- A license under sub-section (2) of Section 4 of the Act shall be granted in Form III, subject to the following conditions :-(i)every warehouseman shall maintain in respect of each warehouse for which a license has been granted, net assets liable for the payment of any indebtedness arising from the conduct of a warehouse to the extent of at least Rs. 5 per 100 cft. storage capacity of the licensed warehouse. Such assets may consist of movable or immovable property. These assets shall be suitably insured against any loss or damage according to the directions issued from time to time by the Registrar in this behalf;(ii)a warehouseman shall display his license in his principal place of business where receipts are delivered to the depositors;(iii)whenever any warehouseman has become incompetent or has ceased to conduct the business of a warehouse, he shall inform the authority granting the license immediately;(iv)the Registrar or any other person authorised by him in this behalf shall be competent to inspect or examine the warehouse licensed under the Act and shall have access at all usual hours of business to all the books, records, papers and accounts relating to the warehouse;(v)the warehouseman shall furnish such information with regard to the working of the warehouse, as the Registrar or any other person authorised by him in this behalf may require.
