ORS 586.300
Warehouseman’s bond

  • liability
  • automatic license suspension for failure to have or to maintain bond


Intentionally left blank —Ed.


Each warehouseman operating a public warehouse required to be licensed under ORS 586.210 (Definitions for ORS 586.210 to 586.730) to 586.730 (Violation of provisions or noncompliance with order prohibited) shall, on or before July 1 of each year, give a bond to the State of Oregon executed by the warehouseman as principal and by a corporate surety licensed to do business in this state as surety.


The bond for each warehouseman who elects to provide to the State Department of Agriculture a financial statement or audit satisfactory to the department shall be not less than $20,000 nor more than $200,000, as conforms with a schedule to be established by the department. Such schedule shall be based upon a number of cents, varying from 8 to 15, multiplied by the number of bushels of rated grain storage capacity of the public warehouse furnishing the bond. The department shall determine the rate between 8 and 15 cents and fix the amount of the bond with reference to the market value of the commodity found or expected by the warehouseman to preponderate in storage in the warehouse of the warehouseman. In so doing, the department shall take into consideration, but not be limited by, the coverage requirements of lending agencies. The bond of a public warehouse when first licensed shall conform with the value of commodities expected in storage.


For all warehousemen who fail to provide the financial statement or audit referred to in paragraph (b) of this subsection, the amount of the bond shall be determined by multiplying 20 cents times the number of bushels of rated grain storage capacity of the public warehouse furnishing the bond. The amount of the bond shall be not less than $20,000 nor more than $500,000. In lieu of a surety bond, the warehouseman may submit a letter of credit or securities satisfactory to the State Department of Agriculture.


The bond must be approved by the department and shall be conditioned upon faithful performance by the warehouseman of the acts and duties enjoined by law upon the warehouseman as a warehouseman, and such further obligations as a warehouseman as the warehouseman may lawfully assume under contracts with depositors of grain in the warehouse of the warehouseman. The liability of the surety upon such bond is limited to the amount specified in the bond.


The warehouseman may give a single bond meeting the requirements of ORS 586.210 (Definitions for ORS 586.210 to 586.730) to 586.730 (Violation of provisions or noncompliance with order prohibited), and all public warehouses operated by the warehouseman shall be deemed as one public warehouse for the purpose of the bond required under such sections.


If a bond has been filed with, and approved by, the Department of Agriculture of the United States, as required by the United States Warehouse Act, then such bond shall be considered as in lieu of the bond required by this section, if:


Satisfactory proof of the filing and approval of the bond is filed with the department;


The department is satisfied with the form of the bond;


The surety is a corporation authorized to do business as a surety in this state; and


The bond meets the other requirements of ORS 586.210 (Definitions for ORS 586.210 to 586.730) to 586.730 (Violation of provisions or noncompliance with order prohibited).


The department may require the filing of an additional bond or bonds, within the limit stated in subsection (1) of this section, when it has knowledge of the principal’s methods of conducting business or of conditions affecting such business that, in the department’s judgment, make such increase advisable for the protection of holders of the bonded public warehouse’s receipts or load slips.


Notwithstanding ORS chapter 183, the license of a warehouseman shall be automatically suspended for failure at any time to have or to maintain a bond in the amount and type required by this chapter. The department shall not remove the suspension or issue a license as the case may be, until it is satisfied the required bond has been obtained. [Amended by 1955 c.731 §6; 1959 c.195 §4; 1961 c.445 §8; 1997 c.608 §1]

Source: Section 586.300 — Warehouseman’s bond; liability; automatic license suspension for failure to have or to maintain bond, https://www.­oregonlegislature.­gov/bills_laws/ors/ors586.­html.

Definitions for ORS 586.210 to 586.730
Exemption for certain warehousing facilities
State Department of Agriculture to inspect warehouses and records and make rules to enforce ORS 586.210 to 586.730
Cooperative agreements for inspections in other states
Improper acts of department officers or employees and of others improperly influencing them
Warehouse licenses
Revocation of or refusal to issue license
Prohibition against operating a warehouse or issuing a warehouse receipt without a license
Operation without a license may be enjoined
Posting of signs at warehouses
Warehouse to be maintained in adequate manner
Warehouseman’s bond
Warehouseman required to insure grain or retain written waiver by depositor
Investigating and fixing warehouse charges
Posting rate schedules
Overcharges, rebates and preferences prohibited
Warehouseman required to receive grain for storage
Obtaining blank forms of receipts from department
Only authorized receipts to be used
Warehouse records
Warehouseman’s liability for failure to issue proper receipt
Warehouseman’s liability for injury to grain
Duty of warehouse receiving grain for storage
Loading and shipping instructions
Approval of holder of receipt required before sale, shipment or other transaction
Inspection of warehouses
Procedure in case of probable shortage in grain or where warehouseman refuses to submit to inspection
Settlement of claims against defaulting warehouseman
Receivership of warehouse business
Establishment of standard grades for commodities received
Warehouseman to keep copy of regulations available for inspection
Warehouseman’s reports to department
Discontinuance of operation of warehouse
Disposition of certain fees
Application of Uniform Commercial Code–Documents of Title and other laws to public warehouses
Violation of provisions or noncompliance with order prohibited
Green check means up to date. Up to date