Section 345 IAC 7-3.5-8 - Bond requirementsAuthority: IC 15-17-3-21
Affected: IC 15-17-3-13
Sec. 8.
(a) Every dealer, before engaging or continuing in the business of buying or selling livestock, must execute and maintain a bond or other security in the amount and in the form required by IC 15-17-16 and this section.(b) Each dealer buying and selling livestock interstate shall obtain a U.S. Department of Agriculture, Packers and Stockyards bond or other USDA approved security where required by federal law. Where an applicant or licensee already has a bond or other security on file with the Packers and Stockyards Division, U.S. Department of Agriculture, further security under this rule shall not be required if such security is an adequate amount and conditioned upon such terms so as to provide at least as much protection as the requirements of this rule.(c) The surety on any bond must be a surety company authorized to do business in Indiana, and the bond shall bear the seal of the surety company. The bonding company agent must attach a duly executed power of attorney form to such bond.(d) Security in lieu of a bond must be in one (1) of the following forms:(1) A trust fund agreement governing funds actually deposited or invested in fully negotiable obligations of the United States or federally insured deposits or accounts in the name of and readily convertible to currency by a trustee as provided in subsection (e).(2) A trust fund agreement governing funds which may be drawn by a trustee as provided under subsection (e) under one (1) or more irrevocable, transferable, standby letters of credit issued by a federally insured bank or institution and physically received and retained by such trustee.(e) A bond may be in favor of a trustee. The trustee shall be a financially responsible and disinterested person. Attorneys at law, banks, and trust companies are, without limitation, suitable trustees. If a trustee is not named in the bond, the state veterinarian may serve as trustee or designate a person to act as trustee in an action to recover damages for breach of the bond's conditions. The state veterinarian may agree to serve as trustee under 9 CFR 201.32 in actions under the jurisdiction of the United States Department of Agriculture, Grain Inspection and Packers and Stockyards Administration.(f) Bond and other security coverage shall be annually adjusted for business transacted during the preceding twelve (12) month period. Indiana State Board of Animal Health; 345 IAC 7-3.5-8; filed Jan 20, 1988, 4:01 p.m.: 11 IR 1752; filed Apr 2, 1993, 5:00 p.m.: 16 IR 1942; filed Nov 20, 1997, 2:45 p.m.: 21 IR 1288; errata filed Dec 5, 1997, 9:15 a.m.: 21 IR 1349; readopted filed May 2, 2001, 1:45 p.m.: 24 IR 2895; filed Dec 31, 2001, 10:02 a.m.: 25 IR 1612; readopted filed May 9, 2007, 3:16 p.m.: 20070516-IR-345070037RFA; errata filed Oct 3, 2008, 3:30 p.m.: 20081022-IR-345080767ACA; readopted filed Aug 7, 2013, 8:32 a.m.: 20130904-IR-345130236RFAReadopted filed 7/10/2019, 3:50 p.m.: 20190814-IR-345190168RFA