2005 Oregon Code - Chapter 587 :: Chapter 587 - Storage of Grain as Basis of Farm Credit
Chapter 587 — Storage of Grain as Basis of Farm Credit
2005 EDITION
STORAGE OF GRAIN AS BASIS OF FARM CREDIT
AGRICULTURAL MARKETING AND WAREHOUSING
587.010Â Â Â Â Definitions
587.020Â Â Â Â Purpose of chapter
587.030Â Â Â Â Department to administer and enforce chapter
587.040Â Â Â Â Powers of department; rules
587.050Â Â Â Â Petition for services by department
587.090Â Â Â Â Application for storage of grain
587.100Â Â Â Â Making inspections; inspection certificates; issuing warehouse certificates
587.110Â Â Â Â Form and contents of warehouse certificate; approval by department
587.120Â Â Â Â Certificates to be in triplicate; disposition of original and copies
587.130Â Â Â Â Filing and recording certificates
587.140Â Â Â Â Care by owner of stored grain; delivery to certificate holder; sale by owner
587.150Â Â Â Â Locking and sealing storage facilities; bond as waiver of
587.160Â Â Â Â Determination of amount of grain; warehouse certificate as evidence; owner liable for actual amount
587.190Â Â Â Â Expenses of administering chapter; disposition of inspection fees; continuing appropriation
587.990Â Â Â Â Penalties
     587.010
Definitions. As used in this chapter, "department" means the
State Department of Agriculture.
     587.020
Purpose of chapter. The purpose and object of this chapter is to provide
the owners of grain the means of warehousing or storing their grain on farms,
on or near railroad rights of way and other suitable places under proper
safeguards, as a basis of farm credit on the grain so stored.
     587.030
Department to administer and enforce chapter. The State Department of
Agriculture shall manage, control and direct the operations of the provisions
of this chapter and has full power to make effective the provisions of this
chapter and the rules and regulations which the department prescribes to carry
out the purposes and objects of this chapter.
     587.040
Powers of department; rules. In addition to the general powers conferred by
ORS 587.030 the State Department of Agriculture has the following express
powers:
     (1) To appoint inspectors of grain.
     (2) To make and promulgate the necessary or desirable rules and regulations, not inconsistent with this chapter, to carry out effectually the purposes of this chapter; the department may consider applicable and necessary laws and regulations of the United States and this state, particularly ORS chapter 586.
     (3) To set up the necessary procedures to make effective the provisions of this chapter, such as the purchase of supplies, printing, stationery and equipment, and the appointing of clerical help and assistance, all of which expense shall be audited and paid as a part of the general expense of the administration of this 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 as the department believes are reasonably necessary to protect the people of this state, the grain industry and the persons who handle grain certificates. [Amended by 1959 c.201 §1]
     587.050
Petition for services by department. Whenever 15 or more farmers operating
farms tributary to any market center petition the State Department of
Agriculture for services authorized by this chapter, the department forthwith
shall provide for the method of inspection and certify all warehouse
certificates for grain inspected. [Amended by 1959 c.201 §2]
     587.060
[Repealed by 1959 c.201 §11]
     587.070
[Repealed by 1959 c.201 §11]
     587.080
[Repealed by 1959 c.201 §11]
     587.090
Application for storage of grain. Any owner of grain desiring to store it
shall make a written application to the State Department of Agriculture
indicating where the grain is stored, the kind of structure in which stored and
the encumbrance on the grain, if any. The application shall be signed and sworn
to by the applicant. Whenever any grain is owned by more than one owner, the
application shall be signed by all having an interest in the grain. In case
such grain is mortgaged, the application for inspection shall be signed by the
owner. The department in its discretion may require the mortgagee, mortgagor or
any other person having an interest in the grain to sign applications or other
documents required in carrying out this chapter. [Amended by 1959 c.201 §3]
     587.100
Making inspections; inspection certificates; issuing warehouse certificates.
(1) When application is made to the State Department of Agriculture for the
inspection and sealing of grain, whether upon the farm or on or near any
railroad right of way, or other suitable place, the department shall, as soon
as it is possible so to do, inspect the grain. If the grain and the structure
in which it is stored comply with this chapter and the regulations of the
department, the department shall:
     (a) Obtain the number and description of the bags of grain or measure and obtain the cubic feet content of the grain in the bin.
     (b) Estimate the amount of grain in storage, sample the grain to secure an average sample, so as to obtain a required amount of grain to mix and divide into two samples.
     (c) Number the bin and the samples to correspond, seal the bin with a seal provided by the department and place on the structure a printed copy of the penalty provided 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 obtain from the laboratory inspection certificates, in triplicate, which shall be dated, numbered and shall designate the owner's name, the number of the sample inspected, the kind of grain, and if mixed, the percentage of each kind, the dockage and, upon request, the moisture and protein content.
     (2) As soon as inspection certificates are obtained, the department shall issue negotiable warehouse certificates in triplicate, attaching to each a copy of the inspection certificate. When approved by the department the certificates are deemed to be issued by the proper authority of the department. Any certificate issued for grain owned by more than one person, or mortgaged, shall be issued in the name of such persons, including the mortgagee.
     (3) An authorized representative of the department may at any time enter upon the premises where any grain is stored under this chapter for the purpose of making an inspection thereof, and the acceptance of the warehouse certificate by the owner is consent to such entry and inspection. [Amended by 1959 c.201 §4]
     587.110
Form and contents of warehouse certificate; approval by department. The
form of the warehouse certificate issued under this chapter shall be prepared
and approved by the State Department of Agriculture. Every certificate must
embody within its 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 legal description of the premises where stored.
     (4) A description of the grain, giving its grade, kind, variety, dockage, the protein 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 the cubical 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 the application.
     (7) A statement that the grain will be delivered at elevator or farm storage or on railroad after approved by the department; but it may be sold on track, to arrive or to be consigned at the option of the owner of the grain.
     (8) The facsimile signature of the Director of Agriculture and the countersignature of the authorized representative of the department.
     (9) Notation of inspection fee. [Amended by 1959 c.201 §5]
     587.120
Certificates to be in triplicate; disposition of original and copies. All warehouse
certificates issued under this chapter shall be in triplicate. The original
shall be delivered to the owner, one copy shall be retained by the State
Department of Agriculture and the other copy shall be filed in the office of
the county clerk of the county in which the grain is stored. Both copies of the
certificate shall have plainly printed and stamped across the face thereof
"Duplicate–No Value." [Amended by 1959 c.201 §6]
     587.130
Filing and recording certificates. The State Department of Agriculture
shall file in the office of the county clerk of the county wherein the grain is
stored a copy of the warehouse certificate. The certificate shall be indexed
under chattel mortgages. The filing fee shall be paid by the department and
charged to the general expense of the administration of this chapter. The
filing is notice that the grain described therein is pledged to the redemption
of an outstanding negotiable warehouse certificate. [Amended by 1959 c.201 §7]
     587.140
Care by owner of stored grain; delivery to certificate holder; sale by owner.
The owner of grain stored under this chapter is charged with the due care of
the grain and shall exercise that degree of care and diligence which an
ordinary and prudent person would exercise with regard to similar property of
the person's own. The owner shall also, upon demand of the holder of the
certificate and with the approval of the State Department of Agriculture,
deliver the grain to the marketplace indicated in the application without
charge to the holder. No legal demand for the delivery of the grain can be
made, however, upon the owner until the maturity of the obligation for which
the certificate is pledged, or until the security becomes in any way impaired;
but the owner of the grain in the discretion of the owner with the approval of
the department may sell the grain prior to the maturity of the obligation of
the owner under the certificate. [Amended by 1959 c.201 §8]
     587.150
Locking and sealing storage facilities; bond as waiver of. The locking up
and sealing of any storage facility acceptable to the State Department of
Agriculture hereby is waived, if and when the applicant has filed a
warehouseman's bond, as a guaranty to the carrying out of the provisions of
this chapter. Such bond shall be passed on and approved by the department.
     587.160 Determination of amount of grain; warehouse certificate as evidence; owner liable for actual amount. Whenever the amount of grain certified to on the warehouse certificate has been computed by cubic measurements or by number of bags, the amount shall be deemed to be prima facie the amount of the grain, but the actual amount shall be determined by the actual weight thereof. The owner, however, is responsible and liable to the holder of the certificate, for the delivery of the amount of grain indicated on the certificate by actual weight, or the value of any shortage thereof.
    Â
     587.170 [Repealed by 1959 c.201 §11]
    Â
     587.180
[Repealed by 1959 c.201 §11]
     587.190
Expenses of administering chapter; disposition of inspection fees; continuing
appropriation. The expenses of the administration of this chapter shall be
paid by the owners of the grain, and the fee collected at the time of
inspecting and sealing. The amount so paid shall be stated in the certificate.
The fee for the inspection shall be established by the State Department of
Agriculture on the basis of a fee for each bushel of grain stored in an amount
that will reasonably reimburse the department for its costs in carrying out
this chapter. The department may also make a charge for travel, overtime or
other necessary expenses. All such fees shall be paid to the department and
deposited with the State Treasurer in the General Fund to the credit of the
Department of Agriculture Account and are continuously appropriated to carrying
out this chapter. [Amended by 1959 c.201 §9]
     587.990
Penalties. (1) Any person who states in the application provided for in ORS
587.090 any material fact known to be false and for the purpose of misleading
the State Department of Agriculture is guilty of a misdemeanor.
     (2) Any person who, with the intent to defraud, breaks the seal of any structure in which grain is stored under this chapter is guilty of a felony and, upon conviction, shall be punished by imprisonment for not less than one nor more than two years. [Amended by 1959 c.201 §10]
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CHAPTERS 588 TO 595
[Reserved for expansion]
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