RS 3:3411 License to buy or sell agricultural commodities; posting requirements for grain dealers; duration of license; bond required as a condition of a grain dealer license, time of filing, amount o - Louisiana Statutes

§3411. License to buy or sell agricultural commodities; posting requirements for grain dealers; duration of license; bond required as a condition of a grain dealer license, time of filing, amount of bond, notice of cancellation, alternate security; failure to maintain bond and stock insurance

A.  No person shall engage in the business of buying and/or selling agricultural commodities from producers unless licensed by the commission.  Cotton merchants shall be licensed as provided in R.S. 3:3411.1.

B.  Each applicant for a grain dealer license shall file the application described in R.S. 3:3408 and either demonstrate its competency to engage in the business of buying and/or selling agricultural commodities or satisfactorily complete any examination that may be required by the commission prior to licensure.

C.  Each license issued by the commission under this Section shall specify on the face thereof that it is a grain dealer license, and shall be posted by the licensee in its principal place of business in this state.

D.  Each license issued by the commission shall be valid until June thirtieth following the date of issue and shall be renewed on or before July first of each year.

E.  The fee for issuance and renewal of each license shall be two hundred dollars.

F.  Prior to the issuance of the license, each applicant for a grain dealer license shall execute and file with the commission a surety bond in the amount of fifty thousand dollars, issued by a bonding or surety company authorized to do business in this state and conditioned upon (1) the faithful performance of all duties and obligations to producers, and (2) compliance with this Chapter and the rules and regulations adopted pursuant hereto.  Each bond shall provide for ninety days written notice to the commission prior to cancellation.

G.  The commission may accept alternate security from grain dealers in lieu of the bond required under Subsection F of this Section.  The alternate security shall be in the same amount as the amount of the bond required in Subsection F of this Section and shall be in one of the following forms:

(1)  A certificate of deposit from a lending institution whose deposits are insured by an agency of the federal government.

(2)  An irrevocable letter of credit from a lending institution whose deposits are insured by an agency of the federal government.

(3)  A first mortgage on immovable property which is located in Louisiana and which has an appraised value of at least one hundred fifty percent of the amount of the bond.  The appraisal shall be made by an independent appraiser jointly designated by the commission and the applicant.  The applicant shall provide a title insurance policy issued by a company authorized to do business in Louisiana in the amount of required bond with the commission being an insured under the policy.  The applicant shall pay all fees involved in providing such security.

H.  The commission shall require every licensed grain dealer to maintain a sufficient amount of provisional stock insurance issued by an insurance company authorized to do business in this state to provide adequate protection against fire and other disasters, for the full market value of all agricultural commodities physically in the possession of the grain dealer, which insurance shall provide for thirty days written notice to the commission prior to cancellation.

I.  The commission may suspend or revoke the license of any grain dealer who fails to maintain the required bond and insurance in full force and effect.

J.  Each grain dealer who issues grades for grain shall employ a grain grader and sampler who is certified to grade and sample the grains for which the grain dealer issues grades.

Added by Acts 1982, No. 563, §1, eff. Jan. 1, 1983; Acts 1985, No. 793, §1; Acts 1986, No. 1068, §1, eff. July 17, 1986; Acts 1986, No. 302, §1; Acts 1997, No. 1034, §1; Acts 2003, No. 172, §1, eff. July 1, 2003; Acts 2009, No. 24, §1, eff. June 12, 2009.