[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: 7CFR736.14]

[Page 248-249]
 
                          TITLE 7--AGRICULTURE
 
                            CHAPTER VII--FARM
                SERVICE AGENCY, DEPARTMENT OF AGRICULTURE
 
PART 736--GRAIN WAREHOUSES--Table of Contents
 
Sec. 736.14  Amount of bond; additional amounts.

    (a) The amount of bond to be furnished for each warehouse under the 
regulations in this part shall be fixed at a rate of 20 cents per bushel 
for the first 1,000,000 bushels of licensed capacity; 15 cents per 
bushel for the next 1,000,000 bushels of licensed capacity; and 10 cents 
per bushel for all licensed capacity over 2,000,000 bushels: Provided, 
That in any case the amount of

[[Page 249]]

bond shall not be less than $20,000 nor more than $500,000, except as 
prescribed in paragraph (c) of this section. The licensed capacity shall 
be the maximum number of bushels of grain that the warehouse could 
accommodate as determined under Sec. 736.6(d).
    (b) In case a warehouseman is licensed or is applying for licenses 
to operate two or more warehouses in the same State he may give a single 
bond meeting the requirements of the Act and the regulations in this 
part to cover all his warehouses within the State. In such case the 
warehouses to be covered by the bond shall be deemed to be one warehouse 
only for purposes of determining the amount of bond required under 
paragraph (a) of this section.
    (c) In case of a deficiency in net assets above the $50,000 minimum 
required under Sec. 736.6(d)(1), there shall be added to the amount of 
bond determined in accordance with paragraph (a) of this section an 
amount equal to such deficiency or a letter of credit in the amount of 
the deficiency issued to the Secretary for a period of not less than two 
years to coincide with the period of any deposit of obligation under 7 
CFR 736.13(c). Any letter of credit must be clean, irrevocable, issued 
by a commerical bank, payable to the Secretary by sight draft and 
insured as a deposit by the Federal Deposit Insurance Corporation. If 
the Secretary, or his designated representative, finds that conditions 
exist which warrant requiring additional bond, there shall be added to 
the amount of bond as determined under the other provisions of this 
section, a further amount to meet such conditions.

[29 FR 15730, Nov. 24, 1964, as amended at 39 FR 41824, Dec. 3, 1974; 47 
FR 23911, June 1, 1982. Redesignated at 50 FR 1814, Jan. 14, 1985, and 
further amended at 52 FR 37127, Oct. 5, 1987]