Warehouse & Storage Strategies
Bond Types and Levels (continued)
Bonds are continuous and must be filed before a license can be issued.
Purpose of the bond is to protect holders of outstanding receipts and sellers of grain and
cover costs incurred by the Commissioner in the administration of insolvency.
The Commissioner sets the amount of bond (via rule) and may require an increase in the
amount of any bond, if deemed necessary.
Only one bond may be given for any line of elevators, mills, warehouses, etc., or for any
series of facilities operated by a facility-based grain buyer. Only one bond can be filed for a
roving grain buyer.
The Commissioner may accept cash, a negotiable instrument, or bond executed by
personal sureties in lieu of a surety bond.
DAKOTA
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