§ 2-17-210 - Amount of bond.
2-17-210. Amount of bond.
(a) (1) The amount of bond to be furnished for each public grain warehouse shall be fixed at a rate of:
(A) Twenty cents (20cent(s)) per bushel for the first one million (1,000,000) bushels of licensed capacity;
(B) Fifteen cents (15cent(s)) per bushel for the next one million (1,000,000) bushels of licensed capacity; and
(C) Ten cents (10cent(s)) per bushel for all licensed capacity over two million (2,000,000) bushels.
(2) In no case shall the amount of the bond be less than twenty thousand dollars ($20,000), except as prescribed in subsections (c) and (d) of this section.
(3) The licensed capacity shall be equal to the maximum number of bushels of grain that the public grain warehouse can accommodate for storage.
(b) (1) (A) A public grain warehouseman who is licensed or is applying for licenses to operate two (2) or more public grain warehouses may furnish a single bond. This bond shall meet the requirements of this subchapter to cover all public grain warehouses within the state.
(B) In these cases, all public grain warehouses to be covered by the bond shall be deemed to be one (1) warehouse for purposes of determining the amount of bond required under subsection (a) of this section.
(2) The aggregate licensed capacity of all the warehouses shall be used in determining the amount of the bond.
(c) (1) Any deficiency in the net assets required by 2-17-217 shall be supplied by an increase in the amount of the warehouseman's bond.
(2) In any other case in which the Public Grain Warehouse Commissioner finds that conditions exist which warrant requiring additional bond, there shall be added to the amount of the bond such further amount as determined to be reasonable by the commissioner.
(d) (1) The commissioner may make exceptions to the bonding requirements of this section for good cause shown upon a finding that the requirements would substantially impair the warehouseman's ability to continue operations as a public grain warehouse and that the exception will not materially affect the protection of storage receipt holders under this subchapter.
(2) The exceptions must be reviewed at least annually.