Surety Bonds Michigan:

Wholesale Potato Dealer

A Wholesale Potato Dealer Bond in the state of Michigan is required by the Michigan Department of Agriculture. Act No. 158 of the Public Acts of 1964, as amended, requires an applicant for a wholesale potato dealer license (a personor business entity who buys Michigan grown potatoes directly from a grower, or a person or business entity whorepresents a grower cooperative handling potatoes for non-members) to file with the application or have on file a Surety Bond in favor of the Director of Agriculture, executed by a Surety company registered in the State of Michigan.

The amount of the Bond shall be DOUBLE the amount paid for all Michigan grown potatoes purchases from or handled from growers during the month in which the maximum volume of Michigan grown potatoes was bought or handled during the past calendar year. NO BOND SHALL BE LESS THAN $10,000 NOR MORE THAN $100,000.

For any person or business entity initially entering business, the Director Agriculture shall determine the amount of the Bond from the estimated amount of business to be done annually by the applicant.

If during any licensing year the Bond filed by a licensee becomes less than required by law because of an increase in the dollar volume of potato purchases, the Director may require the licensee to file an additional Bond to cover the increase in gross dollar volume.