Law Summary

1. Title and Purpose

• Legal Principle: This Act is officially known as the "Bonded Rice Warehouse Act."
• Purpose: To regulate the storage of rice, establish obligatory requirements for rice storage, and provide penalties for violations of the Act.

2. Licensing Requirements

• Legal Principle: No individual or entity may engage in rice storage without a license.
• Key Definitions:
  • "License" refers to the official permit granted by the Director of the Bureau of Commerce and Industry.
• Requirements:
  • Application for a license must specify:
    • Locations of warehouses.
    • Maximum quantity of rice to be stored.
  • Accompanied by a cash bond or a bond secured by real estate, equal to the value of the maximum rice quantity stored.
• Timeframes:
  • License is annual and expires on December 31 each year.

3. Bond Requirements

• Legal Principle: A bond is required to ensure financial protection for depositors.
• Key Definitions:
  • "Bond" is a financial security ensuring the market value of rice stored.
• Requirements:
  • Amount set at six pesos per cavan (husked rice) and two pesos and fifty centavos per cavan (unhusked rice).
  • Bond must be approved by the Director of the Bureau of Commerce and Industry.

4. Insurance Obligations

• Legal Principle: Licensed warehouse operators must insure the rice against fire.
• Requirements:
  • Warehouse operators can collect insurance premiums from depositors for this coverage.

5. Record-Keeping and Enforcement

• Legal Principle: Comprehensive record-keeping is mandated for all transactions.
• Requirements:
  • Maintain records of:
    • Rice stored.
    • Receipts issued.
    • Withdrawals.
    • Cancelled quedans.
  • The Director has authority to require additional information for enforcement purposes.
• Penalties:
  • The Director may suspend or revoke licenses for violations.

6. Violations and Penalties

• Legal Principle: Violations of the Act result in financial penalties.
• Penalties:
  • Conviction for receiving excess rice or other violations can lead to fines up to five thousand pesos.

7. Application of Other Laws

• Legal Principle: Certain provisions of existing laws are applicable.
• Cross-Reference:
  • Provisions of Act No. 2137 (concerning warehouse receipts) are applicable unless inconsistent with this Act.

8. Effectivity

• Timeframe: The Act will take effect on January 1, 1930.

Key Takeaways

• The Bonded Rice Warehouse Act requires a license for rice storage, mandates bonding for financial protection, and enforces strict record-keeping.
• Insurance against fire is obligatory for stored rice, with operators collecting premiums from depositors.
• Violations incur substantial fines, and the Bureau of Commerce and Industry oversees compliance and enforcement.
• The Act incorporates relevant provisions from existing legislation concerning warehouse receipts.