[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: 7CFR742.27]

[Page 364]
 
                          TITLE 7--AGRICULTURE
 
                            CHAPTER VII--FARM
                SERVICE AGENCY, DEPARTMENT OF AGRICULTURE
 
PART 742--COTTONSEED WAREHOUSES--Table of Contents
 
Sec. 742.27  Insurance requirements.

    (a) Each licensed warehouseman when so requested in writing as to 
any cottonseed by the depositor thereof or lawful holder of the receipt 
covering such cottonseed shall, to the extent to which in the exercise 
of due diligence he is able to procure such insurance, keep such 
cottonseed while in his custody as a licensed warehouseman insured in 
his own name or arrange for its insurance otherwise to the extent so 
requested against loss or damage by fire, lightning, tornado, or flood. 
When insurance is not carried in the warehouseman's name the receipts 
shall show that the cottonseed is not insured by the warehouseman. Such 
insurance shall be covered by 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 where the warehouse is 
located. If the warehouseman is unable to procure such insurance to the 
extent requested, he shall, orally or by telegraph or by telephone and 
at his own expense, immediately notify the person making the request of 
the fact. Nothing in this section shall be construed to prevent the 
warehouseman from adopting a rule that he will insure all cottonseed 
stored in his warehouse.
    (b) Each warehouseman shall keep exposed conspicuously in the place 
prescribed by Sec. 742.7 and at such other place as the Administrator or 
his representative may from time to time designate, a notice stating 
briefly the conditions under which the cottonseed will be insured 
against loss or damage by fire, lightning, tornado, or flood.