80-4-604. Bonding requirement amounts -- cancellation. (1) An applicant for a license to operate as a commodity dealer shall, before a license may be issued, file with the department a surety bond or its equivalent, as established by department rule, payable to the state.
(2) Except as provided in 80-4-601(5)(b):
(a) the bond for a commodity dealer may not exceed 2% of the value of the agricultural commodities purchased by the commodity dealer from the producer during the previous 12-month period;
(b) the bond for all new applicants is 2% of the estimated value of all agricultural commodities to be purchased during the coming 12-month period; and
(c) the minimum amount of bond required by any commodity dealer is $20,000 and the maximum is prescribed in 80-4-405.
(3) A surety shall notify the commodity dealer and the department by certified mail at least 60 days prior to the cancellation of the bond. A commodity dealer's bond filed with the department is continuous until canceled by the surety upon 60 days' notice; however, cancellation does not terminate any liability of the surety incurred prior to the date of cancellation.
History: En. Sec. 50, Ch. 539, L. 1983; amd. Sec. 6, Ch. 578, L. 1985; amd. Sec. 6, Ch. 299, L. 1991; amd. Sec. 12, Ch. 452, L. 1993; amd. Sec. 8, Ch. 175, L. 2011.