S.D. Admin. R. 20:10:11:04.01
If a public grain warehouse licensee furnishes an additional bond so that the total bond is equal to one-half of the local market value of grain the warehouse licensee is storing, the additional bond may be an increase rider executed by the corporate surety who issued the original bond filed with the commission or an additional bond executed by a second bondsperson or insurer.
An increase rider or additional bond shall be in substantially the same form as required by § 20:10:11:04 for original bonds. It shall state the name and location of the warehouse licensee's facilities covered by the bond.
At a minimum, the increase rider or additional bond shall cover defaults occurring during the period beginning 30 days before a monthly grain report showing need for a bond increase is filed with the commission and ending when the total amount of grain stored in the warehouse decreases so that the original bond covers one-half of the local market value of the stored grain.
S.D. Admin. R. 20:10:11:04.01
General Authority: SDCL 49-43-4.1(2).
Law Implemented: SDCL 49-43-4.2, 49-43-4.3, 49-43-5.3.