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Title 7, AgricultureRelease 119-110

§245 Bonding and Other Financial Assurance Requirements

Title 7 › CHAPTER 10 — WAREHOUSES › § 245

Last updated Sep 22, 2026|Official source

Summary

People applying for a license or approval under this chapter must file a bond or other financial guarantee with the Secretary to promise they will carry out the licensed activities. The company that provides the bond or guarantee must be able to be sued in the State, district, or territory where the warehouse is located. If the Secretary finds the bond or guarantee is not enough, the Secretary can require more money or suspend or revoke the license. Anyone harmed by a breach covered by the bond can sue in a U.S. district court to recover their damages from that bond.

Full Legal Text

Title 7, §245

Agriculture, Source: USLM XML via OLRC

(a)In general
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)Service of process
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)Additional assurances
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)Third party actions
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

Sep 22, 2026

Release point: 119-110