§ 4.1-27-04 — Bond to accompany application for license - Amount - Approval - Conditions - Exemptions

Conditions - Exemptions.
1. An applicant for a license to operate a livestock auction market shall file a surety bond
of at least ten thousand dollars with the application for license or renewal of a license.
The bond must be approved by the commissioner as to the amount, form, and surety.
The commissioner must be named the obligee in the bond. The bond must be for the
benefit of, and for the purpose of protecting, any person selling to or through the
licensed livestock auction market, or buying livestock through or from the licensed
livestock auction market or the licensee's agent. The commissioner may require an
additional bond of the licensee when the commissioner deems the volume of the
business of the licensee warrants the additional bond. The bond must be conditioned
for:
a. The payment of all money received by the licensee and the operator of the
livestock auction market, less reasonable expenses and agreed commissions;
b. The faithful performance by the licensee of the duties of a livestock auction
market operator; and
c. The faithful performance by the licensee of all duties imposed by law relating to
the purchase, sale, or holding of livestock.
2. The bond must cover the entire license period. If the commissioner is the trustee or
obligee of a surety bond in which the auction market operator is the principal and is
operating and is bonded under the Packers and Stockyards Act, 1921 [Pub. L. 67-51;
42 Stat. 159; 7 U.S.C. 181 et seq.], the commissioner may accept that bond in lieu of
the one required under this section, except that the minimum bond requirements of ten
thousand dollars will be continued.