To recapitulate, in the context of coffee export trade finance, warehouse receipts may generally be considered as valid collateral if:

• The receipt is issued by an approved entity (public warehouseman, collateral manager).
• The goods are identifiable, records are maintained and no commingling is permitted.
• No superior rights (liens) are held over the goods by the issuer (the warehouseman).
• The receipt can be transferred by endorsement or assignment (it is negotiable), or it is issued in favour of the lender.
• The receipt can be used to pledge or sell the underlying goods.
• Insurance cover against loss or unauthorized release of the underlying goods is adequate.
• No third party can have superior rights over the underlying goods.
• Local legislation enables the beneficial holder to enforce their rights over the underlying goods, that is, the debt the goods represent can be executed ahead of any claims that others (for example revenue authorities or warehousemen) may have. See 10.12.02 for an example of the development of such legislation in Uganda and the United Republic of Tanzania.