(1) Before any original license or renewal license to operate as a wholesale produce dealer is furnished, the applicant shall make and deliver to the State Department of Agriculture a surety bond of a company authorized to do business in this state, or an irrevocable letter of credit issued by an insured institution, as defined in ORS 706.008, in the amount of $15,000. The department shall prescribe the form for and approve the bond, which shall be payable to this state for the benefit of growers and conditioned upon the faithful performance of all obligations to growers by the wholesale produce dealer.
(2) The surety company may cancel the bond or the letter of credit issuer may cancel the letter of credit by sending a written notice by registered or certified mail to the department and to the wholesale produce dealer. The effective date of the cancellation is 60 days after the notice is received by the department.
(3) The department shall suspend the license of any wholesale produce dealer as of the effective date of the cancellation of the bond or letter of credit of the dealer. The department shall withdraw such suspension of license upon its receiving a bond or letter of credit as authorized by subsection (1) of this section.
(4) A cash buyer is not required to furnish a bond or letter of credit to the department.
(5) Notwithstanding subsection (1) of this section, a person is required to make and deliver only one bond or letter of credit for any business operated under one entity or one ownership, regardless of the number of separate locations or places of business in this state. [1959 c.431 §§6,8; 1961 c.282 §1; 1985 c.426 §1; 1991 c.331 §89; 1997 c.631 §503]
Section: Previous 585.010 585.020 585.030 585.040 585.045 585.047 585.050 585.060 585.070 585.080 585.090 585.100 585.105 585.110 585.120 NextLast modified: August 7, 2008