to such lot a tag of good quality which shall identify the lot. Such tag shall show the lot number, the identification mark on each package, the number of the receipt issued to cover such nuts, the number of sacks in the lot, the kind and variety of the nuts, the grade if determined, and the gross weight of the nuts at the time they entered storage. § 107.35 Identification tag on stored

nuts.

Each warehouseman shall so store each lot of nuts for which a receipt under the act has been issued that the tag thereon, required by $107.34, is visible and readily accessible, and shall arrange all packages in his licensed warehouse so as to permit an accurate count thereof and to facilitate sampling of the nuts and inspection for condition. § 107.36 Bulk nuts; grades and weights.

Each licensed warehouseman shall accept all nuts for storage and shall deliver out of storage all bulk nuts, other than specially binned or sacked nuts, in accordance with the grade of such nuts as determined by a person duly licensed to grade such nuts and to certificate the grade thereof, and in accordance with the weights of such nuts as determined by a person duly licensed to weigh such nuts and to certificate the weight thereof, under the act and the regulations in this part, and in accordance with the agreement regarding shrinkage as shown by the terms of the receipt.

§ 107.37 Identity-preserved nuts; bulk storage.

Upon the acceptance by a licensed warehouseman, for storage, in his licensed warehouse, of any lot of bulk nuts the identity of which is to be preserved, he shall store, or cause to be stored, such nuts in an individual bin or compartment designated by lot or cargo numbers, or by letters, numbers or other clearly distinguishable words or signs, permanently and securely affixed thereto, or shall so mark the container or containers of such nuts, or so place the nuts in the warehouse, that their identity will not be lost during the storage period.

§ 107.38 Delivery of bulk nuts.

Except as may be provided by law or the regulations in this part, each licensed warehouseman, (a) upon proper presentation of a receipt for any bulk, other than specially binned nuts, and upon payment or tender of all advances and

Each licensed warehouseman shall use for his licensed warehouse a system of accounts, approved for the purpose by the Administrator, which shall show for each lot of nuts, the name of the depositor, the weight of the nuts, the number of packages in each lot, the grade when grade is required to be, or is, ascertained, the location, the dates received for and delivered out of storage and the receipts issued and canceled, a separate record for each depositor and such accounts shall include a detailed record of all moneys received and disbursed and of all effective insurance policies. In the case of nuts stored in packages, the tag number mentioned in § 107.34 shall be shown. Such records shall be retained by the warehouseman 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.

[SRA, BAE 119, as amended at 29 F.R. 13369, Sept. 26, 1964]

§ 107.40 Reports.

Each licensed warehouseman shall, from time to time, when requested by the Administrator, make such reports, on forms prescribed and furnished for the purpose by the Service, concerning the condition, contents, operation, and business of the warehouse, as the Administrator may require. § 107.41

Canceled receipts; auditing. Each warehouseman, when requested by the Service, shall forward his canceled receipts for auditing to such field offices of the Service as may be designated from time to time. For the purpose of this section, only such portion as the Service

may designate of each canceled receipt, numbered to correspond with the actual receipt number, need be submitted.

§ 107.42 Copies of reports to be kept.

Each warehouseman shall keep on file, as a part of the records of the warehouse, for a period of three years after December 31 of the year in which submitted, an exact copy of each report submitted by such warehouseman under the regulations in this part.

[29 F.R. 13369, Sept. 26, 1964]

§ 107.43 Inspections; examinations of

warehouses.

Each licensed warehouseman shall permit any officer or agent of the Department of Agriculture, authorized by the Secretary for the purpose, to enter and inspect or examine, on any business day during the usual hours of business, any warehouse for the conduct of which such warehouseman holds a license, the office thereof, the books, records, papers, and accounts relating thereto, and the contents thereof, and such warehouseman shall furnish such officer or agent the assistance necessary to enable him to make any inspection or examination under this section. § 107.44

Weighing, testing, measuring apparatus; inspection.

The apparatus used for determining the weight, quantity, or quality stated in a receipt or certificate shall be subject to examination by any officer or agent of the Department of Agriculture employed for such purpose. If the Service shall disapprove such apparatus, it shall not thereafter, unless such disapproval be withdrawn, be used in ascertaining the weight, quantity, or quality of nuts for the purposes of the act and the regulations in this part.

§ 107.45 Warehouse to be kept clean. Each licensed warehouseman shall keep his warehouse clean and free from trash, dust, rubbish, and scattered nuts, and shall provide bins for the storage of nuts in bulk. He shall also exercise every precaution to keep his warehouse free of rats or insects that might cause damage or injury to nuts in storage.

§ 107.46 Signs of tenancy.

(a) Each licensed warehouseman shall, during the life of his license, maintain suitable signs on the licensed property in such a manner as will give ample notice of his tenancy of all buildings or parts thereof included in his license.

(b) Such signs shall be of appropriate size and design and shall include the following: (1) The name of the licensee, (2) the license number of the warehouse, (3) whether the warehouseman is owner or lessee, and (4) the words "public warehouse."

(c) Such other wording or lettering may appear in the sign or signs not inconsistent with the purpose of the act and the regulations in this part, subject to the approval of the Service.

(d) Upon the expiration of his license, or during periods of suspension thereof, the warehouseman shall immediately remove such signs or portions thereof as may convey the impression that the warehouse is licensed.

(e) The warehouseman shall not permit any signs to remain on his licensed property which might lead to confusion as to the tenancy.

§ 107.47 Excess storage.

If at any time a warehouseman shall store nuts in his licensed warehouse in excess of the capacity thereof determined in accordance with § 107.12 (a), such warehouseman shall so arrange the nuts as not to obstruct free access thereto and the proper use of sprinkler or other fireprotection equipment provided for such warehouse, and shall immediately notify the Administrator of such excess storage and arrangement thereof.

§ 107.48 Removal of nuts from storage:

conditions.

Except as may be permitted by law or the regulations in this part, a licensed warehouseman shall not remove any nuts for storage from the licensed warehouse or the part thereof designated in the receipt for such nuts until such receipt is first surrendered and canceled. If it becomes absolutely necessary to remove the nuts prior to the surrender of the receipts in order to protect the interests of holders of the receipts, the warehouseman shall notify the Administrator of such removal and the necessity therefor.

§ 107.49 Wet nuts; no storage.

A warehouseman shall not under any circumstances accept for storage any nuts in his licensed warehouse that are wet, improperly cured, or otherwise of a condition rendering them unsuitable for storage.

§ 107.50 Storage to prevent damage.

A warehouseman shall not handle or store nuts in such manner as will injure

or damage them or in any part of the warehouse in which they are likely to be injured or damaged by excessive moisture or otherwise.

§ 107.51 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 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 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 persons 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 the 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 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.

(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 request 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.

[SRA, BAR 119, as amended at 29 FR 13360, Sept. 26, 1964]

§ 107.52 Sale at public auction.

If the nuts, advertised in accordance with the requirements of § 107.51 have not been removed from storage by the owner thereof within 5 days from the date of notice of their being out of condition, the licensed warehouseman in whose licensed warehouse such nuts are stored may sell the same at public auction at the expense and for the account of the owner after giving 10 days' notice in the manner specified in § 107.51 (c). § 107.53 Compliance with contracts.

Each warehouseman shall faithfully perform such obligations as a warehouseman as may be assumed by him under contracts with depositors of nuts in his warehouse.

[14 F. R. 3829, July 13, 1949]

§ 107.54 Fire loss to be reported by wire. If at any time a fire shall occur at or within any licensed warehouse, it shall be the duty of the warehouseman to report immediately by wire to the Administrator the occurrence of such fire and the extent of damage.

§ 107.55 Grade-weight certificate; filing.

When a grade or weight certificate has been issued by a licensed grader or weigher, a copy of such certificate shall be filed with the warehouseman in whose warehouse the nuts covered by such certificate are stored, and such certificate shall become a part of the records of the licensed warehouseman. Such certificates shall be retained, as a part of the

record of the warehouse, for a period of three years after December 31 of the year in which the certificates are issued. [SRA, BAE 119, as amended at 29 F.R. 13369, Sept. 26, 1964]

§ 107.56

FEES

Warehouse license fees.

There shall be charged and collected a fee of $20 for each original warehouseman's license, and a fee of $10 for each amended or reinstated warehouseman's license applied for by a warehouseman, and a fee of $6 for each license issued to sampler, grader, weigher, or an inspector.

[34 FR. 19060, Dec. 1, 1969]

§ 107.57 Warehouse inspection fees.

There shall be charged and collected for each original inspection of a warehouse under the act, when such inspection is made upon application of a warehouseman, a fee based on the storage capacity of the warehouse, determined in accordance with § 107.12(a), and at the rate of $1 for each 100 tons, or fraction thereof, of peanuts, and $4 for each 1,000 hundredweight, or fraction thereof, of other nuts, to be stored in the warehouse, but in no case less than $40 nor more than $500, and for each reinspection, applied for by the warehouseman, a fee based on the extent of the reinspection, proportioned to, but not greater than, that prescribed for the original inspection.

[34 FR. 19061, Dec. 1, 1969]

§ 107.58 Advance deposit.

Before any warehouseman's license or amendment thereto or any sampler's, grader's, weigher's, or inspector's license is granted, or an original examination or inspection, or re-examination or reinspection, applied for by a warehouseman, is made, pursuant to the regulations in this part, the warehouseman and/or sampler, grader, weigher, or inspector, shall deposit with the Service the amount of the fee prescribed therefor. Such deposit shall be made in the form of a check, certified if required by the Service, draft, or post-office or express money order, payable to the order of Treasurer of the United States.

[SRA, BAE 119, as amended June 29, 1981, and at 8 F. R. 1400, June 14, 1938] § 107.59 Return of excess deposit.

The Treasurer of the United States shall hold in his custody each advance deposit made under § 107.58 until the fee, if any, is assessed and he is furnished by

(a) Application for licenses to grade, to weigh, or to inspect nuts under the act shall be made to the Administrator on forms furnished for the purpose by him.

(b) Each such application shall be in English, shall be signed by the applicant, shall be verified by him under oath on affirmation administered by a duly authorized officer and shall contain or be accompanied by (1) satisfactory evidence that he has passed his twenty-first birthday; (2) the name and location of a warehouse or warehouses licensed, or for which application for license has been made, under the act in which nuts sought to be graded, weighed, and inspected under such license are or may be stored; (3) a statement from the warehouseman conducting such warehouse showing whether or not the applicant is competent and is acceptable to such warehouseman for the purpose; (4) satisfactory evidence that he has had at least one year's experience in the kind of service for which a license is sought or the equivalent of such experience, and that he is competent to perform such services, except in the case of applicants for weighers' licenses one month's experience will be sufficient; (5) a statement by the applicant that he agrees to comply with and abide by the terms of the act and the regulations in this part so far as the same may relate to him; and (6) such other information as the Administrator may deem necessary: Provided, That when an application for a license to grade nuts is filed by a person who does not intend to grade nuts for any particular licensed warehouseman but who does intend to grade nuts stored or to be stored in a licensed warehouse and to issue grade certificates therefor, as provided for by the act and the regulations in this part, independent of the warehouse receipts issued to cover such nuts, it shall not be necessary to