In addition to any other obligations set out in the Code, Chapter
14, or this chapter, the warehouse operator shall be responsible for
the general obligations of this section. In the event of a conflict
between these general obligations and the obligations established
elsewhere, the Code shall control first and then the most specific
provision which provides the greatest protection to the depositor
or other customer of the warehouse.
(1) Warehouse operators shall comply with all orders,
notices, or requests for reports or other information from the department.
(2) The following people shall be considered to have
authority to act on behalf of the warehouse operator: sole proprietor,
general or managing partner, chief financial officer, chief operating
officer, president, vice president, treasurer, chief executive officer,
manager, any person authorized to sign receipts, or any person authorized
to negotiate or sign contracts with producers of commodities regulated
by the Code.
(3) In addition, the licensee shall also notify the
department in writing within 10 days of any change in:
(A) billing address;
(B) agent address;
(C) managers;
(D) personnel authorized to sign receipts; or
(E) ownership.
(4) A public grain warehouse shall be considered suitable
for storing, shipping, and handling grain if it meets the following
requirements.
(A) It is weathertight to protect grain from the elements
at all times except if approved for temporary storage by the department
(see §13.14 of this chapter relating to Temporary Storage).
(B) A public grain warehouse shall keep open storage
grain separate from non-public storage facilities. An exception would
be when a permanent wall can be constructed to separate the two types
of grain.
(C) It is structurally sound so as to provide proper
and adequate storage for the commodity being stored and to prevent
mixing of any grain, which requires separate storage.
(D) It provides a safe and adequate means of entry
and exit to all storage units.
(5) The warehouse operator shall be responsible for
ensuring that all application materials, reports, or records are submitted
or made available to the department. The action or lack of action
of a third party shall not relieve the warehouse operator of these
responsibilities.
(6) A licensee shall maintain a complete, correct,
and legible daily position report, which shall be kept current as
of the close of each business day.
(7) The daily position report shall declare all grain
in the warehouse or in temporary storage as either receipted grain,
open storage grain including that in terminal storage, or company-owned
grain including that in terminal storage. Company owned grain may
be reported as paid and unpaid, separately or combined, in the daily
position report. Any change on the daily position report shall be
supported by at least one of the following documents:
(A) a signed copy of the contract of purchase. Such
contract shall not be part of any scale weight ticket, settlement
agreement, or other unrelated document issued by the licensee;
(B) proof of payment;
(C) a canceled receipt; or
(D) a scale weight ticket.
(8) An expired receipt is non-negotiable and the obligation
transfers on the daily position report from receipted grain to open
storage grain. The depositor has the option to have a new receipt
issued after satisfying accrued storage and handling charges or to
leave as an open storage obligation. The licensee has the option to
offset any accrued storage and handling charges. Before the offset,
the licensee shall provide 30-days advance notice by certified mail
sent to the last known address of the depositor. Such notice shall
contain a statement of account including, but not limited to, the
kind of grain, quantity, current market price, and accrued storage
and handling charges. Storage charges may be calculated for the ten-year
term at the present rate on the day of the offset, unless the storage
rate is indicated on the receipt.
(9) Serial numbered scale weight tickets shall be issued
sequentially for each load of grain received at or shipped from a
public grain warehouse on the date of shipment or receipt. Each ticket
shall show:
(A) the gross weight, tare weight, and net weight of
the grain, without allowance for shrinkage or other discounts;
(B) the date of transaction;
(C) the kind and class of grain;
(D) an indication as to whether the grain is inbound
or outbound grain;
(E) the name and location of the grain warehouse;
(F) the printed name and the Farm Service Agency farm
number or business address of the person to whom the ticket was issued;
(G) the printed name and signature of the person issuing
the ticket; and
(H) the name of the person weighing the grain, if different
from the person issuing the ticket.
(10) Records shall be immediately available for inspection
at the licensed location during normal business hours. Upon request
by the department, a warehouse operator shall furnish copies of all
requested records within five business days.
(11) Records related to multiple business operations
at the same location must be kept separately and not mixed with public
grain warehouse records.
(12) Records must have a legend, code sheet, or key
list showing the meaning of any abbreviations or headings in the main
record keeping system sufficient to allow inspection of the records
without further interpretation by warehouse operator, authorized agent,
or other employee.
(13) Records must be legible, correct, and accurate.
(14) Grain amount, when required, shall be stated in
the unit measure for the commodity in common use in the industry (i.e.,
bushels, cwt., or lbs.).
(15) Any warehouse with a 3.0% or greater variance
between the measured grain position and the grain position as established
by the daily position report, on the date of measurement, may be suspended
until the shortage is corrected. During the suspension, the department
is authorized to seize any unused receipts, the daily position report,
and the warehouse license and hold same until the department is satisfied
that the shortage is corrected.
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