§ 4.1-58-12 — Bond cancellation - Release of surety

1. The surety on a bond is released from all future liability accruing on the bond after the
expiration of ninety days from the date of receipt by the commissioner of notice of
cancellation by the surety or on a later date specified by the surety. This provision
does not operate to relieve, release, or discharge the surety from any liability already
accrued or which accrues before the expiration of the ninety-day period.
2. Unless the warehouseman files a new bond at least thirty days before liability ceases,
the commissioner, without hearing, immediately shall suspend the warehouseman's
license and the suspension may not be removed until a new bond has been filed and
approved by the commissioner.
3. If a license is suspended under this section, the warehouseman shall give notice of the
suspension to each receiptholder having grain stored in the warehouse.

4. The warehouseman shall notify each receiptholder having grain stored in the
warehouse that the grain must be removed from the warehouse or the grain will be
priced and redeemed in cash in accordance with section 4.1-58-40.