[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: 7CFR736.33]

[Page 254-255]
 
                          TITLE 7--AGRICULTURE
 
                            CHAPTER VII--FARM
                SERVICE AGENCY, DEPARTMENT OF AGRICULTURE
 
PART 736--GRAIN WAREHOUSES--Table of Contents
 
Sec. 736.33  Insurance; requirements.

    (a) Each warehouseman, when so requested in writing as to any grain 
by the depositor thereof or lawful holder of the receipt covering such 
grain, shall, to the extent to which, in the exercise of due diligence, 
he is able to procure such insurance, keep such grain while in his 
custody as a warehouseman insured in his own name or arrange for its 
insurance otherwise to the extent so requested, against loss or damage 
by fire, lightning, and/or tornado. When insurance is not carried in the 
warehouseman's name, the receipts shall show that the grain 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 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 
grain stored in his warehouse.
    (b) Each warehouseman shall comply fully with the terms of insurance 
policies or contracts covering his licensed warehouse and all products 
stored therein, and shall not commit any acts, nor permit his employees 
to do anything, which might impair or invalidate such insurance.
    (c) Each warehouseman shall keep exposed conspicuously in the place 
prescribed by Sec. 736.8, 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 grain will be

[[Page 255]]

insured against loss or damage by fire, lightning, and tornado.
    (d) Each warehouseman shall, in accordance with his contracts with 
insurance and bonding companies for the purpose of meeting the insurance 
and bonding requirements of the regulations in this part, pay such 
premiums, permit such reasonable inspections and examinations, and make 
such reasonable reports as may be provided for in such contracts.
    (e) Each warehouseman shall promptly take such steps as may be 
necessary and proper to collect any moneys which may become due under 
contracts of insurance entered into by him for the purpose of meeting 
the requirements of the regulations in this part, and shall, as soon as 
collected, promptly pay to the persons concerned any portion of such 
moneys which they may be entitled to receive from him.
    (f) If at any time a fire occurs at or within any licensed 
warehouse, it shall be the duty of the warehouseman to report 
immediately the occurrence of such fire and the extent of damage to the 
Administrator.

[29 FR 15730, Nov. 24, 1964, as amended at 62 FR 33540, June 20, 1997]