Application and Bond Requirements
- Applicants must specify the warehouse location(s) and the maximum rice quantity to be stored.
- Application must be accompanied by a bond, payable in cash, real estate, or bonding company surety.
- Bond amount is calculated based on the aggregate value of maximum rice stored: ₱6.00 per cavan of husked rice and ₱2.50 per cavan of unhusked rice.
- The bond is conditioned to guarantee payment or delivery of rice upon depositor’s demand if the warehouseman cannot fulfill his obligation.
- The Director must approve and verify the bond’s sufficiency prior to issuing the license.
Insurance Requirement
- Licensed rice storage operators must insure stored rice against fire.
- They are authorized to collect insurance premiums from depositors.
Record-Keeping and Regulatory Oversight
- Operators must maintain complete records of rice stored, receipts issued, withdrawals made, and quedans returned or cancelled.
- The Director of the Bureau of Commerce and Industry has authority to request information essential for enforcing this Act.
- The Director may suspend or revoke a license for violations of the Act’s provisions.
Penalties for Violations
- Storage of rice quantities exceeding those specified in the application and bond or other violations of this Act shall be punishable by a fine not exceeding ₱5,000.
Applicability of Related Warehouse Receipts Law
- Relevant provisions of Act No. 2137 concerning warehouse receipts apply, provided they do not conflict with this Act.
Effective Date
- This Act took effect on January 1, 1930.