[Code of Federal Regulations]
[Title 7, Volume 7]
[Revised as of January 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR735.18]

[Page 223-224]
 
                          TITLE 7--AGRICULTURE
 
                            CHAPTER VII--FARM
                SERVICE AGENCY, DEPARTMENT OF AGRICULTURE
 
PART 735--COTTON WAREHOUSES--Table of Contents
 
Sec. 735.18  Lost or destroyed receipts; bond.

    (a) In the case of a lost or destroyed receipt, a new receipt upon 
the same terms, subject to the same conditions, and bearing on its face 
the number and the date of the receipt in lieu of which it is issued and 
a plain and conspicuous statement that it is a duplicate issued in lieu 
of a lost or destroyed receipt, may be issued upon compliance with the 
conditions set out in paragraph (b) of this section.
    (b) Before issuing such new or duplicate receipt the warehouseman 
shall require the depositor or other person applying therefor to make 
and file with the warehouseman (1) an affidavit showing that he is 
lawfully entitled to the possession of the original receipt, that he has 
not negotiated or assigned it, how the original receipt was lost or 
destroyed, and, if lost, that diligent effort has been made to find the 
receipt without success, and (2) a bond in an amount double the value, 
at the time

[[Page 224]]

the bond is given, of the cotton represented by the lost or destroyed 
receipt. Such bond shall be in a form approved for the purpose by the 
Secretary, or his designated representative, shall be conditioned to 
indemnify the warehouseman against any loss sustained by reason of the 
issuance of such receipt, and shall have as surety thereon preferably a 
surety company which is authorized to do business, and is subject to 
service of process in a suit on the bond, in the State in which the 
warehouse is located, or at least two individuals who are residents of 
such State and each of whom owns real property therein having a value, 
in excess of all exemptions and encumbrances, equal to the amount of the 
bond.