Kansas Administrative Regulations › Agency 4 - DEPARTMENT OF AGRICULTURE › Article 25 - GRAIN WAREHOUSE › Section 4-25-17 - Transfer of grain between public warehouses

Current through Register Vol. 43, No. 28, July 11, 2024
(a) A public
			 warehouseman, as defined by
			 K.S.A.
			 34-223, and amendments thereto, who lacks
			 sufficient space and desires to transfer grain for which valid receipts have
			 been issued may transfer this grain either by physical movement of the grain or
			 by other methods approved by the secretary as standard industry practice,
			 subject to the following requirements:
(1)
			 The shipping public warehouseman shall immediately notify the secretary before
			 the transfer of receipted grain. This notice to the secretary shall include the
			 location where the grain will be transferred for storage. The shipping public
			 warehouseman shall also provide written notice to all depositors who hold
			 receipts for grain that the shipping public warehouseman may forward grain
			 deposited on a commingled basis.
(2) For purposes of this regulation, a
			 licensed public warehouse shall mean a warehouse operated by a public
			 warehouseman who holds a valid license under the U.S. warehouse act for grain,
			 or a public warehouse operated by a public warehouseman who holds a valid
			 warehouse license for the public storage of grain or rice, issued by a state
			 that has financial, bonding, and examination requirements for the benefit of
			 all depositors.
(3) The shipping
			 public warehouseman shall promptly obtain nonnegotiable warehouse receipts from
			 the receiving public warehouseman for all transferred grain. The receipts shall
			 be kept on forms furnished by the secretary pursuant to
			 K.S.A.
			 34-238 and amendments thereto. Receipts shall
			 not be used in any other manner except as provided by Kansas statute. The
			 receipts shall be retained by the shipping public warehouseman to be presented
			 to and used by department examiners in lieu of an on-site inventory. The grain
			 covered by these receipts shall not be the property of either the receiving or
			 shipping public warehouseman but shall be held in trust by both parties solely
			 for the benefit of the depositors whose bailed grain was transferred
			 individually or collectively, and the depositor or the depositor's transferee
			 shall retain title to it.
(4) The
			 shipping public warehouseman's bond shall be increased to consider the addition
			 of the transferred grain to the licensed capacity of the public warehouse with
			 the net worth requirements based on the total of the licensed capacity and the
			 forwarded grain. The bond amount shall not be required to be more than $500,000
			 unless necessary to cover a deficiency in net worth to meet the requirements of
			 K.S.A.
			 34-228, and amendments thereto.
(5) The shipping public warehouseman shall
			 continue to retain that individual's obligations to the owners for all grain
			 deposited in the public warehouse for storage, whether forwarded or retained,
			 and shall redeliver the grain upon demand to the depositor or the depositor's
			 transferee at the public warehouse where the grain was first deposited for
			 storage.
(6) Nothing in this
			 regulation shall diminish either the right of the owner of the grain to receive
			 on delivery or the obligation of the public warehouseman of a licensed public
			 warehouse from which the product is transferred to deliver, to the owner, grain
			 in the amount and of the kind, quality, and grade specified by the warehouse
			 receipts or other evidence of storage.
(7) If it is the shipping public
			 warehouseman's obligation by terms of the warehouse receipt or by any other
			 agreement to insure the grain subject to the transfer, that individual shall in
			 accordance with
			 K.S.A.
			 34-236, and amendments thereto, keep this
			 grain insured in that individual's own name or transfer the grain only to a
			 public warehouse where the grain is fully insured.