La. Admin. Code tit. 7 § VII-103
Current through Register Vol. 50, No. 11, November 20, 2024
Section VII-103 - Bonds and Other SecuritiesA. Any person, firm or corporation, who shall engage in the business of purchasing milk from producers or cooperative associations for the purpose of manufacturing, pasteurizing or distributing milk or milk products shall post, with the commissioner, a surety bond signed by a surety company authorized to do business in Louisiana, or other security, in a form and substance acceptable to and approved by the commissioner. Said other security may include, but not limited to, the following: 2. negotiable bonds or securities; or3. a first mortgage on real estate and/or plant equipment; or4. irrevocable letter of credit; or5. certificate of deposit.B. The amount of such bond or other security shall be computed by adding the total payments made to producers and cooperative associations for milk during the preceding six months, dividing by the number of days in the period and then multiplying the results by twice the number of days in the normal or customary day period. The bond or other securities shall be sufficient to cover a minimum of seven days' purchases from producers and cooperative associations and the maximum amount required shall not be more than an amount sufficient to cover 25 days' purchases from producers and cooperative associations. The correct amount of bond or other security shall be computed semi-annually or annually, at the discretion of the commissioner, and the amount shall be adjusted accordingly.La. Admin. Code tit. 7, § VII-103
Adopted by the Department of Agriculture, August 1967, amended by the Department of Agriculture and Forestry, Dairy Division, LR 13:739 (December 1987).AUTHORITY NOTE: Adopted in accordance with R.S. 3:641 and R.S. 3:642.