ORS 586.525
Procedure in case of probable shortage in grain or where warehouseman refuses to submit to inspection


(1)

Whenever it appears probable after investigation that a licensed warehouseman has not in possession sufficient grain to cover the outstanding warehouse receipts, load slips or other evidence of storage liability issued or assumed by the warehouseman, or when such warehouseman refuses to submit books, papers or property to lawful inspection, the State Department of Agriculture may give notice to the warehouseman to comply with all or any of the following requirements:

(a)

Cover such shortage.

(b)

Give additional bond.

(c)

Submit to such inspection as the department may deem necessary.

(2)

If such warehouseman fails to comply with the terms of such notice within 24 hours from the date of its issuance, or within such further time as the department may allow, the department, represented by the Attorney General or the district attorney of the county in which the warehouse is located, shall apply to the circuit court of such county for an order:

(a)

Authorizing the department to take possession of all special piles and special bins of grain and all commingled grain in the public warehouse or warehouses owned, operated or controlled by the warehouseman, and of all books, papers and property of all kinds used in connection with the conduct or the operation of such warehouseman’s warehouse business, whether such books, papers, records and property pertain specifically, exclusively, directly or indirectly to that business, or are related to the handling, storage or use of grain of the warehouseman in any other business; and

(b)

Enjoining the warehouseman from interfering with the department in the discharge of its duties as required by this section.

(3)

Upon taking possession the department shall give written notice of its action to the surety on the bond of the warehouseman and may notify the holders of all warehouse receipts or other evidence of deposits issued for grain, to present their warehouse receipts or other evidence of deposits, for inspection, or to account for the same. The department may thereupon cause an audit to be made of the affairs of such public warehouse with respect to the grain in which there is an apparent shortage, determine the amount of such shortage and compute the shortage as to each depositor of grain. The department shall notify the warehouseman and the surety on the bond of the warehouseman of the amount of such shortage and notify each depositor thereby affected.

(4)

The department shall retain possession of the grain in the warehouse or warehouses, and of the books, papers and property of the warehouseman, until such time as the warehouseman or the surety on the bond shall have satisfied the claims of all holders of warehouse receipts or other evidence of deposits, or, in case the shortage exceeds the amount of the bond, the surety on the bond shall have satisfied such claims pro rata, or until such time as the department is ordered by the court to surrender possession.

(5)

If during or after the audit provided for in this section, or at any other time the department is of the opinion that the warehouseman is insolvent or in danger of becoming so or is unable to satisfy the claims of all holders of warehouse receipts or other evidence of deposits, the department, represented by the Attorney General or the district attorney of the county in which the public warehouse is located, may petition the circuit court of such county for the appointment of a receiver to operate or liquidate the business of the warehouseman in accordance with law.

(6)

At any time within 10 days after the department takes possession of any grain, or the books, papers and property of any licensed grain warehouse, the warehouseman may serve notice upon the department to appear in the circuit court of the county in which such warehouse is located, at a time to be fixed by such court, which shall be not less than five, nor more than 15 days from the date of the service of such notice, and show cause why such grain, books, papers and property should not be restored to the possession of the warehouseman.

(7)

All expenses incurred by the department in carrying out the provisions of this section shall be a first charge and lien upon the assets of the warehouseman, and may be recovered in a separate civil action brought by the department, represented by the Attorney General or the district attorney, in the circuit court of the county in which the public warehouse is located, or recovered at the same time and as a part of the action filed under this section.

(8)

As a part of the expenses so incurred, the department or the receiver is authorized to include the cost of adequate liability insurance necessary to protect the department, its officers and others engaged in carrying out the provisions of this section.

(9)

Nothing in this section shall be construed as a waiver by the State of Oregon of any immunity against suit or action. [1957 c.11 §3; 1961 c.445 §17]

Source: Section 586.525 — Procedure in case of probable shortage in grain or where warehouseman refuses to submit to inspection, https://www.­oregonlegislature.­gov/bills_laws/ors/ors586.­html.

586.210
Definitions for ORS 586.210 to 586.730
586.225
Exemption for certain warehousing facilities
586.230
State Department of Agriculture to inspect warehouses and records and make rules to enforce ORS 586.210 to 586.730
586.235
Cooperative agreements for inspections in other states
586.250
Improper acts of department officers or employees and of others improperly influencing them
586.270
Warehouse licenses
586.275
Revocation of or refusal to issue license
586.280
Prohibition against operating a warehouse or issuing a warehouse receipt without a license
586.285
Operation without a license may be enjoined
586.290
Posting of signs at warehouses
586.295
Warehouse to be maintained in adequate manner
586.300
Warehouseman’s bond
586.315
Warehouseman required to insure grain or retain written waiver by depositor
586.330
Investigating and fixing warehouse charges
586.340
Posting rate schedules
586.350
Overcharges, rebates and preferences prohibited
586.360
Warehouseman required to receive grain for storage
586.370
Obtaining blank forms of receipts from department
586.380
Only authorized receipts to be used
586.382
Warehouse records
586.385
Warehouseman’s liability for failure to issue proper receipt
586.395
Warehouseman’s liability for injury to grain
586.400
Duty of warehouse receiving grain for storage
586.410
Loading and shipping instructions
586.415
Approval of holder of receipt required before sale, shipment or other transaction
586.520
Inspection of warehouses
586.525
Procedure in case of probable shortage in grain or where warehouseman refuses to submit to inspection
586.527
Settlement of claims against defaulting warehouseman
586.529
Receivership of warehouse business
586.530
Establishment of standard grades for commodities received
586.550
Warehouseman to keep copy of regulations available for inspection
586.555
Warehouseman’s reports to department
586.561
Discontinuance of operation of warehouse
586.710
Disposition of certain fees
586.720
Application of Uniform Commercial Code–Documents of Title and other laws to public warehouses
586.730
Violation of provisions or noncompliance with order prohibited
586.990
Penalties
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