7 U.S.C. § 247 — Fair treatment in storage of agricultural

Page 359 TITLE 7—AGRICULTURE § 248 product are not established under another Fed- eral law, the Secretary may establish standards for the evaluation or determination of the qual- ity or value of the agricultural product under this chapter. (Aug. 11, 1916, ch. 313, pt. C, § 5, as added Pub. L. 106–472, title II, § 201, Nov. 9, 2000, 114 Stat. 2064.) Editorial Notes PRIOR PROVISIONS A prior section 244, acts Aug. 11, 1916, ch. 313, pt. C, § 4, 39 Stat. 486; Mar. 2, 1931, ch. 366, § 1, 46 Stat. 1463, au- thorized licensing of warehousemen, prior to the gen- eral amendment of this chapter by Pub. L. 106–472. See section 242 of this title. A prior section 5 of act Aug. 11, 1916, ch. 313, pt. C, was classified to section 245 of this title, prior to the general amendment of this chapter by Pub. L. 106–472. § 245. Bonding and other financial assurance re- quirements (a) In general As a condition of receiving a license or ap- proval under this chapter (including regulations promulgated under this chapter), the person ap- plying for the license or approval shall execute and file with the Secretary a bond, or provide such other financial assurance as the Secretary determines appropriate, to secure the person’s performance of the activities so licensed or ap- proved. (b) Service of process To qualify as a suitable bond or other finan- cial assurance under subsection (a), the surety, sureties, or financial institution shall be subject to service of process in suits on the bond or other financial assurance in the State, district, or territory in which the warehouse is located. (c) Additional assurances If the Secretary determines that a previously approved bond or other financial assurance is in- sufficient, the Secretary may suspend or revoke the license or approval covered by the bond or other financial assurance if the person that filed the bond or other financial assurance does not provide such additional bond or other financial assurance as the Secretary determines appro- priate. (d) Third party actions Any person injured by the breach of any obli- gation arising under this chapter for which a bond or other financial assurance has been ob- tained as required by this section may sue with respect to the bond or other financial assurance in a district court of the United States to re- cover the damages that the person sustained as a result of the breach. (Aug. 11, 1916, ch. 313, pt. C, § 6, as added Pub. L. 106–472, title II, § 201, Nov. 9, 2000, 114 Stat. 2064.) Editorial Notes PRIOR PROVISIONS A prior section 245, acts Aug. 11, 1916, ch. 313, pt. C, § 5, 39 Stat. 486; Feb. 23, 1923, ch. 106, 42 Stat. 1282, re- lated to term and renewal of license, prior to the gen- eral amendment of this chapter by Pub. L. 106–472. A prior section 6 of act Aug. 11, 1916, ch. 313, pt. C, was classified to section 247 of this title, prior to the general amendment of this chapter by Pub. L. 106–472. § 246. Maintenance of records To facilitate the administration of this chap- ter, the following persons shall maintain such records and make such reports, as the Secretary may by regulation require: (1) A warehouse operator that is licensed under this chapter. (2) A person operating a system for the elec- tronic recording and transfer of receipts and other documents that are authorized under this chapter. (3) Any other person engaged in the issuance of electronic receipts or the transfer of docu- ments under this chapter. (Aug. 11, 1916, ch. 313, pt. C, § 7, as added Pub. L. 106–472, title II, § 201, Nov. 9, 2000, 114 Stat. 2065.) Editorial Notes PRIOR PROVISIONS A prior section 246, acts Aug. 11, 1916, ch. 313, pt. C, § 25, 39 Stat. 490; Mar. 2, 1931, ch. 366, § 8, 46 Stat. 1465, related to suspension and revocation of license, prior to the general amendment of this chapter by Pub. L. 106–472. See section 252 of this title. A prior section 7 of act Aug. 11, 1916, ch. 313, pt. C, was classified to section 249 of this title, prior to the general amendment of this chapter by Pub. L. 106–472. § 247. Fair treatment in storage of agricultural products (a) In general Subject to the capacity of a warehouse, a warehouse operator shall deal, in a fair and rea- sonable manner, with persons storing, or seek- ing to store, an agricultural product in the warehouse if the agricultural product— (1) is of the kind, type, and quality custom- arily stored or handled in the area in which the warehouse is located; (2) is tendered to the warehouse operator in a suitable condition for warehousing; and (3) is tendered in a manner that is consistent with the ordinary and usual course of busi- ness. (b) Allocation Nothing in this section prohibits a warehouse operator from entering into an agreement with a depositor of an agricultural product to allo- cate available storage space. (Aug. 11, 1916, ch. 313, pt. C, § 8, as added Pub. L. 106–472, title II, § 201, Nov. 9, 2000, 114 Stat. 2065.) Editorial Notes PRIOR PROVISIONS A prior section 247, acts Aug. 11, 1916, ch. 313, pt. C, § 6, 39 Stat. 486; July 24, 1919, ch. 26, 41 Stat. 266; Feb. 23, 1923, ch. 106, 42 Stat. 1283; Mar. 2, 1931, ch. 366, § 2, 46 Stat. 1463, required bond as condition to granting of li- cense and additional bonds if first bond determined to become insufficient, prior to the general amendment of this chapter by Pub. L. 106–472. See section 245 of this title. A prior section 8 of act Aug. 11, 1916, ch. 313, pt. C, was classified to section 250 of this title, prior to the general amendment of this chapter by Pub. L. 106–472. § 248. Commingling of agricultural products (a) In general A warehouse operator may commingle agricul- tural products in a manner approved by the Sec- retary.