3.2-4756 - Execution, terms and form of bond or irrevocable letter of credit; action on bond or irrevocable letter of credit; investigation of complaints. - Virginia Statutes

§ 3.2-4756. Execution, terms and form of bond or irrevocable letter ofcredit; action on bond or irrevocable letter of credit; investigation ofcomplaints.

The bond shall be executed by the applicant as principal and by a suretycompany authorized and qualified to do business in the Commonwealth assurety. An irrevocable letter of credit may be issued on such terms as theCommissioner may require. The Commissioner shall be designated as the trusteeof the bond or beneficiary of the irrevocable letter of credit, and a copy ofthe bond or irrevocable letter of credit shall be filed with him. The bondshall be in a form prescribed or approved by the Commissioner and shall beconditioned to secure the faithful accounting for payment to producers,agents or representatives, of all grain purchased, stored, handled or sold bythe dealer. Any producer claiming to be injured by the nonpayment, fraud,deceit or negligence of any dealer may bring action upon the bond against theprincipal, or the surety, or both in an appropriate court. In the event theCommissioner receives written complaint from an injured producer ofnonpayment, fraud, deceit or negligence of a dealer, the Commissioner mayinvestigate such complaint and make recommendations to the surety company asto the culpability of the dealer, if any.

(1972, c. 296, § 3.1-722.20; 1982, c. 187; 2008, c. 860.)