§ 7-56-506 — Warehouse receipts - interest in warehouse entities

If a
cooperative formed under or that has elected to be subject to this article organizes,
forms, operates, owns, controls, has an interest in, owns stock of, or is a member of
any commodities warehouse, the warehouse may issue legal warehouse receipts to
the cooperative against the commodities delivered by it or to any other person, and
any legal warehouse receipt shall be considered as adequate collateral to the
extent of the usual and current value of the commodity represented by the receipt.
If the warehouse is licensed or licensed and bonded under the law of this state, any
other state, or the United States, its warehouse receipt delivered to the cooperative
on commodities of the cooperative or its members or delivered by the cooperative
or its members shall not be challenged or discriminated against because of
ownership or control, wholly or in part, by the cooperative.

Legislative History

Source: L. 96: Entire article R&RE, p. 511, � 1, effective July 1. L. 2003: Entire section amended, p. 2228, � 90, effective July 1, 2004.