§250 Warehouse receipts

Summary

If someone stores an agricultural product in a licensed warehouse and asks for a receipt, the warehouse operator must give one. The product must actually be in the warehouse when the receipt is issued. The Secretary decides what information must be on each receipt. While a receipt is still outstanding and not canceled, the warehouse cannot issue another receipt for the same product or part of it, unless the Secretary allows it. Also, if a document for the product is transferred, no duplicate document for the same product may be transferred except as the Secretary allows. Except as provided in section 242(h)(2), the Secretary can make rules to allow electronic receipts and other electronic documents. Electronic receipts can be issued, recorded, and transferred using approved systems in one or more locations. A person listed as the holder of an electronic receipt is treated as having possession for making or protecting a legal claim (security interest) and for other purposes. Electronic receipts and documents may not be denied legal effect just because they are electronic. Priority of multiple security claims follows applicable federal or state law. No one is forced to issue receipts only in electronic form. A warehouse operator not licensed under this chapter may choose to use electronic receipts if they follow the Secretary’s rules. A warehouse licensed under State law may opt out of this federal electronic system or use the State’s electronic receipts.