Michigan Laws 290.458 – Irrevocable letter of credit or surety bond required; exemptions; falsification of application, statement, or record
Current as of: 2024 | Check for updates
|
Other versions
(1) An applicant for a wholesale potato dealer license shall file with the application or have on file with the director an irrevocable letter of credit issued by a financial institution on a form provided by the director providing that funds be made available against a sight draft drawn by the director in the manner described in section 9 or file or have on file a surety bond in favor of the director on a form provided by the director and executed by a surety company registered in this state. The bond shall be conditioned for all of the following:
(a) Observance of laws relating to the carrying on of the business of a wholesale potato dealer.
Terms Used In Michigan Laws 290.458
- Director: means the director of the department of agriculture and his or her authorized agents and representatives. See Michigan Laws 290.451
- Financial institution: means a commercial bank whose deposits are insured by the federal deposit insurance corporation or a national bank for cooperatives subject to the farm credit act of 1971, Public Law 92-181, 85 Stat. See Michigan Laws 290.451
- Grower: means a person engaged in the business of growing and producing potatoes. See Michigan Laws 290.451
- Grower cooperative: means an organization of growers or a division of an organization of growers, or a federation of cooperatives of growers engaged in the marketing, bargaining, shipping, or processing functions of potatoes on behalf of its members or nonmembers who are the producers of potatoes. See Michigan Laws 290.451
- month: means a calendar month; the word "year" a calendar year; and the word "year" alone shall be equivalent to the words "year of our Lord". See Michigan Laws 8.3j
- Potatoes: means any variety of Irish potatoes in fresh form included in the species solanum tuberosum. See Michigan Laws 290.451
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o
- Wholesale potato dealer: means a person who buys potatoes in wholesale lots directly from a grower or grower cooperative or who sells or handles those potatoes in wholesale lots for the purpose of processing or resale to other wholesale potato dealers, retailers, restaurants, hotels, institutions, or hospitals. See Michigan Laws 290.451
(b) Payment when due of the purchase price of potatoes purchased by the wholesale potato dealer.
(c) Prompt settlement and payment of claims and charges due to this state for services rendered.
(d) Prompt reporting of sales to persons consigning potatoes to the licensee for sale on commission.
(e) Prompt payment to persons entitled to payment of the proceeds of sales, less lawful charges, disbursements, and commissions.
(2) The director shall not require a grower cooperative to furnish a bond or an irrevocable letter of credit for potatoes bought, sold, handled, or stored by the grower cooperative on behalf of its members. The grower cooperative shall furnish a bond or irrevocable letter of credit for potatoes bought, sold, handled, or stored on behalf of its nonmembers.
(3) An applicant for a wholesale potato dealer license shall not falsify an application, statement, or record required under this act.
(4) A wholesale potato dealer who buys an aggregate amount of less than 30,000 pounds of potatoes during each calendar month of a calendar year is exempt from this section and section 9 for the following calendar year.