Tex. Agric. Code Section 14.065
Recovery on Bond; Liability of Warehouse Operator


(a)

If no action on the bond or cash, certificate of deposit, or letter of credit deposited in lieu of a bond of a warehouse operator is begun before the 31st day after the date of a written demand to the department, a depositor has a right of action on the bond or cash, certificate of deposit, or letter of credit deposited in lieu of a bond for recovery of damages suffered by the depositor as a result of the failure of the warehouse operator to comply with any condition of the bond, or if cash, a certificate of deposit, or a letter of credit is deposited in lieu of a bond, failure to comply with any obligation of the warehouse operator under this chapter that would have been covered by a bond.

(b)

Recovery on a bond shall be prorated if claims exceed liability on a bond, but a depositor suing on a bond is not required to join other depositors in a suit. The burden of establishing proration is on the surety as a matter of defense or is on the department as intervenor on behalf of other depositors.

(c)

A warehouse operator is liable for damages for loss of or injury to grain caused by the warehouse operator’s failure to exercise the care that a reasonably prudent person would exercise in regard to the grain under similar circumstances, but, unless otherwise agreed, a warehouse operator is not liable for damages to grain that could not have been avoided through the exercise of that care.

(d)

A person who files an action on a bond under this section must serve notice of the suit on the department in the same manner and within the same period as for the defendant or surety who issued the bond.

(e)

On authentication by the department, the court shall accept into evidence as a public record any report prepared by the department under this chapter that describes potential bond claims by other depositors, regardless of whether any of those depositors are joined in the suit.

(f)

A person is prohibited from filing a claim on an invalid receipt.

(g)

An action under this section must be brought not later than the second anniversary of the date of expiration of the public grain warehouse license in effect at the time the claim arose.

(h)

The department by rule may set a limitations period for filing claims with the department on a bond filed with the department or cash, a certificate of deposit, or a letter of credit deposited with the department in lieu of a bond.
Renumbered from Sec. 14.010 and amended by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.

Source: Section 14.065 — Recovery on Bond; Liability of Warehouse Operator, https://statutes.­capitol.­texas.­gov/Docs/AG/htm/AG.­14.­htm#14.­065 (accessed Jun. 5, 2024).

14.001
Definitions
14.011
Limitation of Chapter
14.012
Business Information
14.013
Right to Intervene and Notification of Department
14.014
Receivership Affecting Warehouse Assets
14.015
Powers and Duties of Department
14.021
License Required
14.022
Licensing of Multiple Warehouses
14.023
Licensing Procedure
14.024
Requirement for Increasing Capacity
14.031
Bond
14.032
Additional Bond
14.033
Bond Cancellation
14.034
Cancellation of Letter of Credit
14.035
Cancellation of Certificate of Deposit or Cash
14.041
Casualty Insurance
14.042
Insurance Cancellation
14.043
Additional Insurance
14.051
Posting of License
14.052
Warehouse Operator Obligations
14.053
Receipt Forms
14.054
Issuance of Scale Weight Ticket or Receipt
14.055
Duplicate Receipts
14.056
Receipt for Grain Owned by Warehouse Operator
14.057
Records
14.058
Posting of Storage Rates or Tariffs
14.059
Inspections
14.061
Warehouse Receipt as Prima Facie Evidence
14.062
Invalid Receipts
14.063
Termination of Storage
14.064
Certain Loadout Fees Prohibited
14.065
Recovery on Bond
14.066
Appeal of Department Action by Warehouse Operator
14.071
General Penalty
14.072
Penalty for Operating Without a License
14.073
Penalty for Fraud
14.074
Penalty for Unlawful Delivery
14.075
Penalty for Fraudulently Issuing a Scale Weight Ticket or Receipt
14.076
Penalty for Changing a Receipt or Scale Weight Ticket After Issuance
14.077
Penalty for Depositing Grain Without Title
14.078
Penalty for Stealing Grain or Receiving Stolen Grain
14.079
Penalty for Interfering with Sealed Warehouse or Department Inspection or Investigation
14.081
Offense Is Violation
14.082
Discovery of Shortage
14.083
Denial, Revocation, Modification, or Suspension of License or Probation
14.084
Operation After Revocation or Suspension of a License or Probation
14.085
Injunction
14.086
Civil Penalty
14.087
Recovery of Court Costs
14.088
Venue

Accessed:
Jun. 5, 2024

§ 14.065’s source at texas​.gov