N.D. Admin. Code 69-07-02-02

Current through Supplement No. 393, July, 2024

Section 69-07-02-02 - Grain warehouse - Bonds

A licensee's required minimum bond is determined by the licensee's total physical capacity licensed in the state the length of time the license has been licensed, the licensee's annual grain purchase volume, and the licensee's scale ticket conversion policy. A licensee's required minimum bond may not be less than $50.000.

1. If no special circumstances described in this section applies, the required bond is based on capacity and years licensed.

a.	[LESS THAN]= 6 years	[GREATER THAN]= 7 years
Capacity to 100,000 bushels	$65,000	$50,000
From 100,001 bushels through 125,000 bushels	$81,250	$62,500
From 125,001 bushels through 150,000 bushels	$97,500	$75,000
From 150,001 bushels through 175,000 bushels	$113,750	$87,500
From 175,001 bushels through 200,000 bushels	$130,000	$100,000
From 200,001 bushels through 225,000 bushels	$146,250	$112,500
From 225,001 bushels through 250,000 bushels	$162,500	$125,000
From 250,001 bushels through 275,000 bushels	$178,750	$137,500
From 275,001 bushels through 300,000 bushels	$195,000	$150,000
From 300,001 bushels through 325,000 bushels	$211,250	$162,500
From 325,001 bushels through 350,000 bushels	$227,500	$175,000
From 350,001 bushels through 375,000 bushels	$243,750	$187,500
From 375,001 bushels through 400,000 bushels	$260,000	$200,000
From 400,001 bushels through 425,000 bushels	$276,250	$212,500
From 425,001 bushels through 450,000 bushels	$292,500	$225,000
From 450,001 bushels through 475,000 bushels	$308,750	$237,500
From 475,001 bushels through 500,000 bushels	$325,000	$250,000

b. If a licensee's total capacity is more than five hundred thousand bushels, additional bond is required. The additional required bond is six thousand five hundred dollars for each twenty-five thousand bushels of capacity or fraction of twenty-five thousand bushels of capacity over five hundred thousand bushels, if licensed less than seven years, and five thousand dollars for each twenty-five thousand bushels of capacity or fraction of twenty-five thousand bushels of capacity over five hundred thousand bushels, if licensed seven years or more.

2. If the total annual grain purchase volume of a licensee is more than seven times the licensee's bonded capacity, additional bond coverage is required. The additional required bond is five thousand dollars for each twenty-five thousand bushels or fraction of twenty-five thousand bushels by which the licensee's total annual purchase volume exceeds seven times the licensee's bonded capacity. The application of this section to a new licensee will be based upon the licensee's projected annual grain purchase volume.

3. A required bond may be reduced based on a licensee's conversion policy. The required bond is reduced by thirty percent for a licensee that establishes and follows a conversion policy approved by the public service commission of ten days or less, and by fifteen percent for a licensee that establishes and follows a conversion policy approved by the public service commission of eleven to twenty-one days. A reduction under this subsection cannot be used to reduce a required minimum bond to an amount less than fifty thousand dollars.

4. Except as provided in subsection e. the bond of a warehouseman may not exceed two million dollars.

5. The commission may require an increase in the amount of any bond when necessary to accomplish the purposes of North Dakota Century Code chapter 60-02.

N.D. Admin Code 69-07-02-02

Amended effective May 1, 1984; August 1, 1999.

Amended by Administrative Rules Supplement 2015-356, April 2015, effective 4/1/2015.

General Authority: NDCC 60-02-03

Law Implemented: NDCC 60-02-02, 60-02-07, 60-02-09