69-208A. AMOUNT OF BOND — CANCELLATION. The amount of bond to be furnished for each warehouse shall be fixed at whichever of the following amounts is greater:
(1) The combined total indebtedness paid and owed to producers for agricultural commodity and seed crop stored for withdrawal or transferred during the previous license year; or
(2) The indebtedness owed and estimated to be owed to producers for agricultural commodity and seed crop for the current license year.
Subsequent to determining whichever of the preceding amounts is greater, and based on that amount, the amount of bond shall be calculated as follows:
Gross Dollars:
Amount of Bond:
$0 – $450,000
$20,000 bond or 6% of the gross
dollars, whichever is less
$450,001 – $1,000,000
$40,000 bond
$1,000,001 – $8,000,000
$100,000 bond
Over $8,000,000
$500,000 bond
Any other bond that may be required shall be separate and in addition to the bond listed here. In any case, the amount of the bond shall not be more than five hundred thousand dollars ($500,000). This bond shall run continuously with the warehouse license until suspended, revoked or canceled by the bonding company. A ninety (90) day written notice shall be given to the department by the bonding company before any bond is suspended, revoked or canceled. The director reserves the right to waive the ninety (90) day cancellation period.
History:
[69-208A, added 1982, ch. 25, sec. 7, p. 37; am. 1985, ch. 138, sec. 3, p. 378; am. 1988, ch. 350, sec. 3, p. 1042; am. 2002, ch. 259, sec. 7, p. 764; am. 2003, ch. 150, sec. 2, p. 432.]
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