[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: 7CFR735.2]

[Page 215-217]
 
                          TITLE 7--AGRICULTURE
 
                            CHAPTER VII--FARM
                SERVICE AGENCY, DEPARTMENT OF AGRICULTURE
 
PART 735--COTTON WAREHOUSES--Table of Contents
 
Sec. 735.2  Terms defined.

    For the purpose of this part, unless the context otherwise requires, 
the following terms shall be construed, respectively, to mean:
    (a) The act. The United States Warehouse Act, approved August 11, 
1916 (39 Stat. 486; 7 U.S.C. 241-273), as amended.
    (b) Person. An individual, corporation, partnership, or two or more 
persons having a joint or common interest.
    (c) Secretary. The Secretary of Agriculture of the United States or 
any officer or employee of the Department to whom authority has 
heretofore been delegated, or to whom authority may hereafter be 
delegated, to act in his stead.
    (d) Administrator. The Administrator of the Service or any other 
officer or employee of the Service to whom authority has heretofore 
lawfully been delegated, or may hereafter lawfully be delegated, to act 
in his stead.
    (e) Designated representative. The Administrator.
    (f) Regulations. Rules and regulations made under the act by the 
Secretary.
    (g) Department. The United States Department of Agriculture.
    (h) Service. The Farm Service Agency of the U.S. Department of 
Agriculture.
    (i) Linters. As far as applicable the regulations in this part shall 
include linters.
    (j) Warehouse. Any building, structure, or other protected inclosure 
in which cotton is or may be stored for interstate or foreign commerce, 
or, if located within any place under the exclusive jurisdiction of the 
United States, in which cotton is or may be stored.
    (k) Warehouseman. A person lawfully engaged in the business of 
storing cotton.
    (l) License. A license issued under the act by the Secretary.
    (m) Licensed warehouseman. A warehouseman licensed as such under the 
act.
    (n) Licensed warehouse. A warehouse for the conduct of which a 
license has been issued.
    (o) Licensed warehouseman's bond. A bond required to be given under 
the act by a licensed warehouseman.
    (p) Licensed classifier. A person licensed under the act to classify 
according to grade or otherwise and certificate the grade or other class 
of cotton.
    (q) Licensed weigher. A person licensed under the act to weigh and 
certificate the weight of cotton.
    (r) Cotton examiner. An officer of the Department of Agriculture 
designated by the Administrator for the purpose of

[[Page 216]]

hearing cotton appeals under Secs. 735.75 through 735.85.
    (s) Receipt. A warehouse receipt.
    (t) Bale. A bale or other package.
    (u) State. A State, Territory, or district of the United States.
    (v) Licensed sampler. A person, employed by a licensed warehouseman, 
licensed under the act to draw samples from cotton stored in the 
licensed warehouse at which such person is employed.
    (w) Board of cotton examiners. A board of cotton examiners properly 
qualified and designated as such under the regulations (part 28 of this 
chapter) under the United States Cotton Standards Act.
    (x) Net assets. The difference remaining when liabilities are 
subtracted from allowable assets. In determining allowable assets, 
credit may be given for appraisal of real property less improvements and 
for the appraisal of insurable property such as buildings, machinery, 
equipment, and merchandise inventory only to the extent that such 
property is protected by insurance against loss or damage by fire, 
lightning, and tornado. Such insurance must be in the form of lawful 
insurance policies issued by insurance companies authorized to do such 
business and subject to service of process in the State in which the 
warehouse is located. The Secretary shall, at his discretion, determine 
what assets are allowable and under what conditions appraisals may be 
used.
    (y) Warehouse capacity. Warehouse capacity is the maximum number of 
bales of cotton that the warehouse will accommodate when stored in the 
manner customary to the warehouse and as required by the Secretary.
    (z) Current assets. Assets, including cash, that are reasonably 
expected to be realized in cash or sold or consumed during the normal 
operating cycle of the business or within one year if the operating 
cycle is shorter than one year.
    (aa) Current liabilities. Those financial obligations which are 
expected to be satisfied during the normal operating cycle of the 
business or within one year if the operating cycle is shorter than one 
year.
    (bb) Access. The ability when authorized, to read, change, and 
transfer warehouse receipt information retained in the central filing 
system.
    (cc) Central filing system (CFS). An electronic computer system 
operated and maintained by an approved provider where the information 
relating to warehouse receipts is recorded.
    (dd) Electronic warehouse receipt (EWR). An electronic file in the 
CFS that contains at the least information required to be included in a 
warehouse receipt by section 18 of the Act, and Sec. 735.16, regarding a 
bale of cotton and has been identified to a holder.
    (ee) Holder. An individual or entity in possession, in fact, or by 
operation of law, of a receipt and by extension, of the cotton 
represented thereby.
    (ff) Issue. EWRs are considered issued when a licensed warehouseman 
has transmitted all necessary information to an approved provider, and 
when such information is entered into the provider's CFS.
    (gg) Provider. An individual or entity that maintains EWRs in a CFS, 
meets the requirements of this part, and has a Provider Agreement with 
the Service.
    (hh) Provider Agreement. An agreement entered into between the 
Secretary and a provider that delineates the provider's responsibilities 
and defines the relationship between the provider and the Service 
regarding the provider's maintenance and security of EWRs in the CFS and 
other requirements of this part.
    (ii) User. An individual or entity that uses the provider's CFS but 
shall not include the Service in its regulatory capacity.
    (jj) Force majeure. Severe weather conditions, fire, explosion, 
flood, earthquake, insurrection, riot, strike, labor dispute, act of 
civil or military authority, non-availability of transportation 
facilities, or any other cause beyond the control of the warehouseman 
that renders performance impossible.

[29 FR 15720, Nov. 24, 1964. Redesignated and amended at 50 FR 1814, 
Jan. 14, 1985; Amdt. 2, 53 FR 27148, July 19, 1988; 59 FR 15038, Mar. 
31, 1994; 62 FR 33540, June 20, 1997; 65 FR 63767, Oct. 25, 2000]

[[Page 217]]

                           Warehouse Licenses