(a)Every person registered as a timber buyer
shall file with the department an effective surety bond issued by a
corporate surety authorized to engage in the business of executing
surety bonds in Indiana.
(b)Instead of the bond required by subsection (a), the department
may accept security in cash or a certificate of deposit under terms
established by rule.
(c)The security required under subsection (a) or (b) shall be made
payable upon demand to the director, subject to this chapter, for the use
and benefit of the people of Indiana and for the use and benefit of any
timber grower from whom the applicant purchased and who is not paid
by the applicant or for the use and benefit of any timber grower whose
timber has been cut by the applicant or registrant or the applicant's or
registrant's
Free access — add to your briefcase to read the full text and ask questions with AI
(a) Every person registered as a timber buyer
shall file with the department an effective surety bond issued by a
corporate surety authorized to engage in the business of executing
surety bonds in Indiana.
(b) Instead of the bond required by subsection (a), the department
may accept security in cash or a certificate of deposit under terms
established by rule.
(c) The security required under subsection (a) or (b) shall be made
payable upon demand to the director, subject to this chapter, for the use
and benefit of the people of Indiana and for the use and benefit of any
timber grower from whom the applicant purchased and who is not paid
by the applicant or for the use and benefit of any timber grower whose
timber has been cut by the applicant or registrant or the applicant's or
registrant's agents, and who has not been paid for the timber.
(d) The security required under subsection (a) or (b) shall be in the
principal amount of five thousand dollars ($5,000) for an applicant who
paid timber growers ten thousand dollars ($10,000) or less for timber
during the immediate preceding year, and an additional one hundred
dollars ($100) for each additional one thousand dollars ($1,000) or
fraction thereof paid to timber growers for timber purchased during the
preceding year. However:
(1) before January 1, 2017, the security required may not be more
than twenty thousand dollars ($20,000); and
(2) after December 31, 2016, the security required may not be
more than fifty thousand dollars ($50,000).
If an applicant has not previously engaged in business as a timber
buyer, the amount of the bond shall be based on the estimated dollar
amount to be paid by the timber buyer to timber growers for timber
purchased during the next succeeding year, as set forth in the
application.
(e) The security required under subsection (a) or (b) shall not be
canceled or altered during the period for which the certificate to the
applicant was issued except upon at least sixty (60) days notice in
writing to the department.
(f) Security shall be in a form and contain the terms and conditions
as may be approved from time to time by the director, be conditioned
to secure an honest cutting and accounting for timber purchased by the
registrant, secure payment to the timber growers, and insure the timber
growers against all fraudulent acts of the registrant in the purchase and
cutting of the timber of this state.
(g) If a timber buyer fails to pay when due any amount due a timber
grower for timber purchased, or fails to pay legally determined
damages for timber wrongfully cut by a timber buyer or the timber
buyer's agent, or commits any violation of this chapter, an adjudicative
proceeding on the bond for forfeiture may be commenced, and notice
of the proceeding shall be provided, under IC 4-21.5-3-6. A surety or
person in possession of the security provided under subsection (a) or
(b) is entitled to notification of the proceeding. If a final agency action
is entered by the department under this subsection against the timber
buyer, the surety or other person in possession of the security shall
deliver the amount of the security identified in the order. A proceeding
for forfeiture of a timber buyer's bond under IC 4-21.5 is the exclusive
remedy under law for the forfeiture of the bond.
(h) An owner of property seeking a preliminary injunction or
restraining order against a person, corporation, or other entity to
prevent or stop the wrongful cutting of timber on the owner's property
is relieved of the requirement to post a bond or other security with the
court as a prerequisite to the issuance of the preliminary injunction or
restraining order. However, this subsection does not apply to a property
owner who seeks a preliminary injunction or restraining order to
prevent or stop alleged wrongful cutting by a timber cutter or timber
buyer with whom the property owner had contracted for the cutting or
sale of timber.
Formerly: Acts 1972, P.L.190, SEC.1. As amended by
P.L.253-1983, SEC.2; P.L.158-1988, SEC.2; P.L.220-1993, SEC.1;
P.L.98-2001, SEC.3; P.L.155-2015, SEC.27.