Title 10, Chapter 4, Section 76
(a) If the warehouseman to whom cotton is offered for storage shall
have cause to believe there is an adverse lien, title, or claim to
the cotton, he shall make reasonable investigation; and to that end
he may require the party so offering the cotton for storage to make
affidavit in writing as to such liens, adverse title, or claims.
(b) Any transferee or holder for value of any receipt issued under
this article, without notice of any adverse lien, title, or claim to
the cotton represented by such receipt, shall have a superior claim
to the cotton as against such adverse lien, title, or claim, unless
the holder of the adverse lien, title, or claim within seven days
after the date on which the cotton was so stored in such warehouse
shall begin action on such lien, title, or adverse claim in a court
of competent jurisdiction, and give to the warehouse where the
cotton is stored written notice of such action.