                                 CODE OF VIRGINIA

EXECUTION, TERMS AND FORM OF BOND OR IRREVOCABLE LETTER OF CREDIT; ACTION ON
BOND OR IRREVOCABLE LETTER OF CREDIT; INVESTIGATION OF COMPLAINTS (§ 3.2-4756)

The bond shall be executed by the applicant as principal and by a surety company
authorized and qualified to do business in the Commonwealth as surety. An
irrevocable letter of credit may be issued on such terms as the Commissioner may
require. The Commissioner shall be designated as the trustee of the bond or
beneficiary of the irrevocable letter of credit, and a copy of the bond or
irrevocable letter of credit shall be filed with him. The bond shall be in a
form prescribed or approved by the Commissioner and shall be conditioned to
secure the faithful accounting for payment to producers, agents or
representatives, of all grain purchased, stored, handled or sold by the dealer.
Any producer claiming to be injured by the nonpayment, fraud, deceit or
negligence of any dealer may bring action upon the bond against the principal,
or the surety, or both in an appropriate court. In the event the Commissioner
receives written complaint from an injured producer of nonpayment, fraud, deceit
or negligence of a dealer, the Commissioner may investigate such complaint and
make recommendations to the surety company as to the culpability of the dealer,
if any.

HISTORY: 1972, c. 296, § 3.1-722.20; 1982, c. 187; 2008, c. 860.