3.2-4741 - Execution, terms and form of bond; action on bond.
§ 3.2-4741. Execution, terms and form of bond; action on bond.
A. The bond shall be executed by the applicant as principal and by a suretycompany authorized and qualified to do business in the Commonwealth assurety. The applicant shall file on or before May 1 of each licensing year acopy of the bond with the Commissioner and the Commissioner shall bedesignated as the trustee of this bond. If the bond is not filed by the duedate, and if the applicant notifies the Commissioner that the bondapplication is in process and furnishes the Commissioner a copy of the datedbond application, the Commissioner may grant a grace period of 15 workingdays for the applicant to file the bond without penalty. Any applicant whofails to file a bond by the 15th day of the grace period, shall be subject toall applicable late fees and penalties as stated in §§ 3.2-4739 and 3.2-4751before a license will be issued.
B. The bond shall be upon a form prescribed or approved by the Commissionerand shall be conditioned to secure the faithful accounting for payment toproducers, agents or representatives, of all agricultural produce purchased,handled or sold by the dealer. Any producer claiming to be injured by thenonpayment, fraud, deceit or negligence of any dealer may bring action uponthe bond against the principal, or the surety, or both in an appropriatecourt.
(1968, c. 598, § 3.1-722.5; 1994, c. 340; 2008, c. 860.)