Section 290.458 - Irrevocable letter of credit or surety bond required; exemptions; falsification of application, statement, or record.
WHOLESALE POTATO DEALERS (EXCERPT)
Act 158 of 1964
290.458 Irrevocable letter of credit or surety bond required; exemptions; falsification of application, statement, or record.
Sec. 8.
(1) An applicant for a wholesale potato dealer license shall file with the application or have on file with the director an irrevocable letter of credit issued by a financial institution on a form provided by the director providing that funds be made available against a sight draft drawn by the director in the manner described in section 9 or file or have on file a surety bond in favor of the director on a form provided by the director and executed by a surety company registered in this state. The bond shall be conditioned for all of the following:
(a) Observance of laws relating to the carrying on of the business of a wholesale potato dealer.
(b) Payment when due of the purchase price of potatoes purchased by the wholesale potato dealer.
(c) Prompt settlement and payment of claims and charges due to this state for services rendered.
(d) Prompt reporting of sales to persons consigning potatoes to the licensee for sale on commission.
(e) Prompt payment to persons entitled to payment of the proceeds of sales, less lawful charges, disbursements, and commissions.
(2) The director shall not require a grower cooperative to furnish a bond or an irrevocable letter of credit for potatoes bought, sold, handled, or stored by the grower cooperative on behalf of its members. The grower cooperative shall furnish a bond or irrevocable letter of credit for potatoes bought, sold, handled, or stored on behalf of its nonmembers.
(3) An applicant for a wholesale potato dealer license shall not falsify an application, statement, or record required under this act.
(4) A wholesale potato dealer who buys an aggregate amount of less than 30,000 pounds of potatoes during each calendar month of a calendar year is exempt from this section and section 9 for the following calendar year.
History: 1964, Act 158, Eff. Aug. 28, 1964 ;-- Am. 1968, Act 63, Eff. May 31, 1968 ;-- Am. 1978, Act 4, Imd. Eff. Feb. 7, 1978 ;-- Am. 1992, Act 171, Eff. Oct. 20, 1992