[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: 7CFR739.48]

[Page 314-315]
 
                          TITLE 7--AGRICULTURE
 
                            CHAPTER VII--FARM
                SERVICE AGENCY, DEPARTMENT OF AGRICULTURE
 
PART 739--DRY BEAN WAREHOUSES--Table of Contents
 
Sec. 739.48  Procedure in handling deteriorated beans.

    (a) If a warehouseman, with the approval of the licensed inspector, 
shall determine that any beans are deteriorating and that such 
deterioration can not be stopped, he shall give immediate notice thereof 
in accordance with paragraphs (b) and (c) of this section.
    (b) Such notice shall state (1) the name of the warehouse in which 
the beans are stored, (2) the quantity, kind, and grade of the beans at 
the time the notice is given, (3) the actual condition of the beans as 
nearly as can be ascertained, and the reason, if known, for such 
condition, and (4) the outstanding receipts covering the beans out of 
condition, giving the number and date of each such receipt and the 
quantity, the kind and grade of the beans as stated in each such 
receipt.
    (c) A copy of such notice shall be delivered in person or shall be 
sent by

[[Page 315]]

mail (1) to the persons holding the receipts if known to the 
warehouseman, (2) to the person who originally deposited the beans, (3) 
to any other persons known by the licensed warehouseman to be interested 
in the beans, (4) to the Administrator, and (5) 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 beans are known to the warehouseman and 
cannot, in the regular course of the mails, be reached within 12 hours, 
the warehouseman shall, whether or not requested to do so, also 
immediately notify such persons by telegraph or telephone at their 
expense.
    (d) Any person interested in any beans or the receipt covering such 
beans stored in a licensed warehouse may notify the warehouseman of his 
interest in writing, and such warehouseman shall keep a record of that 
fact. If such person requests in writing that he be notified regarding 
the condition of any such beans and agrees to pay the cost of any 
telegraph or telephone toll charge, such warehouseman shall notify such 
person in accordance with such request.
    (e) If the beans advertised in accordance with the requirements of 
this section have not been removed from storage by the owner thereof 
within seven days from the date of notice of their being out of 
condition, the warehouseman 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 beans after 
sending notification of their condition 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)

[10 FR 4964, May 4, 1945, as amended at 29 FR 13369, Sept. 26, 1964; 47 
FR 745, Jan. 7, 1982. Redesignated at 50 FR 1814, Jan. 14, 1985]