ORS Chapter 587
Chapter 587 — Storageof Grain as Basis of Farm Credit
2009 EDITION
STORAGEOF GRAIN AS BASIS OF FARM CREDIT
AGRICULTURALMARKETING AND WAREHOUSING
587.010 Definitions
587.020 Purposeof chapter
587.030 Departmentto administer and enforce chapter
587.040 Powersof department; rules
587.050 Petitionfor services by department
587.090 Applicationfor storage of grain
587.100 Makinginspections; inspection certificates; issuing warehouse certificates
587.110 Formand contents of warehouse certificate; approval by department
587.120 Certificatesto be in triplicate; disposition of original and copies
587.130 Filingand recording certificates
587.140 Careby owner of stored grain; delivery to certificate holder; sale by owner
587.150 Lockingand sealing storage facilities; bond as waiver of
587.160 Determinationof amount of grain; warehouse certificate as evidence; owner liable for actualamount
587.190 Expensesof administering chapter; disposition of inspection fees; continuingappropriation
587.990 Penalties
587.010Definitions.As used in this chapter, “department” means the State Department ofAgriculture.
587.020Purpose of chapter.The purpose and object of this chapter is to provide the owners of grain themeans of warehousing or storing their grain on farms, on or near railroadrights of way and other suitable places under proper safeguards, as a basis offarm credit on the grain so stored.
587.030Department to administer and enforce chapter. The State Department ofAgriculture shall manage, control and direct the operations of the provisionsof this chapter and has full power to make effective the provisions of thischapter and the rules and regulations which the department prescribes to carryout the purposes and objects of this chapter.
587.040Powers of department; rules. In addition to the general powersconferred by ORS 587.030 the State Department of Agriculture has the followingexpress powers:
(1)To appoint inspectors of grain.
(2)To make and promulgate the necessary or desirable rules and regulations, notinconsistent with this chapter, to carry out effectually the purposes of thischapter; the department may consider applicable and necessary laws andregulations of the United States and this state, particularly ORS chapter 586.
(3)To set up the necessary procedures to make effective the provisions of thischapter, such as the purchase of supplies, printing, stationery and equipment,and the appointing of clerical help and assistance, all of which expense shallbe audited and paid as a part of the general expense of the administration ofthis chapter.
(4)To require the owner of grain to obtain and maintain insurance in such type,amount and manner, including or covering such provisions or contingencies asthe department believes are reasonably necessary to protect the people of thisstate, the grain industry and the persons who handle grain certificates. [Amendedby 1959 c.201 §1]
587.050Petition for services by department. Whenever 15 or more farmers operating farmstributary to any market center petition the State Department of Agriculture forservices authorized by this chapter, the department forthwith shall provide forthe method of inspection and certify all warehouse certificates for graininspected. [Amended by 1959 c.201 §2]
587.060 [Repealed by1959 c.201 §11]
587.070 [Repealed by1959 c.201 §11]
587.080 [Repealed by1959 c.201 §11]
587.090Application for storage of grain. Any owner of grain desiring to store itshall make a written application to the State Department of Agricultureindicating where the grain is stored, the kind of structure in which stored andthe encumbrance on the grain, if any. The application shall be signed and swornto by the applicant. Whenever any grain is owned by more than one owner, theapplication shall be signed by all having an interest in the grain. In casesuch grain is mortgaged, the application for inspection shall be signed by theowner. The department in its discretion may require the mortgagee, mortgagor orany other person having an interest in the grain to sign applications or otherdocuments required in carrying out this chapter. [Amended by 1959 c.201 §3]
587.100Making inspections; inspection certificates; issuing warehouse certificates. (1) Whenapplication is made to the State Department of Agriculture for the inspectionand sealing of grain, whether upon the farm or on or near any railroad right ofway, or other suitable place, the department shall, as soon as it is possibleso to do, inspect the grain. If the grain and the structure in which it isstored comply with this chapter and the regulations of the department, thedepartment shall:
(a)Obtain the number and description of the bags of grain or measure and obtainthe cubic feet content of the grain in the bin.
(b)Estimate the amount of grain in storage, sample the grain to secure an averagesample, so as to obtain a required amount of grain to mix and divide into twosamples.
(c)Number the bin and the samples to correspond, seal the bin with a seal providedby the department and place on the structure a printed copy of the penaltyprovided by ORS 587.990 (2) for the unlawful breaking of the seal.
(d)Forward to its laboratory one of the samples obtained from the bin, and obtainfrom the laboratory inspection certificates, in triplicate, which shall bedated, numbered and shall designate the owner’s name, the number of the sampleinspected, the kind of grain, and if mixed, the percentage of each kind, thedockage and, upon request, the moisture and protein content.
(2)As soon as inspection certificates are obtained, the department shall issuenegotiable warehouse certificates in triplicate, attaching to each a copy ofthe inspection certificate. When approved by the department the certificates aredeemed to be issued by the proper authority of the department. Any certificateissued for grain owned by more than one person, or mortgaged, shall be issuedin the name of such persons, including the mortgagee.
(3)An authorized representative of the department may at any time enter upon thepremises where any grain is stored under this chapter for the purpose of makingan inspection thereof, and the acceptance of the warehouse certificate by theowner is consent to such entry and inspection. [Amended by 1959 c.201 §4]
587.110Form and contents of warehouse certificate; approval by department. The form of thewarehouse certificate issued under this chapter shall be prepared and approvedby the State Department of Agriculture. Every certificate must embody withinits written or printed terms the following:
(1)The consecutive number of the certificate.
(2)The date of issuance of the certificate.
(3)A description of the structure in which the grain is stored and the legaldescription of the premises where stored.
(4)A description of the grain, giving its grade, kind, variety, dockage, theprotein content and moisture content if requested, the number of bags, if any,the amount thereof to be computed from the number of bags or if in bulk thecubical measure thereof.
(5)The name of the owner or owners, whether ownership is sole, joint or in trust,and the conditions of such ownership, as shown by the application.
(6)A statement of any and all encumbrances upon the grain as reported in theapplication.
(7)A statement that the grain will be delivered at elevator or farm storage or onrailroad after approved by the department; but it may be sold on track, toarrive or to be consigned at the option of the owner of the grain.
(8)The facsimile signature of the Director of Agriculture and the countersignatureof the authorized representative of the department.
(9)Notation of inspection fee. [Amended by 1959 c.201 §5]
587.120Certificates to be in triplicate; disposition of original and copies. All warehousecertificates issued under this chapter shall be in triplicate. The originalshall be delivered to the owner, one copy shall be retained by the StateDepartment of Agriculture and the other copy shall be filed in the office ofthe county clerk of the county in which the grain is stored. Both copies of thecertificate shall have plainly printed and stamped across the face thereof “Duplicate–NoValue.” [Amended by 1959 c.201 §6]
587.130Filing and recording certificates. The State Department of Agricultureshall file in the office of the county clerk of the county wherein the grain isstored a copy of the warehouse certificate. The certificate shall be indexedunder chattel mortgages. The filing fee shall be paid by the department andcharged to the general expense of the administration of this chapter. Thefiling is notice that the grain described therein is pledged to the redemptionof an outstanding negotiable warehouse certificate. [Amended by 1959 c.201 §7]
587.140Care by owner of stored grain; delivery to certificate holder; sale by owner. The owner ofgrain stored under this chapter is charged with the due care of the grain andshall exercise that degree of care and diligence which an ordinary and prudentperson would exercise with regard to similar property of the person’s own. Theowner shall also, upon demand of the holder of the certificate and with theapproval of the State Department of Agriculture, deliver the grain to themarketplace indicated in the application without charge to the holder. No legaldemand for the delivery of the grain can be made, however, upon the owner untilthe maturity of the obligation for which the certificate is pledged, or untilthe security becomes in any way impaired; but the owner of the grain in the discretionof the owner with the approval of the department may sell the grain prior tothe maturity of the obligation of the owner under the certificate. [Amended by1959 c.201 §8]
587.150Locking and sealing storage facilities; bond as waiver of. The locking upand sealing of any storage facility acceptable to the State Department ofAgriculture hereby is waived, if and when the applicant has filed awarehouseman’s bond, as a guaranty to the carrying out of the provisions ofthis chapter. Such bond shall be passed on and approved by the department.
587.160Determination of amount of grain; warehouse certificate as evidence; ownerliable for actual amount. Whenever the amount of grain certified to on thewarehouse certificate has been computed by cubic measurements or by number ofbags, the amount shall be deemed to be prima facie the amount of the grain, butthe actual amount shall be determined by the actual weight thereof. The owner,however, is responsible and liable to the holder of the certificate, for thedelivery of the amount of grain indicated on the certificate by actual weight,or the value of any shortage thereof.
587.170 [Repealed by1959 c.201 §11]
587.180 [Repealed by1959 c.201 §11]
587.190Expenses of administering chapter; disposition of inspection fees; continuingappropriation.The expenses of the administration of this chapter shall be paid by the ownersof the grain, and the fee collected at the time of inspecting and sealing. Theamount so paid shall be stated in the certificate. The fee for the inspectionshall be established by the State Department of Agriculture on the basis of afee for each bushel of grain stored in an amount that will reasonably reimbursethe department for its costs in carrying out this chapter. The department mayalso make a charge for travel, overtime or other necessary expenses. All suchfees shall be paid to the department and deposited with the State Treasurer inthe General Fund to the credit of the Department of Agriculture Account and arecontinuously appropriated to carrying out this chapter. [Amended by 1959 c.201 §9]
587.990Penalties.(1) Any person who states in the application provided for in ORS 587.090 anymaterial fact known to be false and for the purpose of misleading the StateDepartment of Agriculture is guilty of a misdemeanor.
(2)Any person who, with the intent to defraud, breaks the seal of any structure inwhich grain is stored under this chapter is guilty of a felony and, uponconviction, shall be punished by imprisonment for not less than one nor morethan two years. [Amended by 1959 c.201 §10]
_______________
CHAPTERS 588 TO595
[Reserved forexpansion]