Missouri Statute | Act | Code |Trade And Commerce| US Code - US Statute

This chapter shall be known by the short title of "Missouri
Grain Warehouse Law". (L. 1941 p. 373 § 1, A.L. 1965 p. 606, A.L. 1980
S.B. 601)

This chapter constitutes an exercise of state police and
regulatory power for the purpose of protecting and enhancing grain
production and marketing, and the agricultural economy of the state of
Missouri. This chapter is deemed necessary to protect and to preserve the
public health, welfare, peace and safety of the general citizenry. (L.
1981 S.B. 366, A.L. 1986 H.B. 1578)

Effective 4-22-86

The provisions of the "Missouri Grain Warehouse Law" shall apply
to all warehouses located within the state of Missouri. (L. 1965 p. 606,
A.L. 1967 p. 637, A.L. 1971 H.B. 180 § 2, A.L. 1977 S.B. 75, A.L. 1993
H.B. 822)

1. The provisions of this chapter shall apply to the grain
stored in or handled through a warehouse, or designated part thereof, as
well to the operations of such warehouse whether or not any part of such
grain is owned by the warehouseman.

2. The provisions of the uniform commercial code relating to warehouse
receipts and other documents of title shall govern warehouse receipts
issued by public warehousemen licensed under the provisions of this
chapter, except to the extent inconsistent with the express provisions of
this chapter. (L. 1941 p. 373 § 49, A.L. 1965 p. 606, A.L. 1977 S.B. 75,
A.L. 1980 S.B. 601, A.L. 1986 H.B. 1578)

Effective 4-22-86

(1981) As bearing upon Bankruptcy Code provision that filing of petition
in bankruptcy does not operate as automatic stay of proceedings by a
governmental unit to enforce its police or regulatory power. Missouri's
grain laws primarily relate to protection of pecuniary interest in
debtors' property and not to public health and safety, and as such do not
fall within "police or regulatory power" exception to automatic stay.
State of Missouri v. U.S. Bankruptcy Court, etc. (8th Cir.), 647 F.2d 768.

The following words, terms and phrases, when used in this
chapter, except where the context clearly indicates a different meaning,
shall mean:

(1) "Authorized agent", any person who has the legal authority to act on
behalf of, or for the benefit of, another person;

(2) "Certified public accountant", any person licensed as such under
chapter 326, RSMo;

(3) "Claimant", any person or depositor who requests, but does not
receive, payment for, or redelivery of, grain stored at a warehouse
because the warehouseman fails or refuses to make such payment or
redelivery;

(4) "Compensation", anything of value or benefit, whether in cash, kind
or otherwise;

(5) "Credit sales contracts", a conditional grain sales contract wherein
payment and/or pricing of the grain is deferred to a later date. Credit
sales contracts include, but are not limited to, all contracts meeting
the definition of deferred payment contracts, and/or delayed price
contracts;

(6) "Current assets", resources that are reasonably expected to be
realized in cash, sold, or consumed (prepaid items) within one year of
the balance sheet date;

(7) "Current liabilities", obligations reasonably expected to be
liquidated within one year and the liquidation of which is expected to
require the use of existing resources, properly classified as current
assets, or the creation of additional liabilities. Current liabilities
include obligations that, by their terms, are payable on demand unless
the creditor has waived, in writing, the right to demand payment within
one year of the balance sheet date;

(8) "Deferred payment agreement", a conditional grain sales transaction
establishing an agreed-upon price for the grain and delaying payment to
an agreed-upon later date or time period. Ownership of the grain, and the
right to sell it, transfers from seller to buyer so long as the
conditions specified in section 276.461, RSMo, and section 411.325 are
met;

(9) "Deferred pricing agreement", a conditional grain sales transaction
wherein no price has been established on the grain, the seller retains
the right to price the grain later at a mutually agreed-upon method of
price determination. Deferred pricing agreements include, but are not
limited to, contracts commonly known as no price established contracts,
price later contracts, and basis contracts on which the purchase price is
not established at or before delivery of the grain. Ownership of the
grain, and the right to sell it, transfers from seller to buyer so long
as the conditions specified in section 276.461, RSMo, and section 411.325
are met;

(10) "Delivery", the voluntary physical transfer of grain from one person
to another;

(11) "Department", the Missouri department of agriculture;

(12) "Depositor", any person who deposits grain in a warehouse for
storage, handling, shipment, processing, or who is the owner or holder of
a warehouse receipt, or who is otherwise lawfully entitled to possession
of the grain;

(13) "Designated representative", an employee or official of the
department designated by the director to assist in the administration and
enforcement of the Missouri grain warehouse law;

(14) "Director", the director of the Missouri department of agriculture
or his designated representative;

(15) "Documents of title" include negotiable and nonnegotiable warehouse
receipts, scale tickets, and other documents which are issued in the
regular course of a warehouseman's business, and which adequately
evidence that the possessor is entitled to receive, hold, and dispose of
the goods it covers;

(16) "Generally accepted accounting principles", the conventions, rules
and procedures necessary to define accepted accounting practice, which
include broad guidelines of general application as well as detailed
practices and procedures generally accepted by the accounting profession,
and which have substantial authoritative support from the American
Institute of Certified Public Accountants;

(17) "Grain", all grains for which standards have been established under
the United States Grain Standards Act (Sections 71 to 87 of Title 7,
United States Code), and any other agricultural commodities, seeds and
vegetable oils prescribed by the director by regulation, except the term
"grain" shall not include those commodities deemed not to be grain
pursuant to section 411.028;

(18) "Grain inspector", a warehouseman or a person employed by the
warehouseman to inspect, grade or sign warehouse receipts for grain
stored or to be stored in a warehouse licensed under this chapter;

(19) "Grain weigher", a warehouseman or a person employed by the
warehouseman to weigh grain stored or to be stored in a warehouse
licensed under this chapter;

(20) "Holder of receipt", a person who has possession of a warehouse
receipt, or a right of property therein;

(21) "Insolvent" or "insolvency", either, or both of the following:

(a) An excess of liabilities over assets; or

(b) The inability of a warehouseman to meet his financial obligations as
they come due;

(22) "Interested person", any person having a contractual or other
financial interest in grain stored in a warehouse licensed or required to
be licensed under this chapter;

(23) "Licensed warehouse", a warehouse for which the department has
issued a license to operate as a public warehouse in accordance with the
provisions of this chapter;

(24) "Licensed warehouseman", a warehouseman who owns or operates a
warehouse licensed under the provisions of this chapter;

(25) "Minimum price contract", a conditional grain sales transaction
establishing an agreed-upon minimum purchase price for the grain and
where the seller may participate in subsequent price gain, if any.
Ownership of the grain, and the right to sell it, transfers from the
seller to the buyer so long as the conditions specified in section
276.461, RSMo, and section 411.325 are met;

(26) "Official grain standards", the standards of quality or condition
for grain, fixed and established by the Secretary of Agriculture of the
United States of America under the regulations of the United States Grain
Standards Act;

(27) "Operator" or "warehouseman", any person who owns, controls,
operates or manages any warehouse whether such owner resides within the
state or not;

(28) "Person" means and includes any individual, firm, partnership,
exchange, association, trustee, receiver, corporation, cooperative,
society, public body, political subdivision, or any other business or
commercial entity or organization of any kind whatsoever, and any member,
officer or employee thereof;

(29) "Private warehouse", any warehouse within this state used for the
purpose of storing grain exclusively for the owners or operators of that
warehouse and/or individual producers affiliated with the owner or
operator in a landlord/tenant relationship on farmland and, except as
otherwise herein specifically provided, which is not subject to the
provisions of this chapter;

(30) "Producer", any owner, tenant or operator of land who has an
interest in and receives all or any part of the proceeds from the sale of
grain or livestock produced thereon;

(31) "Public warehouse", a warehouse used for the purpose of storing
grain of owners other than the warehouseman, whether grain of the owners
be commingled or whether identity of different lots be preserved, or a
warehouse used for any purpose for which a license is required under
section 411.255;

(32) "Public warehouseman", any person owning or operating a public
warehouse whether that owner or operator resides within the state or not;

(33) "Receipt", a grain warehouse receipt, whether negotiable or
nonnegotiable, issued under this chapter;

(34) "Regulations" or "rules", rules, regulations and standards
promulgated pursuant to this chapter by the director;

(35) "Storage grain" or "stored grain", any grain received in a
warehouse, including grain bank grain, unless sold in accordance with the
provisions of section 411.325 or sold in accordance with the provisions
of sections 276.401 to 276.582, RSMo;

(36) "Successor's agreement", a written agreement between any public
warehouseman ceasing operations as a public warehouseman and the person
succeeding him which states how the obligations to depositors will be
handled;

(37) "Terminal warehouse", any warehouse where the department makes
available official grain inspectors and official weighmasters on a
full-time basis;

(38) "Terminal warehouseman", the person owning or operating a terminal
warehouse whether such owner or operator resides within the state or not;

(39) "Violation", any act contrary to the provisions of this chapter or
any failure by a person to act as required by the provisions of this
chapter or regulations promulgated hereunder;

(40) "Warehouse", any building, structure or other enclosure in which
grain is or may be stored and through which grain is or may be handled or
shipped. All facilities used in connection with the operation of the
warehouse shall be deemed to be part of the warehouse;

(41) "Warehouse auditor", or "warehouse examiner", or "inspector", any
individual appointed under this chapter by the director to assist in the
administration of the chapter. These terms shall include persons employed
as warehouse examiners under the United States Warehouse Act. (L. 1965 p.
606, A.L. 1977 S.B. 75, A.L. 1980 S.B. 601, A.L. 1981 S.B. 366, A.L. 1986
H.B. 1578, A.L. 1995 H.B. 337, A.L. 1997 H.B. 211)

Effective 4-2-97

Agricultural commodities delivered to a warehouse or seed
processor for the express purpose of processing or cleaning and holding
such commodity and returning the cleaned or processed commodity to the
original owner thereof or the owner's designee to be used as seed shall
not be deemed to be grain for the purposes of this chapter. Commodities
deemed not to be grain pursuant to this section shall be maintained on an
identity-preserved basis at all times when in the possession of or under
the control of the warehouseman or seed processor. (L. 1995 H.B. 337)

1. The department shall have the exclusive right to officially
inspect and grade all grains for which standards have been established
under the United States Grain Standards Act and certify the grades
thereof at all places where inspection points of the department are
established, except that the owner may direct that his grain may not be
inspected by writing or stamping upon the bill of lading therefor the
words "no inspection desired" or other words of similar meaning or by
other timely notice given the department in writing that no inspection is
desired and may officially inspect grain in public or private warehouses
or industries upon application of the owner or operator thereof and their
agreement to guarantee operating costs.

2. The department shall have the exclusive right to officially weigh or
supervise the actual weighing of grain in licensed terminal warehouses
subject to the provisions of this chapter, unless the owner or his agent
indicates that no official weights are desired and may officially weigh
or supervise the actual weighing of grain in public or private warehouses
or industries upon application of the owners or operators thereof and
their agreement to guarantee the operating costs.

3. Nothing in this chapter shall limit or abrogate the right of grain
exchanges or boards of trade to weigh or supervise the weighing of grain
in private warehouses and public warehouses.

4. The department is authorized in the discretion of the director to
establish, maintain and operate chemical laboratories and inspection and
weighing stations covering all or any part of its services at important
railway terminals and points where organized grain markets are regularly
maintained, and at other points where operating costs are guaranteed by
special arrangements with the industries served or the managing officers
in charge thereof.

5. The department shall also inspect and weigh and otherwise service
grain stored, owned or controlled by the United States of America or any
of its agencies, upon request therefor by the United States of America or
its agencies, located in temporary warehouses within this state, upon
request and approval of the owners or operators of such unlicensed
warehouses, and further upon receiving agreement to guarantee to the
department the operating costs of such additional services. The
department shall not infringe where services are performed by grain
exchanges or boards of trade. (L. 1941 p. 373 § 2, A.L. 1955 p. 853 §
411.050, A.L. 1965 p. 606, A.L. 1980 S.B. 601)

The director shall also execute a bond to the people of the
state of Missouri in the penal sum of twenty thousand dollars, with
corporate surety to be approved in the same manner as bonds of other
appointed officers, conditioned that he will pay all damages to any
person or persons who may be injured by reason of his neglect, refusal or
failure to comply with the provisions of this chapter. (RSMo 1939 §
14625, A.L. 1941 p. 373 § 6, A.L. 1955 p. 853 § 411.070, A.L. 1965 p.
606, A.L. 1980 S.B. 601)

Prior revisions: 1929 § 13325; 1919 § 5997

The director shall not, directly or indirectly, be interested in
buying or selling grain, either on his own account or for others or in
handling or storing grain as a public warehouseman or on private account,
during his term of office; except that, he may sell, handle or store any
grain produced in his own farming operation. (L. 1955 p. 853 § 411.060,
A.L. 1977 S.B. 75)

1. The director shall:

(1) Supervise the handling, sampling, inspection, weighing and storage of
grain in warehouses as required by this chapter;

(2) Supervise protein or other chemical analysis of grain where
laboratories are now or may hereafter be established;

(3) Keep proper records of all sampling, inspection, weighing, protein or
other chemical analysis performed under the provisions of this chapter;

(4) Employ, fix the salaries and pay all necessary personnel required to
administer, execute and perform the duties required by the provisions of
this chapter, including warehouse auditors whose duties may include
making examinations, audits, inspections and investigations authorized
under this chapter;

(5) Cause the operations of warehousemen licensed under this chapter to
be examined. The examinations may include an audit of all grain and all
books, documents and records pertaining to the warehousemen's business
operations, to determine whether the interests of producers, shippers and
receivers of grain and the holders of warehouse receipts are adequately
protected and safeguarded;

(6) Take such action or issue such orders as necessary to prevent any
fraud upon or discrimination against depositors of grain in warehouses.
If upon examination, a deficiency is found to exist between physical
inventory and the warehouseman's obligations, the director may require an
examiner to remain at the warehouse and monitor all operations conducted
thereat, involving grain stored under the provisions of this chapter,
until such deficiency is corrected.

2. The director may:

(1) Promulgate and adopt such regulations in accordance with the
provisions of chapter 536, RSMo, as may be necessary for the efficient
and effective enforcement of this chapter;

(2) Designate an employee of the department to act as his designated
representative;

(3) Publish such data in connection with the administration of this
chapter as may be of public interest;

(4) Require any forms, records or reports to be filed with the
department, by any warehouseman, that he deems necessary to ensure
compliance with the provisions of this chapter;

(5) Examine, or cause to be examined, at reasonable times, any warehouse,
including an examination of grain stored therein and all books, documents
and records pertaining thereto, in order to determine whether or not such
facility should be licensed pursuant to this chapter;

(6) Prescribe minimum contents for any forms, records, contracts or
reports that grain warehousemen use or by the provisions of this chapter
and its pursuant regulations, are required to issue, file, maintain or
keep;

(7) Issue subpoenas duces tecum for any records relating to a grain
warehouseman's business;

(8) Prescribe procedures for hearings to be held in accordance with the
provisions of this chapter and regulations promulgated hereunder;
provided, however, an appeal from such hearings may be taken in
accordance with the provisions of chapter 536, RSMo;

(9) Conduct, or appoint a designated representative to conduct,
administrative hearings pursuant to the provisions of this chapter and
chapter 536, RSMo. Hearings may be conducted for the purpose of
determining the liability of sureties which have filed bonds with the
department on behalf of warehousemen licensed, or required to be
licensed, under this chapter. Hearings may be conducted for the purpose
of determining the validity of grain-related claims filed with the
department against such warehousemen and sureties, as well as the
subsequent disbursement of all available funds, pro rata or otherwise, to
satisfy claims determined to be valid. An order issued by the director,
or his designated representative, as a result of such hearings shall be
final and legally binding on all parties unless appealed in accordance
with the provisions of chapter 536, RSMo;

(10) Serve, or cause to be served, any subpoena, petition, or order
required for the administration of this chapter.

3. No rule or portion of a rule promulgated under the authority of this
chapter shall become effective unless it has been promulgated pursuant to
the provisions of section 536.024, RSMo. (L. 1941 p. 373 § 7, A.L. 1955
p. 853 § 411.080, A.L. 1965 p. 606, A.L. 1977 S.B. 75, A.L. 1980 S.B.
601, A.L. 1986 H.B. 1578, A.L. 1993 S.B. 52, A.L. 1995 S.B. 3, A.L. 1997
H.B. 211)

Effective 4-2-97

No person shall be eligible to hold the office of chief
inspector or inspector unless he has passed the examinations of the
United States Secretary of Agriculture required for the issuing of a
license to inspect and grade those grains designated by the director for
which standards are provided under the provisions of an act of Congress
known as "The United States Grain Standards Act". (L. 1941 p. 373 § 13,
A.L. 1986 H.B. 1578)

Effective 4-22-86

When requested, it shall be the duty of grain weighmasters
appointed by the director, under the provisions of this chapter, to weigh
or to supervise the actual weighing and certification of weights of all
grain as provided for in this chapter, and the certificate of weight
issued or caused to be issued by such weighmasters in the discharge of
their duties shall be the basis of settlement between the buyer and
seller. Such weighmasters shall have the entire control, subject to the
supervision of the director, of the scales under their supervision. (RSMo
1939 § 14677, A.L. 1941 p. 373 § 15, A.L. 1965 p. 606, A.L. 1980 S.B. 601)

Prior revisions: 1929 § 13377; 1919 § 6049; 1909 § 6826

Every licensed warehouseman desiring to issue unregistered
negotiable or nonnegotiable warehouse receipts shall act as registrar, or
designate an employee to act as registrar, to be responsible for issuing
warehouse receipts and keeping all records in a manner as provided by the
director. The warehouseman's signature or that of his employee shall be
affixed and kept on file with the director. The warehouse record shall
clearly identify scale tickets, weight and grade certificates, used as a
basis for issuance of each warehouse receipt. A copy of the scale tickets
and the weight and grade certificates shall be kept on file as a record
in the warehouseman's office for a period of at least three years after
the date of cancellation of the warehouse receipt. (L. 1965 p. 606)

1. The director may appoint a suitable person to be assigned to
each office where official inspection points are established. The person
shall not be a member of a board of trade or grain exchange, and shall
not be interested directly or indirectly in any warehouse, elevator or in
grain merchandising. Each of the persons so appointed shall be a licensed
grain inspector, or a qualified grain expert, or knowledgeable of the
grain trade and, in all cases, shall have administrative and supervisory
skills.

2. Each of said appointees shall be known as chief inspector or
inspector-in-charge, or office manager in the office to which he is
assigned, and shall have general supervision of inspection of grain, and
such other duties as may be prescribed by the director, and shall serve
under the immediate direction and at the will of the director. (L. 1941
p. 373 § 10, A.L. 1965 p. 606, A.L. 1986 H.B. 1578)

Effective 4-22-86

The Missouri department of agriculture is hereby authorized to
conduct official grain inspection business outside the boundaries of the
state of Missouri; provided that, such business:

(1) Is conducted in a manner that is consistent with the provisions of
this chapter concerning the providing of official grain inspection and
weighing services;

(2) Is in compliance with the rules and regulations promulgated by the
Federal Grain Inspection Service in regard to providing official
inspection and weighing services; and

(3) Any expenditures involved are in compliance with the state of
Missouri's budget process and the office of administration's rules,
regulations and guidelines. (L. 1987 H.B. 751)

The director shall have full power to fix the fees for sampling,
inspection, weighing, protein or other chemical analysis, and moisture
testing or for additional services of whatever nature consistent with the
provisions of this chapter, which fees shall be regulated in such manner
as will, in the judgment of the director, produce sufficient revenue to
meet the necessary expenses of the services of sampling, inspection,
weighing, chemical analysis or moisture testing, and for administration
and clerical work in connection therewith. (RSMo 1939 §§ 14660, 14678,
14685, A.L. 1941 p. 373 § 8, A. 1949 H.B. 2108, A.L. 1965 p. 606, A.L.
1978 S.B. 503, A.L. 1980 S.B. 601)

Prior revisions: 1929 §§ 13360, 13378, 13385; 1919 §§ 6032, 6050; 1909 §§
6808, 6827

1. There is hereby created in the state treasury the "Grain
Inspection Fee Fund". All fees charged and collected for sampling,
inspection, weighing, protein or other chemical analysis, and moisture
testing or for additional services of whatever nature consistent with the
grain inspection and weighing services of the grain inspection, weighing,
and warehousing division provided for in this chapter, shall be paid to
the director of revenue and deposited in the state treasury to the credit
of the grain inspection fee fund. The money in the grain inspection fee
fund, after appropriation, shall be expended upon proper warrants issued
by the commissioner of administration for the payment of salaries and
expenses, including any fee or payment required for compliance with
federal law or regulation, necessary for carrying out the provisions
consistent with the grain inspection and weighing services of this
chapter. The unexpended balance in the grain inspection fee fund at the
end of each fiscal year shall not be transferred to the general revenue
fund of the state, and the provisions of section 33.080, RSMo, relating
to the transfer of funds to the general revenue fund of the state by the
state treasurer shall not apply to the grain inspection fee fund.

2. The general assembly may, from time to time and as needed, transfer
from general revenue to the grain inspection fee fund a sum not to exceed
five hundred thousand dollars, each fiscal year, to enable the director
to continue operations; provided that, approval for such a transfer is
given by the Federal Grain Inspection Service of the United States
Department of Agriculture. Nothing contained herein shall be construed as
to limit the number of times the general assembly may make such transfers.

3. The state treasurer shall invest all sums in the grain inspection fee
fund not needed for current operating expenses in interest-bearing
banking accounts or United States government obligations in the manner
provided by law. All yield, increment, gain, interest or income derived
from the investment of these sums shall accrue to the benefit of, and be
deposited within, the state treasury to the credit of the grain
inspection fee fund. (L. 1978 S.B. 503, A.L. 1980 S.B. 601, A.L. 1986
H.B. 1578)

Effective 4-22-86

1. When official inspection, weighing, or supervising of actual
weighing of grain is requested in this state whether into or out of state
licensed warehouses or portions of warehouses so licensed for public
storage operations, subject to the provisions of this chapter, or in
cars, barges, wagons, trucks, or sacks at warehouses where official state
grain inspection or weighing is maintained shall be performed by such
persons as have been duly appointed by the director and qualified
according to law.

2. Any person who shall inspect grain where state grain inspection is
established, or any person who shall officially weigh or supervise the
weighing of grain in public warehouses where official state grain
weighing is established and who has not been duly appointed by the
director or directed by a state weighmaster so to do, is guilty of a
misdemeanor and upon conviction shall be punished by a fine of not less
than one hundred dollars nor more than five hundred dollars, or by
confinement in the county jail, or if in the city of St. Louis in the
city jail of the city, for not less than three months nor more than six
months, or both such fine and confinement, at the discretion of the
court, for every such offense so committed. (RSMo 1939 § 14662, A.L. 1941
p. 373 § 14, A.L. 1965 p. 606, A.L. 1980 S.B. 601)

Prior revisions: 1929 § 13362; 1919 § 6034; 1909 § 6811

The certificates issued by the department shall be conclusive
evidence to all parties interested of the facts stated therein and shall
form the basis of settlement between buyers and sellers unless otherwise
specified by contract; provided, the department shall have the right upon
reinspection or otherwise to cancel and revoke any certificate and issue
a new one in its stead, and every certificate of grade shall be subject
to appeal as provided by law; and in either case such new certificate or
the appeal certificate shall in such event be final and binding between
the parties. (L. 1941 p. 373 § 3)

1. The director or his authorized representative may examine,
audit and inspect every licensed grain warehouse, or persons whom the
director has reasonable cause to believe should be licensed under this
chapter, the business thereof, and the mode of conducting the same at
such times as he may deem necessary; and the property, books, records,
accounts, papers, and the proceedings pertaining to the operations of
these warehouses, so far as they may relate to the operation or
management of public storage, and to the ability of the warehouseman to
meet his grain and dollar obligations shall be subject to examination and
inspection by the director, or his authorized agent. Such books,
accounts, records and papers of every grain warehouseman shall at all
times during normal business hours be subject to inspection as prescribed
by the director.

2. The director may perform such inspections as are deemed necessary for
the orderly administration of this chapter based upon reports and other
information available to him.

3. Every grain warehouseman and his employees, agents, officers,
partners, directors and shareholders shall cooperate and hold themselves
available to assist in the examination, including allowing full and
reasonable use of sampling and grading equipment. Failure or refusal to
cooperate or assist is a violation of this chapter and a basis for the
suspension of a public grain warehouseman's license.

4. No inspector or employee of the department shall disclose any
information obtained by him in the course of his employment relative to
the affairs or transactions of any warehouseman, other than as permitted
by this chapter, without first having obtained the express permission in
writing of such warehouseman, or of the director; provided, that the
director may, upon written application of any person, disclose or direct
any inspector or employee of the department to disclose any information
which, in the opinion of the director, the person applying for the same
is entitled to receive. If any such inspector or employee shall disclose
any such information except as permitted by this chapter, he is guilty of
a misdemeanor. This section shall not prevent the taking of sworn
testimony at a public hearing with respect to violations of this chapter
or regulations promulgated hereunder.

5. The director is hereby authorized to issue subpoena duces tecum to any
financial institution, or to any other type of business entity, to
deliver any and all records of the licensee, or any and all records kept
pertaining to the licensee, or of any person who in the opinion of the
director may need to be licensed. Such financial institutions, or other
business entities, are hereby authorized and required to deliver any and
all such records to the director notwithstanding any law to the contrary.
This section applies to persons or individual accounts or transactions as
well as to corporate records where the licensee, or person who in the
opinion of the director needs to be licensed, is conducting business in
corporate form.

6. The director shall, upon the verified complaint in writing of any
person setting forth facts which, if proved, would be in violation of the
provisions of chapter 411, or regulations promulgated hereunder or would
constitute grounds for refusal, suspension or revocation of a license
under this chapter, investigate the actions of any person applying for,
holding or claiming to hold a license; provided that the director is not
required to investigate any complaint which does not appear to have a
reasonable basis. (RSMo 1939 § 14652, A.L. 1941 p. 373 § 41, A.L. 1965 p.
606, A.L. 1977 S.B. 75, A.L. 1980 S.B. 601, A.L. 1986 H.B. 1578, A.L.
1997 H.B. 211)

Prior revisions: 1929 § 13352; 1919 § 6024; 1909 § 6800

Effective 4-2-97

Operators of public terminal elevators, may, with the consent of
the director, call a reinspection and weighing of grain in the elevator,
and upon the surrender of outstanding warehouse receipts in the
discretion of the director, before or at the completion of said
reinspection and weighing, same may be canceled and new warehouse
receipts issued therefor, such reinspection and weighing to be made under
regulations prescribed by the director. (L. 1941 p. 373 § 50)

1. No person shall:

(1) Operate a warehouse for storage of grain;

(2) Hold himself out as being in the grain storage business, or as
offering storage facilities for grain;

(3) Advertise for, solicit or accept grain for storage;

(4) Carry on a grain bank operation, or receive and store grain for which
a like quantity of grains is to be returned or delivered in any form to
the depositor thereof without first obtaining and keeping in force an
annual license issued by the department authorizing the operation of a
public grain warehouse; provided, that all licenses issued prior to April
22, 1986, by the department shall remain valid for all purposes unless
terminated, surrendered or revoked as provided in this chapter.

2. Two or more warehouses which constitute a single operating unit may be
licensed under a single license if:

(1) The same warehouseman operates each warehouse in conjunction with the
other;

(2) All the warehouses are functioning under the same name and with the
same personnel, office, books and records; and

(3) The warehouses are within a fifty mile radius of the warehouseman's
principal office. All warehouses licensed under a single license shall be
treated as a single warehouse for all the purposes of this chapter,
excepting issuance of warehouse receipts and receipt and delivery of
grain.

3. A licensed warehouseman shall not store grain in any unlicensed
facility.

4. Following an administrative hearing, the director may require the
warehouseman to pay a penalty of not more than five hundred dollars per
day for each day the warehouseman is found to be operating without a
license or bond. In determining whether to assess the penalty, the
director shall ascertain whether the warehouseman has continued to
operate without a license or bond after being informed by the department
in writing by certified mail of the need for licensing. Any penalties
collected by the director under this section shall be deposited in the
general revenue fund. In the event that a person penalized under this
section fails to pay the penalty, the director may apply to the circuit
court of Cole County for, and the court may enter, an order enforcing the
penalty. (L. 1977 S.B. 75 § 2, A.L. 1986 H.B. 1578)

Effective 4-22-86

1. Each person owning, operating, or desiring to own or operate
a grain warehouse who is required to be licensed, shall apply for a
license for each such warehouse he owns or operates. The application for
a license shall be subscribed and sworn to under oath by the applicant or
a duly authorized representative of the applicant. The application shall
be in a form prescribed by the director. All items on the application
must be completed or marked "not applicable" as appropriate.

2. All applications shall be accompanied by a true and accurate financial
statement of the applicant, prepared within six months of the date of the
application, setting forth the assets, liabilities and the net worth of
the applicant. All applications shall also be accompanied by a true and
accurate statement of income and expenses for the applicant's most
recently completed fiscal year. The financial statements required by this
chapter shall be prepared in conformity with generally accepted
accounting principles; except that, the director may promulgate rules
allowing for the valuation of assets by competent appraisal.

3. The financial statements required by subsection 2 of this section
shall be audited or reviewed by a certified public accountant. The
financial statement may not be audited, reviewed or prepared by the
applicant, if an individual, or, if the applicant is a corporation or
partnership, by any officer, shareholder, partner, or employee of the
applicant.

4. The director may require any additional information or verification
with respect to the financial resources of the applicant as he deems
necessary for the effective administration of this chapter. The director
may promulgate rules setting forth minimum standards of acceptance for
the various types of financial statements filed in accordance with the
provisions of this chapter. The director may promulgate rules requiring a
statement of retained earnings, a statement of changes in financial
position, and notes and disclosures to the financial statements for all
licensed warehousemen or all warehousemen required to be licensed. The
additional information or verification referred to herein may include,
but is not limited to, requiring that the financial statement information
be reviewed or audited in accordance with standards established by the
American Institute of Certified Public Accountants.

5. All warehousemen shall provide the director with a copy of all
financial statements and updates to financial statements utilized to
secure the bonds required by this chapter. Also, all warehousemen
maintaining a uniform grain storage agreement with the Commodity Credit
Corporation or a United States Warehouse Act license shall provide the
director with a copy of all financial statements and updates to financial
statements utilized to secure and maintain such agreement or license.

6. All financial statements submitted to the director for the purposes of
this chapter shall be accompanied by a certification by the applicant or
the chief executive officer of the applicant, subject to the penalty
provision set forth in section 411.517 that to the best of his knowledge
and belief the financial statement accurately reflects the financial
condition of the applicant for the fiscal period covered in the statement.

7. Any person who knowingly prepares or assists in the preparation of an
inaccurate or false financial statement which is submitted to the
director for the purposes of this chapter, or who during the course of
providing bookkeeping services or in reviewing or auditing a financial
statement which is submitted to the director for the purposes of this
chapter, becomes aware of false information in the financial statement
and does not disclose in notes accompanying the financial statements that
such false information exists, or does not disassociate himself from the
financial statements prior to submission, is guilty of a class C felony.
Additionally, such persons are liable for any damages incurred by
depositors of grain with a warehouseman who is licensed or allowed to
maintain his license based upon inaccuracies or falsifications contained
in the financial statement. (RSMo 1939 § 14628, A.L. 1941 p. 373 § 19, A.
1949 H.B. 2108, A.L. 1965 p. 606, A.L. 1977 S.B. 75, A.L. 1986 H.B. 1578,
A.L. 1997 H.B. 211)

Prior revisions: 1929 § 13328; 1919 § 6000; 1909 § 6776

Effective 4-2-97

Every warehouseman's original application for a public warehouse
license must be accompanied by a fifty dollar application fee. Every
applicant after approval shall pay an annual license fee based upon the
capacity of the warehouse, or portion of the warehouse, the fee to be set
by the director at a rate not to exceed the schedule of license fees set
forth in section 411.691. If two or more warehouses are to be operated as
a single operating unit as authorized in section 411.255, separate filing
fees and licensing fees are required for each warehouse. (L. 1965 p. 606
§ 411.265, A.L. 1977 S.B. 75)

If a public warehouseman licensed under this chapter desires to
renew the license for an additional year, application for the renewal
shall be made on a form prescribed by the director and shall be
accompanied by a financial statement, as required by section 411.260,
with such additional information or verification with respect to the
financial resources of the applicant as the director may require. The
application fee of fifty dollars shall not be required. At least sixty
days prior to the expiration of each license issued by the director under
this chapter, the director shall notify the warehouseman of the date of
expiration and furnish the warehouseman with the renewal form. The
warehouseman shall submit the application at least thirty days prior to
the date of expiration of the license and for each day less than thirty
days, the warehouseman shall be penalized an additional fee of ten
dollars per day for every day beyond the due date for the application.
The date of submission of the application shall be determined as the date
postmarked. (L. 1965 p. 606, A.L. 1977 S.B. 75, A.L. 1980 S.B. 601, A.L.
1986 H.B. 1578)

Effective 4-22-86

Before a license to conduct a warehouse is granted under this
chapter, the warehouseman shall file with the director a copy of his
schedule of charges for storage and other services. If the warehouseman
desires to make any change in the schedule of charges during the license
period, he shall file, with the director, a statement in writing showing
the proposed charge. Each warehouseman shall keep conspicuously posted
the filed schedule of charges for storage and other services rendered in
each operational office and these charges must be strictly adhered to.
(L. 1965 p. 606, A.L. 1980 S.B. 601)

1. The department shall make at least one complete examination
of each state licensed public warehouse each year. The examination shall
be at the expense of the warehouseman who shall be charged thereby a fee
based on rates established by the director. The minimum examination fee
shall be fifty dollars. The examination shall include a weigh-up of all
grain or a measure-up of all grain, as may be elected by the warehouseman.

2. Any additional examinations deemed necessary by the department to be
made during any year shall be at the expense of the department; except
that, if upon any examination a discrepancy is found to exist, the
director may collect a fee for that examination and for any subsequent
examinations deemed necessary to insure that the discrepancy is
corrected. The fee for each such examination shall be computed in
accordance with the provisions of subsection 3 of this section.

3. Any warehouseman may request additional examinations at the expense of
the warehouseman. The director may collect a fee for each special or
requested examination of a public grain warehouse or for extra work
beyond regular examination procedures in connection with regularly
scheduled examinations, computed as follows:

(1) Necessary personal expenses in conformance with the rules and
regulations promulgated by the commissioner of administration pursuant to
section 33.090, RSMo;

(2) A mileage allowance equal to the allowance established by the
commissioner of administration pursuant to section 33.095, RSMo;

(3) Twenty dollars for each man-hour required to complete the inspection.

4. Upon completion of any examination which reveals a failure to comply
with this chapter or regulations promulgated hereunder, the director or
any warehouse auditor, within a reasonable time, shall present a written
discrepancy report to the warehouseman, his employee or agent. The report
shall specify the areas of noncompliance and shall give a specific period
of time within which corrective action is to be taken. Such period of
time shall be both reasonable and practicable under the circumstance. A
report of that corrective action shall be sent to the director by the
warehouseman. If, after further examination, the discrepancy still
exists, the director may modify, suspend, or revoke the warehouseman's
license, or the director may take whatever other action he deems
necessary, consistent with the provisions of this chapter, until the
warehouseman has corrected the discrepancy. (L. 1965 p. 606, A.L. 1977
S.B. 75, A.L. 1980 S.B. 601, A.L. 1986 H.B. 1578, A.L. 1997 H.B. 211)

Effective 4-2-97

1. Before any person is granted a license pursuant to the
provisions of this chapter, the person shall file a bond other than
personal security with the director executed by the warehouseman as
principal and by a corporate surety licensed to do business in this state
as a surety. The bond shall be in favor of the state of Missouri for the
benefit of all persons storing grain, their legal representatives,
attorneys, or assigns, conditioned upon the faithful performance of his
duties as a public warehouseman relating to the storage of grain.
Notwithstanding any other provisions of this chapter, the bond provided
shall only cover storage grain deposited with a warehouseman. Storage
grain that has been priced, as provided in section 411.325, shall not be
covered by the warehouse bond. Grain deemed storage grain pursuant to
section 411.325 shall be covered.

2. Neither the issuance of warehouse receipts by a warehouseman to
himself for grain owned in whole or in part by him; the commingling of
grain owned by the warehouseman with grain stored for others or any
violation by a warehouseman of this chapter or of the regulations
promulgated hereunder by the director is a defense in any action brought
upon any bond, and all bonds shall so provide.

3. The surety bond required by this section shall be effective on the
date of issue, shall not be affected by the expiration of the license
period, and shall continue in full force and effect until canceled.

4. The required bond shall be kept in force at all times while the
operator is conducting a public grain warehouse. Failure to keep such
bond in force is cause for revocation of the license, and the
warehouseman is subject to the penalties provided in this chapter. No
warehouseman may cancel an approved bond without the prior written
approval of the director and his approval of a substitute bond.

5. A warehouseman filing bonds required under this chapter, or
regulations promulgated hereunder, shall utilize the same corporate
surety for all bonds required for the operation of any one warehouse.

6. In case any person shall make application for licenses for two or more
separate public warehouses in this state, he may give a single bond
covering all such applications, and the amount of the bond shall be the
total of the amounts which would be required for the several applications
if separate bonds were given; except, however, that in computing the
amount of the single bond the warehouseman may add together the capacity
of all warehouses to be covered thereby and use the aggregate capacity
for the purpose of computing bond. When a warehouseman elects to provide
a single bond for a number of warehouses, the total assets of all the
warehouses shall be subject to liabilities of each individual warehouse.

7. Upon written demand of the director for payment, the surety shall
either pay over to the director the sum demanded up to the full face
amount of the bond, or shall deposit the sum demanded in an
interest-bearing escrow account at the highest rate of interest
available. When a surety pays the director upon demand, the director
shall either interplead the sum in court or hold an administrative
hearing for the determination of the liability of the surety, and the
validity of claims against the bond, and upon the conclusion thereof, the
director shall distribute the bond proceeds accordingly. The
determination of the director shall be final, subject to the surety's or
a claimant's right to appeal to the circuit court pursuant to the
provisions of chapter 536, RSMo. Refusal or failure of the surety to pay
the sum demanded to the director within ten days of receipt of the
director's demand letter or the refusal or failure to deposit the sum
demanded in an interest-bearing escrow account at the highest rate of
interest available, shall be grounds for withdrawal of the surety's
license and authorization to conduct business in this state and grounds
for the court to penalize the surety for refusal to pay or to deposit,
within the ten days of demand, in the amount of twenty-five percent of
the full face amount of the bond, plus interest at the rate of nine
percent, or at the rate that the director can establish he would have
received had the money been paid or deposited by the surety, whichever
rate of interest is higher. In the event that the surety pays as demanded
and the director or court determines the surety is not liable, the
director shall return to the surety the sum paid to the director plus all
accumulated interest, or any pro rata part of the sum, plus interest, as
applicable in the event of liability less than the sum demanded. In the
event that the surety elects to deposit the demanded sum in an
interest-bearing escrow account and the director holds an administrative
hearing determining the liability of the surety and the validity of
claims, and upon the exhaustion of appeals, if any, the surety
immediately shall pay to the director for distribution to claimants the
amount for which the surety has been determined to be liable plus
accumulated interest on that amount.

8. Every bond filed shall contain a provision that it may not be canceled
by the principal or surety company except upon ninety days prior notice
in writing, by certified mail, to the director at his Jefferson City
office. In the case of a surety giving notice of cancellation, a copy of
such notice shall be mailed on the same day by certified mail to the
principal. The cancellation does not affect the liability accrued or
which may accrue under such bond before the expiration of the ninety
days. The notice shall contain the termination date. In the event such
procedures are not followed, the bond shall remain in full force and
effect until properly canceled.

9. Whenever the director receives notice from a surety that it intends to
cancel the bond of a warehouseman, the director shall automatically
suspend the warehouseman's license if a new bond is not received by the
director within thirty days of receipt of the notice of intent to cancel.
The director shall cause an inspection of the licensed warehouse
immediately at the end of such thirty-day period. If a new bond is not
received within sixty days of receipt of the notice of intent to cancel,
the director shall revoke the warehouse license. The director shall cause
a further inspection of the warehouse at the end of this sixty-day
period. Such inspection may include an attempt to notify all possible
grain and grain-related claimants of the warehouseman by advertising in
local media. When a license is so revoked, the director shall give notice
of such revocation to each depositor or holder of an outstanding
negotiable or nonnegotiable warehouse receipt of which the director has
knowledge. The director shall further notify each depositor or receipt
holder that grain must be sold or removed from the warehouse. Upon
receipt of the notice, it shall be the legal duty of each depositor or
receipt holder to sell, remove, or cause his grain to be removed. Such
notice to each receipt holder or depositor shall be sent by ordinary mail
to the last known address of each receipt holder or depositor.

10. The director may petition the circuit court for a mandatory
injunction ordering the receipt holder or depositor to so sell, remove or
cause to be removed, his grain and the circuit courts are hereby
empowered to enter such an order. A hearing shall be held within ten days
of the filing of any such petition. Notice of hearing to depositors,
receipt holders, warehouseman, surety, all interested persons, and the
director shall be by any practicable means effecting actual notice.
Further, the circuit courts are empowered to enter any order, pertaining
to the warehouseman, director, surety, or other interested persons, that
is appropriate in the circumstances to effectuate such removal or sale
consistent with the purpose of this chapter. The court may enforce any
order entered pursuant to this section by its contempt powers or as
otherwise provided by law.

11. The director shall cause a final inspection of the licensed warehouse
immediately after the end of the ninety-day period. The warehouseman
shall pay a fee for each examination provided for in this section. The
fee shall be computed in accordance with subsection 3 of section 411.271.

12. Verbal or written surety bond binders issued by a surety on behalf of
a grain warehouseman for original or replacement bonds are hereby
recognized as legally effective in the state of Missouri as if the bond
were fully executed when such binders meet the following conditions:

(1) The warehouseman, or principal, has paid or has promised to pay the
surety an agreed upon or tentatively agreed upon premium or other
consideration;

(2) The surety provides the department, either in writing, or verbally:

(a) A bond number;

(b) The amount of the bond;

(c) The effective date of the bond;

(d) Either verbal or written assurance that the person providing the
preceding information has authority to commit the surety. Such binders
may be canceled only in the manner provided in subsection 8 of this
section. The director may or may not accept such a binder depending on
the particular circumstances involved and consistent with the orderly
administration of this chapter. (L. 1965 p. 606, A.L. 1977 S.B. 75, A.L.
1980 S.B. 601, A.L. 1986 H.B. 1578)

Effective 4-22-86

In no event shall the liability of the surety on any bond
required by section 411.275 accumulate for each successive license period
during which the bond is in force. The liability of the surety shall be
limited in the aggregate to the face amount of the bond. (L. 1971 H.B.
180 § 3)

1. The provisions of this chapter and all regulations
promulgated under this chapter that apply to surety companies and surety
bonds shall also apply to certificates of deposit and irrevocable letters
of credit. Any certificate of deposit submitted in lieu of a surety bond
required under this chapter shall be filed with the director as trustee
for the benefit of all persons storing grain with the grain warehouseman.
The certificate of deposit will be kept in the custody of the director.

2. A grain warehouseman may, in lieu of the bond required under this
chapter, submit an irrevocable letter of credit, payable to the director
for the benefit of claimants, and issued by a federally or state
chartered bank. The director may refuse to accept a letter of credit in
lieu of the bond required by this chapter if the director finds that the
issuing bank is or may become insolvent, or for any other reason may be
unable to honor the terms of the letter of credit. The director may
require an issuing bank to submit evidence of its financial condition,
and the director may seek the cooperation of the division of finance in
evaluating the financial condition of an issuing bank. The director shall
promulgate all necessary regulations pertaining to certificates of
deposit, bonds, and irrevocable letters of credit.

3. Upon written demand of the director for payment, the bank shall either
pay over to the director the sum demanded, up to the full face amount of
the irrevocable letter of credit, or shall deposit the sum demanded in an
escrow account at the highest rate of interest available. When a bank
pays the director upon demand, the director shall either interplead the
sum in court or hold an administrative hearing for the determination of
the liability of the bank and the validity of the claims against the
irrevocable letter of credit, and upon the conclusion thereof, the
director shall distribute the irrevocable letter of credit proceeds
accordingly. The determination of the director shall be final, subject to
the licensee's or claimant's right to appeal to the circuit court
pursuant to the provisions of chapter 536, RSMo. Refusal or failure of
the issuing bank to pay the sum demanded to the director within three
days of the bank's receipt of such written demand shall result in a
penalty assessment of ten percent of the amount demanded, up to the full
face amount of the irrevocable letter of credit, per week until the
amount demanded and the penalty are paid. When funds have been received,
and the director or court determines that the bank is not liable for
claims against the irrevocable letter of credit, the director shall
return to the bank the sum paid to the director and all accumulated
interest earned, minus any penalties due or paid. In the event that the
liability is less than the sum demanded, the director shall return the
appropriate pro rata portion of the funds received, and interest earned
as applicable. (L. 1986 H.B. 1578, A.L. 1987 H.B. 751)

1. The amount of the bond required by section 411.275 shall be
based upon the licensed capacity of the warehouse, but in no event shall
such bond be less than twenty thousand dollars, and shall be based upon
the following table of rates: If the licensed capacity of the The required

warehouse is: bond is the greater of

$20,000 or: Not over 200,000 bushels .............. $10,000 plus $0.25

per bushel of licensed

capacity Over 200,000 but not over 1,000,000 ... $60,000 plus $0.20 per

bushel of excess over

200,000 bushels

of licensed capacity Over 1,000,000 but not over 2,000,000 . $220,000
plus $0.15

per bushel of excess

over 1,000,000 bushels

of licensed capacity Over 2,000,000 but not over 3,000,000 . $370,000
plus $0.10

per bushel of excess

over 2,000,000 bushels

of licensed capacity Over 3,000,000 ........................ $470,000
plus $0.05

per bushel of excess

over 3,000,000 bushels

of licensed capacity

2. Notwithstanding subsection 1 of this section, no bond required under
section 411.275 shall exceed one million dollars; except, in the case of
a deficiency in the net worth as set forth in section 411.280, the
director may require additional bond as he shall deem necessary to
provide security. (L. 1977 S.B. 75 § 4, A.L. 1997 H.B. 211)

Effective 4-2-97

Every warehouseman licensed under the provisions of this chapter
shall have and maintain a net worth equal to the greater of ten thousand
dollars or the amount which results from multiplying the storage capacity
of the warehouse by fifteen cents per bushel. Capital stock, for the
purpose of determining the net worth, shall not be considered a
liability. Any deficiency in required net worth above the ten thousand
dollar minimum requirement may be met by supplying additional bond in an
amount equal to one thousand dollars for each one thousand dollars or
fraction thereof of deficiency. (L. 1941 p. 373 § 46, A.L. 1965 p. 606,
A.L. 1977 S.B. 75, A.L. 1980 S.B. 601, A.L. 1986 H.B. 1578, A.L. 1997
H.B. 211)

Effective 4-2-97

1. The director, after a hearing held in accordance with this
chapter and regulations promulgated hereunder, may make a determination
that the warehouseman has failed, or is unable, to meet storage or dollar
obligations, and thus an additional bond is essential to adequately
protect the warehouseman's depositors. Upon such a determination, the
director shall require to be filed, within a reasonable period, as
determined by the director, an additional bond in such amount as the
director deems to be necessary to assure protection to the warehouseman's
depositors.

2. The amount of the additional bond required under this section shall
not exceed the amount necessary to fulfill the storage and dollar
obligation which the warehouseman has failed or is unable to meet. (L.
1977 S.B. 75 § 5)

1. Upon receiving an original application, the director may make
an examination of the warehouse covered by the application. The director
shall issue a license to operate a public grain warehouse if he
determines that:

(1) The application is sufficient;

(2) The warehouse facility is suitable for the proper storage of grain.
The director shall determine the suitability of the warehouse for the
storage of grain based upon the type, location, construction, layout and
facilities of each warehouse. The warehouse facility shall have at least
ten thousand bushel storage capacity. An adequate scale for weighing
grain must be available for the warehouseman's use on site or within a
reasonable distance of the warehouse facility, not to exceed five miles.
The director's findings shall include, but not be limited to, the
following:

(a) The storage facilities are weathertight so as to protect the grain
from the elements at all times;

(b) The facilities and the practices with respect to those facilities are
such as to maintain and preserve the quantity and quality of the grain;

(c) Safe and adequate means of ingress and egress to the various storage
units of the warehouse are provided and maintained by the warehouseman;

(3) The applicant is capable of performing the service proposed;

(4) The applicant is willing and able to comply with the provisions of
this chapter and regulations promulgated hereunder;

(5) The applicant, or, if the applicant is a corporation or partnership,
any officer, majority shareholder, board member or partner has not been
involved in illegal or improper manipulation of grain inventories which
involved or resulted in losses to grain depositors within the seven-year
period of time immediately preceding the date the director received the
application;

(6) The applicant has sufficient financial resources to adequately
protect depositors; except that, if the director finds that the
applicant, management personnel, a principal officer or partner has a bad
business reputation, the director may deny the application. If the
director is not satisfied with the applicant's qualifications as stated
in this section, the application may be denied. If the application is
denied, notice shall be mailed to the applicant setting forth the reasons
for the denial of the license. Within fifteen days of receipt of a notice
of denial for license, the applicant may file a written application with
the director for a hearing on the denial. The hearing shall be carried
out in accordance with the provisions of this chapter and regulations
promulgated hereunder.

2. Every license shall be dated and shall expire on the last day of the
fifth month after the close of the warehouse's fiscal year, except that
the initial licensing period after April 22, 1986, shall be for at least
six months but not longer than eighteen, and shall designate the name of
the licensee and the location of the warehouse. No fees shall be prorated.

3. Every license shall be, at all times during the operation of the
licensed warehouse, posted in a conspicuous place in the office room of
the warehouse. Upon proof, satisfactory to the director, that a public
grain warehouse license issued under this chapter has been destroyed or
lost, the director may issue to the warehouse a duplicate license, with
"DUPLICATE" clearly printed on its face. The fee for such duplicate
license is ten dollars.

4. If the holder of any public warehouseman's license is convicted of any
violation of this chapter, or if the director determines that any holder
has violated any of the provisions of this chapter, or any of the rules
and regulations adopted by the director under the provisions of this
chapter, the director may at his discretion modify, suspend, cancel,
revoke or refuse to renew the license of the holder.

5. Whenever the director shall modify, suspend, cancel, revoke or refuse
to issue any license he shall prepare an order so providing which shall
be signed by the director or some person designated by him, and the order
shall state the reason or reasons for the modification, suspension,
cancellation, revocation or refusal to issue the license. The order shall
be sent by certified mail to the licensee or applicant at the address of
the warehouse licensed or applying for a license. Within thirty days
after the mailing of the order, the licensee, if aggrieved by the order
of the director, may appeal as provided in chapter 536, RSMo. At the time
of the filing of the appeal, the party appealing shall give a bond for
costs conditioned on his prosecuting the appeal without delay and paying
all costs assessed against him. In addition, the licensee shall post a
bond which shall remain in effect pending final disposition of all
appeals, including review by the Missouri court of appeals or Missouri
supreme court, or federal review, in an amount sufficient to cover all
grain storage and grain-related obligations of the licensee as identified
by the director. The posting of such bond is jurisdictional to the
circuit court's authority to entertain the appeal.

6. Notwithstanding any other provision of this chapter, if, upon
examination, it is determined that a licensed warehouseman has violated
or is violating any of the provisions of this chapter, and the director
has reasonable cause to believe that the nature of the violation is such
that there exists an immediate danger of substantial loss, the director
may authorize and cause any employee charged with the enforcement of this
chapter to remove the warehouseman's license to operate a public grain
warehouse from the premises of the warehouse. Any license so removed
shall be returned to the director. The removal of the license from the
premises shall constitute a temporary suspension of the license. The
director shall grant a hearing, to be held in accordance with the
provisions of this chapter and regulations promulgated hereunder, as soon
thereafter as is possible, but not later than ten days after the
temporary suspension imposed by removal of the warehouseman's license.
(L. 1965 p. 606, A.L. 1977 S.B. 75, A.L. 1986 H.B. 1578, A.L. 1997 H.B.
211)

Effective 4-2-97

1. When a license is revoked, the warehouseman shall terminate,
in a manner prescribed by the director, all arrangements covering the
storing of grain in the warehouse covered by the license, but shall be
permitted, under the supervision of the director, to deliver or purchase
grain previously received.

2. In terminating arrangements regarding the storing of grain, the
warehouseman shall prepare and send a notice, in a form approved by the
director, to all depositors. The notice shall set forth the fact of
termination and provide for a schedule of deliveries.

3. When a license is revoked, the director shall notify each depositor or
holder of an outstanding warehouse receipt of the revocation. The
director shall further notify each depositor or receipt holder that his
grain must be sold or removed from the warehouse. The notice shall be by
ordinary mail sent to the last known address of each receipt holder. Upon
receipt of the notice, it shall be the legal duty imposed hereby of each
depositor or receipt holder to so sell, or remove or cause to be removed
his grain from the warehouse forthwith.

4. When a warehouseman's license is revoked pursuant to this section, the
director may apply to the circuit court for a mandatory injunction
ordering depositors to sell, remove or cause to be removed their grain
from the warehouse and the circuit courts are hereby empowered to enter
such an order. A hearing shall be held within ten days of the filing of
any such petition. Notice of hearing to depositors, receipt holders,
warehouseman, surety, all interested persons and the director shall be by
any practicable means effecting actual notice. Further, the circuit
courts are empowered to enter any order pertaining to the warehouseman,
director, depositors, receipt holders, surety, or other interested
persons that is appropriate in the circumstances to effectuate such
removal or sale consistent with the purpose of this chapter. The court
may enforce any order entered pursuant to this section by its contempt
powers or as otherwise provided by law. (L. 1977 S.B. 75 § 9, A.L. 1986
H.B. 1578)

Effective 4-22-86

1. If a license is suspended, revoked or a shortage is known to
exist and the director determines that there is danger of loss to
depositors, the director or his authorized agents may enter the premises
of the warehouseman, monitor the activities of the warehouseman and take
any actions authorized by this chapter which are necessary to protect the
interests of depositors of grain. Additionally, when a shortage exists,
the director or his designated representative may order, verbally or in
writing, the warehouseman to cease shipping any grain until such shortage
is corrected. Should the warehouseman continue to ship grain after being
advised of such order to cease shipping, such action of the warehouseman
shall constitute a class C felony. The director and his designated
representative shall notify local law enforcement officials and request
the immediate arrest of the warehouseman.

2. Whenever the director or his authorized agents monitor the operation
of any warehouse, the warehouseman, upon a finding by a court of
competent jurisdiction that the director had reasonable grounds to
believe that this action was necessary to protect the depositors, may be
assessed and shall pay a fee of one hundred dollars per person for each
day or part thereof that the director or his authorized agents monitored
the operations. (L. 1977 S.B. 75 § 10, A.L. 1986 H.B. 1578, A.L. 1997
H.B. 211)

Effective 4-2-97

1. Every state licensed public warehouseman shall in his own
name at all times keep all the grain contained in his warehouse insured
by some reliable insurance company authorized to do business in the state
of Missouri. The grain is to be insured for its full market value against
loss by fire, inherent explosion, lightning, and windstorm. Failure to do
so is a violation of this chapter and shall make the public warehouseman
liable for the same on his bond. Except that a warehouseman shall not be
required to carry insurance on commodity credit corporation owned grain
if the commodity credit corporation elects to be self insured for loss of
the grain. The director may promulgate rules governing the submission and
acceptance of insurance policies that contain deductible clauses.

2. In case of a fire, inherent explosion, lightning, or windstorm, which
shall destroy or damage all or part of the grain stored in any public
warehouse, the public warehouseman shall, upon demand by the owner of the
grain, or the holder of any warehouse receipt or receipts for such grain,
and upon being presented with the warehouse receipt or receipts, or other
evidence of ownership, make settlement for the value of the grain covered
by the warehouse receipt, or receipts, after deducting the warehouse
charges, at the market value of same, basing the value at the average
price paid for grain of the same grade and quality at the station where
the public warehouse is located on the date of the destruction. In the
event settlement is not made within sixty days from the date of the
demand, the depositor shall have the right to seek recovery from the
insurance company.

3. Fraud or other criminal act of the warehouseman, to which the holder
of a warehouse receipt or other interested person is not a party, shall
not deprive the holder of a warehouse receipt, storage receipt or scale
ticket, or other interested person, of his right of recovery under such
policy of insurance.

4. No insurance policy covering grain shall be canceled or be allowed to
expire by the insurance company on less than ninety days' notice by
certified mail to the director and the principal, except if such policy
is being replaced with another policy and evidence of the new policy is
filed with the director at the time of cancellation or expiration of the
policy on file. The notice shall contain the termination or expiration
date. Any replacement insurance shall be provided by, and carried in the
name of, the warehouseman. The license of a warehouseman shall
automatically be suspended for failure to file new evidence of insurance
within thirty days of the director's receipt of the notice of
cancellation or expiration. If replacement insurance is not filed within
sixty days of the director's receipt of notice of cancellation or
expiration, the warehouse license shall be automatically revoked. The
provisions of subsections 9 and 10 of section 411.275, pertaining to the
director, circuit courts, warehousemen, depositors, and other interested
persons relating to bond cancellations shall apply similarly to insurance
cancellations or expirations. (L. 1941 p. 373 § 25, A.L. 1965 p. 606,
A.L. 1977 S.B. 75, A.L. 1986 H.B. 1578, A.L. 1987 H.B. 751)

The director shall have power in the conduct of any
investigation or hearing authorized or held by him to examine, or cause
to be examined, under oath, any person, and to examine, or cause to be
examined, books and records of any warehouseman; to hear testimony and
take proof material for his information in the discharge of his duties
under this chapter; to administer or cause to be administered oaths; and
for any such purposes to issue subpoenas, to require the attendance of
witnesses and the production of books which shall be effective in any
part of this state; and any circuit court may, by order duly entered,
require the attendance of witnesses and the production of relevant books
and records subpoenaed by the director, and the court may compel
obedience to its order by proceedings for contempt. (L. 1965 p. 606, A.L.
1977 S.B. 75, A.L. 1978 H.B. 1634)

Effective 1-2-79

The director may enjoin a warehouseman from violating or
continuing to violate the provisions of this chapter and the rules and
regulations adopted by the director pursuant to this chapter by filing
injunction proceedings in the circuit court and in any such proceedings
the circuit court, if it deems it proper, may order the warehouseman to
not receive any more grain into such warehouse or to deliver any grain
therefrom except as the court by its order shall direct. The injunction
shall be prosecuted by the attorney general or the prosecuting attorney
of the proper county upon request of the director. (L. 1965 p. 606)

1. Any person who:

(1) Operates a warehouse for storage of grain;

(2) Holds himself out as being in the grain storage business, or as
offering storage facilities for grain;

(3) Advertises for, solicits or accepts grain for storage;

(4) Carries on a grain bank operation, or receives and stores grain for
which a like quantity of grain is to be returned or delivered in any form
to the depositor thereof without first obtaining and keeping in force an
annual license issued by the department authorizing the operation of a
public grain warehouse, or without having the license displayed in a
conspicuous place, or who shall continue to transact any such business as
a public warehouse after the license has been revoked or suspended,
except that he may purchase from or deliver to depositors property
previously stored in the warehouse; is guilty of a misdemeanor.

2. The director may refuse to renew any license or grant a new one to any
person whose license has been revoked for a period of one year from the
date of the revocation. (L. 1965 p. 606, A.L. 1977 S.B. 75, A.L. 1986
H.B. 1578)

Effective 4-22-86

1. It shall be the duty of every terminal warehouseman to
receive for storage any grain, dry and suitable for warehousing, that may
be tendered to him in the usual manner in which terminal warehouses are
accustomed to receive the same, in the ordinary and usual course of
business, to the capacity of his warehouse available for public storage.
The grain shall be officially inspected, officially weighed, and
officially graded, upon receiving grain into the warehouse, except that
the owner or warehouseman may direct that the grain not be officially
inspected, officially weighed, or officially graded as provided in
section 411.030, but shall be inspected, weighed, and graded by an
individual, designated by the warehouseman, competent and qualified in
performing these services.

2. All grain delivered from the warehouse shall be officially inspected,
officially weighed, and officially graded on its delivery by a duly
authorized inspector and weighmaster of the department, except that the
owner or warehouseman may direct that the grain not be officially
inspected, officially weighed, or officially graded as provided in
section 411.030, but shall be inspected and weighed by an individual,
designated by the warehouseman, competent and qualified in performing
these services. (L. 1965 p. 606, A.L. 1997 H.B. 211)

Effective 4-2-97

1. Every public warehouseman, other than a terminal
warehouseman, shall receive for storage or shipment, so far as the
available capacity for public storage of the warehouse shall permit, all
grain in a dry and suitable condition for storage tendered him in the
usual course of business, the grain to be inspected, weighed, and graded
by an individual, designated by the warehouseman, competent and qualified
in performing these services except that:

(1) The owner and the warehouseman may agree upon a sample taken from the
lot of grain to be offered for storage as being a true and representative
sample. This sample shall be sent to an official licensed inspector of
the Missouri state grain warehouse division and the official licensed
inspector who receives the sample shall grade it according to the
official U.S.D.A. grain standards and issue a certificate of grade which
shall state the name of the owner, the warehouse at which it is stored
and the official grade of the grain and the official grade shall be
stated on the warehouse receipt. The sample submitted to the licensed
inspector shall be held by him for a period of at least ten days from its
receipt and in case that either party of the transaction is dissatisfied
with the grade assigned, he may have the right to reinspection and appeal
upon request. The fees for the inspection of the sample shall be paid by
the warehouseman and added to the storage charges of the grain;

(2) The owner and the warehouseman may agree to the grade of the grain to
be offered for storage and a warehouse receipt issued on the agreed grade;

(3) The owner or warehouseman may have an official weight, official
inspection, and an official grade on the grain to be offered for storage
if requested of the department, the expense thereof paid by the person
requesting the service.

2. Any warehouseman desiring to issue warehouse receipts for his own
grain in store may do so by complying with the regulations governing the
methods as prescribed by the director. (L. 1965 p. 606, A.L. 1997 H.B.
211)

Effective 4-2-97

1. At the time of delivery of grain to any public warehouse the
scale ticket shall be marked to indicate whether the grain is delivered
for storage, for sale or for some other purpose.

2. All grain received at a licensed public warehouse shall be deemed to
be storage grain within the meaning of this chapter, unless:

(1) Payment for the grain is made upon delivery to the warehouseman; or

(2) At the time of delivery of the grain to the warehouseman, the
purchase price is established, documented as prescribed by the director,
and payment made within thirty days or the account is entered, as
prescribed by the director, onto a formal settlement sheet within the
same thirty-day period. Further, when an account is so entered onto a
formal settlement sheet payment shall be made within one hundred eighty
days of delivery. If payment is not so made within one hundred eighty
days of delivery, a formal written contract as provided for in subsection
4 of this section shall be executed.

3. All grain received at any warehouse not licensed under this chapter
shall be deemed to be grain held for storage within the meaning of this
chapter, unless:

(1) The sale price for the grain has been established; and

(2) Payment made by the warehouseman and received by the owner of the
grain within thirty days from the delivery of the grain to the warehouse;
or

(3) A formal written contract as provided for in subsection 4 of this
section is executed.

4. A warehouseman and a seller of grain may agree that payment or pricing
of the seller's grain be deferred to a future date. The agreement shall
be in writing, dated and shall contain a statement informing the seller
that the seller is relinquishing title and all rights of ownership in the
grain. The director may require any additional information from a
warehouseman that he deems necessary to protect the interests of the
seller of grain in these transactions. Failure to provide such additional
information, upon request, shall be deemed a violation of this chapter.
Grain received under a deferred payment or deferred pricing agreement
under the provisions of this section shall not be deemed to be stored
grain. For the purposes of this section, minimum price, deferred price
and deferred payment contracts are not deemed valid unless they contain
all the statements required by section 276.461, RSMo, and are signed by
both the buyer and seller or their authorized representatives. Grain
represented by an invalid deferred pricing contract shall be deemed
storage grain for the purposes of this chapter. Grain represented by an
invalid deferred payment contract shall be deemed storage grain for the
purposes of this chapter if payment has not been made within one hundred
eighty days of delivery as required in subsection 2 of this section. Only
class I grain dealers may enter into deferred price, minimum price or
deferred payment agreements.

5. The following transactions shall not be covered by the warehouseman's
bond:

(1) Any sale of grain evidenced by a check written by the warehouseman,
received and accepted by the seller. Any check returned for any reason
shall be evidence of a sales transaction; or

(2) Any sale of grain evidenced by a promissory note accepted by the
seller. To be considered a promissory note, the note must contain the
signature of both seller and buyer, date the note was executed, dollar
amount of the note, payment terms, and interest rate; or

(3) Any sale of grain delivered to the warehouse pursuant to and
evidenced by a grain purchase contract and treated as sold grain pursuant
to the provisions of subsection 2 or 4 of this section.

6. The warehouseman's bond shall cover all grain deemed storage pursuant
to the provisions of this section.

7. Grain originally received at a warehouse as storage grain and
subsequently sold by the depositor to the warehouseman shall be
considered received at the warehouse at the time of sale and shall be
treated as grain sold or stored, as applicable, pursuant to the
provisions of subsection 2 of this section as if at the time of physical
delivery, the grain had been priced. The thirty-day, one hundred
eighty-day and written contract provisions of subsection 2 of this
section apply to these transactions commencing at the time of sale. (L.
1977 S.B. 75 § 3, A.L. 1980 S.B. 601, A.L. 1986 H.B. 1578, A.L. 1997 H.B.
211)

Effective 4-2-97

Grain which is deposited in a warehouse for processing and which
is commonly referred to as grain bank grain shall be considered to be
storage grain. Grain bank grain shall be entered into the records of the
warehouseman as a storage obligation in the same manner as other storage
grain. The grain deposited for grain bank purposes may be accounted for
on a separate record. Grain bank grain shall be accounted for on an
individual depositor basis and shall not be shown as a total grain bank
grain obligation. The records for grain bank grain shall be kept on a
pounds or bushels basis for the various kinds of grain deposited. Records
for grain bank grain may be kept on a monetary basis only if a check is
issued or actual payment made at the time of delivery of the grain to the
warehouse. If records are kept on a monetary basis, the warehouseman
shall furnish written proof of payment to the director or his authorized
agent upon request. The director is authorized to adopt and enforce any
procedures and regulations necessary to assure the protection of grain
bank obligations in the conduct of grain bank operations in warehouses.
(L. 1977 S.B. 75 § 8)

In case any owner or consignee of grain to a terminal warehouse
shall be dissatisfied with the inspection or grade of any lot of grain
received by rail or shall from any cause desire to receive his property
without its passing into store, he shall be at liberty to have the same
withheld from going into the terminal warehouse, whether the property may
have previously been consigned to such terminal public warehouse or not,
by giving proper notice prior to unloading to the person or corporation
in whose possession it may be at the time of giving such notice; and the
grain shall be withheld from going into storage and be delivered to the
owner subject only to such proper charges including any advanced draft as
may be a lien upon it prior to the notice, the grain in railroad cars to
be removed therefrom by the owner or consignor within twenty-four hours
after the notice has been given to the railroad company having it in its
possession; provided, the railroad company place the same in a proper and
convenient place for unloading; and any person or corporation refusing to
allow the owner or consignor to receive his grain shall be deemed guilty
of misdemeanor, and shall be liable to pay the owner or consignor damages
for any conversion. Notice that grain is not to be delivered into store
may also be given to the proprietor of any terminal warehouse into which
it would otherwise have been delivered, and if after the notice it be
taken into store in the terminal warehouse, the proprietor of the
terminal warehouse shall be liable to the owner of the grain for
conversion. (L. 1965 p. 606)

1. Any public warehouseman may, upon request of the owner of any
grain, and with the consent of the warehouseman, store grain of the same
grade in a bin to be kept apart from that of other owners, which bin
shall thereupon be marked as a special bin.

2. If a warehouse receipt be issued for grain so kept separate, it shall
state on the face of the receipt that it is a special bin, and shall
state the number of each bin. (L. 1965 p. 606)

1. Any public warehouseman may, on the written request of the
owner of any grain stored in a special bin, upon the surrender of the
receipt, or receipts therefor, be permitted to dry, clean, or otherwise
change the condition or value of any such lot of grain; but in such case
it shall only be delivered as such separate lot, without reference to the
grade it may be made by such process of drying or cleaning. Nothing in
this section, however, shall prevent any public warehouseman from
removing grain within his warehouse for its preservation or safekeeping,
but no warehouseman shall be held liable for damage to grain stored in
special bins by heating, unless such damage be caused by the negligence
of the warehouseman.

2. In case any public warehouseman shall discover that any portion of the
grain stored in a special bin in his warehouse is out of condition or
becoming so, and it is not in his power to preserve the same, he shall
immediately give notice to the owner, if known, and if not known, by
public notice by advertising in a newspaper of general circulation in the
vicinity in which such warehouse is situated, and by posting a notice on
the warehouse bulletin board or other public place of its actual
condition, as near as he can ascertain. He shall state in such notice:

(1) The kind and grade of grain;

(2) The bin in which it is stored;

(3) The description of the warehouse receipts outstanding upon which such
grain will be delivered, giving the numbers, amount, and date of each;

(4) The name of the party for whom such grain was stored;

(5) The date it was received and the amount of it.

3. The enumeration of receipts and identification of grain so described
shall embrace as nearly as possible the quantity of grain contained in
such bins; and such grain shall be delivered upon the return and
cancellation of such receipts, and the unreceipted grain upon the request
of the owner or holder of the receipt or receipts.

4. Nothing herein contained shall be held to relieve the public
warehouseman from exercising proper care and vigilance in preserving such
grain after such publication of its condition, but such grain shall be
kept separate and apart from all direct contact with other grain, and
shall not be mixed with other grain while in storage* in such warehouse.

5. Nothing in this section shall be construed so as to permit any public
warehouseman to deliver any grain stored in a special bin or by itself,
as provided in this chapter, to any but the owners of the lot or the
holder of the warehouse receipt or receipts. (L. 1941 p. 373 § 26, A.L.
1965 p. 606, A.L. 1980 S.B. 601)

*Word "store" appears in original rolls.

1. Warehouse receipts shall be issued by any licensed public
warehouseman as herein defined upon the request of any depositor, and
must be issued in manner and form as provided by this chapter or
prescribed by rule, and the form of all receipts shall be approved by the
director. The director shall be authorized to have printed all warehouse
receipts, grade certificates, and weight certificates issued by public
warehousemen licensed under this chapter.

2. It shall be unlawful for any public warehouseman to issue any
warehouse receipts for any grain received except upon warehouse receipts
approved by the director. Any person who shall issue or cause to be
issued any counterfeit warehouse receipt, or any warehouse receipt for
grain, other than as authorized and prescribed by the director, shall be
guilty of a class C felony.

3. Whenever the license of a public warehouseman expires or is revoked or
suspended, he shall return all unused warehouse receipts to the director;
the director shall immediately notify the holders of all outstanding
receipts of the expiration or revocation of the license.

4. It shall be unlawful for any person, other than a licensed public
grain warehouseman, to issue any negotiable warehouse receipt for grain,
or any warehouse receipt for grain for collateral purposes. Any person
who violates this subsection is, upon conviction, guilty of a class C
felony. (L. 1965 p. 606, A.L. 1977 S.B. 75, A.L. 1986 H.B. 1578)

Effective 4-22-86

1. Every receipt issued for grain stored in a warehouse licensed
under this chapter shall embody within its written or printed terms:

(1) The location of the warehouse where the grain is stored;

(2) The date of the issuance of the receipt;

(3) The consecutive number of the receipt;

(4) How received, whether by railroad, car, truck, or other means;

(5) A statement whether the grain received will be delivered to the
bearer, to a specified person, or to a specific person or his order;

(6) The rate of storage and handling charges;

(7) The net weight in bushels and pounds and the percentage of dockage
together with the grading factors and the grade;

(8) The words "nonnegotiable" or "negotiable" according to the nature of
the receipt clearly and conspicuously printed or stamped thereon;

(9) The signature of the warehouseman which may be made by an authorized
agent; and

(10) If the receipt is issued for grain of which the warehouseman is
owner, either solely or jointly, or in common with others, the fact of
such ownership.

2. A receipt, whether negotiable or nonnegotiable, is a document of
title. The warehouseman's failure to complete all entries on a receipt as
required by this chapter and the rules promulgated pursuant to this
chapter shall constitute a violation on the part of the warehouseman, but
shall not preclude or restrict a depositor's right to recover stored
grain under the provisions of this chapter. The receipt shall constitute
prima facie evidence of the holder's claim to the grain regardless of the
degree of compliance with this chapter with respect to completion of the
entries required by this chapter. (L. 1965 p. 606, A.L. 1981 S.B. 366)

Effective 6-10-81

Every licensed warehouseman who issues warehouse receipts shall
maintain at his place of business a warehouse receipt register containing
the duplicate copy of all issued receipts, each by consecutive number.
Upon cancellation of a receipt, the original shall be retained in the
warehouseman's files attached to its duplicate. After cancellation
neither the original nor the duplicate shall be removed from the files.
(L. 1977 S.B. 75 § 11)

Any public warehouseman operating a warehouse in the state may
make a valid sale or a pledge of any warehouse receipts issued for grain
of which the warehouseman is the owner, either solely or jointly or in
common with others, and the recital of ownership in the receipt shall
constitute notice of the right to sell or pledge the same and of the
title or specific lien of the transferee or pledgee upon the
warehouseman's grain represented by the receipts. (L. 1965 p. 606, A.L.
1997 H.B. 211)

Effective 4-2-97

If the grain is offered for storage in any licensed public
warehouse and the warehouseman does not have storage space to handle the
same, the public warehouseman, with the consent of the owner and at his
option, may accept grain shipment to a public warehouse where storage is
available. The form of trust receipt to cover grain for storage by public
warehouses, and to be transported to and stored in a public warehouse,
shall be on a form approved by the director of agriculture and shall
embody within its written or printed terms:

(1) The date of the issuance of the receipts;

(2) The name of the warehouse issuing the same and its location;

(3) The rate of storage or the basis for the charges;

(4) The net weight in bushels and pounds and percentage of dockage
together with the grade;

(5) The words "trust receipt" and "nonnegotiable" clearly and
conspicuously printed or stamped thereon;

(6) The signature of the warehouseman, which may be made by his
authorized agent and filed with the director;

(7) A statement of the amount of the advances made, or the liabilities
incurred, for which the warehouse claims a lien, but if the precise
amount of advances made, or the liabilities incurred, be at the time of
the issuance of the receipt unknown to the warehouseman, or to his agent
who issues it, a statement of the fact that the advances have been made,
or liabilities incurred, and the purpose thereof, is sufficient. (L. 1965
p. 606)

1. At his option a public warehouseman may ship carlots of
grain, when requested by the owner to do so, to a specified terminal
warehouse within the state without official inspection or the issuing of
trust receipts, providing that the identical lot of grain is tendered for
shipment. The transportation of the grain shall be at the owner's risk.
When a warehouse receipt has been issued by the terminal warehouseman
receiving the grain, and returned to the public warehouseman, he shall
deliver the warehouse receipt to the owner upon payment of freight and
all legal charges and upon surrender by the owner of the trust receipt or
receipts, if any, issued by the public warehouseman for the grain.

2. A licensed warehouseman may ship grain to another state or federally
licensed warehouse for storage to cover nonreceipted storage obligations
at his licensed facility. The original warehouseman must have the written
approval of the owner of the grain or notify the owner in writing prior
to transferring the commodity or the obligation. Prior written
notification may include printed statements on scale tickets or
statements made on the schedule of charges required under section
411.268. The receiving warehouse must be a state licensed facility within
the state of Missouri, a warehouse licensed under the United States
Warehouse Act, or a facility located outside the state of Missouri
licensed by the state where the facility is located if, based upon a
determination by the director, that state's requirements are sufficient
to protect the integrity of the stored grain. The transportation of the
grain shall be at the original warehouseman's risk. (L. 1965 p. 606 §
411.402, A.L. 1997 H.B. 211)

Effective 4-2-97

All warehouse receipts issued by terminal public warehouses or
public warehouses shall be numbered consecutively, and no two receipts
bearing the same number shall be issued from the same warehouse during
any one year, except in the case of a lost or destroyed receipt, in which
case any duplicate receipt shall bear the same date and number as the
original and shall be plainly marked on its face "duplicate". If the
grain was received from railroad cars, the initials and number of each
car shall be stated on the receipt with the amount it contained; if from
wagon, truck or other means, the manner of its receipt shall be stated on
its face. (RSMo 1939 § 14639, A.L. 1941 p. 373 § 29, A.L. 1965 p. 606 §
411.411)

Prior revisions: 1929 § 13339; 1919 § 6011; 1909 § 6787

1. Where a negotiable receipt has been lost or destroyed by the
holder of the receipt, the director may order the delivery of the grain
upon satisfactory proof of such loss or destruction and upon the giving
of a bond with sufficient sureties to be approved by the director,
conditioned to indemnify the warehouseman or any holder or other person
entitled to the grain against all loss, liability, or expense which he or
they may sustain by reason of such delivery. The director shall also at
his discretion order the payment of the warehouseman's reasonable costs
and counsel fees. The delivery of the grain under an order of the
director, as provided in this section, shall not relieve the warehouseman
from liability to a person to whom the negotiable receipt has been or
shall be negotiated for value without notice of the proceedings or the
delivery of the grain.

2. Where a negotiable receipt has been lost or destroyed by the
warehouseman, the director may, upon proof of such loss or destruction,
require the warehouseman to sign an affidavit stating that the receipt
has been lost or destroyed and cannot be produced for cancellation and
that delivery or payment in full for the grain represented by the receipt
has been made to the holder and that the warehouseman has not negotiated
the receipt for value. The director may request the person to whom the
receipt was issued or the person to whom the original holder negotiated
the receipt to sign an affidavit stating that he has received delivery or
payment in full for the grain represented by the receipt and that the
receipt was willingly and truthfully presented to the warehouseman for
cancellation. (L. 1941 p. 373 § 30, A.L. 1980 S.B. 601)

1. No warehouse receipt shall be issued except upon actual
delivery of grain into store in the warehouse from which it purports to
be issued. Nor shall any receipt be issued for a greater quantity of
grain than was contained in the lot or parcel so received for storage,
nor shall more than one receipt be issued for the same lot of grain,
except in cases where a receipt for a part of a lot is desired, and then
the aggregate receipts for a particular lot shall cover that lot and no
more. In cases where a part of the grain represented by the receipt, or
receipts, is delivered out of store and a remainder is left, the director
shall prescribe the form of the document for the remainder of the grain
and the manner in which it is to be issued.

2. In case it is desirable to divide one receipt into two or more, or in
the case it is desirable to consolidate two or more receipts into one and
the warehouseman consents, the original receipt, or receipts, shall be
canceled in the same manner as if the grain had been delivered from store
and the new receipt, or receipts, shall express on the face thereof that
the new receipt, or receipts, represent a part of another receipt or the
consolidation of other receipts, as the case may be, and the number and
the date of the original receipt shall also appear on the new receipt
issued in lieu thereof. No consolidation of receipts differing more than
thirty days in date shall be permitted. All new receipts issued for old
ones canceled, as herein provided, shall bear the notation of the date of
the receipt as originally issued.

3. A warehouseman shall not deliver grain for which he has issued a
negotiable receipt until the receipt has been returned to him and
canceled, and shall not deliver grain for which he has issued a
nonnegotiable receipt until the receipt has been returned to him or he
has obtained from the person lawfully entitled to the delivery, or his
authorized agent, a written order therefor. Before delivery is made of
the last portion of a lot of grain covered by a nonnegotiable receipt,
the receipt itself shall be surrendered. (L. 1965 p. 606)

A warehouseman, in the absence of some lawful excuse provided by
this chapter, is bound to deliver the grain upon demand made either by
the holder of a receipt for the grain, or by the depositor, if the demand
is accompanied with:

(1) An offer to satisfy the warehouseman's lien;

(2) An offer to surrender the receipt, if negotiable, with such
endorsements as would be necessary for the negotiation of the receipt; and

(3) A readiness and willingness to sign, when the grain is delivered, an
acknowledgment that it has been delivered, if an acknowledgment is
requested by the warehouseman. In case the warehouseman refuses or fails
to deliver the grain in compliance with the demand by the holder or
depositor so accompanied, the burden shall be upon the warehouseman to
establish the existence of a lawful excuse for his refusal. (L. 1965 p.
606)

A warehouseman is justified in delivering the grain, subject to
the provisions of the three following sections, to one who is:

(1) The person lawfully entitled to the possession of the grain, or his
agent;

(2) A person who is either himself entitled to the delivery by the terms
of a nonnegotiable receipt issued for the grain, or who has written
authority from the persons so entitled either endorsed upon the receipt
or written upon another paper; or

(3) A person in possession of a negotiable receipt by the terms of which
the grain is deliverable to him or order or to bearer, or which has been
endorsed to him or in blank by the person to whom delivery was promised
by the terms of the receipts or by his mediate or immediate endorser. (L.
1965 p. 606)

1. Every warehouseman shall maintain stored grain inventories of
sufficient quantities, qualities and grade to meet at all times his
storage obligations. Failure to maintain required inventories is a
violation of this chapter.

2. Grain evidenced by outstanding and uncanceled negotiable warehouse
receipts shall be maintained in the specific warehouse facility shown on
the warehouse receipt issued when the grain was deposited originally. For
the purposes of this chapter each separate warehouse facility must
maintain such an inventory for negotiable warehouse receipts issued by it
at that location.

3. Inventories representing stored grain obligations other than those
described in subsection 2 of this section shall be represented by:

(1) Grain actually held in the warehouseman's licensed warehouse facility;

(2) Receipts or tickets for grain stored in a licensed warehouse in
Missouri;

(3) Receipts or tickets for grain stored in a warehouse facility licensed
under the United States Warehouse Act;

(4) Receipts or tickets issued by a warehouse facility located outside of
the state of Missouri upon a determination by the director that such
receipts or tickets are issued by a person who, due to his net worth, his
having posted a cash or surety bond, which may include an irrevocable
letter of credit in a form acceptable to the director, or his having
otherwise satisfied the director that the integrity of the grain will be
maintained, is able to protect the stored grain.

4. All stored grain shall be maintained in licensed facilities.

5. Title to any grain which is forwarded to any other warehouse for
storage shall be evidenced as prescribed by the director by rule. (L.
1977 S.B. 75 § 6)

1. The warehouseman shall maintain in a place of safety at each
licensed warehouse facility current and complete records with respect to
all grain delivered to, withdrawn from and received, stored or processed
at that warehouse. The director may allow the warehouseman to maintain
said records at the warehouseman's headquarters office on a case-by-case
basis taking into consideration the location from which grain payments
are made. Such records shall include but not be limited to the following:

(1) A perpetual inventory showing the total quantity of each kind and
class of grain received and loaded out, the quantity of each kind and
class of grain remaining in the warehouse and the total storage
obligations for each kind and class of grain. This record shall be kept
current as of the close of each business day; except that, if no
transaction takes place during a business day, a record showing the
actual status as to quantity and storage obligations at the close of the
next preceding business day during which recordable transactions occurred
shall be deemed to be current;

(2) A register which records all grain transactions not evidenced by the
warehouseman's own scale ticket, i.e., direct farm to market shipments.
This register shall be updated daily showing, at a minimum, customer
name, type of grain, quantity of grain, date of shipment, name of
terminal or other business accepting the physical commodity, destination
scale ticket number and whether the grain was delivered for storage, sale
or other specified purpose;

(3) A current copy of the periodic insurance report submitted to the
insurer.

2. In addition to the records required by section 411.383 and subsection
1 of this section, the warehouseman shall maintain such adequate
financial records as will clearly reflect his current financial position
and will clearly support any financial information required to be
submitted to the director from time to time.

3. Each grain warehouseman may also be required to keep such records or
make such reports as deemed necessary by the director to protect the
depositor or seller of grain as set forth in this chapter and the
regulations promulgated hereunder.

4. All books, records and accounts of warehousemen shall be kept and held
available for examination for a period of not less than three years after
the close of the period for which such book or record was required;
except that, canceled or voided warehouse receipts and the warehouse
receipt register required by section 411.383 shall be kept and held
available for examination for a period of not less than six years from
the date of cancellation or voiding of receipts or, in the case of the
register, from the last date upon which a receipt referred to therein
shall have been canceled or voided.

5. A warehouseman licensed or required to be licensed under this chapter
shall keep available for examination all books, records and accounts
required by this chapter and any other books, records and accounts
relevant to his operating a public grain warehouse. An examination may be
performed by the director or a warehouse auditor, and may take place at
any time during the normal business hours of the warehouseman or, if
prior notice of the examination is given to the warehouseman, at such
time as is prescribed in that notice.

6. Any warehouseman licensed or required to be licensed under this
chapter, or any officer, agent, employee, servant or associate of such
warehouseman, who files with the director false records, scale tickets,
financial statements, accounts, or withholds records, scale tickets,
financial statements or accounts from the director, or who alters
records, scale tickets, financial statements or accounts in order to
conceal outstanding storage obligations or to conceal actual amounts of
grain received for storage or for purchase, whether or not paid for, or
to conceal warehouse obligations or for the purpose of misleading in any
way department warehouse auditors or officials, is guilty of a class C
felony. (L. 1977 S.B. 75 § 12, A.L. 1986 H.B. 1578, A.L. 1997 H.B. 211)

Effective 4-2-97

1. A scale ticket, or other document approved by the director,
shall be made out and filed for each movement of grain in or out of any
grain warehouse licensed or required to be licensed under the provisions
of this chapter. All scale tickets shall be printed with the business
name and location and consecutively numbered. They must be issued in
consecutive order. A copy of all scale tickets shall be kept on file in
numerical order in the warehouseman's office. All other source documents
for movement of grain in or out of the facility shall be in a form
approved by the director and kept and maintained in a manner approved by
the director. Any scale ticket used in pricing grain for the purpose of
sale to the warehouseman shall have the price shown on all copies of the
ticket.

2. A scale ticket issued in accordance with the provisions of this
chapter or regulations promulgated hereunder shall be considered a form
of nonnegotiable receipt. This form of nonnegotiable receipt shall be
deemed a document of title. The warehouseman's failure to complete all
entries on a scale ticket as required by this chapter and the rules
promulgated pursuant to this chapter shall constitute a violation on the
part of the warehouseman, but shall not preclude or restrict a
depositor's right to recover stored grain under the provisions of this
chapter. The scale ticket shall constitute prima facie evidence of the
holder's claim to the grain regardless of the degree of compliance with
this chapter with respect to completion of the entries required by this
chapter.

3. All scale tickets, or other approved documents, issued shall contain
the following information:

(1) Customer name;

(2) Date issued;

(3) Type of grain;

(4) Quantity of grain;

(5) Notation to show whether the grain movement was IN or OUT;

(6) If movement was IN, whether the grain received was for storage,
purchased by the warehouseman, or other specified purpose; and

(7) If received for purchase by the warehouseman, the price shall be
stated on all copies.

4. As used in this section, "custom weighing" shall mean the weighing of
products or articles for the sole purpose of ascertaining weight and the
weighing of these products and articles is not for the purpose of a sale
or purchase by the warehouseman in the usual course of his business
transactions. Any scale ticket used for the purpose of custom weighing
must be clearly and conspicuously designated as a custom weight ticket.
The director may promulgate regulations pertaining to the form and usage
of custom weighing tickets. (L. 1977 S.B. 75 § 13, A.L. 1980 S.B. 601,
A.L. 1981 S.B. 366, A.L. 1986 H.B. 1578, A.L. 1997 H.B. 211)

Effective 4-2-97

1. Whenever it appears to the satisfaction of the director that
a warehouseman does not have in his inventory sufficient grain to cover
the outstanding receipts and scale tickets issued or assumed by him, or
when the warehouseman refuses to submit his records or property to lawful
examination, the director may give notice to the warehouseman to comply
with any of the following requirements:

(1) Immediately cease all grain-related operations and transactions such
as, but not limited to, shipping, receiving, handling, processing or
selling of grain on his own account or the account of others;

(2) Cover the shortage by supplying the grain or evidence of ownership of
the grain;

(3) Submit to such examination as the director may deem necessary;

(4) Immediately purchase and make actual payment for a sufficient
quantity and quality of grain to fully cover the shortage. If the
warehouseman fails to comply with the requirements contained in the
notice within the time period which the director may allow, the director
may petition the circuit court of the county where the warehouse is
located for an ex parte order authorizing the director or his authorized
agent to seize and take possession, as trustee, of any grain located in
the warehouse of such warehouseman, and of all pertinent records and
property, as provided in subsection 4 of this section.

2. If at any time the director has evidence that a grain warehouseman is
insolvent or is unable to satisfy the claims of all depositors as they
become due, or the warehouseman does not have in his inventory sufficient
grain to cover the outstanding receipts and scale tickets issued or
assumed by him, the director may modify, suspend or revoke the
warehouseman's license or petition the circuit court in the county where
the warehouse is located for an ex parte order authorizing the director
or his authorized agent to seize and take title possession, as trustee,
of any grain and grain-related assets in the warehouse or under the
warehouseman's control, and of all pertinent records and property as
provided for in subsection 4 of this section.

3. Whenever the director shall modify, suspend or revoke any license, he
shall prepare an order so providing which shall be signed by the director
or some person designated by him, and the order shall state the reason or
reasons for the modification, suspension or revocation of the license.
The order shall be sent by certified mail to the licensee or applicant at
the address of the grain warehouseman licensed or applying for a license.
Within thirty days after the mailing of the order, the licensee, if
aggrieved by the order of the director, may appeal as provided in chapter
536, RSMo. At the time of the filing of the appeal, the party appealing
shall give a bond for costs conditioned on his prosecuting the appeal
without delay and paying all costs assessed against him. In addition, the
licensee shall post a bond which shall remain in effect pending final
disposition of all appeals, including review by the Missouri court of
appeals or Missouri supreme court, or federal review, in an amount
sufficient to cover all grain storage, and other grain-related
obligations of the licensee as identified by the director. The posting of
such bond is jurisdictional to the circuit court's authority to entertain
the appeal.

4. Upon receipt of the director's verified petition setting forth the
circumstances of the warehouseman's failure to comply with this chapter
and further stating reasons why immediate possession by the director or
his authorized agent is necessary for the protection of depositors,
warehouse receipt holders or sureties, the court is authorized to issue
an ex parte order and shall issue such an order authorizing the director
or his authorized agent to take immediate possession for the purposes
stated in this section. A copy of the petition and order shall be sent to
the warehouseman. If appropriate, the court may order the director's
taking possession of only grain-related assets and not the entire
business of the warehouseman. Such order may include, but is not limited
to, the following:

(1) The director locking down and securing, by padlocks or other
appropriate means, the grain storage bins, scales, offices, equipment and
rolling stock of the warehouseman;

(2) Removing and excluding the warehouseman, or any and all of the
warehouseman's employees, from the facility;

(3) Prohibiting the warehouseman from engaging in any grain-related
business transactions whatever during the director's possession of the
grain-related assets of the warehouseman's business;

(4) Authorizing all financial institutions to place all business accounts
of the warehouseman under the director's authority and to freeze all
transactions involving such accounts except to honor outstanding checks
written previous to the issuance of the court's order. If it appears that
the warehouseman has conducted, in part, his grain storage business
through the use of personal accounts as opposed to business accounts, or
intermingled two or more such accounts, the court may authorize the
applicable financial institutions to place such personal accounts, as
well as the business accounts, under the authority of the director in
order to allow the director to accurately determine the extent of all
grain-related obligations incurred by the warehouseman, the correct
status of same and the warehouseman's resources to pay his grain-related
obligations;

(5) Authorizing the director to redeliver or sell depositor or
company-owned grain, as appropriate in the circumstances and setting
forth the conditions for doing such;

(6) Authorizing the director to deposit all grain-related assets and
proceeds therefrom in an interest-bearing escrow account to be disbursed
only upon orders of the court;

(7) Directing the warehouseman to furnish the director with all
grain-related business documents which come into his possession
subsequent to the director's possession of the grain-related assets, as
well as any other grain-related documents which the warehouseman may have
knowledge of and which are not at the warehouse facility.

5. At any time within ten days after the director or his authorized agent
takes possession, the warehouseman may file with the court a response to
the petition of the director stating reasons why the director or his
authorized agent should not be allowed to retain possession. The court
shall set the matter for hearing on a date not more than fifteen days
from the date of the filing of the warehouseman's response. The order
placing the director or his authorized agent in possession shall not be
stayed nor set aside until such time as the court, after hearing,
determines that possession should be restored to the warehouseman.

6. Upon taking possession, the director shall give written notice of his
action to the surety on the bond of the warehouseman and may notify the
holders of record, as shown by the warehouseman's records, of all
receipts and tickets issued for grain to present their receipts or
tickets for examination or to account for the same. The director may
thereupon cause an audit and other investigation to be made of the
affairs of the warehouse to determine the amount of the shortage and
compute the shortage as to each depositor as shown by the warehouseman's
records, if practicable. The director shall notify the warehouseman and
the surety on his bond of the approximate amount of the shortage and may
notify each depositor thereby affected by sending notice to the
depositor's last known address as shown by the records of the
warehouseman.

7. The director or his authorized agent shall retain possession obtained
under this section until such time as the warehouseman or the surety on
the bond shall have satisfied the claims of all depositors, or until such
time as the director or his authorized agent is ordered by the court to
surrender possession. At no time while the director or his authorized
agent is in possession of a warehouse, as authorized by this section,
shall the director or his authorized agent be required to operate the
warehouse; nor will the director or his authorized agent be liable for
any claims which have arisen or could arise from the nonoperation of the
warehouse.

8. If at any time, the director, whether or not he or his authorized
agent has possession as authorized by this section, has evidence that a
warehouseman is insolvent or is unable to satisfy the claims of all
depositors, the director may petition the circuit court for the
appointment of a receiver to operate or liquidate the business of the
warehouseman in accordance with law.

9. All necessary expenses incurred by the director, his authorized agents
or any receiver appointed under this section, in carrying out the
provisions of this section may be recovered from the warehouseman in a
separate civil action brought by the director in the circuit court or as
part of the seizure or receivership action filed under this section. If
the director or any of his authorized agents seize and take possession of
the grain, records or property at the warehouse facility, the
warehouseman shall be assessed and shall pay as part of the necessary
expenses incurred a fee of fifty dollars per person for each day or part
thereof that each such person performs such activities. The cost of
liability insurance necessary to protect the director, the receiver and
others engaged in carrying out the provisions of this section may be
recovered as part of the necessary expenses. (L. 1977 S.B. 75 § 7, A.L.
1986 H.B. 1578, A.L. 1997 H.B. 211)

Effective 4-2-97

Any duly authorized officer or employee appointed under the
provisions of this chapter who shall be guilty of neglect of duty, or who
shall knowingly or carelessly inspect, grade, test, or weigh any grain
improperly, or who shall accept any money or other valuable
consideration, directly or indirectly, for any neglect of duty as such
duly authorized officer or employee, or any person who shall improperly
influence any duly authorized officer or employee in the performance of
his duties as such officer or employee shall be deemed guilty of a
misdemeanor and on conviction thereof shall be fined in a sum not less
than one hundred dollars nor more than one thousand dollars, or shall be
imprisoned in the county jail, or if in the city of St. Louis the jail of
said city, not less than six nor more than twelve months, or both such
fine and imprisonment in the discretion of the court. (RSMo 1939 § 14661,
A.L. 1941 p. 373 § 12, A.L. 1965 p. 606, A.L. 1980 S.B. 601)

Prior revisions: 1929 § 13361; 1919 § 6033; 1909 § 6810

Where a warehouseman delivers the grain to one who is not in
fact lawfully entitled to the possession of it, the warehouseman shall be
liable as for conversion to all having a right of property or possession
in the grain if he delivered the grain otherwise than as authorized by
subdivisions (2) and (3) of section 411.511, and though he delivered
grain as authorized by that section he shall be liable if prior to the
delivery he had either been requested by or on behalf of the person
lawfully entitled to a right of property of possession in the grain not
to make the delivery, or had information that the delivery about to be
made was to one not lawfully entitled to possession of the grain. (L.
1965 p. 606)

Except as provided, where a warehouseman delivers grain for
which he had issued a negotiable receipt, the negotiation of which would
transfer the right to the possession of the grain, and fails to take up
and cancel the receipt, he shall be liable to anyone who purchases for
value in good faith the receipt, for failure to deliver the grain to him
whether the purchaser acquired title to the receipt before or after the
delivery of the grain by the warehouseman. (L. 1965 p. 606)

Except as provided, when a warehouseman delivers in whole or in
part the grain for which he had issued a negotiable receipt and fails
either to take up and cancel the receipt, or to place plainly upon it a
statement of what grain had been delivered, he is liable to anyone who
purchases for value in good faith the receipt, for failure to deliver all
the grain specified in the receipt, whether the purchaser acquired title
to the receipt before or after the delivery of any portion of the grain
by the warehouseman. (L. 1965 p. 606)

The alteration of a receipt shall not excuse the warehouseman
who issued it from any liability if the alteration was:

(1) Immaterial;

(2) Authorized; or

(3) Made without fraudulent intent. If the alteration was authorized, the
warehouseman shall be liable according to the terms of the receipt as
altered. If the alteration was unauthorized, but made without fraudulent
intent, the warehouseman shall be liable according to the terms of the
receipt, as they were before alteration. Material and fraudulent
alteration of a receipt shall not excuse the warehouseman who issued it
from liability to deliver, according to the terms of the receipt as
originally issued, the grain for which it was issued, but shall excuse
him from any other liability to the person who made the alteration and to
any person who took with notice of* the alteration. Any purchaser of the
receipt for value without notice of the alteration shall acquire the same
rights against the warehouseman which the purchaser would have acquired
if the receipt had not been altered at the time of the purchase. (L. 1965
p. 606)

*Word "at" appears in original rolls.

A receipt upon the face of which the word "duplicate" is plainly
placed is a representation and warranty by the warehouseman that the
receipt is an accurate copy of an original receipt properly issued and
uncanceled at the date of issue of the duplication but shall impose upon
him no other liability. (L. 1965 p. 606)

Where a negotiable receipt is transferred for value by delivery,
and the endorsement of the transferor is essential for negotiation, the
transferee acquires a right against the transferor to compel him to
endorse the receipt unless a contrary intention appears. The negotiation
shall take effect as of the time when the endorsement is actually made.
(L. 1965 p. 606)

A person who for value negotiates or transfers a receipt by
endorsement or delivery, including one who assigns for value a claim
secured by a receipt unless a contrary intention appears, warrants:

(1) That the receipt is genuine;

(2) That he has a legal right to negotiate or transfer it;

(3) That he has knowledge of no fact which would impair the validity or
worth of the receipt; and

(4) That he has a right to transfer the title to the grain, and that the
grain is merchantable or fit for a particular purpose whenever such
warranties would have been implied if the contract of the parties had
been to transfer the grain without receipts represented thereby. (L. 1965
p. 606)

CROSS REFERENCE: Commercial code provision, RSMo 400.7-507

The endorsement of a receipt shall not make the endorser liable
for any failure on the part of the warehouseman or previous endorsers of
the receipt to fulfill their respective obligations. (L. 1965 p. 606)

CROSS REFERENCE: Commercial code provisions, RSMo 400.7-505

It shall be unlawful for any person, company, or corporation to
install or continue to maintain at any elevator, mill, or warehouse where
official state weights are given, any blower, suction fan, cleaner, or
other device for the purpose of removing dirt, seeds, sticks, chaff, or
any like substance from grain unloaded into the elevator, mill, or
warehouse before the grain has been officially weighed. (L. 1965 p. 606)

A warehouseman who issues or aids in issuing a receipt knowing
that the grain for which the receipt is issued has not been actually
received by the warehouseman, or is not under his actual control at the
time of issuing the receipt, is guilty of a felony and upon conviction
shall be punished for each offense by imprisonment by the department of
corrections and human resources for not to exceed five years. (L. 1965 p.
606)

A warehouseman who fraudulently issues or aids in fraudulently
issuing a receipt for grain, knowing that it contains any false
statement, is guilty of a felony, and upon conviction shall be punished
for each offense by imprisonment by the department of corrections and
human resources for not less than two years nor more than five years. (L.
1965 p. 606)

Where there is deposited with or held by a warehouseman grain of
which he is the owner, either solely or jointly, or in common with
others, the warehouseman who knowing this ownership issues or aids in
issuing a negotiable receipt for that grain which does not state such
ownership is guilty of a crime, and upon conviction shall be punished for
each offense by imprisonment by the department of corrections and human
resources for not less than two nor more than five years. (L. 1965 p. 606)

A warehouseman who delivers grain out of his possession, knowing
that a negotiable receipt, the negotiation of which would transfer the
right to the possession of that grain, is outstanding and uncanceled,
without obtaining possession of the receipt at or before the time of the
delivery, is guilty of a felony, and upon conviction shall be punished
for each offense by imprisonment by the department of corrections and
human resources for not less than two nor more than five years. (L. 1965
p. 606)

Any person who deposits grain to which he has not title, or upon
which there is a lien or mortgage, and who takes for the grain a
negotiable receipt which he afterward negotiated for value with intent to
defraud, or without disclosing his want of title, or the existence of the
lien or mortgage, is guilty of a crime, and upon conviction shall be
punished for each offense by imprisonment by the department of
corrections and human resources not exceeding five years, or by a fine
not exceeding five thousand dollars, or both. (L. 1965 p. 606)

Unless otherwise provided in this chapter, any person, firm or
corporation, or any officer or agent of any person, firm or corporation,
who violates any of the provisions of this chapter is, upon conviction,
guilty of a class B misdemeanor. However, if a warehouseman has been
charged, and has paid, a penalty fee for operating without a license as
set forth in section 411.255, the warehouseman may not be charged with a
misdemeanor for operating without a license for the time period covered
by the penalty fee. (L. 1965 p. 606, A.L. 1986 H.B. 1578)

Effective 4-22-86

1. Any person operating a public warehouse in Missouri under
this chapter, who desires to discontinue the operation of a public
warehouse, shall notify by first class mail all holders of warehouse
receipts, all parties storing grain in the warehouse, and all parties
with whom the warehouseman has executed deferred payment or deferred
pricing agreements in accordance with the provisions of this chapter, and
by advertising in a newspaper of general circulation in the county in
which the warehouse is situated, and the director of the state department
of agriculture, at least thirty days prior to the date of his intention
to discontinue the public grain warehouse business. The owners of the
grain shall sell to the warehouseman or remove, or cause to be removed,
their grain from the warehouse or the obligations may be assumed by a
successor warehouseman before the termination of the license. In the case
of a successor, producers or others may allow the original warehouseman
to transfer the storage obligation to the successor. No assumption by a
successor of any obligations of the predecessor warehouseman shall be
valid unless the successor is duly licensed as required by this chapter
prior to the assumption, and the depositor agrees to such assumption by
the successor. Such assumption by a successor shall not relieve the
predecessor warehouseman of the storage obligations in the event of
default therein by the successor unless both the successor and
terminating warehouseman have complied with all provisions of this
section. If for any cause the grain is not sold to the warehouseman or
removed from the warehouse or the obligation assumed by a successor, the
warehouseman discontinuing business shall sell the grain at the best
market price obtainable and deposit the funds with a bank authorized to
do business in Missouri to be held for the account of the depositor and
shall make a full detailed report of the same to the director. If and
when the depositor, or holder of claim, appears and presents a valid
claim to the bank for the funds so deposited, the bank shall deliver the
funds to the claimant.

2. At the director's discretion, a warehouse license may be deemed to be
invalid upon the change of ownership, cessation of operations, change of
partners in a partnership, change of corporate structure of a corporation
or sale. Every licensed warehouseman shall immediately notify the
department as to any such change and, when requested to do so by the
director, shall, deliver his license and all unused warehouse receipts to
the office of the department, together with a notarized statement
accounting for all receipts and setting forth the arrangements made with
depositors for final disposition of the grain in storage and for
fulfilling the obligations of the retiring warehouseman. In the case of a
successor, the successor shall apply for a new license and execute a
successor's agreement. When there is a change of ownership or cessation
of operations, the director may cause an audit and examination to be
made. (L. 1965 p. 606, A.L. 1977 S.B. 75, A.L. 1980 S.B. 601, A.L. 1986
H.B. 1578)

Effective 4-22-86

This chapter shall not prohibit, infringe, or apply to any
weighing or weighing supervision in or in connection with a federally
licensed warehouse performed by any grain exchange or board of trade. (L.
1965 p. 606, A.L. 1980 S.B. 601, A.L. 1993 H.B. 822)

The maximum fee for a public warehouse license shall be computed
as follows, based upon the capacity of the warehouse: Capacity in Bushels
Annual Fee (1) Less than 100,000 $ 100.00 (2) At least 100,000 but less
than 200,000 200.00 (3) At least 200,000 but less than 300,000 300.00 (4)
At least 300,000 but less than 400,000 400.00 (5) At least 400,000 but
less than 500,000 500.00 (6) At least 500,000 but less than 600,000
600.00 (7) At least 600,000 but less than 700,000 700.00 (8) At least
700,000 but less than 800,000 800.00 (9) At least 800,000 but less than
900,000 900.00 (10) At least 900,000 but less than 1,000,000 1,000.00
(11) At least 1,000,000 but less than 2,000,000 1,250.00 (12) At least
2,000,000 but less than 3,000,000 1,500.00 (13) At least 3,000,000 but
less than 5,000,000 1,700.00 (14) At least 5,000,000 but less than
7,000,000 1,900.00 (15) At least 7,000,000 but less than 10,000,000
2,100.00 (16) At least 10,000,000 but less than 12,000,000 2,300.00 (17)
At least 12,000,000 bushels 2,300.00

plus $150 for each additional

2,000,000 bushels of capacity

or fraction thereof. (L. 1965 p. 606, A.L. 1977 S.B. 75)

1. The director of the Missouri department of agriculture is
authorized and empowered to enter into contracts and agreements necessary
to cooperate with the Commodity Credit Corporation, a public corporation
organized under the laws of the United States, or other federal agencies
to make uniform the procedures followed in examining state licensed
public warehouses and to make available to the Commodity Credit
Corporation or other federal agencies the information acquired under such
examining procedures by state warehouse examiners.

2. The contracts may provide for reimbursement of the Missouri grain
warehouse division by the Commodity Credit Corporation for the services
so performed and furnished, and any money received pursuant to the terms
of the contracts shall be paid to the director of revenue and thereupon
deposited into the state treasury to the credit of the agricultural fees
fund. (L. 1965 p. 606)

It is the responsibility of any person licensed under this
chapter, and any person requesting services of any employee of the
department, to provide at all times safe working conditions while the
employee is performing requested or required duties as an employee of the
department. (L. 1977 S.B. 75 § 14)

Failure to pay any fees authorized by this chapter within
forty-five days of assessment shall be grounds for the suspension,
revocation or refusal to renew any license issued under this chapter. (L.
1977 S.B. 75 § 15, A.L. 1980 S.B. 601)

1. Any remedy provided by this chapter shall not be deemed to
preclude any other remedy provided for by common law or under any other
statutes. Recovery by a depositor on the warehouseman's bond shall not be
his sole or exclusive remedy, and shall not bar a civil action against
the warehouseman or surety based upon rights or obligations under a
storage agreement.

2. The grain warehouseman's bond shall be paid only to those depositors
who are deemed to have a right of recovery against such bond as set forth
under the provisions of this chapter. (L. 1977 S.B. 75 § 16, A.L. 1986
H.B. 1578)

Effective 4-22-86

A warehouseman commits the crime of "stealing grain" if he sells
grain owned by another person which has been delivered to him for the
purpose of storage without the owner's consent, or by means of deceit or
coercion, with the intent to deprive the owner of the grain either
permanently or temporarily. Stealing grain by a warehouseman is a class C
felony. (L. 1986 H.B. 1578)

Effective 4-22-86

It shall be the duty of the attorney general or each prosecuting
attorney to whom any violation of chapter 411 is reported to cause
appropriate proceedings to be instituted and prosecuted in a court of
competent jurisdiction without delay. Before a violation is reported for
prosecution, the director may give the warehouseman an opportunity to
present his views at an informal hearing. In the event the director
determines that a prosecutor to whom a violation has been reported has
failed to institute appropriate proceedings, he may make a written report
of the failure to institute proceedings to the attorney general. The
attorney general shall investigate the circumstances which resulted in
the report. If the attorney general determines that additional
proceedings are appropriate, he may cause such proceedings to be
instituted. When the attorney general causes such a proceeding to be
instituted, he shall have all the powers and rights of the office of the
prosecuting attorney to whom the violation was originally reported. Such
powers and rights are restricted to the prosecution of the specific case
reported. (L. 1986 H.B. 1578)

Effective 4-22-86

1. Each licensed warehouse, as defined in section 411.026, shall
prominently display, at the main entrance to the building of the
warehouse and on or about the scale of the warehouse so that such sign
may be easily viewed by a person using the scale, a sign containing
letters of not less than one inch and not more than six inches in height,
which shall read:

NOTICE: THIS WAREHOUSE IS LICENSED PURSUANT TO THE MISSOURI GRAIN
WAREHOUSE LAW, CHAPTER 411, RSMO.

2. Each public warehouse, as defined in section 411.026, which should,
pursuant to the provisions of chapter 411, be a licensed warehouse, as
defined in section 411.026, but which is not licensed as required by the
provisions of chapter 411, shall prominently display, at the main
entrance to the building of the warehouse and on or about the scale of
the warehouse so that such sign may be easily viewed by a person using
the scale, a sign containing letters of not less than one inch and not
more than six inches in height, which shall read:

NOTICE: THIS WAREHOUSE IS NOT LICENSED AS REQUIRED BY THE MISSOURI GRAIN
WAREHOUSE LAW, CHAPTER 411, RSMO.

3. Any warehouse, as defined in section 411.026, which is licensed
pursuant to the United States Warehouse Act, 7 U.S.C. 241, shall
prominently display, at the main entrance to the building of the
warehouse and on or about the scale of the warehouse so that such sign
may be easily viewed by a person using the scale, a sign containing
letters of not less than one inch and not more than six inches in height,
which shall read:

NOTICE: THIS WAREHOUSE IS LICENSED PURSUANT TO THE UNITED STATES
WAREHOUSE ACT, 7 U.S.C. 241-273.

4. Any warehouse, as defined in section 411.026, which does not display
the sign as required by subsection 1, 2, or 3 of this section is guilty
of a misdemeanor, and shall be subject to a fine of up to three hundred
dollars for each day of the violation. (L. 1993 H.B. 822 § 1 subsecs. 1
to 4, A.L. 1994 H.B. 1732)

CROSS REFERENCE: Attorney general may investigate and prosecute
violations, when, RSMo 276.582

1. As used in this section, "failure" means any of the following
involving a licensed or unlicensed grain warehouseman:

(1) An inability to financially satisfy claimants;

(2) A public declaration of insolvency;

(3) A revocation of license with outstanding grain storage obligations;

(4) Refusal to redeliver stored grain where a good faith dispute does not
exist;

(5) Neglect to apply for license renewal without first settling all
outstanding grain storage obligations;

(6) Denial of license renewal application; or

(7) Voluntarily surrendering a warehouse license without first settling
all outstanding grain storage obligations.

2. As used in this section, "grain or grain-related assets" involving a
failed warehouseman means any of the following:

(1) All grain owned or stored, including grain in transit shipped by the
failed warehouseman, but not yet paid for;

(2) Grain held on storage in the name of or for the account of the
warehouseman at any other warehouse;

(3) Proceeds from the sale of grain due or to become due;

(4) The equity less any secured financing directly associated therewith
in assets in hedging or speculative margin accounts held by commodity
exchanges or agents representing the exchanges, and any moneys due or to
become due less any secured financing directly associated therewith from
any transactions on the exchanges;

(5) Any other unencumbered funds, property, or equity in funds or
property, wherever located, that can be directly traced to the sale of
grain by the failed warehouseman, provided both that the funds, property,
or equity in funds or property shall not be considered to be encumbered
unless the encumbrance results from good and valuable considerations
advanced by any secured party on a good faith basis and that the
encumbrance is not the result of the taking of funds, property, or equity
in funds or property as additional collateral for an antecedent debt.

3. A lien shall exist on all grain and grain-related assets of a failed
warehouseman in favor of any of the following:

(1) Depositors, including lenders, who possess negotiable warehouse
receipts covering grain owned by the warehouseman; and

(2) Depositors who possess written evidence of ownership disclosing a
storage obligation of the warehouseman.

4. The lien which shall secure all claims described in subsection 3 of
this section shall arise at the time of commencement of the storage
obligation, or when funds are advanced by the lender, and shall terminate
when the liability of the warehouseman to the claimant is discharged,
provided that the priority of each lien among the respective claimants
shall not relate to the date the claim arises. The lien claims of all
claimants shall be considered to be assigned by operation of this section
to the department of agriculture, and in the event of a failure and
subsequent liquidation, the lien shall transfer over to assets or
proceeds of assets either received or liquidated by the department of
agriculture.

5. In the event of a failure, the director shall enforce the lien claims
and allocate the proceeds as follows against all grain and grain- related
assets for the benefit of the following:

(1) Depositors, including lenders, who possess negotiable warehouse
receipts covering grain owned by the warehouseman;

(2) Depositors who possess written evidence of ownership disclosing a
storage obligation of the warehouseman.

6. In the event that any adversary proceeding is commenced to recover
grain or grain-related assets upon which the lien imposed in this section
is imposed and the department declines to enter the proceeding, the
director, upon application to him by any claimant, shall assign to the
claimant the applicable lien to permit the claimant to pursue his lien in
the adversary proceeding to the extent the action will not delay the
resolution of the proceeding, the prompt liquidation of the assets, or
the ultimate distribution of the assets to all claimants. (L. 1997 H.B.
211)

Effective 4-2-97

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