[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: 7CFR740.14]

[Page 326]
 
                          TITLE 7--AGRICULTURE
 
                            CHAPTER VII--FARM
                SERVICE AGENCY, DEPARTMENT OF AGRICULTURE
 
PART 740--NUT WAREHOUSES--Table of Contents
 
Sec. 740.14  Amount of bonds; additional amounts.

    (a) The amount of bond to be furnished for each warehouse under the 
regulations in this part for peanuts shall be fixed at a rate of $25 per 
ton for the first 10,000 tons of licensed capacity and $20 per ton for 
all tons of licensed capacity over 10,000 tons; for walnuts and filberts 
the bond shall be fixed at a rate of 2 cents per pound for the licensed 
capacity; and for pecans the bond shall be fixed at a rate of 3 cents 
per pound for the licensed capacity: Provided, That in any case the 
amount of bond shall not be less than $20,000 nor more than $500,000, 
except as prescribed in paragraph (c) of this section. The licensed 
capacity shall be the maximum quantity of nuts that the warehouse will 
accommodate when stored in the manner customary to the warehouse as 
determined by the Administrator.
    (b) In case a warehouseman is licensed or is applying for licenses 
to operate two or more warehouses in the same State he may give a single 
bond meeting the requirements of the Act and the regulations in this 
part to cover all his warehouses within the State. In such case the 
warehouses to be covered by the bond shall be deemed to be one warehouse 
only for purposes of determining the amount of bond required under 
paragraph (a) of this section.
    (c) In case of a deficiency in net assets above the $10,000 minimum 
required under Sec. 740.6, there shall be added to the amount of bond 
determined in accordance with paragraph (a) of this section an amount 
equal to such deficiency. In any other case in which the Administrator 
finds that conditions exist which warrant requiring additional bond, 
there shall be added to the amount of bond as determined under the other 
provisions of this section, a further amount to meet such conditions.