Kansas Administrative Regulations
Agency 4 - DEPARTMENT OF AGRICULTURE
Article 25 - GRAIN WAREHOUSE
Section 4-25-17 - Transfer of grain between public warehouses
Universal Citation: KS Admin Regs 4-25-17
Current through Register Vol. 43, No. 52, December 26, 2024
(a) A public warehouseman, as defined by K.S.A. 34-223, and amendments thereto, who lacks sufficient space and desires to transfer grain for which valid receipts have been issued may transfer this grain either by physical movement of the grain or by other methods approved by the secretary as standard industry practice, subject to the following requirements:
(1)
The shipping public warehouseman shall immediately notify the secretary before
the transfer of receipted grain. This notice to the secretary shall include the
location where the grain will be transferred for storage. The shipping public
warehouseman shall also provide written notice to all depositors who hold
receipts for grain that the shipping public warehouseman may forward grain
deposited on a commingled basis.
(2) For purposes of this regulation, a
licensed public warehouse shall mean a warehouse operated by a public
warehouseman who holds a valid license under the U.S. warehouse act for grain,
or a public warehouse operated by a public warehouseman who holds a valid
warehouse license for the public storage of grain or rice, issued by a state
that has financial, bonding, and examination requirements for the benefit of
all depositors.
(3) The shipping
public warehouseman shall promptly obtain nonnegotiable warehouse receipts from
the receiving public warehouseman for all transferred grain. The receipts shall
be kept on forms furnished by the secretary pursuant to
K.S.A.
34-238 and amendments thereto. Receipts shall
not be used in any other manner except as provided by Kansas statute. The
receipts shall be retained by the shipping public warehouseman to be presented
to and used by department examiners in lieu of an on-site inventory. The grain
covered by these receipts shall not be the property of either the receiving or
shipping public warehouseman but shall be held in trust by both parties solely
for the benefit of the depositors whose bailed grain was transferred
individually or collectively, and the depositor or the depositor's transferee
shall retain title to it.
(4) The
shipping public warehouseman's bond shall be increased to consider the addition
of the transferred grain to the licensed capacity of the public warehouse with
the net worth requirements based on the total of the licensed capacity and the
forwarded grain. The bond amount shall not be required to be more than $500,000
unless necessary to cover a deficiency in net worth to meet the requirements of
K.S.A.
34-228, and amendments thereto.
(5) The shipping public warehouseman shall
continue to retain that individual's obligations to the owners for all grain
deposited in the public warehouse for storage, whether forwarded or retained,
and shall redeliver the grain upon demand to the depositor or the depositor's
transferee at the public warehouse where the grain was first deposited for
storage.
(6) Nothing in this
regulation shall diminish either the right of the owner of the grain to receive
on delivery or the obligation of the public warehouseman of a licensed public
warehouse from which the product is transferred to deliver, to the owner, grain
in the amount and of the kind, quality, and grade specified by the warehouse
receipts or other evidence of storage.
(7) If it is the shipping public
warehouseman's obligation by terms of the warehouse receipt or by any other
agreement to insure the grain subject to the transfer, that individual shall in
accordance with
K.S.A.
34-236, and amendments thereto, keep this
grain insured in that individual's own name or transfer the grain only to a
public warehouse where the grain is fully insured.
(b) A shipping public warehouseman may transfer stored grain, as defined by K.S.A. 34-223, and amendments thereto, by complying with the provisions of paragraphs (a)(2), (a)(5), (a)(6), and (a)(7) of this regulation.
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