Montana § 80-4-604 Bonding Requirement Amounts -- Cancellation

Montana Statutes

§ 80-4-604 — Bonding Requirement Amounts -- Cancellation

Montana § 80-4-604

Title 80AGRICULTURE

Ch. 4AGRICULTURAL COMMODITIES

Part 6Agricultural Commodity Dealers

This text of Montana § 80-4-604 (Bonding Requirement Amounts -- Cancellation) is published on Counsel Stack Legal Research, covering Montana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Mont. Code Ann. § 80-4-604 (2026).

Text

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) and subsection (3) of this section:

(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

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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) and subsection (3) of this section:
(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) A commodity dealer acting as a broker and contracting or otherwise conducting business with a commodity dealer licensed in Montana shall post the minimum amount of bond pursuant to subsection (2)(c).
(b) A commodity dealer acting as a broker and contracting or otherwise conducting business with a buyer not licensed as a commodity dealer in Montana shall:
(i) post the maximum amount of bond required by 80-4-405 ; and
(ii) be held jointly liable with the buyer for failure to comply with terms of a written contract or failure to pay for a commodity purchase under an oral agreement pursuant to 80-4-612 .
(4) 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.

Legislative 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; amd. Sec. 4, Ch. 302, L. 2019.