in commerce, only upon compliance with the applicable regulations. [23 F.R. 9540, Dec. 10, 1958]

§ 81.314

Imported products; charges for storage, cartage and labor with respect to products which are refused admission.

All charges for storage, cartage, and labor with respect to any imported product which is refused admission pursuant to the regulations in this subpart shall be paid by the owner or consignee, and in default of such payment shall constitute a lien against any other products imported thereafter by or for such owner or consignee.

[23 F.R. 9540, Dec. 10, 1958]

Subpart B-Interpretations and
Statements of Policy

§ 81.400 Interpretations and statements of policy with respect to producer exemption.

A poultry producer exempted pursuant to subsection 15(a) (1), of the Act:

(a) May sell, in accordance with section 15(a) (1), directly to hospitals (which are considered to be in the same category as restaurants, hotels, and boarding houses);

(b) May give away without charge slaughtered poultry of his own raising on his own farm and poultry products thereof, directly to household consumers or restaurants, hotels, hospitals, and boarding houses for use in their own dining rooms or in the preparation of meals for sale direct to consumers only;

(c) May not ship in commerce, for further processing by a person other

than the producer, slaughtered poultry or poultry products which are to be sold in the State where processed or returned to the State of origin for sale therein, even if such sales are made to someone eligible to receive the articles under the producer exemption. Shipments in commerce may be made for purposes of freezing or storage and sale to eligible purchasers in any State;

(d) May not ship in commerce under the producer exemption poultry or poultry products which have been processed by a person other than the producer;

(e) May sell poultry for gift purposes, provided delivery is made by the producer directly to the person receiving the gift and the requirements under section 15(a) (1) are met.

[24 F.R. 6153, July 31, 1959]

§ 81.401 Interpretation and statement of policy applicable to certain carriers and caterers.

Airlines; caterers to airlines; steamship lines; and operators of railroad dining cars are not deemed to be in violation of subsections 9(a) or 9(i) of the Act by reason of the fact that uninspected dressed poultry and poultry products placed aboard the carriers for consumption on the carriers are not consumed within the State in which they were placed aboard the carriers provided the product does not move in commerce en route to the carriers. [24 F.R. 6153, July 31, 1959]

NOTE: The reporting and recordkeeping requirements contained herein have been approved by the Bureau of the Budget in accordance with the Federal Reports Act of 1942.

(b) Person. An individual, corporation, partnership, or two or more persons having a joint or common interest.

(c) Secretary. The Secretary of Agriculture of the United States or any officer or employee of the Department to whom authority has heretofore been delegated, or to whom authority may hereafter be delegated, to act in his stead.

(d) Administrator. The Administrator of the Service or any other officer or employee of the Service to whom authority has heretofore lawfully been delegated, or may hereafter lawfully be delegated, to act in his stead.

(f) Regulations. Rules and regulations made under the act by the Secretary.

(g) Department. The United States Department of Agriculture.

(h) Service. The Consumer and Marketing Service of the Department.

(i) Linters. As far as applicable the regulations in this part shall include linters.

(j) Warehouse. Any building, structure, or other protected inclosure in which cotton is or may be stored for interstate or foreign commerce, or, if located within any place under the exclusive jurisdiction of the United States, in which cotton is or may be stored.

(k) Warehouseman. A person lawfully engaged in the business of storing cotton.

(1) License. A license issued under the act by the Secretary.

A

(m) Licensed warehouseman. warehouseman licensed as such under the act.

(n) Licensed warehouse. A warehouse for the conduct of which a license has been issued.

(0) Licensed warehouseman's bond. A bond required to be given under the act by a licensed warehouseman.

(p) Licensed classifier. A person licensed under the act to classify according to grade or otherwise and certificate the grade or other class of cotton.

(q) Licensed weigher. A person licensed under the act to weigh and certificate the weight of cotton.

(r) Cotton examiner. An officer of the Department of Agriculture designated by the Administrator for the purpose of hearing cotton appeals under § 101.75-101.85.

(s) Receipt. A warehouse receipt.

(t) Bale. A bale or other package.

(u) State. A State, Territory, or district of the United States.

(v) Licensed sampler. A person, employed by a licensed warehouseman, licensed under the act to draw samples from cotton stored in the licensed warehouse at which such person is employed.

(w) Board of Cotton Examiners. A board of cotton examiners properly qualified and designated as such under the regulations (Part 28 of this chapter) under the United States Cotton Standards Act.

WAREHOUSE LICENSES

§ 101.3 Application forms.

Applications for licenses under sections 4 and 9 of the act and for amendments of licenses under section 5 of the act shall be made to the Secretary upon forms prescribed for the purpose and furnished by the Service, shall be in English, shall truly state the information therein contained, and shall be signed by the applicant. The applicant shall at any time furnish such additional information as the Secretary or the Administrator shall find to be necessary to the consideration of his application.

§ 101.3a All facilities to be licensed or exempted.

All facilities within the same city or town used for the storage of cotton by an applicant for a warehouse license must qualify for a license and be licensed under the act if the applicant is to be licensed to operate as a cotton warehouseman in such city or town, unless the facilities which are not to be covered by a license are exempted by the Secretary or his designated representative upon a finding that, due to the exercise of adequate controls by some independent agency over the operation of nonfederally licensed facilities, there would be no likelihood of interchange or substitution of cotton stored in such facilities with cotton stored in the federally licensed facilities. If all such facilities do not qualify for a license or for an exemption under this section, the applicant shall not be licensed under the act as a cotton warehouseman in the city or town in which the facilities in question are located. Each applicant for a warehouse license must apply for a license covering all facilities operated by him for the storage of cotton within the same city or town or for exemption as provided in this section. If a licensed cotton warehouseman acquires any

additional cotton storage facilities within the same city or town in which his licensed warehouse is located, he shall file promptly an application for a license or an exemption of the additional facilities.

No cotton storage facility acquired by a licensed cotton warehouseman, subsequent to the issuance of his license, in the same city or town as his licensed facilities, shall be used for the storage of cotton until it qualifies for license and is licensed or is exempted as provided in this section. If any one of the licensed cotton storage facilities operated by a warehouseman in the same city or town becomes ineligible for a license at any time for any reason, it shall not thereafter be used for the storage of cotton until the condition making it ineligible is removed or an exemption is granted as provided in this section. The use for the storage of cotton by a licensed warehouseman of a facility which is in the same city or town as his licensed facilities and is neither licensed nor exempted, or other violation of the provisions of this section, shall be cause for suspension or revocation of any license issued to the warehouseman for the storage of cotton. § 101.4 Grounds for not issuing a li

cense.

A license for the conduct of a warehouse, or any amendment to a license, under the regulations in this part, shall not be issued if it is found by the Secretary, or his designated representative, that the warehouse is not suitable for the proper storage of cotton; that the warehouseman does not possess a good reputation, or does not have a net worth of at least $10,000.00, or is incompetent to conduct such warehouse in accordance with the act and the regulations in this part; or that there is any other sufficient reason within the intent of the act for not issuing such license. If all the facilities operated for the storage of cotton by the applicant within the same city or town are not to be licensed under the act, the applicant shall not be licensed as a cotton warehouseman with respect to any of such facilities, unless an exemption of the facilities which are not to be licensed is granted as provided in § 101.3a.

§ 101.5 Net assets required.

(a) Each warehouseman conducting a warehouse licensed, or for which application for license has been made,

under the regulations in this part, shall have and maintain, above all exemptions and liabilities, net assets liable for the payment of any indebtedness arising from the conduct of the warehouse, equal to at least $5.00 per bale for the maximum number of bales that the warehouse will accommodate when stored in the manner customary to the warehouse as determined by the Administrator: Provided, That the amount of such net assets shall not be less than $10,000.00, and need not be more than $100,000.00: And provided further, That any deficiency in the net assets required above the $10,000.00 minimum may be supplied by an increase in the amount of the warehouseman's bond in accordance with § 101.12 (b). In case such a warehouseman has applied for licenses to conduct two or more warehouses in the same state, and his total assets are subject to the liabilities of each warehouse, such warehouses shall be deemed to be one warehouse for the purposes of determining the net assets required under this section. In determining total net assets, credit may be given for insurable property such as buildings, machinery, equipment, and merchandise inventory, only to the extent that such property is protected by insurance against loss or damage by fire. Such insurance shall be in the form of lawful policies issued by one or more insurance companies authorized to do such business and subject to service of process in suits brought in the state in which the warehouse is located. For the purposes of this section only, capital stock as such shall not be considered a liability.

(b) In case a state agency, licensed or applying for a license as provided in section 9 of the act, has funds of not less than $500,000.00 guaranteeing the performance of obligations of the agency as a warehouseman, such funds shall be considered sufficient to meet the maximum net asset requirements of this section.

§ 101.6 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 the warehouseman are delivered to depositors.

01.7 Suspension or revocation of warehouse licenses.

ending investigation, the Secretary, his designated representative, whenr he deems necessary, may suspend a rehouseman's license temporarily hout hearing. Upon written request i a satisfactory statement of reasons refor, submitted by a warehouseman, è Secretary, or his designated repretative, may, without hearing, suspend cancel the license issued to such wareuseman. The Secretary, or his desigced representative, may, after oppornity for hearing has been afforded in = manner prescribed in this section, pend or revoke a license issued to a rehouseman when such warehouse

_n

a) Does not have a net worth of at st $10,000.00;

b) Has parted, in whole or in part, ch his control over the licensed wareuse;

c) Is in process of dissolution or has en dissolved;

d) Has ceased to conduct such lised warehouse;

e) Has in any other manner become nexistent or incompetent or incapaciced to conduct the business of the rehouse;

(f) Has made unreasonable or exbitant charges for services rendered; (g) Is operating in the same city or vn in which his licensed warehouse cilities are located, any facility for rage of cotton which is not covered a license or an exemption as provided § 101.3a; or

h) Has in any other manner violated failed to comply with any provision the act or the regulations in this part. henever any of the conditions menned in paragraphs (a) through (h) this section shall come into existence, hall be the duty of the warehouseman notify the Administrator immediately the existing condition. Before a lise is revoked or suspended (other in temporarily pending investigation) any violation of, or failure to comply h, any provision of the act or of the ulations in this part, or upon the und that unreasonable or exorbitant rges have been made for services rened, the warehouseman involved shall furnished by the Secretary, or his desated representative, a written statent specifying the charges and shall 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 § 101.89.

§ 101.8 Return of suspended or revoked warehouse license.

In case a license issued to a warehouseman terminates or is suspended or revoked by the Secretary, or his designated representative, such license shall be returned to the Secretary. At the expiration of any period of suspension of such license, unless it be in the meantime revoked, the dates of the beginning and termination of the suspension shall be indorsed thereon, it shall be returned to the warehouseman to whom it was originally issued, and it shall be posted as prescribed in § 101.6; or in the discretion of the Administrator a new license may be issued.

§ 101.9 Lost or destroyed warehouse li

§ 101.11 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 be necessary to adapt the forms to the type of legal entity involved:

Now, therefore, if the said license(s) or any amendments thereto be granted and said principal, and its successors and assigns operating said warehouse(s), shall: Faithfully perform during the period of one year commencing

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or until

the termination of said license(s) in the