This text of North Dakota § 4.1-59-09 (Bond filed by grain buyer) is published on Counsel Stack Legal Research, covering North Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
1. Before a license is effective for a grain buyer under this chapter, the applicant for the
license shall file a bond with the commissioner which must:
a. Be in a sum not less than one hundred thousand dollars.
b. Be continuous, unless the corporate surety by certified mail notifies the licensee
and the commissioner the surety bond will be canceled ninety days after receipt
of the notice of cancellation.
c. Run to this state for the benefit of all persons selling grain to or through the grain
buyer.
d. Be conditioned:
(1)For the faithful performance of the licensee's duties as a grain buyer.
(2)For compliance with the provisions of law and the rules of the commissioner
relating to the purchase of grain by the commissioner monthly.
e. Be for the specific purpose of:
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1. Before a license is effective for a grain buyer under this chapter, the applicant for the
license shall file a bond with the commissioner which must:
a. Be in a sum not less than one hundred thousand dollars.
b. Be continuous, unless the corporate surety by certified mail notifies the licensee
and the commissioner the surety bond will be canceled ninety days after receipt
of the notice of cancellation.
c. Run to this state for the benefit of all persons selling grain to or through the grain
buyer.
d. Be conditioned:
(1) For the faithful performance of the licensee's duties as a grain buyer.
(2) For compliance with the provisions of law and the rules of the commissioner
relating to the purchase of grain by the commissioner monthly.
e. Be for the specific purpose of:
(1) Protecting the sellers of grain.
(2) Covering the costs incurred by the commissioner in the administration of the
licensee's insolvency.
f. Not accrue to the benefit of any person entering a credit-sale contract with a grain
buyer.
2. The aggregate liability of the surety under a bond does not accumulate for each
successive annual license renewal period during which the bond is in force but, for
losses during any annual license renewal period, is limited in the aggregate to the
bond amount stated or changed by appropriate endorsement or rider.
3. The commissioner shall set the amount of the bond and may require an increase in the
amount of a bond as the commissioner deems necessary to accomplish the purposes
of this section.
4. The amount of the bond for a grain buyer must be based on the dollar value of the
grain purchased, solicited, or merchandised.
5. A grain buyer shall report purchases, solicitations, and merchandising agreements to
the commissioner monthly.
6. The surety on the bond must be a corporate surety company, approved by the
commissioner and authorized to do business within the state. The commissioner may
accept cash, a negotiable instrument, or a bond executed by personal sureties in lieu
of a surety bond when, in the commissioner's judgment, cash, a negotiable instrument,
or a personal surety bond properly will protect the holders of outstanding receipts.