75-43-31 - Amount of warehouseman's bond; blanket bond; increasing amount of bond.
§ 75-43-31. Amount of warehouseman's bond; blanket bond; increasing amount of bond.
(1) The amount of bond to be furnished for each farm warehouse shall be fixed at a rate of not less than twenty cents (20) per bushel for the first one million (1,000,000) bushels of licensed capacity; not less than fifteen cents (15) per bushel for the next one million (1,000,000) bushels of licensed capacity; and not less than ten cents (10) per bushel for all licensed capacity over two million (2,000,000) bushels; provided that in no case shall the amount of the bond be less than five thousand dollars ($5,000.00) or more than five hundred thousand dollars ($500,000.00), except as prescribed in subsection (3) of this section. The licensed capacity shall be equal to the maximum number of bushels of grain that the farm warehouse can accommodate for storage. In no event shall the liability of the surety accumulate for each successive license period during which this bond is in force, but shall be limited in the aggregate to the bond amount or changed by appropriate rider or endorsement.
(2) A farm warehouseman who is licensed or is applying for licenses to operate two (2) or more farm warehouses may give a single bond meeting the requirements of this chapter to cover all such farm warehouses within the state. In such cases all farm warehouses to be covered by the bond shall be deemed to be one (1) warehouse for purposes of determining the amount of bond required under subsection (1) of this section.
(3) If the commissioner finds that conditions exist which warrant requiring additional bond, there shall be added to the amount of bond such further amount as is determined to be reasonable by the commissioner.
Sources: Laws, 1978, ch. 434, § 10, eff from and after July 1, 1978.