Is a warehouse receipt a transferable and negotiable instrument?
In order for a warehouse receipt to be useful with stored grain, it will be essential for the receipt to be “transferable”. In other words, there must be nothing in the law or on the face of the document that prevents the borrower from transferring his rights under the receipt to the lender. A transferable receipt may also be subject lo a further distinction in some legal systems: is it a non-negotiable or negotiable instrument? Sometimes the concepts of “transferability” and “negotiability” are blurred together: when a borrower transfers a document to a lender in exchange for a loan, it would seem that the document has been negotiated. Thus, the terms ”transferable” and “negotiable” are frequently used interchangeably. However, in some legal systems negotiability is a more specialized concept than simply the ability to transfer the document. A negotiable instrument in such systems is not only transferable, but confers upon the transferee a direct interest in the underlying property f
