(1) No warehouseman shall issue a receipt for grain not known by the warehouseman to be in the public warehouse of the warehouseman.

(2) When partial withdrawal of the grain of the depositor is made by a depositor, the warehouseman shall make appropriate notation thereof on the depositor’s nonnegotiable receipt and on other records as prescribed by the State Department of Agriculture, or, if the warehouseman has theretofore issued a negotiable receipt to the depositor, the warehouseman shall claim, cancel and replace it with a negotiable receipt showing the amount of such depositor’s grain remaining in the public warehouse.

(3) A nonnegotiable receipt shall have plainly lettered upon the face thereof, ‘Not Negotiable’ or ‘Nonnegotiable.’

(4) For failure of the warehouseman to claim and cancel, on delivery by grain stored in the public warehouse of the warehouseman, a negotiable receipt therefor issued by the warehouseman, the negotiation of which would transfer the right to possession of such grain, a warehouseman shall be liable to any one who purchases such receipt for value and in good faith, for failure to deliver to the purchaser all the grain specified in the receipt, whether such purchaser acquired title to the negotiable receipt before or after delivery of any part of the grain by the warehouseman. [1961 c.445 § 13]

[Repealed by 1955 c.731 § 34]