Florida Regulations 5G-2.003: Procedures for Utilizing Certificates of Deposit in Lieu of Surety Bonds
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(1) A prospective licensed citrus fruit dealer wishing to post a certificate of deposit in lieu of a surety bond in connection with the issuance of a citrus fruit dealer’s license, shall purchase such certificate in an amount to be determined according to the criteria as set forth in Section 2 of Chapter 78-100, Laws of Florida.
(2) The certificate of deposit shall have the same face principal value as if a surety bond had been posted.
(3) No certificate of deposit shall be submitted with an application for a citrus fruit dealer’s license unless the amount of such certificate is fully insured by the appropriate Federal Insurance Corporation.
(4) Any certificate of deposit offered in connection with an application for a citrus fruit dealer’s license shall be issued either by a national or Florida chartered bank or savings and loan association.
(5) The proposed certificate of deposit shall be issued in the name of the prospective licensed citrus fruit dealer and Adam H. Putnam, Commissioner of Agriculture of the State of Florida, and his successors in office.
(6) The applicant for a citrus fruit dealer’s license shall present with the certificate of deposit an assignment of such applicant’s interest in the certificate in favor of Adam H. Putnam, Commissioner of Agriculture of the State of Florida, and his successors in office, on the form to be provided by the Department of Agriculture and Consumer Services. Such assignment shall be irrevocable for the period ending no sooner than May 2 of the year following the end of the citrus shipping season for which the applicant’s citrus fruit dealer’s license is to be issued, and shall continue at least until all claims against the dealer for the season in question have been disposed of. The certificate of deposit may be re-assigned by the Commissioner of Agriculture to such dealer providing that no claims have been filed within the period ending May 1st of the year following the end of the citrus shipping season for which the license has been issued.
The conditions of the assignment from the applicant to the Commissioner of Agriculture shall be that if the applicant is subsequently issued a citrus fruit dealer’s license, such dealer shall well and truly comply with the provisions of the Florida Citrus Code, and with the terms and conditions of all contracts made with such dealer by producers and other citrus fruit dealers as to the purchase, handling, sale and accounting for sales of citrus fruit, and that if such dealer shall fully account for the proceeds of any citrus fruit contracted for in accordance with the terms and conditions of contracts with producers, and shall fully account to citrus fruit dealers for any advance payments or deposits made, and shall deliver all citrus fruit contracted for in accordance with the terms of contracts with such citrus fruit dealers, then the certificate of deposit subject of such assignment shall be re-assigned by the Commissioner of Agriculture to the dealer, otherwise to remain in full force and effect.
(7) All interest accruing on any certificate of deposit in lieu of a surety bond in connection with Florida Statutes § 601.61, shall be paid to the dealer and the dealer shall register his federal employer tax number or other federal tax identification number with the financial institution issuing such certificate.
(8) A separate certificate of deposit for the amount of the bond otherwise called for must be assigned to the Commissioner of Agriculture for each citrus shipping season for which the applicant applies for a citrus fruit dealer’s license.
Rulemaking Authority Florida Statutes § 601.29(1). Law Implemented Florida Statutes § 601.61., Chapter 78-100, Laws of Florida. History-New 11-23-78, Formerly 5G-2.03.
Terms Used In Florida Regulations 5G-2.003
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
(3) No certificate of deposit shall be submitted with an application for a citrus fruit dealer’s license unless the amount of such certificate is fully insured by the appropriate Federal Insurance Corporation.
(4) Any certificate of deposit offered in connection with an application for a citrus fruit dealer’s license shall be issued either by a national or Florida chartered bank or savings and loan association.
(5) The proposed certificate of deposit shall be issued in the name of the prospective licensed citrus fruit dealer and Adam H. Putnam, Commissioner of Agriculture of the State of Florida, and his successors in office.
(6) The applicant for a citrus fruit dealer’s license shall present with the certificate of deposit an assignment of such applicant’s interest in the certificate in favor of Adam H. Putnam, Commissioner of Agriculture of the State of Florida, and his successors in office, on the form to be provided by the Department of Agriculture and Consumer Services. Such assignment shall be irrevocable for the period ending no sooner than May 2 of the year following the end of the citrus shipping season for which the applicant’s citrus fruit dealer’s license is to be issued, and shall continue at least until all claims against the dealer for the season in question have been disposed of. The certificate of deposit may be re-assigned by the Commissioner of Agriculture to such dealer providing that no claims have been filed within the period ending May 1st of the year following the end of the citrus shipping season for which the license has been issued.
The conditions of the assignment from the applicant to the Commissioner of Agriculture shall be that if the applicant is subsequently issued a citrus fruit dealer’s license, such dealer shall well and truly comply with the provisions of the Florida Citrus Code, and with the terms and conditions of all contracts made with such dealer by producers and other citrus fruit dealers as to the purchase, handling, sale and accounting for sales of citrus fruit, and that if such dealer shall fully account for the proceeds of any citrus fruit contracted for in accordance with the terms and conditions of contracts with producers, and shall fully account to citrus fruit dealers for any advance payments or deposits made, and shall deliver all citrus fruit contracted for in accordance with the terms of contracts with such citrus fruit dealers, then the certificate of deposit subject of such assignment shall be re-assigned by the Commissioner of Agriculture to the dealer, otherwise to remain in full force and effect.
(7) All interest accruing on any certificate of deposit in lieu of a surety bond in connection with Florida Statutes § 601.61, shall be paid to the dealer and the dealer shall register his federal employer tax number or other federal tax identification number with the financial institution issuing such certificate.
(8) A separate certificate of deposit for the amount of the bond otherwise called for must be assigned to the Commissioner of Agriculture for each citrus shipping season for which the applicant applies for a citrus fruit dealer’s license.
Rulemaking Authority Florida Statutes § 601.29(1). Law Implemented Florida Statutes § 601.61., Chapter 78-100, Laws of Florida. History-New 11-23-78, Formerly 5G-2.03.