2005 Idaho Code - 22-5104 — BONDS -- IRREVOCABLE LETTERS OF CREDIT -- CERTIFICATES OF DEPOSIT -- SINGLE BOND

                                  TITLE  22
                         AGRICULTURE AND HORTICULTURE
                                  CHAPTER 51
                           SEED INDEMNITY FUND LAW
    22-5104.  BONDS -- IRREVOCABLE LETTERS OF CREDIT -- CERTIFICATES OF
DEPOSIT -- SINGLE BOND. Every person applying for a license shall execute and
file with the department a good and sufficient bond issued by an insurer
authorized to transact such insurance in this state. The bond shall be in
favor of the seed indemnity fund to secure the faithful performance of the
applicant's obligations under this chapter, and of such additional unpaid
obligations assumed under agreements with producers of seed crops transferred
to or deposited with the applicant. Said bond shall be in such form and
amount, shall have such surety or sureties, and shall contain such terms and
conditions as the department may prescribe to carry out the purposes of this
chapter. Whenever the department determines that a previously approved bond is
insufficient, it may require an additional bond or bonds conforming with the
requirements of this chapter. Unless the additional bond is given within the
time fixed by a written demand therefor, the license may be suspended or
revoked.
    At the discretion of the director, any person required to submit a bond to
the department may give to the department an irrevocable letter of credit or
certificate of deposit payable to the seed indemnity fund in lieu of the bond
required herein. A certificate of deposit shall be submitted with an audited
or reviewed financial statement prepared in accordance with the rules of the
department by an independent Idaho certified public accountant or Idaho
licensed public accountant. The principal amount of the letter of credit or
certificate of deposit shall be the same as that required for a surety bond
pursuant to this chapter. The letter of credit or certificate of deposit shall
remain on file with the department until it is released, canceled or
discharged by the director or until the director is notified ninety (90) days
in advance, by registered or certified mail, return receipt requested, that
the letter of credit or certificate of deposit is renewed, canceled or
amended. Failure to notify the director may result in the suspension or
revocation of the seed buyer license. The provisions of this chapter that
apply to a bond apply to each letter of credit or certificate of deposit given
in lieu of such bond. Under the provisions of this chapter, an irrevocable
letter of credit or certificate of deposit shall not be accepted unless it is
issued by a national bank or federal thrift institution in Idaho or by a
state-chartered bank or thrift institution authorized to conduct business in
Idaho and insured by the federal deposit insurance corporation.
    If a seed buyer is also licensed pursuant to either chapter 2 or 5, title
69, Idaho Code, that seed buyer may obtain a single bond, certificate of
deposit or irrevocable letter of credit as surety for both chapter 51, title
22, Idaho Code, and chapter 2 or 5, title 69, Idaho Code. The bond,
certificate of deposit or irrevocable letter of credit shall be made out in
favor of the commodity indemnity fund and the seed indemnity fund. In the
event a seed buyer fails as defined in section 22-5102(5), Idaho Code, and a
single bond, certificate of deposit or irrevocable letter of credit is written
in favor of the commodity indemnity fund and seed indemnity fund, the proceeds
of the bond, certificate of deposit or irrevocable letter of credit will be
allocated based on the dollar amount of the verified claims approved pursuant
to chapter 51, title 22, Idaho Code, and chapter 2, title 69, Idaho Code.