Surety Bond - Dealers Generally

  1. Law
  2. Georgia Code
  3. Animals
  4. Livestock Dealers and Auctions
  5. Livestock Auctions
  6. Surety Bond - Dealers Generally

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  1. No dealer shall purchase livestock at any sales establishment or directly from producers unless he or she has then in force a surety in an amount established in a memorandum of agreement with the department sufficient to secure the performance of the obligations of the holder of such surety.
  2. This Code section shall not be applicable to nor shall a surety be required of a dealer who purchases livestock at sales establishments for cash only. No livestock market operator shall permit a dealer who is not properly licensed and holding surety to purchase livestock other than for cash.

(Ga. L. 1956, p. 501, § 3; Ga. L. 1958, p. 309, § 2; Ga. L. 1959, p. 296, § 2; Ga. L. 1970, p. 530, § 1; Ga. L. 1982, p. 1804, § 3; Ga. L. 1983, p. 1161, § 1; Ga. L. 1984, p. 22, § 4; Ga. L. 2017, p. 129, § 9/HB 49.)

The 2017 amendment, effective July 1, 2017, rewrote subsection (a); deleted former subsection (b), which read: "An amount calculated under subsection (a) of this Code section, if not a multiple of $5,000.00, shall be rounded up to the nearest multiple of $5,000.00."; redesignated former subsection (c) as present subsection (b); and, in subsection (b), substituted "surety" for "bond" in the first sentence, and in the second sentence, substituted "dealer who is not properly licensed and holding surety" for "dealer or broker who is not properly licensed and bonded".

Editor's notes.

- The 1984 amendment, effective February 3, 1984, directed that "One hundred thirty" be substituted for "130" in subparagraph (a)(1)(B). The Act should have directed that the change be made in subparagraph (a)(2)(B) instead, and this Code section has been edited accordingly.

OPINIONS OF THE ATTORNEY GENERAL

Intent and purpose of section.

- It was not the intent and purpose of the livestock bonding law to supersede or alter any arrangements that might be made between the seller and buyer to satisfy payment of the purchase price; there is still the basic duty of the seller to satisfy oneself that the purchaser can pay for the livestock purchased. 1958-59 Op. Att'y Gen. p. 3.

Department does not have the authority to require a bond in excess of the amounts provided herein. 1958-59 Op. Att'y Gen. p. 3.

Bond requirement as condition precedent to purchase livestock at auction.

- There is nothing in Ga. L. 1952, p. 184, § 3 (see O.C.G.A. § 4-6-3) or Ga. L. 1956, p. 501, § 3 (see O.C.G.A. § 4-6-43) to prohibit the individual operator of a livestock auction from requiring a bond or such other security that the operator may require as a condition of permitting the buyer to purchase livestock at the auction. 1958-59 Op. Att'y Gen. p. 3.

RESEARCH REFERENCES

Am. Jur. 2d.

- 12 Am. Jur. 2d, Bonds, §§ 4, 22.

C.J.S.

- 11 C.J.S., Bonds, § 33.


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