2007 Oregon Code - Chapter 587 :: Chapter 587 - Storage of Grain as Basis of Farm Credit
Chapter 587 —
Storage of Grain as Basis of Farm Credit
2007 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
     (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 ownerÂ’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 personÂ’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 warehousemanÂ’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.
     587.170 [Repealed by 1959 c.201 §11]
     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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