MCA Chapter 43

in effect

Miss. Code Ann. § 75-43-1 Storage in farm warehouses; application of chapter.

Any landowner, tenant or manager of any lands in this state may store his own grain in a farm warehouse built and situated on such land and receive a warehouse receipt for the same by complying with the provisions of this chapter. Nothing in this chapter shall require any person who does not desire to receive a warehouse receipt for storage of his grain in his warehouse to obtain a license pursuant to this chapter or otherwise to comply with this chapter. This chapter shall not apply to public grain warehouses, which shall be governed by Sections 75-44-1 et seq. The provisions of this chapter shall apply to all farm warehouses, as defined by this chapter, and to the operations of all such warehouses.

Miss. Code Ann. § 75-43-2 Definitions.

When used in this chapter: “Person” shall mean individuals, corporations, partnerships and all associations of two (2) or more persons having a joint or common interest. “Commissioner” shall mean the commissioner of the Mississippi Department of Agriculture and Commerce, or his designated representative. “Grain” shall mean all grains for which standards have been established pursuant to the United States Grain Standards Act, and shall include rice, as defined by the standards of the United States Department of Agriculture. “Farm warehouse” shall mean any building, structure or other protected enclosure in this state used for the purpose of storing grain, and which has been licensed pursuant to this chapter. “Farm warehouseman” shall mean any person who operates a farm warehouse as herein defined. “Warehouse receipt” shall mean a negotiable grain storage receipt given by the commissioner to a farm warehouseman.

Miss. Code Ann. § 75-43-3 Application for license; necessity of obtaining license; fees; renewal of license; lost or destroyed license.

Any person coming under the provisions of this chapter and desiring to utilize the provisions thereof shall file with the Mississippi Department of Agriculture and Commerce, an application for a license, stating the legal description of the land, the location of the building or buildings, the material of which they are made, the name or names of the owners thereof, and such further information as the commissioner, by regulation, requires. If it appears from such application that the building or buildings are suitable structures in which to store grain, and upon satisfaction of the provisions of this section, Sections 75-43-29 through 75-43-33, and any applicable regulations, the commissioner shall issue a license to the applicant which designates such building or buildings as farm warehouses, and which authorizes the applicant to operate the farm warehouse under this chapter and receive warehouse receipts for his own grain stored in the warehouse pursuant to this chapter. This license shall be good for one (1) year, and it is renewable upon compliance with this chapter. No person shall operate a farm warehouse as defined by this chapter without first having obtained a license pursuant to this chapter. Applications for licenses under this chapter are to be made on forms prescribed by the commissioner for each separate warehouse or, if an applicant owns more than one (1) warehouse at any one (1) location, which does not exceed eight (8) miles in distance, then all the warehouses at that location may be included in one (1) application. Prior to the issuance of a license, every applicant shall pay an annual license fee based upon the capacity of the warehouse, such fee to be determined by the commissioner, but not to exceed fifty dollars ($50.00). If a farm warehouseman desires to renew his license for an additional year, application for such renewal shall be made on a form prescribed by the commissioner. At least sixty (60) days prior to the expiration of each license, the commissioner shall notify each farm warehouseman of the date of such expiration and furnish such farm warehouseman with the renewal form. Upon satisfactory proof of the loss or destruction of a license issued to a farm warehouseman, a duplicate thereof or a new license may be issued under the same number.

Miss. Code Ann. § 75-43-5 Repealed.

Repealed by Laws, 1978, ch. 434, § 27, eff from and after July 1, 1978. [Codes, 1930, § 3542; 1942, § 5073; Laws, 1924, ch. 270]

Miss. Code Ann. § 75-43-7 Application for receipt; certification of grade of grain.

Whoever holds a license to operate a farm warehouse, as provided for by this chapter, shall be entitled to have issued on his own grain stored in his farm warehouse or warehouses, a warehouse receipt or receipts, which shall be issued by the commissioner upon compliance with this section by the license holder. Any license holder desiring a warehouse receipt on his grain shall file application with the commissioner, on a form supplied by the commissioner, which shall state the location, the type, and the quantity of the grain on which the receipt is to be issued. In or accompanying the application, the applicant shall certify the grade of the grain and he shall agree to maintain the certified grade during the time that the grain is stored in his warehouse, and to deliver the certified grade to the holder of the warehouse receipt, upon demand for redemption of the receipt.

Miss. Code Ann. § 75-43-9 Issuance of receipt; posting notice that grain in warehouse is under receipt; prohibition against limitation of liability.

When the application has been received by the commissioner, and the applicant has certified the grade of the grain and agreed to maintain and deliver the certified grade, as required by Section 75-43-7, the commissioner shall immediately issue the applicant a warehouse receipt or receipts which shall be under his signature. The receipt shall conform to the requirements of Section 75-7-202, and in addition shall embody within its written or printed terms the legal description of the land, the location of the warehouse or warehouses, and the quantity and grade of the grain stored in the warehouse. At the time the warehouse receipt or receipts are issued, the farm warehouseman shall place upon the warehouse or warehouses in a conspicuous place, a notice that the grain in his warehouse is under warehouse receipt, which notice shall contain a statement of the quantity and grade of the grain, the bins or containers which contain the grain covered by the receipt, and the date of the expiration of the warehouse license. A farm warehouseman shall not insert any language in any warehouse receipt or make any contract with respect to any warehouse receipt which purports to limit the liabilities or responsibilities imposed on him by law.

Miss. Code Ann. § 75-43-11 Warehouse receipts negotiable; sale or pledge of receipts.

All warehouse receipts issued are hereby made negotiable, transferable and assignable, provided that when the warehouse receipt is issued to a tenant, it shall be issued only subordinate to the landlord’s lien and the name of such landlord shall be given thereon. Provided, however, this chapter shall in no way be construed to impair or affect the landlord’s lien or any lien created by written instrument and duly recorded as provided by law. A farm warehouseman may make a valid sale or pledge of any warehouse receipts issued for his own grain stored in his farm warehouse, 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 specified lien of the transferee or pledgee upon the warehouseman’s grain represented by the receipts.

Miss. Code Ann. § 75-43-13 Insurance.

Every farm warehouseman to whom warehouse receipts are issued shall at all times keep the grain stored in the farm warehouse insured by an insurance company authorized to do business in this state. The grain is to be insured for its full market value against loss by fire, inherent explosion, lightning, tornado and windstorm, and failure to do so shall make the farm warehouseman liable for the same. All such policies shall provide that no cancellations shall be effective unless thirty (30) days’ prior notice is given the commissioner. If fire, inherent explosion, lightning, tornado or windstorm shall destroy or damage all or part of the grain stored in any farm warehouse, the farm warehouseman shall, upon demand by the holder of any warehouse receipt for such grain, and upon being presented with the warehouse receipt, make settlement for the fair market value.

Miss. Code Ann. § 75-43-15 Penalties.

Any person who wilfully makes a false or fraudulent representation in his application for a license or warehouse receipt, or who wilfully removes or permits to be removed from the farm warehouse or warehouses owned or controlled by him, any grain contained in such warehouses while a farm warehouse receipt or receipts issued upon such grain is negotiated, transferred or assigned, without first procuring a release and the consent of the owner of the grain, or who falsely swears as to the true ownership of any such grain, or as to the existence of any security interest, lien or other encumbrance thereon, or who otherwise commits any willful violation of any provision of this chapter, shall be guilty of a felony, and upon conviction thereof, shall be punished by a fine of not more than twenty thousand dollars ($20,000.00) and/or imprisonment for not more than five (5) years. Any person who negligently commits any of the violations listed in subsection (1) of this section or who otherwise commits any negligent violation of this chapter shall be guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine of not more than five thousand dollars ($5,000.00) and/or imprisonment for not more than one (1) year.

Miss. Code Ann. § 75-43-17 Receipts; redemption.

In case any one to whom a warehouse receipt is issued, under the provisions of this chapter, shall negotiate, assign, transfer or pledge the same to any person, individual, firm or corporation, as security for any money, credit or other obligation, and shall thereafter pay or tender the full amount due thereon to such assignee or holder for any such money or credit, and shall fulfill and discharge any such other obligation for which such warehouse receipt was negotiated, transferred or assigned, it shall then be the duty of such assignee or holder of such receipt to immediately, upon request of the person to whom the same was issued, surrender to the person to whom said receipt was issued, said warehouse receipt, together with the release of the lien thereon for which it was negotiated, assigned or pledged. Upon the failure of any such assignee or holder to surrender or release the same, he shall be fined in any sum not exceeding one hundred dollars ($100.00) and pay the cost of prosecution; and, moreover, he shall be liable to the party to whom such receipt was issued for any and all damages by him sustained.

Miss. Code Ann. § 75-43-19 Repealed.

Repealed by Laws, 1978, ch. 434, § 27, eff from and after July 1, 1978. [Codes, 1930, § 3549; 1942, § 5080; Laws, 1924, ch. 270; 1966, ch. 316, § 10-105]

Miss. Code Ann. § 75-43-21 Powers and duties of commissioner of agriculture and commerce.

The commissioner shall carry out and enforce the provisions of this chapter and is hereby empowered to promulgate rules and regulations to carry out necessary inspections and to appoint and fix the duties of his personnel and provide such equipment as may be necessary to assist him in enforcing the provisions thereof.

Miss. Code Ann. § 75-43-23 Denial of application for license; hearing; appeal.

If, after proper application, the commissioner denies any person, partnership, association or corporation a license to operate a farm warehouse, the commissioner shall transmit immediately to the applicant by certified mail an order so providing, which shall state the reasons for the denial. In the event the applicant is dissatisfied at the decision of the commissioner, the applicant may request a hearing within ninety (90) days with the commissioner, to appear and defend its compliance with all appropriate regulations and/or give evidence that all deficiencies have been corrected. If, after said hearing, the commissioner denies applicant a license, the commissioner shall transmit immediately to applicant by certified mail an order so providing, which shall state the reasons for the denial. In the event the applicant is dissatisfied at the decision of the commissioner after the hearing, the applicant may appeal to the chancery court of the county where the farm warehouse is located, within thirty (30) days of the date of the order, in accordance with the provisions of subsection (2) of Section 75-43-27.

Miss. Code Ann. § 75-43-25 Posting of license.

Immediately upon receipt of his license or of any modification or extension thereof, the farm warehouseman shall post the license in a place designated by the commissioner, and thereafter keep it posted until suspended or terminated.

Miss. Code Ann. § 75-43-27 Suspension, cancellation or revocation of license; return of license.

If a farm warehouseman is convicted of any crime involving fraud or deceit, or if the commissioner determines that any farm warehouseman has violated any of the provisions of this chapter, or any of the rules and regulations adopted by the commissioner pursuant to this chapter, the commissioner may, at his discretion, suspend, cancel or revoke the license of such farm warehouseman. All proceedings for the suspension, cancellation or revocation of licenses shall be before the commissioner, and the proceedings shall be in accordance with rules and regulations which shall be adopted by the commissioner. No license shall be cancelled or revoked, except after a hearing before the commissioner, upon reasonable notice to the licensee and an opportunity to appear and defend. The commissioner may temporarily suspend the license of a licensee for good and reasonable cause before notice or hearing, and the licensee shall be entitled to a hearing on such temporary suspension without undue delay. Whenever the commissioner shall suspend, cancel or revoke any license, he shall prepare an order so providing which shall state the reason or reasons for such suspension, cancellation or revocation. The order shall be sent, by certified mail, by the commissioner to the licensee at the address of the farm warehouse licensed. Within thirty (30) days after the mailing of the order, the licensee, if dissatisfied with the order of the commissioner, may appeal to the chancery court of the county where the farm warehouse is located by filing a written notice of appeal alleging the pertinent facts upon which such appeal is grounded. At the time of the filing of the appeal, the appellant shall give a bond for costs conditioned upon his prosecution of the appeal without delay and payment of all costs assessed against him. Appeal may be with supersedeas and shall be subject to the provisions of Section 11-51-31. In case a license issued to a farm warehouseman expires or is suspended, revoked or cancelled by the commissioner or his designated representative, such license shall be immediately returned to the commissioner and the farm warehouseman shall forthwith comply with the provisions of Section 75-43-51.

Miss. Code Ann. § 75-43-29 Warehouseman’s bond; cancellation of bond by surety; self-insurance.

Before any person is granted a license pursuant to Section 75-43-3, such person shall give a bond to the commissioner executed by the farm warehouseman as principal and by a corporate surety licensed to do business in this state as a surety, such bond to be approved by the commissioner of insurance. The bond shall be in favor of the commissioner for the benefit of all persons interested, their legal representatives, attorneys or assigns, conditioned upon the faithful compliance by the farm warehouseman with the provisions of this chapter and the rules and regulations of the state department of agriculture and commerce applicable thereto. The aggregate liability of the surety to all depositors or storers of grain shall not exceed the sum of such bond. The bond may be cancelled at any time by the surety by giving written notice to the commissioner of agriculture and commerce of its intention to cancel the bond, and all liability thereunder shall terminate thirty-five (35) days after the mailing of such notice, except that such notice shall not affect any claims arising under the bond, whether presented or not, before the effective date of the cancellation notice. In lieu of the bond required in subsection (1) of this section, an applicant for a license may be a self-insurer by posting with the commissioner cash, federal treasury bills, notes, securities or bonds, provided such notes, securities or bonds are secured by the federal government or the State of Mississippi in an amount equivalent to the bond as provided in Section 75-43-31.

Miss. Code Ann. § 75-43-31 Amount of warehouseman’s bond; blanket bond; increasing amount of bond.

The amount of bond to be furnished for each farm warehouse shall be fixed at a rate of not less than twenty cents (20¢) per bushel for the first one million (1,000,000) bushels of licensed capacity; not less than fifteen cents (15¢) per bushel for the next one million (1,000,000) bushels of licensed capacity; and not less than ten cents (10¢) per bushel for all licensed capacity over two million (2,000,000) bushels; provided that in no case shall the amount of the bond be less than five thousand dollars ($5,000.00) or more than five hundred thousand dollars ($500,000.00), except as prescribed in subsection (3) of this section. The licensed capacity shall be equal to the maximum number of bushels of grain that the farm warehouse can accommodate for storage. In no event shall the liability of the surety accumulate for each successive license period during which this bond is in force, but shall be limited in the aggregate to the bond amount or changed by appropriate rider or endorsement. A farm warehouseman who is licensed or is applying for licenses to operate two (2) or more farm warehouses may give a single bond meeting the requirements of this chapter to cover all such farm warehouses within the state. In such cases all farm warehouses to be covered by the bond shall be deemed to be one (1) warehouse for purposes of determining the amount of bond required under subsection (1) of this section. If the commissioner finds that conditions exist which warrant requiring additional bond, there shall be added to the amount of bond such further amount as is determined to be reasonable by the commissioner.

Miss. Code Ann. § 75-43-33 Additional bond to cover obligations when application made for amendment to license.

If an application is made for an amendment to a license and no bond previously filed by the farm warehouseman under Sections 75-43-29 and 75-43-31 covers obligations arising during the period covered by such amendment, the farm warehouseman shall file with the commissioner an additional bond in such amount as may be determined by the commissioner.

Miss. Code Ann. § 75-43-35 Actions on bonds or against self-insurers for failure to redeem warehouse receipts.

In the absence of any contrary contractual agreement between the parties, it shall be the duty of the farm warehouseman to redeem a warehouse receipt within ten (10) days of the demand for the redemption of such receipt. Any holder of a warehouse receipt issued to a farm warehouseman by the commissioner, who has made demand for redemption of such receipt, which demand was, without lawful excuse, not satisfied within ten (10) days, shall notify the commissioner in writing and shall have the right to bring action against the farm warehouseman and the surety on the farm warehouseman’s bond for payment of the market value of the grain represented by such warehouse receipt, such market value to be determined as of the date of the demand, plus legal interest accrued from the date of the demand. The surety has the responsibility to pay within fifteen (15) days following receipt by the surety of the notice of the demand for redemption. In the event the farm warehouseman is a self-insurer, as provided in Section 75-43-29, the holder of a warehouse receipt shall have the right to bring action against the farm warehouseman to the extent of the amount posted in lieu of the bond. The commissioner shall pay to the holder of the warehouse receipt, to the extent of the bond posted, any judgment obtained by the holder of a warehouse receipt against a self-insurer. The commissioner may also pay to the holder of a warehouse receipt the amount of the market value of the grain, provided that the farm warehouseman agrees to such payment; provided, however, the license of the farm warehouseman shall be suspended upon such payment until such time as the warehouseman posts a bond as provided in this chapter, or posts with the commissioner a sum equivalent to that paid by the commissioner on behalf of such warehouseman. In all actions in which judgment is rendered against any surety company under the provisions of this section, if it appears from evidence that the surety company has wilfully and without just cause refused to pay the loss upon demand, the court, in rendering judgment, shall allow the plaintiff the amount of the plaintiff’s expenses, including court costs and attorney’s fees, to be recovered and collected as part of the costs. The amount of any payment of costs and attorney’s fees under this subsection will not reduce the surety’s remaining liability on its bond.

Miss. Code Ann. § 75-43-37 Maintenance of grade of grain; failure to maintain grade.

It shall be the duty of each farm warehouseman to whom a warehouse receipt or receipts have been issued to maintain the grade of the grain which he certified in his application for a warehouse receipt, as required by Section 75-43-7. If the farm warehouseman does not maintain the grade of the grain which he certified in the application, he shall be liable on his bond, or on the amount posted in lieu of the bond, to the holder of the warehouse receipt who has made demand for the redemption of the receipt for the amount of the damages sustained by the holder of the receipt. The holder of the receipt shall give notice to the commissioner, and payment shall be made, in accordance with the procedure set forth in Section 75-43-35. The right of the holder of the warehouse receipt to make a claim against the bond or amount posted in lieu of the bond for failure of the warehouseman to maintain the grade of the grain shall exist only while the grain is still in the warehouse or on the premises of the storage facility. Once the holder of the receipt removes the grain from the premises of the storage facility, he relinquishes all right to make a claim against the bond or amount posted in lieu of the bond for damages sustained because of a decrease in the grade of the grain.

Miss. Code Ann. § 75-43-39 Examination of warehouse by commissioner.

Every farm warehouse for which there is a warehouse receipt outstanding shall be examined monthly by the commissioner. The cost of such examination shall be included in the annual license fee. The commissioner, at his discretion, may make additional examinations of any public grain warehouse at any time. If any discrepancy is found as a result of additional examination, the cost of such examination is to be paid by the farm warehouseman. The commissioner shall examine and inspect the grain stored in the farm warehouse, and shall determine the quantity of the grain stored in each container in the warehouse. The commissioner shall maintain a record and file of all inspections made of the warehouses and of the results of such inspections.

Miss. Code Ann. § 75-43-41 Copies of warehouse receipts.

At least one (1) actual or skeleton copy of all receipts shall be made and retained by the commissioner, and all copies shall have clearly and conspicuously printed or stamped on them the words “Copy-Not Negotiable.”

Miss. Code Ann. § 75-43-43 Commissioner to approve form of warehouse receipts; printing of warehouse receipts by state printer.

The form of all receipts shall be approved by the commissioner. The commissioner shall be authorized to have printed by the state printer all warehouse receipts to be issued by the commissioner.

Miss. Code Ann. § 75-43-45 Issuance of new warehouse receipt for undelivered portion of grain.

If a farm warehouseman delivers only a part of a lot of grain for which a warehouse receipt has been issued, the commissioner, upon proper notice, shall take up and cancel such receipt and issue a new receipt for the undelivered portion of grain.

Miss. Code Ann. § 75-43-47 Delivery of grain pursuant to warehouse receipts.

A farm warehouseman shall not deliver grain for which a warehouse receipt has been issued until the receipt has been returned to him and cancelled.

Miss. Code Ann. § 75-43-49 Warehouse receipts not to be issued except for actual storage nor for quantities greater than actually stored.

No warehouse receipt shall be issued, unless the grain for which it is to be issued is actually present in storage in the warehouse, nor shall any receipt be issued for a greater quantity of grain than is in storage in the warehouse, nor shall more than one (1) 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.

Miss. Code Ann. § 75-43-51 Notice by warehouseman of discontinuance of operations or of suspension, revocation or cancellation of license.

Any person operating a farm warehouse who desires to discontinue such operation at the expiration of his license, or whose license is suspended, revoked or cancelled by the commissioner or his designated representative, shall notify the commissioner and all holders of warehouse receipts, if known, or if not know, by advertising in the newspaper or newspapers of largest general circulation in the community in which the farm warehouse is located once per week for three (3) consecutive weeks, at least thirty (30) days prior to the date of expiration of his license, of his intention to discontinue the farm warehouse business, and the owners of the grain shall remove, or cause to be removed, their grain from such farm warehouse before the expiration of the license.

Miss. Code Ann. § 75-43-53 Information relating to affairs or transactions of warehouse not to be disclosed by commissioner’s inspectors or employees.

No inspector or employee of the commissioner’s office shall disclose any information obtained by him in the course of his employment related to the affairs or transactions of any farm warehouse without first having obtained the express permission in writing of such farm warehouseman.

Miss. Code Ann. § 75-43-55 Uniform Commercial Code as governing law.

The provisions and definitions of the Uniform Commercial Code relating to warehouse receipts, to the extent not inconsistent with this chapter, shall govern warehouse receipts issued by the commissioner under this chapter, and the other provisions of the Uniform Commercial Code shall also be applicable to the provisions of this chapter to the extent not inconsistent with this chapter.