712.A. Delivery of Commodities

Deliveries of rice and soybean oil shall be made by the delivery of registered warehouse receipts issued by warehousemen against stocks in warehouses which have been declared regular by the Exchange. The Exchange, by rule, may prescribe the conditions upon which warehouses and warehousemen may become regular except that in the case of federally licensed warehouses and warehousemen, the Exchange may impose only such reasonable requirements as to location, accessibility and suitability as may be imposed on other regular warehouses and warehousemen. The Exchange, by rule, may prescribe conditions not inconsistent with the provisions of this Chapter upon which warehouse receipts issued by regular warehouses shall be deliverable.

Deliveries of corn, oats, wheat, soybeans, soybean meal, South American Soybeans and ethanol shall be made by delivery of registered shipping certificates issued by shippers designated by the Exchange as regular to issue shipping certificates for such commodities. Shipping certificates for such commodities and warehouse receipts for soybean oil shall be delivered using the electronic fields which the Exchange and the Clearing House require to be completed.  In order to effect a valid delivery each such shipping certificate or warehouse receipt must be endorsed by the holder making the delivery, and transfer as specified above constitutes endorsement.  Such endorsement shall constitute a warranty of the genuineness of the certificate or receipt and of good title thereto, but shall not constitute a guaranty, by an endorser, of performance by the issuer of the certificate or receipt.  Such endorsement shall also constitute a representation that all premium, storage, or carrying charges have been paid on the commodity covered by the certificate or receipt, in accordance with the rules of the relevant product chapter. (11/29/07)

712.B.  Registration of Warehouse Receipts and Shipping Certificates

(1)     In order to be valid for delivery against futures contracts, warehouse receipts and shipping certificates must be registered with the Registrar and in accordance with the requirements issued by the Registrar. Facilities that are regular for delivery may register warehouse receipts or shipping certificates, as applicable, at any time. If the facility determines not to tender the warehouse receipt or shipping certificate by 4:00 p.m. on the day it is registered, the facility shall declare that the receipt or certificate has been withdrawn but is to remain registered by transmitting to the Registrar the warehouse receipt number or certificate number and the name and location of the facility. The holder of a registered receipt or certificate may cancel its registration at any time. A receipt or certificate which has been canceled may not be registered again.

(2)      No notice of intention to deliver a certificate shall be tendered to the Clearing House unless said certificate is registered and in possession of the clearing member tendering the notice or unless a shipping certificate is registered and outstanding.  When a notice of intention to deliver a certificate has been tendered to the Clearing House, said certificate shall be considered to be “outstanding” until its registration is cancelled.

(3)     From his own records, the Registrar shall maintain a current record of the number of receipts and certificates that are registered and shall be responsible for posting this record on the Exchange website. The record shall not include any receipts or certificates that have been declared withdrawn.

(4)     When a warehouseman/shipper regains control of its own registered receipt or certificate, the warehouseman/shipper shall by 4:00 p.m. of that business day either cancel the registration of said receipt or certificate, or declare that said receipt or certificate is withdrawn but is to remain registered by transmitting to the Registrar the receipt or certificate number and the name and location of the facility, except in the case where a notice of intention to redeliver said receipt or certificate for the warehouseman/shipper has been tendered to the Clearing House by 4:00 p.m. of the day that the warehouseman/shipper regained control of said receipt or certificate. 

(5)     The Registrar shall not divulge any information concerning the registration, delivery or cancellation of receipts or certificates other than the record posted on the Exchange website, except that he shall issue a daily report showing the total number of receipts and certificates registered as of 4:00 p.m. on each trading day of the week.  In addition to the information posted on the Exchange website, this daily report will show the names of facilities whose receipts or certificates are registered and the location of such facilities.  This report shall not include any warehouse receipts or certificates that have been declared withdrawn. (11/29/07)

712.C.    Electronic Warehouse Receipts and Shipping Certificates

The Exchange and the Clearing House shall determine the electronic fields which are required to be completed in connection with an electronic shipping certificate or warehouse receipt.

The electronic shipping certificate or warehouse receipt obligates the regular facility, for value received and receipt of the certificate or receipt properly endorsed, and subject to a lien for payment of premium, storage or carrying charges, to deliver the specified quantity of the relevant commodity conforming to the standards of the Exchange, and to ship the commodity in accordance with orders of the lawful owner of the certificate or receipt and in accordance with the rules of the Exchange.  Delivery shall be by water, rail or truck conveyance, as specified in the relevant contract specification chapters, according to the registered loading capability of the shipper.

Delivery of the electronic shipping certificate or warehouse receipt to the issuer by the owner of the certificate or receipt, for the purpose of shipment of the commodity, is conditioned upon loading of the commodity in accordance with the rules of the Exchange, and a lien is claimed until all loadings are complete and proper shipping documents presented accompanying demand draft for freight and premium, storage or carrying charges due which the owner of the certificate agrees to honor upon presentation.  (11/29/07)

712.D.  Lost or Destroyed Negotiable Warehouse Receipts

(1) Unless a federal or state law prescribes different procedures to be followed in the case of lost or destroyed warehouse receipts, the following procedures shall be followed. A replacement receipt may be issued upon compliance with the conditions set forth in paragraph (2) of Rule 712.D.  Such replacement receipt must be issued upon the same terms, must be subject to the same conditions, and must bear on its face the number and the date of the receipt in lieu of which it is issued.  It must also contain a plain and conspicuous statement that it is a replacement receipt issued in lieu of a lost or destroyed receipt.

(2) Before issuing such replacement receipt, the warehouseman may require the person requesting the receipt to make and file with the warehouseman: (a) an affidavit stating that the requestor is the lawful owner of the original receipt, that the requestor has not negotiated, sold, assigned or encumbered it, how the original receipt was lost or destroyed, and if lost, that diligent effort has been made to find the receipt without success, and (b) a bond in an amount double the value, at the time the bond is given, of the commodity represented by the lost or destroyed receipt.

Such bond shall indemnify the warehouseman against any loss sustained by reason of the issuance of such replacement receipt. The bond shall have as surety thereon a surety company which is authorized to do business, and is subject to service of process in a suit on the bond, in the state in which the warehouse, as named on the warehouse receipt, is located, or at least two individuals who are residents of such state, and each of whom owns real property in that state having a value, in excess of all exemptions and encumbrances, equal to the amount of the bond. 

In the alternative, upon the approval of the U.S. Department of Agriculture where applicable, or otherwise upon the approval of the Exchange, a warehouseman may issue a replacement receipt upon the execution of an agreement by the requestor to indemnify the warehouseman against any loss sustained by reason of the issuance of such replacement receipt, in a form acceptable to the warehouseman. (11/29/07)