[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: 7CFR738.12]

[Page 291]
 
                          TITLE 7--AGRICULTURE
 
                            CHAPTER VII--FARM
                SERVICE AGENCY, DEPARTMENT OF AGRICULTURE
 
PART 738--WOOL WAREHOUSES--Table of Contents
 
Sec. 738.12  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 $15 per 1,000 pounds or fraction thereof of the maximum 
number of pounds of wool that the warehouse will accommodate when stored 
in the manner customary to the warehouse for which such bond is 
required, as determined by the Administrator but not less than $5,000 
nor more than $50,000. If such 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. 738.11 through 738.15.
    (b) In case of a deficiency in net assets as required by Sec. 738.5, 
there shall be added to the amount of the bond fixed 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 fixed in accordance with paragraphs (a) and (b) of this 
section a further amount fixed by him to meet such conditions.