46. Thieves broke into the warehouse of Monogram Airways and stole a shipment of computer parts be- longing to Valley Instruments. Valley had in its possession a negotiable bill of lading covering the shipment. The thieves transported the stolen parts to another state and placed the parts in a bonded warehouse. The thieves received a negotiable warehouse receipt which they used to secure a loan of $20,000 from Reliable Finance. These facts were revealed upon apprehension of the thieves. Regarding the rights of the parties.

Reliable is entitled to a $20,000 payment before relinquishment of the parts.

Monogram will be the ultimate loser of the $20,000

Valley is entitled to recover the parts free of Reliables $20,000 claim

Valley is not entitled to the parts but may obtain damages from Monogram.