[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: 7CFR742.5]

[Page 359]
 
                          TITLE 7--AGRICULTURE
 
                            CHAPTER VII--FARM
                SERVICE AGENCY, DEPARTMENT OF AGRICULTURE
 
PART 742--COTTONSEED WAREHOUSES--Table of Contents
 
Sec. 742.5  Net assets required.

    The warehouseman conducting a warehouse licensed, or for which 
application for license has been made under the act, 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 ton of the maximum number of tons 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. Any 
deficiency in the required net assets may be supplied by an increase in 
the amount of the warehouseman's bond in accordance with Sec. 742.13(b).