80-4-505. Amount of bond -- cancellation.
80-4-505. Amount of bond -- cancellation. (1) The amount of the bond to be furnished for each warehouse must be fixed at a rate of 20 cents per hundredweight for the first 500,000 hundredweight of licensed capacity; 15 cents per hundredweight for the next 500,000 hundredweight of licensed capacity; and 10 cents per hundredweight for all licensed capacity over 1 million hundredweight. The amount of the bond may not be less than $20,000 or more than the maximum prescribed in 80-4-405. The licensed capacity is the maximum number of hundredweight of agricultural commodities that the warehouse can accommodate.
(2) If a warehouse operator is also operating as a commodity dealer, the warehouse operator shall also provide a bond as prescribed in 80-4-604.
(3) If there occurs a deficiency in net assets as required under 80-4-506, there shall be added to the amount of bond determined in accordance with subsection (1) an amount equal to that deficiency.
(4) Each warehouse operator bond shall run continuously with the license until canceled by the bonding company.
(5) A 60-day written notice must be given to the department by the bonding company before any bond is canceled; however, the cancellation does not terminate any liability of the surety incurred prior to the date of cancellation.
History: En. Sec. 26, Ch. 539, L. 1983; amd. Sec. 3, Ch. 578, L. 1985; amd. Sec. 7, Ch. 452, L. 1993.