Virginia Code 3.2-4756: Execution, terms and form of bond or irrevocable letter of credit; action on bond or irrevocable letter of credit; investigation of complaints.
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.
Terms Used In Virginia Code 3.2-4756
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Commissioner: means the Commissioner of Agriculture and Consumer Services. See Virginia Code 3.2-100
- Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
- Fraud: Intentional deception resulting in injury to another.
- Grain: means grains including corn (maize), wheat, rye, oats, barley, flaxseed, soybeans, and sunflower. See Virginia Code 3.2-4753
- Producer: means any person in Virginia who produces grain. See Virginia Code 3.2-4753
- Trustee: A person or institution holding and administering property in trust.
1972, c. 296, § 3.1-722.20; 1982, c. 187; 2008, c. 860.