- A licence granted under Section 4 or renewed under Section 6 shall be issued in Form No. 3, subject to the following conditions-(1)every Warehouseman shall have and maintain in respect of each Warehouse for which an application for a licence has been made net assets not being the cash or Government securities furnished as security under Rule 8 liable for payment of any indebtedness arising out of his business as a Warehouseman, to the extent of at least rupees fifty per 1,000 cubic feet storage capacity of the licensed Warehouse. Such assets may also consist of movable or immovable property of the required valuation. In case buildings, machinery or merchandise are induced in such assets, the Warehouseman shall keep them insured against any loss or damage with Tariff Insurance Company as defined under Insurance Act, 1938 (IV of 1938).Note. - In case of Warehouses other than those covered by the provisions of the Warehousing Corporation Act, 1962, the determination of the Insurance Company, will be in the discretion of the Licensing Authority.(2)Immediately upon receipt of a licence the Warehouseman shall paste the same and keep it pasted until suspended or revoked, in a conspicuous place in the principal office where receipts issued by such Warehouseman are delivered to depositors.(3)Whenever any of the conditions mentioned in clauses (a), (b) and (c) of Section 8 of the Act comes into existence it shall be the duty of every Warehouseman to notify the fact immediately to the Licensing Authority.(4)Every Warehouseman shall permit the Licensing Authority or an officer not below the rank of an Assistant Registrar, Co-operative Societies, deputed by him to enter and inspect or examine on any business day during the usual hours of business, any Warehouse, for the conduct of which such Warehouseman holds a licence, the office thereof, the books records and papers and documents relating thereto and the contents thereof and such Warehouseman shall furnish such person assistance necessary to enable him to make the inspection or examination.(5)The Warehouseman shall furnish such information with regard to the working of the warehouse as the Licensing Authority or any other person authorised by him in this behalf may require.(6)Before an application for licence is rejected the Licensing Authority shall give an opportunity to the applicant for removing within fifteen days the defects mentioned under clause 3 (a) and (b) of sub-section (3) of Section 4 and if the same are removed within the said period to the satisfaction of the Licensing Authority he shall grant the licence.
