Or. Admin. R. 603-032-0505 - Bond Requirements: Storage Capacity Rating

(1) The amount of the bond required under subsection (1), Section 586.300, Oregon Revised Statutes, and OAR 603-032-0110, shall be a sum equal to the total number of bushels of rated grain storage capacity of the warehouse covered, multiplied by the number of cents herein assigned rounded up to the nearest $1,000:

(a) $.15 per bushel of capacity if provided to the Department an annual financial statement which shall have been audited or reviewed by a certified or licensed public accountant;

(b) $.20 per bushel of capacity if no annual financial statement or audit is submitted and approved.

(2) If at any time it appears, in accordance with the provisions of subsection (5), Section 586.300, Oregon Revised Statutes, that the bond referred to in section (1) of this rule is not sufficient to provide adequate protection to holders of the receipts or load slips of the warehouse or warehouses covered by the bond, the Department may require the filing of an additional bond or bonds.

(3) Other provisions of this section notwithstanding, no bond shall be less than $20,000 and no bond or bonds of any one warehouseman shall total more than $500,000. In lieu of a surety bond, the warehouseman may submit a letter of credit satisfactory to the state Department of Agriculture.

(4) The total storage capacity of any warehouse or warehouses subject to bond shall be determined by the Department.

Notes

Or. Admin. R. 603-032-0505

AD 440, f. 6-23-52, ef. 7-1-52; AD 669, f. 6-16-61, ef. 7-1-61; AD 847(19-67), f. 8-24-67, ef. 9-13-67; AD 980(13-72)(Temp), f. & ef. 10-1-72; AD 984(16-72), f. 12-21-72, ef. 1-1-73; AD 994(8-73)(Temp), f. & ef. 8-1-73; AD 1002(16-73), f. 12-5-73, ef. 12-25-73; DOA 9-1998, f. & cert. ef. 9-21-98

Stat. Auth.: ORS 561.190 & ORS 586.225 - ORS 586.561

Stats. Implemented: ORS 586.225 - ORS 586.561