This text of Iowa § 202C.2 (Evidence of financial responsibility — requirements) is published on Counsel Stack Legal Research, covering Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
1.A dealer shall provide the department with evidence of financial responsibility as
required by the department. The evidence of financial responsibility shall consist of a surety
bond furnished by a surety or an irrevocable letter of credit issued by a financial institution.
2.The evidence of financial responsibility shall be provided to the department before the
dealer’s license is issued or renewed pursuant to section 163.30.
3.The amount of the evidence of financial responsibility shall be established by rules
which shall be adopted by the department. Unless the department otherwise has good cause,
the rules shall be based upon the volume of sales reported by the dealer to the United States
departmentofagriculturegraininspection,packersandstockyardsadministration. However,
the evide
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1. A dealer shall provide the department with evidence of financial responsibility as
required by the department. The evidence of financial responsibility shall consist of a surety
bond furnished by a surety or an irrevocable letter of credit issued by a financial institution.
2. The evidence of financial responsibility shall be provided to the department before the
dealer’s license is issued or renewed pursuant to section 163.30.
3. The amount of the evidence of financial responsibility shall be established by rules
which shall be adopted by the department. Unless the department otherwise has good cause,
the rules shall be based upon the volume of sales reported by the dealer to the United States
departmentofagriculturegraininspection,packersandstockyardsadministration. However,
the evidence of financial responsibility shall not be for less than five thousand dollars or for
more than twenty-five thousand dollars. The department may increase the amount of the
evidence of financial responsibility for a dealer upon a showing of good cause.
4. The evidence of financial responsibility must be conditioned upon the dealer’s faithful
performance of the terms and conditions of the sales agreement. The surety’s or issuer’s
liability extends to each such sales agreement executed while the surety bond or letter of
credit is in force and until performance or the rescission of the sales agreement.
5. The evidence of financial responsibility shall be continuous in nature until canceled
by the surety or issuer. The surety or issuer shall provide at least ninety days’ notice in
writing to the dealer and the department indicating the surety’s or issuer’s intent to cancel
the surety bond or letter of credit and the effective date of the cancellation. The dealer shall
have sixty days from the date of receipt of the surety’s or issuer’s notice of cancellation to
file a replacement. However, the surety or issuer remains liable for damages arising from
sales agreements which were executed during the effective period of the evidence of financial
responsibility.