{"data":{"id":"us-mt/80-4-604","jurisdiction":"us-mt","citation":"80-4-604","heading":"Bonding requirement amounts -- cancellation.","body":"(1) An applicant for a license to operate as a commodity dealer shall, before a license may be issued, file with the department a surety bond or its equivalent, as established by department rule, payable to the state.\n(2) Except as provided in 80-4-601(5)(b) and subsection (3) of this section:\n(a) the bond for a commodity dealer may not exceed 2% of the value of the agricultural commodities purchased by the commodity dealer from the producer during the previous 12-month period;\n(b) the bond for all new applicants is 2% of the estimated value of all agricultural commodities to be purchased during the coming 12-month period; and\n(c) the minimum amount of bond required by any commodity dealer is $20,000 and the maximum is prescribed in 80-4-405.\n(3) (a) A commodity dealer acting as a broker and contracting or otherwise conducting business with a commodity dealer licensed in Montana shall post the minimum amount of bond pursuant to subsection (2)(c).\n(b) A commodity dealer acting as a broker and contracting or otherwise conducting business with a buyer not licensed as a commodity dealer in Montana shall:\n(i) post the maximum amount of bond required by 80-4-405; and\n(ii) be held jointly liable with the buyer for failure to comply with terms of a written contract or failure to pay for a commodity purchase under an oral agreement pursuant to 80-4-612.\n(4) A surety shall notify the commodity dealer and the department by certified mail at least 60 days prior to the cancellation of the bond. A commodity dealer's bond filed with the department is continuous until canceled by the surety upon 60 days' notice; however, cancellation does not terminate any liability of the surety incurred prior to the date of cancellation.","path":["TITLE 80. AGRICULTURE","CHAPTER 4. AGRICULTURAL COMMODITIES","Part 6. Agricultural Commodity Dealers"],"source_url":"https://mca.legmt.gov/bills/mca/title_0800/chapter_0040/part_0060/section_0040/0800-0040-0060-0040.html","current_through":"Montana Code Annotated 2025","vintage":"","retrieved_at":"2026-09-14T05:00:35Z","sha256":"d03053ea789819fddba7098f152eac4ea441ad8bcd476cc066ba844eb4c45ab9","source_id":"us-mt","stale":false,"prev":"us-mt/80-4-603","next":"us-mt/80-4-605"},"notice":"GroundRules: Original legal text. Not legal advice."}