824 IAC 2-14-4 Authority for a licensee to issue warehouse receipts to itself

Sec. 4. (a) A warehouse receipt that is to be used for collateral purposes by a warehouse licensee must be first issued by the licensee to itself. The warehouse licensee then shall properly endorse the collateral receipt on the reverse to the secured party. Subject to the provisions of this rule, a licensee may issue and hold a warehouse receipt for grain provided all the following apply: (1) The grain is owned by the licensee. (2) The licensee has paid, in full, for the grain. (3) The grain is located in licensed facilities. (b) The warehouse licensee's obligation represented by an outstanding warehouse receipt endorsed for collateral purposes shall not be cancelled until the licensee has possession of the outstanding receipt and it has been properly cancelled. The licensee may cancel the outstanding obligation represented by a warehouse receipt in lieu of having possession of the actual receipt in his possession, provided that the secured party has presented the licensee with a written confirmation of their release of said warehouse receipt. The confirmation may be by letter or facsimile transmission, and it shall, at a minimum, contain the following: (1) Date of release. (2) Receipt number or numbers. (3) Authorized signature of the secured party warehouse receipt holder.