms, the person indemnified is entitled to recover upon becoming liable. 2. Upon an indemnity against claims, or demands, or damages, or costs, expressly, or in other equivalent terms, the person indemnified is not entitled to recover without payment thereof. 3. An indemnity against claims, or demands, or liability, expressly, or in other equivalent terms, embraces the costs of defense against such claims, demands, or liability incurred in good faith and in the exercise of a reasonable discretion. 4. The i^erson indemnifying is bound, on request of the person indemnified, to defend actions or proceedings brought against the latter in respect to the matters embraced by the indemnity, but the person indemnified has the right to engage in the conduct of such defenses, if he chooses to do so. 5. If, after request, the person indemnifying neglects to defend the person indemnified, a recovery against the latter suffered by him in good faith is conclusive in his favor against the former. 6. If the person indemnifying, whether he is a principal or a surety in the agreement, has not reasonable notice of the action or proceeding against the person indemnified, or is not allowed to control its defense, judgment against the latter is only presumptive evidence against the former. 7. A stipulation that a judgment against the person indemnified shall be conclusive upon the person indemnifying, is inapplicable if he had a good defense upon the merits, which by want of ordinar}^ care he failed to establish in the action. 2048. Reimbursement of person indemnifying other. — Where one, at the request of another, engages to answer in damages, whether liquidated or unliquidated, for any violation of duty on the part of the latter, he is entitled to be reimbursed in the same manner as a surety for whatever he may pay. 2049. Bail, what. — Upon those contracts of indemnity which are taken in legal proceedings as security for the performance of an obligation imposed or declared by the tribunals, and known as undertakings or recognizances, the sureties are called bail. 2050. How regulated. — The obligations of bail are governed by the law specially applicable thereto. 5147

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T. 3, § 2061] THE CIVIL CODE CHAPTER 60.— GUARANTY IN GENERAL Art. Sec. 1. Definition of guaranty 2061 2. Creation of guaranty 2071 3. Interpretation of guaranty 2081 Art. Sec. 4. Liability of guarantors 2091 5. Continuing guaranty 2101 6. Exoneration of guarantors 2111 ARTICLE 1.— DEFINITION OF GUARANTY Section 2061. Guaranty, what. — A guaranty is a promise to answer for the debt, default, or miscarriage of another person. Cboss-Refekences Indemnity, see sections 2041 et seq., of this title. Suretyship, see sections 2121 et seq., of this title. ARTICLE 2. CREATION OF GUARANTY Sec. 2074. Engagement to answer for obligation of another, when deemed original. 2075. Acceptance of guaranty. Sec. 2071. Knowledge of principal not necessary. 2072. Necessity of a consideration. 2073. Guaranty to be In writing, etc. 2071. Knowledge of principal not necessary. — A person majjr become guarantor even without the knowledge or consent ot the principal. 2072. Necessity of a consideration. — Where a guaranty is entered into at the same time with the original obligation, or with the acceptance of the latter by the guarantee, and forms with that obligation a part of the consideration to him, no other consideration need exist. In all other cases there must be a consideration distinct from that of the original obligation. 2073. Guaranty to be in writing, etc. — Except as prescribed by the section next following, a guaranty must be in writing, and signed by the guarantor ; but the writing need not express a consideration. Ceoss-Reference Guaranty to be written, see section of this title. 2074. Engagement to answer for obligation of another, when deemed original. — A promise to answer for the obligation of another, in any of the following cases, is deemed an original obligation of the promisor, and need not be in writing : 1. Where the promise is made by one who has received property of another upon an undertaking to apply it pursuant to such promise, or by one who has received a discharge from an obligation in whole or in part in consideration of such promise. 2. Where the creditor i)arts with value, or enters into an obligation, in consideration of the obligation in respect to which the promise is made, in terms or under circumstances such as to render the party making the promise the principal debtor, and the person in whose behalf it is made, his surety. 3. Where the promise, being for an antecedent obligation of another, is made upon the consideration that the party receiving it cancels the antecedent obligation, accepting the new promise as a substitute therefor; or upon the consideration that the party receiv248

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THE CIVIL CODE [T. 3, § 12084 ing it releases the property of another from a levy, or his person from imprisonment under an execution on a judgment obtained upon the antecedent obligation; or upon a consideration beneficial to the promisor, whether nioving from either party to the antecedent obligation or from another person. 4. Where a factor undertakes, for a commission, to sell merchandise and guarantee the sale. 5. Where the holder of an instrument for the payment of money, upon which a third person is or may become liable to him, transfers it in payment of a precedent debt of his own, or for a new consideration, and in connection with such transfer enters into a promise respecting such instrument. Cross-Eefei^encb Guaranty, necessity of writing, see section 886 of tliis title. 2075, Acceptance of guaranty.— A mere offer to guarantee is not binding until notice of its acceptance is communicated by the guarantee to the guarantor; but an absolute guaranty is binding upon the guarantor without notice of acceptance. Ceoss-Referencb Absolute guaranty, see section 2091 of tliis title. ARTICLE 3.— INTERPRETATION OF GUARANTY Sec. 1!0S1. Guaranty of incomplete contract. i!0S2. Guaranty that an obligation is good or collectible. Sec. 2083. Recovery upon such guaranty. 2084. Guarantor's liability upon sucli guaranty. 2081. Guaranty of incomplete contract. — In a guaranty of a contract, the terms of which are not then settled, it is implied that its terms shall be such as will not expose the guarantor to greater risks than he would incur under those terms which are most common in similar contracts at the place where the principal contract is to be performed. 2082. Guaranty that an obligation is good or collectible. — A guaranty to the effect that an obligation is good, or is collectible, imports that the debtor is solvent and that the demand is collectible by the usual legal proceedings, if taken with reasonable diligence. 2083. Recovery upon such guaranty. — A guaranty, such as is mentioned in the next preceding section, is not discharged by an omission to take proceedings upon the principal debt, or upon any collateral security for its payment, if no part of the debt could have been collected thereby. 2084. Guarantor's liability upo