                                 CODE OF VIRGINIA

LICENSE REQUIRED; APPLICATION; LICENSE FEE AND BOND (§ 3.2-4765)

A. No person shall do business as a cotton handler without first obtaining a
license from the Commissioner.

B. Every person intending to do business as a cotton handler, shall make
application to the Commissioner for a license on or before July 1 of each year
on a form provided by the Commissioner. Any license granted by the Commissioner
shall expire on June 30 following the date of issuance. The application shall
specify:

   1. An address where the applicant will receive correspondence by first-class
   mail;

   2. Every address where the records of the cotton handler will be kept;

   3. Every address, including street address, building number, and city or town:
   				a. In the case of a cotton gin, where the cotton will be ginned; or
   				b. In the case of a cotton warehouse, where the cotton will be warehoused;

   4. The full name and first-class mail address, including the street, city or
   town, and state, of a person who is authorized to receive service of process
   on behalf of the cotton handler; and

   5. The form of business organization that the cotton handler will assume. If
   the applicant will be doing business as a sole proprietorship, he shall
   disclose the full name of the sole proprietor and the name under which the
   sole proprietor will be doing business. If the applicant will be doing
   business as a partnership, he shall disclose the full name of each of the
   partners, the name of the partnership, and the name under which the
   partnership will be doing business. If the applicant will be doing business as
   a corporation, he shall disclose the full name of each of the officers of the
   corporation, the name of the corporation, and the name under which the
   corporation will be doing business. If the applicant will be doing business as
   a limited liability company or foreign limited liability company, he shall
   disclose the full name of the manager of the company, the name of the company,
   and the name under which the company will be doing business as a cotton
   handler. If the company has no manager, the applicant shall disclose the full
   names of the members of the company.

C. The applicant shall submit with the application a nonrefundable application
fee of $50.

D. Every person submitting an application for a license as a cotton handler who
will be doing business as a cotton gin or cotton merchant shall furnish at the
time of application for a license a bond in the amount of $50,000 in accordance
with &#xA7; 3.2-4767. Nothing in this subsection shall require a person doing
business as a cotton gin to be separately licensed or bonded as a cotton
merchant.

E. Except as otherwise provided in subsection F, every person making application
for a license as a cotton handler doing business as a cotton warehouse shall
furnish, at the time of application for the license, proof of insurance with a
company licensed to do business in the Commonwealth in an amount equal to the
fair market value of the maximum amount of cotton that can be stored in the
warehouse, and a bond in the amount of $500,000 in accordance with &#xA7;
3.2-4767.

F. In lieu of satisfying the requirements of subsection E, a cotton handler
doing business solely as a cotton warehouse may furnish proof of a valid license
issued pursuant to the United States Warehouse Act (USWA) (7 U.S.C. &#xA7; 241
et seq.). A cotton handler governed by this subsection shall notify the
Commissioner of any change in the status of its USWA license within 24 hours
after being notified by the U.S. Department of Agriculture.

HISTORY: 2000, c. 584, §§ 3.1-722.30 to 3.1-722.32; 2008, c. 860.