(b) The bond for each warehouseman who elects to provide to the State Department of Agriculture a financial statement or audit satisfactory to the department shall be not less than $20,000 nor more than $200,000, as conforms with a schedule to be established by the department. Such schedule shall be based upon a number of cents, varying from 8 to 15, multiplied by the number of bushels of rated grain storage capacity of the public warehouse furnishing the bond. The department shall determine the rate between 8 and 15 cents and fix the amount of the bond with reference to the market value of the commodity found or expected by the warehouseman to preponderate in storage in the warehouse of the warehouseman. In so doing, the department shall take into consideration, but not be limited by, the coverage requirements of lending agencies. The bond of a public warehouse when first licensed shall conform with the value of commodities expected in storage.

(c) For all warehousemen who fail to provide the financial statement or audit referred to in paragraph (b) of this subsection, the amount of the bond shall be determined by multiplying 20 cents times the number of bushels of rated grain storage capacity of the public warehouse furnishing the bond. The amount of the bond shall be not less than $20,000 nor more than $500,000. In lieu of a surety bond, the warehouseman may submit a letter of credit or securities satisfactory to the State Department of Agriculture.

(2) The bond must be approved by the department and shall be conditioned upon faithful performance by the warehouseman of the acts and duties enjoined by law upon the warehouseman as a warehouseman, and such further obligations as a warehouseman as the warehouseman may lawfully assume under contracts with depositors of grain in the warehouse of the warehouseman. The liability of the surety upon such bond is limited to the amount specified in the bond.

(3) The warehouseman may give a single bond meeting the requirements of ORS 586.210 to 586.730, and all public warehouses operated by the warehouseman shall be deemed as one public warehouse for the purpose of the bond required under such sections.

(4) If a bond has been filed with, and approved by, the Department of Agriculture of the United States, as required by the United States Warehouse Act, then such bond shall be considered as in lieu of the bond required by this section, if:

(a) Satisfactory proof of the filing and approval of the bond is filed with the department;

(b) The department is satisfied with the form of the bond;

(c) The surety is a corporation authorized to do business as a surety in this state; and

(d) The bond meets the other requirements of ORS 586.210 to 586.730.

(5) The department may require the filing of an additional bond or bonds, within the limit stated in subsection (1) of this section, when it has knowledge of the principal’s methods of conducting business or of conditions affecting such business that, in the department’s judgment, make such increase advisable for the protection of holders of the bonded public warehouse’s receipts or load slips.

(6) Notwithstanding ORS chapter 183, the license of a warehouseman shall be automatically suspended for failure at any time to have or to maintain a bond in the amount and type required by this chapter. The department shall not remove the suspension or issue a license as the case may be, until it is satisfied the required bond has been obtained. [Amended by 1955 c.731 §6; 1959 c.195 §4; 1961 c.445 §8; 1997 c.608 §1]