22-5105. AMOUNT OF BOND — NOTICE OF CANCELLATION. The amount of bond to be furnished for each seed buyer will be fixed at whichever of the following amounts is greater:
(1) The combined total seed buyer indebtedness paid and owed to producers for seed crop stored for withdrawal or transferred during the previous license year; or
(2) The indebtedness owed and estimated to be owed to producers for seed crop for the current license year.
Subsequent to determining whichever of the preceding amounts is greater, and based on that amount, the amount of bond shall be calculated as follows:
| Gross Dollars: | Amount of Bond: |
| $0 – $450,000 | $20,000 bond or 6% of the gross |
| dollars, whichever is less | |
| $450,001 – $1,000,000 | $40,000 bond |
| $1,000,001 – $8,000,000 | $100,000 bond |
| Over $8,000,000 | $500,000 bond |
In any case, the amount of the bond shall not be more than five hundred thousand dollars ($500,000). This bond shall run concurrently with the seed buyer’s license. A ninety (90) day written notice, by registered or certified mail, return receipt requested, shall be given to the director by the bonding company before it may amend or cancel any bond.
History:
[22-5105, added 2002, ch. 256, sec. 1, p. 739; am. 2003, ch. 151, sec. 2, p. 436.]