Iowa Administrative Code › Agency 21 - Agriculture and Land Stewardship Department › Chapter 66 - Livestock Movement › Rule 21-66.13 - Feeder Pig Dealer Bonding/letter of Credit Requirement and Claims Procedures

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
General requirement.
In addition to the bond required in Iowa
			 Code section
			 163.30,
			 a feeder pig dealer shall maintain on file with the department evidence of
			 financial responsibility consisting of a surety bond furnished by a surety or
			 an irrevocable letter of credit issued by a financial institution. "Financial
			 institution" means a bank or savings and loan association authorized by this
			 state, or by the laws of the United States, which is a member of the Federal
			 Deposit Insurance Corporation, the Federal Savings and Loan Insurance
			 Corporation or the National Bank for Cooperatives established in the
			 Agricultural Credit Act, Pub. L. No. 100-233.
Bonds and irrevocable letters of credit filed with the
				department shall be on the forms prescribed by the animal industry bureau.
				Bonds and irrevocable letters of credit shall be written so as to provide funds
				to protect purchasers of feeder pigs who incur damages in Iowa as a result of
				sick or diseased pigs obtained from a feeder pig dealer or who otherwise suffer
				damages arising from a breach of contract relating to the sale of feeder pigs
				by the feeder pig dealer described in the bond or irrevocable letter of
				credit.
Evidence of financial responsibility shall be provided to the
				department before the feeder pig dealer's license is issued or renewed pursuant
				to Iowa Code section
				163.30.
				The evidence of additional financial responsibility shall not be for less than
				$5,000 or for more than $25,000. The department may increase the amount of the
				evidence of financial responsibility for a dealer upon a showing of good cause.
				Terms of the bond or irrevocable letter of credit shall provide that if the
				bond or irrevocable letter of credit is canceled as to future transactions,
				written notice of the cancellation shall be provided to the department at least
				30 days in advance of the cancellation. Such notice shall be provided to the
				department either by personal delivery to the department or by certified mail.
				The feeder pig dealer shall provide an adequate replacement bond or irrevocable
				letter of credit prior to the effective date of the cancellation. The dealer's
				failure to submit an adequate replacement bond or irrevocable letter of credit
				shall result in the immediate suspension of the dealer's license to do business
				until such bond or irrevocable letter of credit is provided.
(2)
Applicability.
A bond or
			 irrevocable letter of credit filed pursuant to this rule shall only be subject
			 to claims which arise after July I, 2004, and are subsequent to feeder pig
			 dealer licensing or relicensing with the department.
(3)
Amount of bond.
The
			 amount of financial responsibility shall be based on the annual volume of
			 feeder pig sales in Iowa reported by the feeder pig dealer to the department
			 or, at the option of the feeder pig dealer, the annual volume of all livestock
			 or feeder pig sales reported to the United States Packers and Stockyards
			 Administration. The following table shall be used to determine the level of
			 additional financial responsibility:
TABLE FOR CornPUTING SURETY BOND OR IRREVOCABLE LETTER OF
				CREDIT EQUIVALENTS
Volume Ran
je in Dollars
Additional Financial Responsibility Required
(not less than)
(not more than)
$ 1
$ 6,500,000
$ 5,000
$ 6,500,001
$ 7,150,000
$ 6,000
$ 7,150,001
$ 7,800,000
$ 7,000
$ 7,800,001
$ 8,450,000
$ 8,000
$ 8,450,001
$ 9,100,000
$ 9,000
$ 9,100,001
$ 9,750,000
$10,000
$ 9,750,001
$16,250,000
$11,000
$16,250,001
$22,750,000
$12,000
$22,750,001
$29,250,000
$13,000
$29,250,001
$35,750,000
$14,000
$35,750,001
$42,250,000
$15,000
$42,250,001
$48,750,000
$16,000
$48,750,001
$55,250,000
$17,000
$55,250,001
$61,750,000
$18,000
$61,750,001
$68,250,000
$19,000
$68,250,001
$74,750,000
$20,000
$74,750,001
$81,250,000
$21,000
$81,250,001
$87,750,000
$22,000
$87,750,001
$94,250,000
$23,000
$94,250,001
$100,750,000
$24,000
$100,750,001
And higher
$25,000
(4)
Claims.
A person who has suffered damages in Iowa as a resuh
			 of sick or diseased pigs obtained from a feeder pig dealer, or who otherwise
			 suffers damages arising from a breach of contract relating to the sale of
			 feeder pigs by the feeder pig dealer, may file a claim against a bond or
			 irrevocable letter of credit provided under this rule. A claim against the bond
			 shall be valid only for a claim incurred in the state of Iowa for which there
			 is a final judgment from a court of Cornpetent jurisdiction.
(5)
Procedure. A
person
			 filing a claim against the bond or irrevocable letter of credit shall submit
			 both of the following before such claim shall be considered to be Cornpleted:
1. A notarized and Cornpleted copy of the
			 claim form.
2. An official copy of
			 the court judgment or other order which has established the debt as a bona fide
			 adjudicated debt, including the date that the judgment was entered.