§ 15-17-14-6 — Maintenance of bond

(a) Except as provided under sections 7 and
8 of this chapter, before operating a livestock dealer business, a person
must execute and maintain a bond or bond equivalent that meets the
requirements of this section.
(b) The form of the bond or bond equivalent shall be prescribed by
the board and must meet the following minimum requirements:
(1) The instrument must be payable to the state of Indiana, as
obligee, for any person who may be damaged as a result of a
breach of the conditions of the instrument.
(2) The terms of the instrument must secure the performance of
the licensee's obligations under this chapter. The instrument must
specifically provide that the dealer will pay all legal claims that
may accrue in favor of any seller of livestock in Indiana.
(3) The surety on any livestock dealer bond or bond equivalent
must be a surety company authorized to do business in Indiana.
(4) The bond or bond equivalent is considered to be continuous
unless otherwise specified. The instrument must contain a
provision requiring that, before terminating the instrument, the
terminating party must serve to the board either:
(A) written notice of termination at least thirty (30) days before
the effective date of the termination; or
(B) notice of a valid replacement bond or bond equivalent that
provides continuous coverage.
(c) The livestock dealer bond or bond equivalent required under this
section must be an amount that is not less than the next highest
multiple of five thousand dollars ($5,000) above the quotient of:
(1) the dollar amount of livestock transactions conducted by the
license applicant during the preceding twelve (12) months, or in
that part of the year in which the applicant did business; divided
by
(2) the number of days on which business was conducted.
(d) The following apply to the calculation set forth in subsection (c):
(1) The number of days on which business was conducted in a
year may not exceed one hundred thirty (130).
(2) The amount of the bond or bond equivalent may not be less
than ten thousand dollars ($10,000), and when the requirements
exceed fifty thousand dollars ($50,000) under the calculations as
specified in subsection (c), the amount of the instrument need not
exceed fifty thousand dollars ($50,000) plus ten percent (10%) of
the excess raised to the next multiple of five thousand dollars
($5,000).
(e) If the gross amount of business transacted during a twelve (12)
month period changes and warrants an increase in the amount of bond
or bond equivalent coverage required under this chapter, the dealer
shall have the bond or bond equivalent adjusted to comply with this
chapter. If the gross amount of business changes to warrant a decrease
in the amount of bond or bond equivalent required under this chapter,
the dealer may have the bond or bond equivalent adjusted accordingly.
(f) A licensee may furnish a blanket bond or bond equivalent, based
upon the gross amount of business transacted on an annual basis for
each enterprise operated under the same ownership, instead of
individual instruments for each enterprise operated.
[Pre-2008 Recodification Citations: subsection (a) formerly
15-2.1-14-6(a); subsection (b) formerly 15-2.1-14-6(b); subsection
(c) formerly 15-2.1-14-6(c); subsection (d) formerly 15-2.1-14-6(d);
subsection (e) formerly 15-2.1-14-6(e); subsection (f) formerly
15-2.1-14-6(f).]

Legislative History

As added by P.L.2-2008, SEC.8.