If an elevator stores grain for a farmer and issues a wareho

If an elevator stores grain for a farmer and issues a warehouse receipt, the advantages for the farmer are that title to the grain stays with the farmer and the farmer can use the warehouse receipt as collateral for a loan

T or F?

Solution

True.

Warehouse receipt is a document that is a proof of ownership of the grains that are stored by the warehouse.

And they may or may not be negotiable. But must of them can be used as collateral.