[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: 7CFR737.39]

[Page 279-280]
 
                          TITLE 7--AGRICULTURE
 
                            CHAPTER VII--FARM
                SERVICE AGENCY, DEPARTMENT OF AGRICULTURE
 
PART 737--TOBACCO WAREHOUSES--Table of Contents
 
Sec. 737.39  Tobacco out of condition.

    (a) If the warehouseman, with the approval of a licensed inspector 
or grader shall determine that any tobacco is deteriorating and that 
such deterioration can not be stopped, the warehouseman shall give 
immediate notice of the fact in accordance with paragraphs (b) and (c) 
of this section.
    (b) Such notice shall state: (1) The warehouse in which the tobacco 
is stored; (2) the actual condition of the tobacco as nearly as can be 
ascertained, and the reason, if known, for such condition; (3) the 
outstanding receipts covering the tobacco out of condition, giving the 
number and date of each such receipt and the type, grade, form, 
condition, and weight of

[[Page 280]]

the tobacco as stated in each such receipt; and (4) that such tobacco 
will be delivered upon the return and surrender of the receipts 
therefor.
    (c) A copy of such notice shall be delivered in person or shall be 
sent by mail (1) to the persons holding the receipts, if known to the 
warehouseman; (2) to the person who originally deposited the tobacco; 
(3) to any other persons known by the warehouseman to be interested in 
the tobacco; and (4) to the Administrator. Public notice shall also be 
given by posting a copy of such notice at the place where the 
warehouseman is required to post his license. A copy of such notice 
shall be kept as a record of the warehouse. If the holders of the 
receipts and the owners of the tobacco are known to the warehouseman and 
cannot, in the regular course of the mails, be reached within 36 hours, 
the warehouseman shall, whether or not requested so to do, also 
immediately notify such persons by telegraph or telephone at their 
expense.
    (d) Any person financially interested in any tobacco or the receipt 
covering such tobacco stored in a licensed warehouse may, in writing, 
notify the warehouseman of the fact of his interest, and such 
warehouseman shall keep a record of that fact. If such person request in 
writing that he be notified regarding the condition of any such tobacco 
and agree to pay the cost of any telegraph or telephone toll charge the 
warehouseman shall notify such person in accordance with his request.
    (e) If the tobacco advertised in accordance with the requirements of 
this section has not been removed from storage by the owner thereof 
within seven days from the date of notice of its being out of condition, 
the warehouseman in whose warehouse such tobacco is stored may sell the 
same at public auction at the expense and for the account of the owner, 
after giving seven days' notice of such proposed sale in the manner 
specified in paragraphs (b) and (c) of this section.
    (f) Nothing contained in this section shall be construed as 
relieving the warehouseman from properly caring for any tobacco after 
notification of its condition has been given in accordance with this 
section.
    (g) Records required to be kept by this section shall be retained, 
as a part of the records of the warehouse, for a period of six years 
after December 31 of the year in which created, and for such longer 
period as may be necessary for the purposes of any litigation which the 
warehouseman knows to be pending, or as may be required by the 
Administrator in particular cases to carry out the purposes of the Act.

(Approved by the Office of Management and Budget under control number 
0560-0120)

[SRA, BAE 129, rev.; 7 FR 6806, Aug. 29, 1942; 13 FR 8731, Dec. 30, 
1948; 19 FR 57, Jan. 6, 1954, as amended at 29 FR 13369, Sept. 26, 1964; 
47 FR 745, Jan. 7, 1982. Redesignated at 50 FR 1814, Jan. 14, 1985]