[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: 7CFR737.5]

[Page 271]
 
                          TITLE 7--AGRICULTURE
 
                            CHAPTER VII--FARM
                SERVICE AGENCY, DEPARTMENT OF AGRICULTURE
 
PART 737--TOBACCO WAREHOUSES--Table of Contents
 
Sec. 737.5  Net assets.

    Each warehouseman conducting a warehouse licensed, or for which 
application for license has been made, 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, to the extent of 
at least $5 per 1,000 pounds of the maximum number of pounds of tobacco 
that the warehouse will accommodate when stored in the manner customary 
to the warehouse, as determined by the Administrator, except that the 
amount of such assets shall not be less than $5,000 and need not be more 
than $100,000. In case such warehouseman has applied for licenses to 
conduct two or more warehouses in the same State, the assets applicable 
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. A deficiency in such assets may be supplied by an increase in 
the amount of the licensed warehouseman's bond in accordance with 
Sec. 737.12(b).