§245 — Title 7 Agriculture | U.S. Code

Summary

Anyone applying for a license or approval under this law must file a bond or another financial guarantee with the Secretary to cover the work they are allowed to do. The company or bank that backs the bond must be able to be served with legal papers where the warehouse is located. If the Secretary finds the bond is not enough, the Secretary can require more money and can suspend or revoke the license if the applicant does not provide it. A person harmed by a breach covered by the bond can sue in a federal district court to recover their damages.

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.

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.

§245 Bonding and Other Financial Assurance Requirements

Summary

Title 7, §245

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Citations & Metadata