§ 245. — Bonding and other financial assurance requirements.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC245]
TITLE 7--AGRICULTURE
CHAPTER 10--WAREHOUSES
Sec. 245. Bonding and other financial assurance requirements
(a) In general
As a condition of receiving a license or approval under this chapter
(including regulations promulgated under this chapter), the person
applying for the license or approval shall execute and file with the
Secretary a bond, or provide such other financial assurance as the
Secretary determines appropriate, to secure the person's performance of
the activities so licensed or approved.
(b) Service of process
To qualify as a suitable bond or other financial assurance under
subsection (a) of this section, the surety, sureties, or financial
institution shall be subject to service of process in suits on the bond
or other financial assurance in the State, district, or territory in
which the warehouse is located.
(c) Additional assurances
If the Secretary determines that a previously approved bond or other
financial assurance is insufficient, the Secretary may suspend or revoke
the license or approval covered by the bond or other financial assurance
if the person that filed the bond or other financial assurance does not
provide such additional bond or other financial assurance as the
Secretary determines appropriate.
(d) Third party actions
Any person injured by the breach of any obligation arising under
this chapter for which a bond or other financial assurance has been
obtained as required by this section may sue with respect to the bond or
other financial assurance in a district court of the United States to
recover the damages that the person sustained as a result of the breach.
(Aug. 11, 1916, ch. 313, pt. C, Sec. 6, as added Pub. L. 106-472, title
II, Sec. 201, Nov. 9, 2000, 114 Stat. 2064.)
Prior Provisions
A prior section 245, acts Aug. 11, 1916, ch. 313, pt. C, Sec. 5, 39
Stat. 486; Feb. 23, 1923, ch. 106, 42 Stat. 1282, related to term and
renewal of license, prior to the general amendment of this chapter by
Pub. L. 106-472.
A prior section 6 of act Aug. 11, 1916, ch. 313, pt. C, was
classified to section 247 of this title, prior to the general amendment
of this chapter by Pub. L. 106-472.
