(a) A person may exchange a nonnegotiable receipt for cotton for a negotiable receipt for cotton by:
(1) returning the nonnegotiable receipt to the warehouse issuing it; and
(2) complying with the provisions of this chapter relating to negotiable receipts.
(b) When the negotiable receipt is surrendered or canceled, the public warehouse operator shall mark or stamp "canceled" in ink on the face of the receipt.