§ 49-45-9 — Bond requirements--Amount--Violation as misdemeanor.

Before any grain buyer license is issued by the commission, the applicant must file with the commission a bond conditioned to secure the faithful performance of the applicant's obligations as a grain buyer and the applicant's full and unreserved compliance with the laws of this state and the rules of the commission, relating to the purchase of grain by the grain buyer. The bond is for the specific purpose of protecting persons selling grain to the grain buyer. However, the bond may not benefit any person entering into a voluntary credit sale with a grain buyer. Any person who does business as a grain buyer without a bond is guilty of a Class 1 misdemeanor. Each day a person conducts the business of a grain buyer without a bond is a separate offense. The amount of the bond for a Class A or Class B grain buyer's license must be based on a rolling average of the dollar amount of grain purchased by the applicant in this state during the last three license years. For a new grain buyer, the first year's bond must be based on projected purchases. For a grain buyer with less than three years of experience as a grain buyer, the bond must be based on the average actual purchases made by the grain buyer in all of its previous years as a grain buyer or projected purchases, whichever amount is higher. The bond applies to all grain purchases for all of the grain buyer's business locations. The amount of the bond for a Class A grain buyer's license is: Dollar Amount of Grain Purchased Bond Requirement Less than $2,000,001 $50,000 $2,000,001--$5,000,000 $100,000 $5,000,001-$10,000,000 $150,000 $10,000,001-$20,000,000 $200,000 $20,000,001-$30,000,000 $250,000 $30,000,001-$40,000,000 $300,000 $40,000,001-$55,000,000 $350,000 $55,000,001-$70,000,000 $400,000 $70,000,001-$85,000,000 $450,000 $85,000,001-$100,000,000 $500,000 Bond requirements are increased twenty-five thousand dollars for each additional ten million dollars in purchases above one hundred million dollars. The amount of the bond for a Class B grain buyer's license is: Dollar Amount of Grain Purchased Bond Requirement Less than $2,000,001 $50,000 $2,000,001--$5,000,000 $100,000 The grain buyer may stipulate to a higher bond amount requested by the commission or may post additional security in another form.

Legislative History

SL 1985, ch 376, § 75; SL 1994, ch 359, § 8; SL 1996, ch 277, § 1; SL 2008, ch 251, § 7; SL 2009, ch 248, § 2; SL 2013, ch 238, § 12, eff. Apr. 1, 2013; SL 2018, ch 268, § 2; SL 2024, ch 192, § 3.