Section 256 Investments and Securities Act

Section 256 of the Investments and Securities Act 2025 is about Delivery of commodities in parts. It is under Part XV (Commodities Exchange and Warehouse Receipts) of the Act. It provides as follows:

(1) Except as otherwise provided in this Act, where a warehouse operator delivers part of the commodities for which a warehouse receipt had been issued, the issuer of the warehouse receipt shall cancel the receipt and issue a new receipt for the remaining commodities.

(2) An issuer of a warehouse receipt who fails to comply with the provisions of subsection (1), commits an offence and is liable on conviction to imprisonment for a term of one year and in addition liable to pay the market value of the commodities not delivered.

(3) Where a receipt is not cancelled as provided under subsection (1) and the purchaser acquires title to the receipt before or after the delivery of any portion of the commodities, the issuer of the warehouse receipt shall remain liable to the purchaser