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RULE §13.4 Bonding requirements

Published: 2015

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(a) The bond, required by the Texas Agriculture Code, §14.022, shall be a single continuous bond, issued by a single corporate surety licensed to do business in the State of Texas except for:   (1) mid year capacity changes, provided that the separate bond or bonds obtained for such capacity changes are combined into a single bond prior to or upon renewal of the license; and   (2) temporary storage that requires an additional bond will be handled the same way as a mid year capacity change. (b) A single continuous bond is required for each combination or individual facility not part of a combination. (c) For the purpose of determining whether a net worth deficiency exists in the case of multiple licenses held or sought by a single warehouse operator who has submitted a single financial statement combining the assets of all warehouse operations, the storage capacity of all warehouses shall be combined and compared with the net worth established by the single financial statement. If a deficiency bond is needed, a single, separate net worth deficiency bond apportioning bond liability among the various warehouse operations pro rata (as specified by the department) is required.

Source Note: The provisions of this §13.4 adopted to be effective May 17, 2004, 29 TexReg 4755