Current through February 26, 2024
(1) REQUIREMENT. Every public warehouse
keeper shall maintain on file with the department security that complies with
this section.
(2) FORM OF SECURITY.
Security filed with the department under this section is subject to approval by
the department. Security shall be in one or more of the following forms:
(a)
Continuous surety bond.
A continuous surety bond that is all of the following:
1. Made payable to the department for the
benefit of owners of stored property or their assignees.
2. Endorsed by a surety company authorized to
do business in this state.
3. In a
form approved by the department containing all of the terms and conditions
required by the department.
4.
Continuing, and subject to cancellation by the surety company only upon 30 days
written notice to the department served in person or by certified
mail.
(b)
Personal surety bond supported by other security. Personal
surety bonds or other third party guarantees that are supported by one of the
following forms of security held by the department under subs. (4) and (6):
1. Cash.
2. Certificates of deposit.
3. Bonds.
4. Irrevocable bank letters of credit that
are all of the following:
a. Issued by a
financial institution in this state.
b. Issued for a term of at least one
year.
c. Made payable to the
department for the benefit of owners of stored property or their
assignees.
d. In a form approved by
the department, written on bank letterhead and containing all the terms and
conditions required by the department.
e. Continuing, and subject to non-renewal by
the issuing bank only upon 90 days prior written notice to the department
served in person or by certified mail.
(c)
Liability insurance
policy. An original or certified copy of a legal liability insurance
policy that is all of the following:
1.
Payable to the department for the benefit of owners of stored property or their
assignees.
2. In a form approved by
the department containing all of the terms and conditions required by the
department.
3. Subject to
cancellation or non-renewal by the insurer only upon 30 days written notice to
the department served in person or by certified mail.
(d)
Wearing apparel; insurance
policy. If a public warehouse keeper stores only wearing apparel, an
original or certified copy of an insurance policy that protects the owners of
that wearing apparel against loss or damage by fire, wind, water or theft. The
insurance policy shall comply with all of the following:
1. The insurance policy shall name the
department as an additional insured party for the benefit of owners of stored
property.
2. The insurance policy
shall be in a form that is acceptable to the department.
3. The insurance policy shall be continuing,
and subject to cancellation or nonrenewal by the insurer only upon 30 days
prior written notice to the department served in person or by certified
mail.
(3)
INSURANCE POLICIES; DEDUCTIBLE CLAUSE. In an insurance policy filed as security
under sub. (2) (c) or (d), the insurer's liability to the owners of stored
property or their assignees shall not be subject to any deductible. This does
not prohibit a deductible agreement between a public warehouse keeper and an
insurer under which the public warehouse keeper agrees to reimburse the insurer
for a portion of any claim paid by the insurer.
(4) DEPARTMENT CUSTODY OF SECURITY. The
department or the department's agent shall maintain custody of all security
filed by a public warehouse keeper under this section.
(5) AMOUNT OF SECURITY. Security filed under
this section shall be in an aggregate amount not less than the following:
(a) For a Class 1 public warehouse,
$10,000.
(b) For a Class 2 public
warehouse, $20,000.
(c) For a Class
3 public warehouse, $30,000.
(d)
For a Class 4 public warehouse, $40,000.
(e) For a Class 5 public warehouse,
$50,000.
(6) RELEASE OF
SECURITY. Security filed under sub. (2) (b) shall remain in effect and may not
be released by the department until one of the following occurs:
(a) A period of 180 days elapses after the
public warehouse keeper gives written notice to the department that the
warehouse keeper is no longer engaged in the business of storage for
hire.
(b) A period of 180 days
elapses after the public warehouse keeper's license expires or is
revoked.
(c) The department
determines that the public warehouse keeper is no longer storing property for
hire, and that all claims of persons storing property at the warehouse have
been satisfied.
