(a) A person who obtains a negotiable warehouse receipt describing goods subject to a lien may not, with intent to defraud, negotiate the receipt for value without disclosing the lien’s existence.
(b) A person who violates this section commits an offense. An offense under this section is a misdemeanor punishable by:
(1) confinement in the county jail for a term of not more than one year;
(2) a fine not to exceed $1,000; or
(3) both the fine and confinement.

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Terms Used In Texas Business and Commerce Code 251.008

  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
  • Year: means 12 consecutive months. See Texas Government Code 311.005