Thus, it imposed a warehouseman's level of care.

If a warehouseman has a contract with a provider, all warehouse receipts issued by the warehouseman shall initially be issued as electronic warehouse receipts.

Prior to issuing electronic warehouse receipts, each warehouseman shall request and receive from the Service a range of consecutive warehouse receipt numbers, which the warehouseman shall use for the electronic warehouse receipts it issues.

Furthermore, it was pointed out that delivery of possession was sufficient, if it was made not only to the secured creditor, but also to its agents or employees, or to persons like an independent warehouseman that acknowledged that they would hold possession for the benefit of the secured creditor.

It was also agreed that the bracketed text should be revised to explain that dispossession ought to be actual, which would be the case if the encumbered assets were in the possession of the secured creditor, an agent or employee of the secured creditor, or an independent warehouseman that had acknowledged that it retained possession on behalf of the secured creditor.

For example, a lender considering a loan to a grantor secured by an all-asset security may be willing to make the loan even if the inventory is subject to various security rights (such as a security right in favour of a warehouseman who stores inventory for the grantor), as long as the lender can ascertain with reasonable certainty, the nature and amount of such claims.

For example, a creditor may be willing to extend credit to a grantor based upon the value of the grantor's existing and future inventory, even though the inventory may be subject to the prior claims of the vendor who sold the inventory to the grantor, or of the warehouseman who stored the inventory for the grantor, as long as the creditor can determine that, even after paying such claims, the inventory may be sold or otherwise disposed of for an amount sufficient to repay its secured obligation in full.

For example, a creditor may be willing to extend credit to a grantor based upon the value of the grantor's existing and future inventory, even though the inventory may be subject to the prior claims of the vendor who sold the inventory to the grantor, or the warehouseman who stored the inventory for the grantor, as long as the creditor can determine that, even after paying such claims, the inventory may be sold or otherwise disposed of for an amount sufficient to repay its secured obligation in full.