(a) Effective
dates. All bonds shall be secured by the warehouse or warehouseman and shall
remain in effect at all times the warehouse or warehouseman is licensed and
until released by the Department.
(b) Acceptable forms. The following types of
bonds are acceptable:
(i) A cash bond in the
form of a certificate of deposit, assigned to the State of Wyoming;
or
(ii) An acceptable irrevocable
letter of credit issued and guaranteed by a federally insured financial
institution; or
(iii) A surety bond
issued by a surety company properly licensed and insured to do business in the
state of Wyoming.
(c)
Computation of bond amount.
(i) The amount of
bond for grain (except for beans and grass seed) to be furnished for each
warehouse or warehouseman under the regulations in this part shall be fixed at
a rate based upon the three (3) year weighted average of the highest reported
Denver Cash Grain price as recorded by the USDA; Agricultural Marketing Service
per bushel January 15 or the nearest open market day. The formula for upright
storage is six percent (6%) of the average price per bushel times upright
capacity. The formula for flat storage is twelve percent (12%) of the average
price per bushel times flat capacity. All capacities shall be determined by the
Department.
Example: Upright storage
Capacity 100,000 bushels
Denver, CO average Price/Bushel = $3.18
6% x $3.18= $ .1908 x 100,000 bushels = $19,080.00
Bond for next licensing period for upright storage:
$19,080.00
Flat Storage
Capacity 25,000 bushels
Denver, CO average Price/Bushel = $3.18
12% x $ 3.18= $.3816 x 25,000 bushels = $9,540.00
Bond for next licensing period for flat storage:
$9,540.00
Total warehouse bond for next licensing period: $28,
620.00
(ii) The amount of
bond for beans to be furnished for each warehouse or warehouseman under the
regulations in this part shall be fixed at a rate based upon the three (3) year
weighted average of the highest reported Denver Cash Grain price as recorded by
the USDA; Agricultural Marketing Service per hundredweight on January 15 or the
nearest open market day. Formula is six percent (6%) of the average price per
hundredweight times total warehouse capacity. All capacities shall be
determined by the Department.
Example: Capacity 100,000 hundredweight
Denver, CO average price/hundredweight= $22.75
6% x $22.75 = $1.3650 x 100,000 hundredweight =
$136,500.00
Total warehouse bond for next licensing period:
$136,500.00
(iii) The amount of bond
for grass seed to be furnished for each warehouse or warehouseman under the
regulations in this part shall be fixed at a rate based upon the price per
pound of each particular species or the nearest like species using the simple
average of the previous calendar years redistribution prices at the Bureau of
Land Management Regional Seed Warehouse in Boise, Idaho. Formula is five
percent (5%) of price per pound times total warehouse capacity. All capacities
shall be determined by the Department.
Example: Capacity 500,000 pounds
BLM Warehouse redistribution species price/lb on May 3,
2006=$4.57
BLM Warehouse redistribution species price/lb on July 16,
2006=$4.34
BLM Warehouse redistribution species price/lb on August 23,
2006=$3.87
Average=$4.26
5% x $4.26 = .21 x 500,000 pounds = $105,000.00
Bond for next licensing period: $105,000.00
(iv) The minimum bond for all grain
warehouses shall be twenty thousand dollars ($20,000).
(iv) All warehouse bonds shall be determined
by the Department no later than April 1 of each year. The three (3) year
weighted average will include the current year that the bond was determined in
as well as the two (2) most previous years.
(d) Determination of grain stored. The
principal grain stored, to be used for computation of bond, shall be determined
by the Department.
(e) Sharing of
information. The Department may share inspection reports, audits and any
information on a warehouse or warehouseman, with a financial institution which
has issued an irrevocable letter of credit, if the warehouse or warehouseman
has consented in writing to release the information.
