§ 55644 Director Sale Of Security

• •If a company gives warehouse receipts (like a promise note for stored goods) to the director as a guarantee and doesn't pay what they owe, the director can sell those receipts.
• •The director can sell these receipts whenever they want, without telling the company first.
• •The director gets to decide how to sell them.

A food company stores bags of flour in a warehouse and gives the director a receipt as a promise to pay later. If the company doesn’t pay on time, the director can sell that receipt to someone else to get the money owed.

The director doesn’t have to wait or ask the company before selling the receipt. They can do it right away, however they think is best.