BOND NO. ____________ 

UNITED STATES DEPARTMENT OF AGRICULTURE 

PERISHABLE AGRICULTURAL COMMODITIES ACT, 1930, as amended 

(7 U.S.C. 499a et seq.)

LICENSE APPLICANT BOND UNDER SECTION 4(c)

KNOW ALL MEN BY THESE PRESENTS, that (I), (we), ________________, desiring to 

engage in the business of handling perishable agricultural commodities in interstate or foreign 

commerce at ___________________, State of _____________, as Principal, and ____________, 

(name of surety), duly incorporated under the laws of the State of ____________, of the United 

States of America and having its head office in the City of ____________, State of 

___________, as surety, are held and firmly bound unto the United States of America, the 

Secretary of Agriculture of the United States, and every creditor of said Principal to whom a 

reparation order is issued under the Perishable Agricultural Commodities Act, 1930, as amended, 

against said Principal in favor of said creditor(s), in the penal sum of ________ Thousand 

Dollars ($_______ ), for the payment of which, well and truly to be made, we bind ourselves and 

our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by 

these presents. 

The conditions of this obligation are such that, 

WHEREAS, the above bound Principal has applied to the Secretary of Agriculture for a license 

under the Perishable Agricultural Commodities Act, 1930, as amended and the regulations 

promulgated thereunder; and 

WHEREAS, the Principal has agreed, and does hereby agree, as a condition to the granting of 

said license, to comply with and abide by the terms of the Perishable Agricultural Commodities 

Act and the regulations promulgated thereunder, and that said Principal will pay all reparation 

orders which may be issued against said Principal in connection with transactions occurring 

within four (4) years following the date of this instrument, subject to his right of appeal under 

section 7(c) of said Act; 

NOW, THEREFORE, if the said license is granted and said principal shall faithfully perform all 

of his obligations under the Perishable Agricultural Commodities Act and the regulations 

thereunder, then this obligation shall be null and void and of no effect, otherwise to be and 

remain in full force and virtue. 

Suit on this bond may be maintained in any Court of competent jurisdiction by the United States 

of America, the Secretary of Agriculture of the United States, or any creditor of said Principal in 

favor of said creditor of said Principal to whom a reparation order is issued under said Act 
against said Principal in connection with transactions occurring within four (4) years following 

the issuance of the license, subject to his right of appeal under section 7(c) of said Act. 

It is expressly understood and agreed that the liability of the surety under this bond shall not 

exceed in the aggregate the sum of __________ Thousand Dollars ($ _________), and if two or 

more such reparation orders exceed the sum, such sum shall be prorated among such reparation 

award holders. 

This bond is not subject to cancellation without the expressed approval of the Secretary of 

Agriculture. 

IN WITNESS WHEREOF, the said principal and surety have executed this instrument on the 

_____ day of __________, 19__, and have caused their respective seals to be hereunto affixed. 

 

_______________________________ 

Principal Firm 

(SEAL) 

BY 

_______________________________ 

Witness to signature and seal of principal: 

NAME 

_______________________________ 

ADDRESS 

_______________________________ 

_______________________________ _______________________________ 

_______________________________ 

Surety 

(SEAL) 

BY 

_______________________________ 

State Resident Agent 

Witness to signature and seal of surety: 

NAME 

_______________________________ 

ADDRESS 

_______________________________ 

_______________________________ _______________________________ 

 1/ If a corporation, also give State in which incorporated. If a partnership, give names of the 

partners.