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8 106.71 Lost or destroyed licenses. beans involved may, after reasonable no

tice to the other party, submit the quesUpon satisfactory proof of the loss or destruction of a license issued to an in

tion to such representatives of the Serv

ice as the Administrator may appoint. spector or weigher, a duplicate thereof

The decision of such representatives or a new License may be issued under the

shall be final, unless the Administrator same or a new number.

shall direct a review of the question. & 106.72 Unlicensed inspector or weigh- Immediately upon making their decier; misrepresentation.

sion, these representatives shall issue a No person shall in any way represent

certificate embodying their findings to himself to be an inspector or weigher

the appellants and the licensee or Licensed under the act unless he holds

licensees involved. an unsuspended and unrevoked license

(b) If the decision of the representaissued under the act.

tives of the Service be that the variety,

grade, or condition was not correctly BEAN INSPECTION AND CLASSIFICATION

stated, the receipt or certificate involved 8 106.73 Statement of classification.

shall be returned to and canceled by the

licensee who issued it, and the licensee Whenever the variety, grade, or con- shall issue in lieu thereof a new receipt dition of beans is required to be or is

or certificate embodying therein the stated for the purposes of this act and

statement of variety, grade, or condition, the regulations in this part, it shall be

in accordance with the findings of the stated in accordance with $ $ 106.74 and aforesaid representatives. 106.75.

(c) All necessary and reasonable ex§ 106.74 Standards to be used.

pense of such arbitration shall be borne

by the losing party, unless the AdminisThe official bean standards of the

trator or his representative shall decide United States are hereby adopted as the

that the expense should be prorated official beans standards for the purposes between the parties. of the act and regulations.

MISCELLANEOUS 106.75 Statement of variety, grade, condition.

§ 106.77 Bonds required. Whenever the variety, grade or con

Every person applying for a license, or dition of beans is stated for the

licensed under section 9 of the act, shall, purpose of this act and the regulations as such, be subject to all portions of the in this part, the terms used shall be cor

regulations in this part except § 106.5, so rectly applied and shall be so stated as far as they may relate to warehousemen. not to convey a false impression of the If there is a law of any State providing beans. In case of doubt as to the va

for a system of warehouses owned, opriety, grade or condition of a given lot erated, or leased by such State, a person of beans, a determination shall be made applying for a license under section 9 of of such facts by drawing samples fairly the act, to accept the custody of beans representative of the contents of the lot and to store the same in any of said of beans offered for storage. These warehouses, may, in lieu of a bond or samples shall be thoroughly mixed, and bonds complying with $ $ 106.11 and after being so mixed, from this mixture 106.12, file with the Secretary a single by quartering a sufficient quantity shall bond meeting the requirements of the be taken which shall constitute the act and the regulations in this part, sample for the purpose of determining

in such form and in such amount not the grade.

less than $5,000 as he shall prescribe, to

insure the performance by such person, APPEAL OF GRADES

with respect to the acceptance of the $ 106.76 Conditions and procedure of custody of beans and their storage in appeal.

the warehouses in such system for which (a) If a question arises as to whether

licenses are or may be issued, of his the variety, grade or condition of the

obligations arising during the periods

of such licenses, or amendments thereto. beans was correctly stated in a receipt

In fixing the amount of such bond, or inspection certificate issued under

consideration shall be given, among the act or the regulations in this other appropriate factors, to the charpart, the warehouseman concerned or acter of the warehouses involved, any person financially interested in the their actual or contemplated capacity, the bonding requirements of the State orders, after which the oficial before and its liability with respect to such whom the hearing is held shall prepare warehouses. If the Secretary, or his his report including his recommended designated representative, shall find the findings of fact, conclusions of law, and existence of conditions warranting such order, which shall be served upon the action, there shall be added to the parties, who may file exceptions thereto amount of the bond so fixed a further within a time specified by such official. amount, fixed by him, to meet such After the expiration of such time, such conditions.

report together with any proposed find106.78 Publications.

ings of fact, conclusions of law, and or

ders, and exceptions filed by the parties Publications under the act and the

shall be transmitted to the Secretary for regulations in this part shall be made in

consideration. Each party shall pay all such media as the Administrator may

expenses contracted by him in connection from time to time designate.

with any hearing under this section. § 106.79 Information of violations. (13 F.R. 8730, Dec. 30, 1948] Every person licensed under the act

§ 106.81 One document and one license shall immediately furnish the Service

to cover several products. any information which comes to the knowledge of such person tending to

A license may be issued for the torage show that any provision of the act or the

of two or more agricultural products in a regulations in this part has been violated.

single warehouse. Where such a license

is desired, a single application, inspec§ 106.80 Procedure in hearings.

tion, bond, record, report, or other paper, For the purpose of hearings under the document or proceeding relating to such act or the regulations in this part, except warehouse, shall be sufficient unless those relating to appeals or arbitrations, otherwise directed by the Administrator. the licensee involved shall be allowed a

8 106.82 Bond for combination warereasonable time within which affidavits

house. and other proper evidence may be submitted. If requested by the licensee

Where such license is desired, the within such time, an oral hearing, of

amount of the bond, net assets, and which reasonable notice shall be given, inspection and license fees shall be detershall be held before, and at a time and

mined by the Administrator in accordplace fixed by an oficial authorized by

ance with the regulations applicable to the Secretary. The testimony of the the particular agricultural product which witnesses at such oral hearing shall be

would require the largest bond and the upon oath or affirmation administered greatest amount of net assets and of fees by the official before whom the hearing

if the full capacity of the warehouse were is held, when required by him. Such oral

used for its storage. hearing may be adjourned by such oficial

$ 106.83 Amendments. from time to time. After reasonable notice to all parties concerned, the

Any amendment to, or revision of, the deposition of any witness may be

regulations in this part, unless othertaken at a time and place and be

wise stated therein, shall apply in the fore a person designated for the pur

same manner to persons holding licenses pose by the official before whom the

at the time it becomes effective as it aphearing is held. Every written entry in

plies to persons thereafter licensed under

the act. the records of the Department made by an officer or employee thereof in the course of his official duty, which is rele- PART 107-NUTS WAREHOUSES vant to the issue involved in a hearing,

DEFINITIONS shall be admissible as prima facie evi

Sec. dence of the facts stated therein without

107.1 Meaning of words. the production of such officer or em- 107.2 Terms defined. ployee. Copies of all papers and all the

WAREHOUSE LICENSES evidence submitted or considered in such hearing shall be made a part of the rec

107.3 Application form.

107.4 ords of the Department. At the end of

Grounds for not issuing license.

107.5 Net assets required. the oral hearing, the parties shall be

107.6 License shall be posted. afforded an opportunity to file proposed 107.7 Suspension or revocation of warefindings of fact, conclusions of law, and

house Ucenses.

Sec. 107.8 Return of suspended or revoked ware

house license. 107.9 Lost or destroyed warehouse license. 107.10 Unlicensed warehousemen must not

represent themselves as licensed.

WAREHOUSE BONDS 107.11 Bond required; time of Aling. 107.12 Basis of amount of bond; additional

amount. 107.13 Extension bond. 107.14 New bond required each year. 107.15 Approval of bond.

WAREHOUSE RECRIPTS 107.16 Form. 107.17 Copies of receipts. 107.18 Lost or destroyed receipts; bond. 107.19 Approval of form of receipts. 107.20 Partial delivery of nuts. 107.21 Return of receipts before delivery of

nuts. 10722 Authority for delivery of nuts on

nonnegotiable receipts. 107.23 Omission of grade; no compulsion by

warehouseman. DUTIES OF LICENSED WAREHOUSEMAN 107.24 Nuts must be inspected. 107.25 Insurance requirements. 107.26 Premium; inspections; reports. 107.27 Insurance; collection; payment. 107.28 Agreement regarding shrinkage. 107.29 Care of nuts in warehouses. 107.30 Care of nonlicensed nuts, or other

commodities. 107.31 Records to be kept in safe place. 107.32 Warehouse charges. 107.33 Business hours. 107.34 Numbered tags to be attached to

Quts. 107.35 Identification tag on stored nuts. 107.36 Bulk nuts; grades and weights. 107.37 Identity-preserved nuts; bulk stor

age. 107.38 Delivery of bulk nuts. 107.39 System of accounts. 107.40 Reports. 107.41 Canceled receipts; auditing. 107.42 Copies of reports to be kept. 107.43 Inspections; examinations of ware

houses. 107.44 Weighing, testing, measuring appa

ratus; inspection. 107.46 Warehouse to be kept clean. 107.46 Signs of tenancy. 107.47 Ecess storage. 107.48 Removal of nuts from storage; con

ditions. 107.49 Wot nuts; no storage. 107.50 Storage to prevent damage. 107.51 Deteriorating nuts; handling. 107.52 Sale at public auction. 107.58 Compliance with contracts. 107.54 Fire loss to be reported by wire. 107.56 Grade-weight certificate; pling. 107.56 Warehouso llcenso fees. 107.57 Warehouse Inspection fees. 107.58 Advanco deposit. 107.59 Return of excess deposit.

PEES LICENSED GRADARS, LICENSED WEIGHFRS, AND

LICENSED INSPECTORS Sec. 107.60 Inspector's, weigher's, grader's appu.

cation. 107.61 Examination of applicant. 107.62 Posting of license. 107.63 Duties of licensees. 107.84 Grado certificate; form. 107.66 Weight certincate; form. 107.66 Inspection certifcate; form. 107.67 Combination certifcato; uso. 107.88 Copies of certificates to be kept. 107.69 Licensees to permit and assist in ex

amination. 107.70 Reports. 107.71 Licenses; suspension; revocation. 107.72 Suspended or revoked license; re

turn; termination of license. 107.73 Lost or destroyed licenses. 107.74 Unlicensed graders, weigbers, in

spectors; misrepresentation.

NUT GRADING 107.78 Classification; statement. 107.76 Standards to be used. 107.77 Peanuts; statement of variety, grade,

condition, 107.78 Walnuts, Alberts, pecans; same.

APPEAL OF GBADES 107.79 Conditions and procedure of appeal.

MISCELLANEOUS 107.80 Bond requiroments. 107.81 Publications. 107.82 Information of violations. 107.88 Procedure in hearings. 107.84 One document and one Ucenso to

cover several products. 107.85 Bond, assets, and fees for combina

tion warehouse. 107.86 Amendments.

AUTHORITY: The provisions of this part 107 issued under sec, 28, 39 Stat. 490; 7 U.S.O. 268.

SOURCE: The provisions of this Part 107 contained in SRA, BAE 119; 7 F.R. 6807, Aug. 29, 1942; 13 F.R. 8781, Dec. 30, 1948; 19 F.R. 57, Jan. 6, 1954, unless otherwise noted.

DEFINITIONS 8 107.1 Meaning of words.

Words used in this part in the singular form shall be deemed to import the plural, and vice versa, as the case may demand. § 107.2 Terms defined.

For the purposes of the regulations in this part, unless the context otherwise require, the following terms shall be construed, respectively, to mean:

(a) Nuts. Unshelled, American-grown peanuts, pecans, Alberts, and English or Persian walnuts.

(b) The act. The United States (0) Receipt. A licensed warehouse Warehouse Act, approved August 11, receipt issued under the act, unless other1916 (39 Stat. 486; 7 U.S. C. 241-273), as wise specified. amended.

(p) Package. A bag, sack, box, or (c) Person. An Individual, corpora- other container. tion, partnership, or two or more per- (SRA, BAE 119, as amended at 13 F. R. 8729, sons having a joint or common interest. Dec. 30, 1948] (d) Secretary. "Secretary” means the

WAREHOUSE LICENSES
Secretary of Agriculture of the United
States, or any officer or employee of the § 107.3 Application form.
Department to whom authority has

Applications for licenses under sections heretofore been delegated, or to whom

4 and 9 of the act and for modifications authority may hereafter be delegated, to

or extensions of licenses under section 5 act in his stead.

of the act (42 Stat. 1282; 7 U.S.C. 245) (e) Administrator. The Administra- shall be made to the Secretary upon tor of the Service or any other officer or

forms prescribed for the purpose and employee of that Service to whom au

furnished by the Service, shall be in thority has heretofore lawfully been

English, shall truly state the information delegated, or to whom authority may

therein contained, and shall be signed by hereafter lawfully be delegated, to act

the applicant. The applicant shall at in his stead.

any time furnish such additional infor(f) Regulations. Rules and regula

mation as the Secretary or the Admintions made under the act by the Secre

istrator shall find to be necessary to the tary.

consideration of his application by the (g) Service. The Consumer and Mar

Secretary. keting Service of the United States Department of Agriculture.

§ 107.4 Grounds for not issuing license. (h) Warehouse. Unless otherwise A license for the conduct of a wareclearly indicated by the context, any house shall not be issued if it be found suitable building, structure, or other pro- by the Secretary that the warehouse is tected inclosure in which nuts are or

not suitable for the proper storage of may be stored for interstate or foreign

nuts, that the warehouseman is incommerce, or, if located in any place un

competent to conduct such warehouse der the exclusive jurisdiction of the in accordance with the act and the reguUnited States, in which nuts are or may lations in this part, or that there is any be stored, and for which a license has other suficient reason within the purbeen issued under the act.

poses of the act for not issuing such (1) Warehouseman. Unless otherwise license. clearly indicated by the context, any person lawfully engaged in the business of

107.5 Net assets required. storing nuts and holding a warehouse The warehouseman conducting a warelicense,

house licensed or for which application (j) License. A license issued under the for license has been made under the act act by the Secretary.

shall have and maintain above all exemp(k) Licensed warehouseman's bond. tions and liabilities net assets Lable for A bond required to be given under the act the payment of any indebtedness arising by a licensed warehouseman.

from the conduct of the warehouse, to (1) Licensed grader. A person licensed the extent of at least $5 per ton of the under the act by the Secretary to grade maximum number of tons of peanuts, 2 and to certificate the grade or other class cents per pound of the maximum numof nuts stored or to be stored in a licensed ber of pounds of walnuts or Alberts, warehouse.

and/or 3 cents per pound of the maxi(m) Licensed weigher. A person ll

mum number of pounds of pecans that

the warehouse will accommodate when censed under the act by the Secretary to weigh and certificate the weight of

stored in the manner customary to the

warehouse as determined by the Adminnuts stored or to be stored in a licensed

istrator, except that the amount of such warehouse.

assets shall not be less than $5,000, and (n) Licensed inspector. A person li- need not be more than $100,000. In case censed under the act by the Secretary to such warehouseman has applied for lisample, to inspect, and to certificate the censes to conduct two or more ware. condition for storage of nuts.

houses in the same State, the assets ap

plicable to all of which shall be subject to the liabilities of each, such warehouses shall be deemed to be one warehouse for the purposes of the assets required under this section. For the purposes of this section only, paid-in capital stock, as such, shall not be considered a liability. Any deficiency in the required net assets may be supplied by an increase in the amount of the warehouseman's bond in accordance with $ 107.12 (b). § 107.6 License shall be posted.

Immediately upon receipt of his license or of any modification or extension thereof under the act, the warehouseman shall post the same, and thereafter, except as otherwise provided in the regulations in this part, keep it posted until suspended or terminated, in a conspicuous place in the principal office where receipts issued by such warehouseman are delivered to depositors. & 107.7 Suspension or revocation of

warehouse licenses. Pending investigation, the Secretary, whenever he deems necessary, may suspend a warehouseman's license temporarily without hearing. Upon written request and a satisfactory statement of reasons therefor, submitted by a warehouseman, the Secretary may, without hearing, suspend or cancel the license Lssued to such warehouseman. The Secretary may, after opportunity for hearing, when possible, has been afforded in the manner prescribed in this section, suspend or cancel a 1cense issued to a warehouseman when such warehouseman is (a) bankrupt or insolvent; (b) has parted, in whole or in part, with his control over the licensed warehouse; (c) is in process of dissolution or has been dissolved; (d) has ceased to conduct such licensed warehouse; or (e) has in any other manner become nonexistent or incompetent or incapacitated to conduct the business of the warehouse. Whenever any of the conditions mentioned in paragraphs (a) to (e) of this section shall come into existence, it shall be the duty of the warehouseman to notify immediately the Adr strator of the existing condition. Before a license is permanently suspended, revoked, or canceled for any violation of, or failure to comply with, any provision of the act or of the regulations in this part or upon the ground that unreasonable or exorbitant charges have been made for services rendered, the warehouseman involved shall be furnished by the Secre

tary, or by an ofcial of the Department of Agriculture designated for the purpose, a written statement specifying the charges and shall be allowed a reasonable time within which he may answer the same in writing and apply for a hearing, an opportunity for which shall be afforded in accordance with § 107.83. (SRA, BAE 119, as amended at 13 F.R. 8730, Dec. 30, 1948] & 107.8 Return of suspended or revoked

warehouse license. When a license issued to a warehouseman terminates or is suspended, revoked, or canceled by the Secretary, it shall be returned to the Secretary. At the expiration of any period of suspension of such license, unless it be in the meantime revoked or canceled, the dates of the beginning and termination of the suspension shall be indorsed thereon, and it shall be returned to the licensed warehouseman to whom it was originally issued, and it shall be posted as required in § 107.6: Provided, That in the discretion of the Administrator a new license may be issued without reference to such suspension. § 107.9 Lost or destroyed warehouse

license. Upon satisfactory proof of the loss or destruction of a license issued to & warehouseman, a duplicate thereof may be issued under the same or a new number at the discretion of the Secretary. § 107.10 Unlicensed warehousemen

must not represent themselves as

licensed. No warehouse or its warehouseman shall be designated as licensed under the act and no name or description conveying the impression that it or he is so licensed shall be used, either in a receipt or otherwise unless such warehouseman holds an unsuspended, unrevoked, and uncanceled license for the conduct of such warehouse.

WAREHOUSE BONDS § 107.11 Bond required; time of filing.

Each warehouseman applying for a warehouse license under the act shall, before such license is granted, file with the Secretary or his designated representative a bond containing the following conditions and such other terms as the Secretary or his designated representative may prescribe in the approved bond forms, with such changes as may

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