2010 Tennessee Code
Title 53 - Food, Drugs And Cosmetics
Chapter 3 - Dairy Law of the State of Tennessee
Part 1 - General Provisions
53-3-118 - Filing of a corporate surety bond by processors and distributors.

53-3-118. Filing of a corporate surety bond by processors and distributors.

(a)  Any processor or distributor required to be licensed under, or whose product is required to be registered under, the dairy law of this state, compiled in this chapter, who acquires or receives, on consignment or otherwise, market or fluid milk from producers or cooperative associations composed of producers, shall file with the commissioner a corporate surety bond payable to the state, for the use and benefit of any aggrieved person and in the form prescribed by the commissioner and conditioned for the payment by the processor or distributor of all amounts due for market or fluid milk purchased or otherwise acquired from producers or cooperative associations of producers by the processor or distributor.

(b)  The bond shall be in an amount equal to the total purchases of market or fluid milk by the processor or distributor during the month of May of the preceding year, or if the processor or distributor was not engaged in business during the month of May of the preceding year, the bond shall be in an amount fixed by the commissioner. The bond required shall not, in any event, exceed fifty thousand dollars ($50,000).

(c)  Any producer or cooperative association of producers aggrieved by reason of a processor's or distributor's failure or refusal to pay any amount of money due for purchases of market or fluid milk shall have a right of action to sue in its own name upon the bond and against the surety in any court of law or equity of this state having jurisdiction.

(d)  The processor or distributor shall, at the time of paying the annual license or registration fees, file a corporate surety bond as provided in this section, which shall cover the term of the license or registration.

(e)  If any applicant for the license or registration fails to file the corporate surety bond as required in this section, the commissioner may refuse to issue or renew the applicant's license or registration, or the commissioner may issue the license or registration conditioned upon the applicant's paying cash for all the applicant's market or fluid milk purchases; provided, that the applicant furnishes the commissioner with the names and addresses of all persons from whom the applicant purchases milk.

[Acts 2005, ch. 300, § 6.]