[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: 7CFR739.25]

[Page 310-311]
 
                          TITLE 7--AGRICULTURE
 
                            CHAPTER VII--FARM
                SERVICE AGENCY, DEPARTMENT OF AGRICULTURE
 
PART 739--DRY BEAN WAREHOUSES--Table of Contents
 
Sec. 739.25  Insurance; requirements.

    (a) Each warehouseman, when so requested in writing by the depositor 
of beans, or the lawful holder of the receipt for any beans, shall, to 
the extent

[[Page 311]]

to which, in the exercise of due diligence, he is able to procure such 
insurance, keep such beans while in his custody insured in his own name, 
to the extent so requested, against loss or damage by fire, lightning, 
or tornado. When insurance is not carried in the warehouseman's name, 
the receipt shall show that the beans are not insured by him. 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 and 
at his own expense, immediately notify the person making the request. 
Nothing in this section shall be construed to prevent a warehouseman 
from adopting a rule that he will insure all beans.
    (b) Each warehouseman shall keep exposed conspicuously in the place 
prescribed by Sec. 739.6 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 beans will be insured against loss or 
damage by fire, lightning, or tornado.
    (c) Each warehouseman shall take promptly 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, pay promptly to the persons concerned any portion of such 
moneys which they may be entitled to receive from him.