[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: 7CFR740.51]

[Page 334-335]
 
                          TITLE 7--AGRICULTURE
 
                            CHAPTER VII--FARM
                SERVICE AGENCY, DEPARTMENT OF AGRICULTURE
 
PART 740--NUT WAREHOUSES--Table of Contents
 
Sec. 740.51  Deteriorating nuts; handling.

    (a) If the licensed warehouseman, with the approval of the licensed 
inspector, shall determine that any nuts are deteriorating and that such 
deterioration cannot be stopped, the licensed warehouseman shall give 
immediate notice of the fact, in accordance with paragraphs (b) and (c) 
of this section.
    (b) Such notice shall state: (1) The warehouse in which the nuts are 
stored; (2) the quantity, kind, and grade or other class of the nuts at 
the time the notice is given; (3) the actual condition of the nuts as 
nearly as can be ascertained, and the reason, if known, for such 
condition; (4) the outstanding receipts covering the amount of nuts out 
of condition, giving the number and date of each such receipt and the 
quantity, the kind, and grade or other class of the nuts as stated in 
each such receipt; and (5) that such nuts will be delivered upon the 
return and cancellation of the receipts therefor.
    (c) A copy of such notice shall be delivered in person or shall be 
sent by mail: (1) To the person holding the receipts, if known to the 
licensed warehouseman; (2) to the person who originally deposited the 
nuts; (3) to any other persons known by the licensed warehouseman to be 
interested in the nuts; and (4) to the Administrator. If the holders of 
the receipts and owners of the nuts are known to the licensed 
warehouseman and cannot, in the regular course of the mails, be reached 
within 12 hours, the licensed warehouseman shall, whether or not 
requested so to do, also immediately notify such persons by telegraph or 
telephone at their expense. Public notice shall also be given by posting 
a copy of

[[Page 335]]

such notice at the place where the warehouseman is required to post his 
license and keeping such notice posted so long as the condition exists. 
A copy of such notice shall be kept as a record of the warehouse.
    (d) Any person, interested in any nuts or the receipt covering such 
nuts stored in a licensed warehouse, may, in writing, notify the 
licensed warehouseman conducting such licensed warehouse, of the fact of 
his interest, and such licensed warehouseman shall keep a record of the 
fact. If such person requests in writing that he be notified regarding 
the condition of any such nuts and agree to pay the cost of any 
telegraph or telephone toll charge, such licensed warehouseman shall 
notify such person in accordance with such request.
    (e) Nothing contained in this section shall be construed as 
relieving the licensed warehouseman from properly caring for any nuts 
after notification of their condition in accordance with this section.
    (f) 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)

[41 FR 31163, July 27, 1976, as amended at 47 FR 745, Jan. 7, 1982. 
Redesignated at 50 FR 1814, Jan. 14, 1985]