North Dakota Code 4.1-59-09 – Bond filed by grain buyer
1. Before a license is effective for a grain buyer under this chapter, the applicant for the license shall file a bond with the commissioner which must:
Terms Used In North Dakota Code 4.1-59-09
- Commissioner: means the agriculture commissioner or the designee or authorized representative of the commissioner. See North Dakota Code 4.1-01-01
- Contract: A legal written agreement that becomes binding when signed.
- Person: means an individual, organization, government, political subdivision, or government agency or instrumentality. See North Dakota Code 1-01-49
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See North Dakota Code 1-01-49
a. Be in a sum not less than one hundred thousand dollars.
b. Be continuous, unless the corporate surety by certified mail notifies the licensee and the commissioner the surety bond will be canceled ninety days after receipt of the notice of cancellation.
c. Run to this state for the benefit of all persons selling grain to or through the grain buyer.
d. Be conditioned:
(1) For the faithful performance of the licensee’s duties as a grain buyer.
(2) For compliance with the provisions of law and the rules of the commissioner relating to the purchase of grain by the commissioner monthly.
e. Be for the specific purpose of:
(1) Protecting the sellers of grain.
(2) Covering the costs incurred by the commissioner in the administration of the licensee’s insolvency.
f. Not accrue to the benefit of any person entering a credit-sale contract with a grain buyer.
2. The aggregate liability of the surety under a bond does not accumulate for each successive annual license renewal period during which the bond is in force but, for losses during any annual license renewal period, is limited in the aggregate to the bond amount stated or changed by appropriate endorsement or rider.
3. The commissioner shall set the amount of the bond and may require an increase in the amount of a bond as the commissioner deems necessary to accomplish the purposes of this section.
4. The amount of the bond for a grain buyer must be based on the dollar value of the grain purchased, solicited, or merchandised.
5. A grain buyer shall report purchases, solicitations, and merchandising agreements to the commissioner monthly.
6. The surety on the bond must be a corporate surety company, approved by the commissioner and authorized to do business within the state. The commissioner may accept cash, a negotiable instrument, or a bond executed by personal sureties in lieu of a surety bond when, in the commissioner’s judgment, cash, a negotiable instrument, or a personal surety bond properly will protect the holders of outstanding receipts.