010-17 Wyo. Code R. § 17-9

Current through April 27, 2019

Section 17-9 - Warehouse Bonds

(a) Effective dates. All bonds shall be secured by the warehouse or warehouseman and shall remain in effect at all times the warehouse or warehouseman is licensed and until released by the Department.

(b) Acceptable forms. The following types of bonds are acceptable:

• (i) A cash bond in the form of a certificate of deposit, assigned to the State of Wyoming; or

• (ii) An acceptable irrevocable letter of credit issued and guaranteed by a federally insured financial institution; or

• (iii) A surety bond issued by a surety company properly licensed and insured to do business in the state of Wyoming.

(c) Computation of bond amount.

• (i) The amount of bond for grain (except for beans and grass seed) to be furnished for each warehouse or warehouseman under the regulations in this part shall be fixed at a rate based upon the three (3) year weighted average of the highest reported Denver Cash Grain price as recorded by the USDA; Agricultural Marketing Service per bushel January 15 or the nearest open market day. The formula for upright storage is six percent (6%) of the average price per bushel times upright capacity. The formula for flat storage is twelve percent (12%) of the average price per bushel times flat capacity. All capacities shall be determined by the Department.

  Example: Upright storage

  Capacity 100,000 bushels

  Denver, CO average Price/Bushel = $3.18

  6% x $3.18= $ .1908 x 100,000 bushels = $19,080.00

  Bond for next licensing period for upright storage: $19,080.00

  Flat Storage

  Capacity 25,000 bushels

  Denver, CO average Price/Bushel = $3.18

  12% x $ 3.18= $.3816 x 25,000 bushels = $9,540.00

  Bond for next licensing period for flat storage: $9,540.00

  Total warehouse bond for next licensing period: $28, 620.00

• (ii) The amount of bond for beans to be furnished for each warehouse or warehouseman under the regulations in this part shall be fixed at a rate based upon the three (3) year weighted average of the highest reported Denver Cash Grain price as recorded by the USDA; Agricultural Marketing Service per hundredweight on January 15 or the nearest open market day. Formula is six percent (6%) of the average price per hundredweight times total warehouse capacity. All capacities shall be determined by the Department.

Example: Capacity 100,000 hundredweight

Denver, CO average price/hundredweight= $22.75

6% x $22.75 = $1.3650 x 100,000 hundredweight = $136,500.00

Total warehouse bond for next licensing period: $136,500.00

• (iii) The amount of bond for grass seed to be furnished for each warehouse or warehouseman under the regulations in this part shall be fixed at a rate based upon the price per pound of each particular species or the nearest like species using the simple average of the previous calendar years redistribution prices at the Bureau of Land Management Regional Seed Warehouse in Boise, Idaho. Formula is five percent (5%) of price per pound times total warehouse capacity. All capacities shall be determined by the Department.

Example: Capacity 500,000 pounds

BLM Warehouse redistribution species price/lb on May 3, 2006=$4.57

BLM Warehouse redistribution species price/lb on July 16, 2006=$4.34

BLM Warehouse redistribution species price/lb on August 23, 2006=$3.87

Average=$4.26

5% x $4.26 = .21 x 500,000 pounds = $105,000.00

Bond for next licensing period: $105,000.00

• (iv) The minimum bond for all grain warehouses shall be twenty thousand dollars ($20,000).

• (iv) All warehouse bonds shall be determined by the Department no later than April 1 of each year. The three (3) year weighted average will include the current year that the bond was determined in as well as the two (2) most previous years.

(d) Determination of grain stored. The principal grain stored, to be used for computation of bond, shall be determined by the Department.

(e) Sharing of information. The Department may share inspection reports, audits and any information on a warehouse or warehouseman, with a financial institution which has issued an irrevocable letter of credit, if the warehouse or warehouseman has consented in writing to release the information.

010-17 Wyo. Code R. § 17-9