PRIA, Government Policy, Made Personal

Summary

Warehouse operators must give a receipt when a depositor asks for one for an agricultural product stored in a licensed warehouse. The product has to actually be in the warehouse when the receipt is made. Each receipt must include the information the Secretary of Agriculture requires. While a receipt is outstanding and not canceled, the warehouse cannot issue another receipt or transfer a duplicate document for the same product unless the Secretary allows it. The Secretary can allow electronic receipts and other electronic documents and set rules for the systems that hold them. A person listed as the holder of an electronic receipt is treated as if they possess the paper receipt for legal and lending purposes. Electronic receipts cannot be denied legal effect just because they are electronic. Priority of any security interests follows federal or state law. No one must issue receipts in electronic form, and non‑federally licensed or state‑licensed warehouses can opt in or follow state rules.

Title 7, §250

Agriculture, Source: USLM XML via OLRC

(a)In general

At the request of the depositor of an agricultural product stored or handled in a warehouse licensed under this chapter, the warehouse operator shall issue a receipt to the depositor as prescribed by the Secretary.

(b)Actual storage required

A receipt may not be issued under this section for an agricultural product unless the agricultural product is actually stored in the warehouse at the time of the issuance of the receipt.

(c)Contents

Each receipt issued for an agricultural product stored or handled in a warehouse licensed under this chapter shall contain such information, for each agricultural product covered by the receipt, as the Secretary may require by regulation.

(d)Prohibition on additional receipts or other documents

(1)Receipts

While a receipt issued under this chapter is outstanding and uncanceled by the warehouse operator, an additional receipt may not be issued for the same agricultural product (or any portion of the same agricultural product) represented by the outstanding receipt, except as authorized by the Secretary.

(2)Other documents

If a document is transferred under this section, no duplicate document in any form may be transferred by any person with respect to the same agricultural product represented by the document, except as authorized by the Secretary.

(e)Electronic receipts and electronic documents

Except as provided in section 242(h)(2) of this title, notwithstanding any other provision of Federal or State law:

(1)In general

The Secretary may promulgate regulations that authorize the issuance, recording, and transfer of electronic receipts, and the transfer of other electronic documents, in accordance with this subsection.

(2)Electronic receipt or electronic document systems

Electronic receipts may be issued, recorded, and transferred, and electronic documents may be transferred, under this subsection with respect to an agricultural product under, a system or systems maintained in one or more locations and approved by the Secretary in accordance with regulations issued under this chapter.

(3)Treatment of holder

Any person designated as the holder of an electronic receipt or other electronic document issued or transferred under this chapter shall, for the purpose of perfecting the security interest of the person under Federal or State law and for all other purposes, be considered to be in possession of the receipt or other electronic document.

(4)Nondiscrimination

An electronic receipt issued, or other electronic document transferred, in accordance with this chapter shall not be denied legal effect, validity, or enforceability on the ground that the information is generated, sent, received, or stored by electronic or similar means.

(5)Security interests

If more than one security interest exists in the agricultural product that is the subject of an electronic receipt or other electronic document under this chapter, the priority of the security interest shall be determined by the applicable Federal or State law.

(6)No electronic receipt required

A person shall not be required to issue in electronic form a receipt or document with respect to an agricultural product.

(7)Option for non-federally licensed warehouse operators

Notwithstanding any other provision of this chapter, a warehouse operator not licensed under this chapter may, at the option of the warehouse operator and in accordance with regulations established by the Secretary, issue electronic receipts and transfer other electronic documents in accordance with this chapter.

(8)Application to State-licensed warehouse operators

This subsection shall not apply to a warehouse operator that is licensed under State law to store agricultural commodities in a warehouse in the State if the warehouse operator elects—

(A)not to issue electronic receipts authorized under this subsection; or

(B)to issue electronic receipts authorized under State law.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 250, acts Aug. 11, 1916, ch. 313, pt. C, § 8, 39 Stat. 487; Mar. 2, 1931, ch. 366, § 3, 46 Stat. 1463, authorized designation as bonded warehouse upon filing of bond and approval by Secretary, prior to the general amendment of this chapter by Pub. L. 106–472. A prior section 11 of act Aug. 11, 1916, ch. 313, pt. C, was classified to section 252 of this title, prior to the general amendment of this chapter by Pub. L. 106–472.

§250 Warehouse Receipts

Summary

Title 7, §250

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Citations & Metadata