WILLIAM DONALD SCHAEFER, Governor                     Ch. 55

[7-307.

(a)  In order to cover losses sustained by any person
storing leaf tobacco in the warehouse, the Secretary shall
arrange for appropriate insurance covering any loss by fire, and
providing for extended coverage, and coverage for loss by water
if it is obtainable at reasonable cost. Coverage shall be
available by proper endorsement for the benefit of any person
storing leaf tobacco as his interests may appear.

(b)  The owner of the tobacco shall pay the charge for his
insurance coverage upon removal of the tobacco from the
warehouse.

(c)  No insurance may be provided and no charge made where
the owner makes a written waiver of insurance coverage when the
leaf tobacco is placed in the warehouse.

(d)  No claims for damages against the warehouse for unsound
or damaged tobacco shall be allowed or paid except for damages
caused by fire or water, if insurance coverage is available and
carried.]

[7-308.

(a)  The Secretary shall inspect all tobacco in the
warehouse as soon as possible, without favor, affection, or
partiality to anyone having lots requiring inspection.

(b)  The Secretary shall sell any scrap tobacco accruing in
the warehouse for the highest price available.]

[7-309.

(a)  The Secretary may fix and establish grades for leaf
tobacco. The grades shall follow the grades established by the
United States Department of Agriculture to the extent possible.

(b)  The Secretary may grade all leaf tobacco sold or
offered for sale in the warehouse, whether or not the tobacco is
stored in the warehouse or in private warehouses. For this
purpose, the Secretary may enter private warehouses where tobacco
is stored during regular business hours.

(c)  The tobacco shall be graded as soon as the hogshead is
uncased and the sample taken.

(d)  The tobacco of any grower or shipper may not be graded
if the grower, shipper, or their agents submits a written
statement that he does not wish his tobacco to be graded when the
tobacco is placed in the warehouse or shipped to the selling
agency.]

- 455 -