§ 35-36-210 — Use of scale tickets and negotiable warehouse receipts

Colorado § 35-36-210

• Jurisdiction: Colorado
• Title 35: Agriculture
• Art.: Commodities Handlers and Farm Products

Text

(1) It is
unlawful to issue paper negotiable warehouse receipts other than those furnished
by the department. A licensee shall issue these receipts consecutively, as
numbered, and each receipt must state the date on which it is actually issued.

(2) Nothing in this part 2 prevents the issuance of nonnegotiable scale
tickets or other nonnegotiable evidence of a similar nature showing the date on
which the commodities were received, the quantities received, and the condition of
the commodities upon their delivery.

(3) When partial withdrawal of a commodity is made by an owner, the
warehouse operator shall make an appropriate notation of the partial withdrawal on
the depositor's nonnegotiable warehouse receipt or on such other records as may
be prescribed by the department. If, before the partial withdrawal of the
commodity, the warehouse operator has issued a negotiable warehouse receipt to
the owner, the warehouse operator shall claim, cancel, and replace it with a new
negotiable warehouse receipt, showing the amount of the owner's commodity
remaining in the public warehouse.

(4) Every commodity handler or small-volume commodity handler receiving
commodities for storage or handling shall immediately, upon receipt of each load,
issue to every person delivering the commodity a scale ticket, which must contain
the net weight of each separate draft or load of the commodity and the dockage, if
any, to be levied at the time of delivery, and such other information as may be
required by the department.

(5) Acceptance of commodities for storage by a warehouse operator for
which a negotiable warehouse receipt is issued constitutes a bailment process and
not a sale. If a warehouse operator fails to claim and cancel a negotiable warehouse
receipt issued on delivery for commodities stored in the warehouse operator's
public warehouse and the negotiation of which would transfer the right of
possession of that commodity, the warehouse operator is liable, to a good faith
purchaser for value, for the warehouse operator's failure to deliver to the purchaser
all the commodities specified in the receipt. This liability applies whether the
purchaser acquired title to the negotiable warehouse receipt before, on, or after the
delivery of any part of the commodity by the warehouse operator.

Legislative History

Source: L. 2020: Entire article amended with relocations, (HB 20-1213), ch. 160, p. 730, � 2, effective June 29.