Current through Register Vol. 47, No. 17, September 10, 2024
11.1. All negotiable commodity warehouse
receipts.
11.1.1. All negotiable commodity
warehouse receipts shall be issued no later than the close of the next business
day following demand by the depositor or depositor's agent.
11.1.2. All negotiable commodity warehouse
receipts shall include the following information:
* The person to whom the receipt is issued;
* The location of the storing warehouse;
* The storage rate;
* The date issued;
* The type of grain;
* The grade and sub class of the grain;
* The dock percentage;
* The pounds of grain including dock;
* The gross bushels;
* The net pounds;
* The net bushels;
* The hundred weight (for grain sorghums);
* The elevation charges prepaid per bushel in and out;
* The date storage paid to; and
* The signature of the warehouse operator or authorized agent
for the warehouse operator.
11.1.3. No more than one product, or grade or
value of a product, shall be shown on a negotiable commodity warehouse
receipt.
11.1.4. Any errors in a
negotiable commodity warehouse receipt shall be corrected by cancellation and
replacement of the receipt. No alterations shall be made to a negotiable
commodity warehouse receipt after it is issued.
11.1.5. A collateral negotiable commodity
warehouse receipt cannot be issued for grain received under a credit-sale
contract except for the percentage of bushels paid for through advances to the
seller. The amount and percentage of advances shall be shown on the face of the
credit-sale contract.
11.1.6. No
negotiable commodity warehouse receipt shall be canceled by a warehouse
operator unless:
* The product represented by the receipt has been removed
from storage by the owner; or
* The product has been purchased and paid for; or
* A replacement receipt is issued at the time the receipt is
canceled; or
* The product represented by the receipt is purchased under a
properly executed credit-sale contract.
11.2. Paper negotiable commodity warehouse
receipts.
11.2.1. When a commodity represented
by a paper negotiable commodity warehouse receipt is delivered to the holder of
that receipt, or purchased by the warehouse, the receipt shall be marked
"canceled," signed or initialed, and dated by the commodity warehouse operator.
The receipt shall include the check number, invoice reference, or credit-sale
contract reference number as applicable. The commodity warehouse operator shall
retain, in a separate file, all receipts cancelled by the operator. At the time
of inspection or examination by the Department, the warehouse operator shall
present the receipts to be canceled by the Department.
11.2.2. If only a portion of the commodity
represented by a paper negotiable commodity warehouse receipt is delivered, the
receipt shall be dated, signed or initialed, and marked "canceled" by the
commodity warehouse operator. A new receipt shall be issued covering the
balance of the commodity remaining in storage the same day as the original
receipt is canceled. The new receipt shall specify the balance of the remaining
commodity and the number(s) of the prior receipt(s).
11.2.3. To cancel a paper negotiable
commodity warehouse receipt, a commodity warehouse operator shall mark the face
of the receipt "canceled," sign or initial, and date it, and record the
disposition of the receipt, including the check number or contract number as
applicable.
11.2.4. A commodity
warehouse operator whose license has been relinquished or revoked shall return
all unissued paper negotiable commodity warehouse receipts to the Department
within thirty (30) days of such action.
11.2.5. When a commodity warehouse operator's
license has been relinquished or revoked, all stored commodities for which
negotiable commodity paper warehouse receipts or scale tickets have been issued
shall be either purchased and paid for or returned to their holders, within
thirty (30) days, except when the warehouse continues operation under new
ownership, the storage obligations are assumed by another licensee, or the
warehouse is placed in receivership. Upon completion of delivery to a receipt
holder or the reissuance of a receipt under a new license, the commodity
warehouse operator shall immediately mark "canceled," sign or initial, and date
the original receipt on its face, and forward such receipt to the Department.
When the storage obligations are assumed by a new licensee, new negotiable
commodity warehouse receipts shall be issued under the new licensee name for
all open receipts.
11.2.6. No
commodity represented by a paper negotiable commodity warehouse receipt shall
be delivered until the original receipt is returned to the commodity warehouse
operator.
11.2.7. If a paper
negotiable commodity warehouse receipt has been destroyed or lost by the
commodity warehouse operator, the operator shall prepare a notarized affidavit
in duplicate stating that the receipt was lost or destroyed and specifying the
date that such loss or destruction occurred. The affidavit shall state that no
obligation is due any person under that paper receipt. The affidavit shall be
held in lieu of the original copy of the receipt. If the lost receipt is found,
it shall be forwarded immediately to the Department for cancellation. If a
depositor's name is on the receipt, the commodity warehouse operator shall also
obtain a written statement from the depositor that confirms that the depositor
has received or been paid for the commodity and that the depositor has no
further claim against said receipt.
11.3. Electronic negotiable commodity
warehouse receipts.
11.3.1. Prior to entering
into an agreement with an electronic commodity warehouse receipt provider to
issue such receipts, a commodity warehouse operator must provide a copy of the
proposed agreement to the Department for review and approval. A commodity
warehouse operator shall not issue electronic negotiable commodity warehouse
receipts until and unless the Department approves its agreement with an
electronic commodity warehouse receipt provider and notifies the operator of
such approval.
11.3.2. In order to
be approved by the Department, an electronic commodity warehouse receipt
provider agreement shall:
* Provide for the Department to become a joint holder on all
open electronic negotiable commodity warehouse receipts if the issuing
commodity warehouse operator's license is relinquished or revoked;
* Require the provider to provide security as required by its
provider agreement with the USDA regarding on-site security, data
authorization, security plans, and facility vulnerability;
* Prohibit the provider from deleting or altering any
electronic negotiable commodity warehouse receipts in the centralized filing
system unless such actions are authorized by the Department;
* Require the provider to maintain all electronic negotiable
commodity warehouse receipts in secure data storage for a period of six (6)
years after their cancellation dates;
* Require the provider to provide the Department free
unrestricted access to the centralized filing system and related backup files;
and
* Require the provider, when a commodity warehouse operator
changes providers, to supply the new provider and the warehouse operator with a
complete list of all the current holders of open electronic negotiable
commodity warehouse receipts prior to the intended transfer date.
11.3.3. Commodity warehouse
operators may change providers only once a year unless otherwise permitted by
the Department.
11.3.4. A commodity
warehouse operator shall notify the Department thirty (30) calendar days prior
to the intended date of any transfer to a new provider. Such notification shall
include the exact date of the proposed transfer. The operator must also, thirty
(30) days prior to the intended transfer date, send notices of the change to
the holders of all open electronic negotiable commodity warehouse receipts. The
notices shall specify the date and time period during which access to receipts
will not be available.
11.3.5. When
a commodity warehouse operator's license has been relinquished or revoked, all
stored commodities for which negotiable commodity electronic warehouse receipts
have been issued shall be either purchased and paid for or returned to their
holders, within thirty (30) days, except when the warehouse continues operation
under new ownership, the storage obligations are assumed by another licensee,
or the warehouse is placed in receivership. Upon completion of delivery to a
receipt holder or the reissuance of a receipt under a new license, the
commodity warehouse operator shall immediately cancel the receipt.
