Title 7 — AgricultureRelease 119-73
§245 Bonding and other financial assurance requirements
Title 7 › Chapter CHAPTER 10— - WAREHOUSES › § 245
Summary
People applying for a license under this law must give the Secretary a bond or other financial guarantee to cover the things they are allowed to do. The company or bank that backs the bond must be able to be sued where the warehouse is. If the Secretary finds the guarantee too small, the Secretary can suspend or cancel the license unless more is provided. Anyone harmed because the bond or guarantee was not honored can sue in a U.S. district court to recover their losses.
Full Legal Text
Title 7, §245
Agriculture — Source: USLM XML via OLRC
(a)As a condition of receiving a license or approval under this chapter (including regulations promulgated under this chapter), the person applying for the license or approval shall execute and file with the Secretary a bond, or provide such other financial assurance as the Secretary determines appropriate, to secure the person’s performance of the activities so licensed or approved.
(b)To qualify as a suitable bond or other financial assurance under subsection (a), the surety, sureties, or financial institution shall be subject to service of process in suits on the bond or other financial assurance in the State, district, or territory in which the warehouse is located.
(c)If the Secretary determines that a previously approved bond or other financial assurance is insufficient, the Secretary may suspend or revoke the license or approval covered by the bond or other financial assurance if the person that filed the bond or other financial assurance does not provide such additional bond or other financial assurance as the Secretary determines appropriate.
(d)Any person injured by the breach of any obligation arising under this chapter for which a bond or other financial assurance has been obtained as required by this section may sue with respect to the bond or other financial assurance in a district court of the United States to recover the damages that the person sustained as a result of the breach.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Prior Provisions
A prior section 245, acts Aug. 11, 1916, ch. 313, pt. C, § 5, 39 Stat. 486; Feb. 23, 1923, ch. 106, 42 Stat. 1282, related to term and renewal of license, prior to the general amendment of this chapter by Pub. L. 106–472. A prior section 6 of act Aug. 11, 1916, ch. 313, pt. C, was classified to section 247 of this title, prior to the general amendment of this chapter by Pub. L. 106–472.
Reference
Citations & Metadata
Citation
7 U.S.C. § 245
Title 7 — Agriculture
Last Updated
Apr 6, 2026
Release point: 119-73