N.D. Cent. Code § 4.1-59-09

4.1-59-09. Bond filed by grain buyer

1. Before a license is effective for a grain buyer under this chapter, the applicant for the

license shall file a bond with the commissioner which must:

a. Be in a sum not less than one hundred thousand dollars.

b. Be continuous, unless the corporate surety by certified mail notifies the licensee

and the commissioner the surety bond will be canceled ninety days after receipt

of the notice of cancellation.

c. Run to this state for the benefit of all persons selling grain to or through the grain

buyer.

d. Be conditioned:

(1) For the faithful performance of the licensee's duties as a grain buyer.

(2) For compliance with the provisions of law and the rules of the commissioner

relating to the purchase of grain by the commissioner monthly.

e. Be for the specific purpose of:

(1) Protecting the sellers of grain.

(2) Covering the costs incurred by the commissioner in the administration of the

licensee's insolvency.

f. Not accrue to the benefit of any person entering a credit-sale contract with a grain

buyer.

2. The aggregate liability of the surety under a bond does not accumulate for each

successive annual license renewal period during which the bond is in force but, for

losses during any annual license renewal period, is limited in the aggregate to the

bond amount stated or changed by appropriate endorsement or rider.

3. The commissioner shall set the amount of the bond and may require an increase in the

amount of a bond as the commissioner deems necessary to accomplish the purposes

of this section.

4. The amount of the bond for a grain buyer must be based on the dollar value of the

grain purchased, solicited, or merchandised.

5. A grain buyer shall report purchases, solicitations, and merchandising agreements to

the commissioner monthly.

6. The surety on the bond must be a corporate surety company, approved by the

commissioner and authorized to do business within the state. The commissioner may

accept cash, a negotiable instrument, or a bond executed by personal sureties in lieu

of a surety bond when, in the commissioner's judgment, cash, a negotiable instrument,

or a personal surety bond properly will protect the holders of outstanding receipts.