[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: 7CFR737.12]

[Page 273-274]
 
                          TITLE 7--AGRICULTURE
 
                            CHAPTER VII--FARM
                SERVICE AGENCY, DEPARTMENT OF AGRICULTURE
 
PART 737--TOBACCO WAREHOUSES--Table of Contents
 
Sec. 737.12  Basis of amount of bond; additional amounts.

    (a) Exclusive of any amount which may be added in accordance with 
paragraphs (b) and (c) of this section, the amount of such bond shall be 
at the rate of $5 per 1,000 pounds of the maximum number of pounds of 
tobacco that the warehouse will accommodate when stored in the manner 
customary to the warehouse, as determined by the Administrator, but not 
less than $5,000 nor more than $50,000. In case a 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, and shall desire to give a single bond meeting the 
requirements of the act and the regulations in this part for the said 
warehouses, such warehouses shall be deemed to be one warehouse for the 
purposes of the bond required under Secs. 737.11 through 737.15.
    (b) In case of a deficiency in net assets under Sec. 737.5 there 
shall be added to the amount ascertained in accordance with paragraph 
(a) of this section an amount equal to such deficiency.
    (c) If the Secretary, or his designated representative finds the 
existence of conditions warranting such action, there shall be added to 
the amount

[[Page 274]]

ascertained in accordance with paragraphs (a) and (b) of this section a 
further amount, fixed by him to meet such conditions.