[Code of Federal Regulations]
[Title 7, Volume 7, Parts 700 to 899]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR735.16]

[Page 221-222]
 
                          TITLE 7--AGRICULTURE
 
                            CHAPTER VII--FARM
                SERVICE AGENCY, DEPARTMENT OF AGRICULTURE
 
PART 735--COTTON WAREHOUSES--Table of Contents
 
Sec. 735.16  Form.

    (a) Every receipt, whether negotiable or non-negotiable, issued for 
cotton stored in a licensed warehouse shall, in addition to complying 
with the requirements of section 18 of the act, embody within its 
written or printed terms the following:
    (1) The name of the licensed warehouseman and the designation, if 
any, of the warehouse;
    (2) The license number of the warehouse;
    (3) A statement whether the warehouseman is incorporated or 
unincorporated, and, if incorporated, under what laws;
    (4) In the event the relationship existing between the warehouseman 
and any depositor is not that of strictly disinterested custodianship, a 
statement setting forth the actual relationship;
    (5) The tag identifier given to each bale of cotton in accordance 
with Sec. 735.31;
    (6) A statement conspicuously placed, whether or not the cotton is 
insured, and if insured, to what extent, by the warehouseman, against 
loss or damage by fire, lightning and other risks;
    (7) The words ``Not Negotiable,'' or ``Negotiable,'' according to 
the nature of the receipt, clearly and conspicuously printed or stamped 
thereon;
    (8) A blank space designated for the purpose in which the grade and/
or other classification may be stated; and
    (9) A statement indicating that the weight was determined by a 
weigher licensed under the U.S. Warehouse Act, except that if at the 
request of the depositor, the weight is not so determined or if the 
point of origin weight was determined as permitted in Sec. 735.38, the 
receipt shall contain a statement to that effect.
    (b) Except when an expiration date authorized by the Department is 
shown on the face of the receipt, every negotiable receipt issued for 
cotton stored in a licensed warehouse shall be effective until 
surrendered for delivery of the cotton, and every non-negotiable receipt 
shall be effective until surrendered for delivery of the cotton or until 
all cotton covered by the receipt has been delivered in response to 
proper delivery orders of the person rightfully entitled to the cotton: 
Provided, that nothing contained in this section shall prohibit a 
warehouseman from legally selling the cotton when the accrued storage 
and other charges approach the current market value of the cotton.

[[Page 222]]

    (c) In addition to complying with paragraphs (a) and (b) of this 
section, every negotiable receipt issued for cotton stored in a licensed 
warehouse shall embody within its written or printed terms a statement 
that the cotton covered by such receipt was classified by a licensed 
classifier or a board of cotton examiners when such cotton is so 
classified.
    (d) Whenever the grade or other class of the cotton is stated in a 
receipt issued for cotton stored in a licensed warehouse, such grade or 
other class shall be determined by a licensed classifier or a board of 
cotton examiners upon the basis of a sample drawn in accordance with 
Sec. 735.71, and shall be stated in the receipt in accordance with 
Secs. 735.68 through 735.74.
    (e) If, at the request of the depositor, a warehouseman issues a 
receipt omitting the statement of grade and/or weight, such receipt 
shall have clearly and conspicuously stamped or written on the face 
thereof, or included as part of the electronic warehouse receipt record, 
either one or both of the following: ``Not graded on request of the 
depositor'' or ``Not weighed on request of the depositor,'' as 
applicable.
    (f) Licensed receipts issued to cover linters shall be clearly and 
conspicuously marked ``Linters''.
    (g) If a warehouseman issue a receipt under the act omitting any 
information not required to be stated, for which a blank space is 
provided in the form of the receipt, a line shall be drawn through such 
space to show that such omission has been made by the warehouseman.
    (h) A warehouse receipt may contain additional information; Provided 
that such information does not interfere with the information required 
by this part.

(Approved by the Office of Management and Budget under control number 
0560-0120)

[29 FR 15720, Nov. 24, 1964, as amended at 33 FR 14699, Oct. 2, 1968; 37 
FR 12920, June 30, 1972; 47 FR 745, Jan. 7, 1982. Redesignated at 50 FR 
1814, Jan. 14, 1985; 59 FR 15038, Mar. 31, 1994; 64 FR 54510, Oct. 7, 
1999]