[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: 7CFR738.5]

[Page 290]
 
                          TITLE 7--AGRICULTURE
 
                            CHAPTER VII--FARM
                SERVICE AGENCY, DEPARTMENT OF AGRICULTURE
 
PART 738--WOOL WAREHOUSES--Table of Contents
 
Sec. 738.5  Net assets.

    Any warehouseman conducting a warehouse licensed or for which 
application for license has been made under the act shall have and 
maintain above all exemptions and liabilities net assets liable for the 
payment of any indebtedness arising from the conduct of the warehouse, 
to the extent of at least $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 as determined by 
the Administrator: Provided, That the amount of such assets shall not be 
less than $5,000 and need not be more than $100,000. 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, such warehouses shall be deemed to 
be one warehouse for the purposes of the assets required under this 
section. For the purposes of this section only, paid-in capital stock 
shall not be considered a liability. Any deficiency in the required net 
assets may be supplied by an increase in the amount of the 
warehouseman's bond in accordance with Sec. 738.12(b).