203C.13 - FORM AND AMOUNT OF EVIDENCE OF FINANCIAL RESPONSIBILITY.

        203C.13  FORM AND AMOUNT OF EVIDENCE OF FINANCIAL
      RESPONSIBILITY.
         1.  A warehouse operator who stores only agricultural products
      other than bulk grain shall have and maintain a net worth of at least
      ten percent of the value of the warehouse capacity, or maintain a
      deficiency bond or an irrevocable letter of credit in the amount of
      two thousand dollars for each one thousand dollars or fraction
      thereof of net worth deficiency.  However, a person shall not be
      eligible for a license to store only agricultural products other than
      bulk grain if the person has a net worth of less than ten thousand
      dollars.
         2.  If the agricultural product or products intended to be stored
      by the warehouse operator, as specified in the application for a
      license or amended license, are other than bulk grain, the quantity
      of such product intended to be stored shall be valued at the fair
      market price on the date of filing the application, and the minimum
      amount of bond shall be determined with reference to such value as
      follows:
         a.  For intended storage of such products of a value less than
      twenty thousand dollars the minimum amount of the bond shall be three
      thousand dollars, plus one thousand dollars for each two thousand
      dollars, or fraction thereof, of value in excess of six thousand
      dollars up to twenty thousand dollars.
         b.  For intended storage of such products of a value not less
      than twenty thousand dollars and not more than fifty thousand dollars
      the minimum amount of the bond shall be ten thousand dollars plus one
      thousand dollars for each three thousand dollars, or fraction
      thereof, of value in excess of twenty thousand dollars up to fifty
      thousand dollars.
         c.  For intended storage of such products of a value not less
      than fifty thousand dollars the minimum amount of the bond shall be
      twenty thousand dollars plus one thousand dollars for each five
      thousand dollars, or fraction thereof, of value in excess of fifty
      thousand dollars.
         3.  A bond, deficiency bond, or irrevocable letter of credit on
      agricultural products other than bulk grain shall not be canceled by
      the issuer on less than one hundred twenty days' notice by certified
      mail to the department and the principal.  When the department
      receives notice from an issuer that it has canceled the bond,
      deficiency bond, or irrevocable letter of credit on agricultural
      products other than bulk grain of a warehouse operator, the
      department shall automatically suspend the warehouse operator's
      authorization to store or accept for storage agricultural products
      other than bulk grain if a new bond, deficiency bond, or irrevocable
      letter of credit is not received by the department within sixty days
      of the issuance of the notice of cancellation.  The department shall
      conduct an inspection of the licensee's warehouse immediately at the
      end of the sixty-day period.  If a new bond, deficiency bond, or
      irrevocable letter of credit is not provided within ninety days of
      the issuance of the notice of cancellation, the department shall
      revoke the warehouse operator's authorization to store or accept for
      storage agricultural products other than bulk grain.  The department
      shall conduct a further inspection of the licensee's warehouse after
      the ninety-day period.  When an authorization to store or accept for
      storage agricultural products other than bulk grain is revoked, the
      department shall give notice of the revocation to all known persons
      who have agricultural products other than bulk grain in storage, and
      shall notify them that the agricultural products other than bulk
      grain must be removed from the warehouse not later than one hundred
      twenty days after the issuance of the notice of cancellation.  The
      revocation notice shall be sent by ordinary mail to the last known
      address of each person having agricultural products other than bulk
      grain in storage.  The department shall cause a final inspection of
      the licensee's warehouse after the end of the one hundred twenty-day
      period.  
         Section History: Early Form
         [C24, 27, 31, § 9725; C35, § 9751-g6; C39, § 9751.06; C46, 50,
      54, 58, 62, 66, 71, 73, 75, 77, 79, 81, § 543.13] 
         Section History: Recent Form
         86 Acts, ch 1006, § 5; 86 Acts, ch 1152, § 23, 24
         C93, § 203C.13