148. Documents of title entrusted to agent.

148.     Documents of title entrusted to agent.

Where a principal entrusts his agent with documents of title1, and gives him authority to raise a loan by means of them, he is bound, as regards any person who has dealt with the agent in good faith, by any security given by the agent to the full amount advanced by that person to the agent on the faith of the security, notwithstanding the fact that the agent exceeded his authority in borrowing such amount2.

No disposition which depends for its validity upon a forged instrument is, however,