§ 764 - Bond - Vermont Statutes

§ 764. Bond

(a) Each livestock dealer shall furnish the secretary a surety bond in the amount of not less than $10,000.00, executed by a surety company authorized to do business in this state, and a like surety bond in a like sum for each agent listed on the dealer's license application.

(b) Before a license shall be issued to an applicant who conducts one or more livestock commission sales or auctions, such applicant shall furnish the secretary, in addition to any other bond required by this section, a surety bond, executed by a surety company authorized to do business in this state, covering all business in each location at which such applicant conducts a livestock auction or sales ring, in a principal amount to be determined by the secretary based on the volume of his purchases, but not to exceed $150,000.00.

(c) All livestock dealers' and livestock auction bonds shall be in such form as the secretary shall prescribe and shall be conditioned for compliance with the provisions of this chapter and for payment of all obligations of the licensee for purchases of livestock within this state. Any resident of this state injured by a harmful act of the licensee, his agents, servants or operators shall have a cause of action in his own name on such bond for the damage sustained; provided, however, that the aggregate liability of the surety to all residents of this state shall in no event exceed the principal amount of the bond.

(d) Before a license shall be issued to an applicant whose residence is outside Vermont, or to an applicant whose employer is not a resident of Vermont, such applicant shall furnish the secretary of agriculture, food and markets in addition to any other bond required by this section, a bond in the principal amount to be determined by the secretary based on the volume of his purchases, but not to exceed $150,000.00 executed by a surety company authorized to do business in this state.

(e) The secretary may accept a livestock dealer surety bond issued under the Federal Packers and Stockyard Act instead of the bonds required under subsections (a), (b) and (c) of this section, provided that a copy of such bond is filed with the secretary and in an amount considered by the secretary to be sufficient. Where the coverage is considered insufficient the secretary may require additional bonding to the extent authorized under subsections (a), (b) and (c) of this section.

(f) The secretary may accept, in lieu of a surety bond, a federal packers and stockyards administration trust fund agreement, or a packers and stockyards administration trust agreement which includes an irrevocable letter of credit.

(g) The secretary may accept a federal packers and stockyards packers surety bond in lieu of a livestock dealers bond, but only on the condition that all livestock purchased by the packer in this state shall be slaughtered at the packer's facility. (Amended 1959, No. 91, § 3, eff. April 7, 1959; 1961, No. 38; 1973, No. 76, § 1, eff. April 13, 1973; 1983, No. 36; 1987, No. 17; 1989, No. 15; 1993, No. 74, §§ 2, 3; 2003, No. 42, § 2, eff. May 27, 2003.)