{"data":{"id":"us-ok/okla.-stat.-tit.-2-2-9-22","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 2, § 2-9-22","heading":"State-chartered warehousemen - Reinsurance fee – Net worth","body":"requirement - Bonds, certificates of deposit and irrevocable letters\n\nof credit - Bond cancellation.\n\nA. 1. It shall be unlawful and a misdemeanor for any person to\n\noperate a public warehouse unless such person shall have obtained\n\nand holds a charter therefor issued by the State Board of\n\nAgriculture or be licensed and bonded as required by the United\n\nStates Warehouse Act.\n\n2. Each application for a charter issued by the Board shall be\n\non a form prescribed by the Board. The Board shall charge and\n\ncollect a one-time fee of One Hundred Dollars ($100.00) for each\n\ncharter. The Board shall deposit the fees in the State Department\n\nof Agriculture Revolving Fund.\n\n3. No charter shall be issued by the Board until the applicant\n\ntherefor has filed with the Board a financial statement prepared by\n\nan independent certified public accountant and such other financial\n\ninformation as shall be required by the Board.\n\nB. 1. The Board shall also charge and collect a fee of Ten\n\nDollars ($10.00) per One Thousand Dollars ($1,000.00) of surety.\n\nThe fee shall be deposited in the Commodity Storage Indemnity Fund\n\nand shall be specially designated and accounted for as a reinsurance\n\nfee. The Board shall use the reinsurance fee to provide protection\n\nto the Indemnity. If upon determination by the Board that the fee\n\nof Ten Dollars ($10.00) is not sufficient to adequately provide\n\nprotection of the Indemnity, the Board is authorized to assess an\n\nadditional fee in such an amount so as to provide the necessary\n\nprotection for the Indemnity provided such additional fee shall not\n\nexceed Twenty Dollars ($20.00) per One Thousand Dollars ($1,000.00)\n\nof surety. The additional assessment shall only be collected from\n\nthose persons securing surety through this section.\n\n2. Surety required by this section shall be in the same amounts\n\nas shall be required for bonds or certificates of deposit as\n\nspecified in subsection D of this section. Claims against the\n\nsurety shall be paid by the Board from the Indemnity in the same\n\nmanner as shall be required for bonds or certificates of deposit. A\n\ncorporate surety bond or certificate of deposit, as specified in\n\nsubsection D of this section, may be used to secure a charter in\n\nlieu of the reinsurance fee.\n\nC. The applicant, in order to qualify for a charter issued by\n\nthe Board, as evidence of the applicant's financial status shall\n\nhave a net worth equal to twenty-five cents ($0.25) per bushel for\n\nthe first four million (4,000,000) bushels of chartered capacity but\n\nnot less than Fifty Thousand Dollars ($50,000.00). All chartered\n\ncapacity in excess of four million (4,000,000) bushels shall be\n\ncomputed at the rate of ten cents ($0.10) per bushel for net worth\n\npurposes. In case of a net worth deficiency, the warehouseman shall\n\nfurnish a surety bond or certificate of deposit in an amount equal\n\nto such deficiency. The bond or certificate of deposit shall be\n\nfiled and made payable to the Board for the benefit of all persons\n\nstoring commodities with the applicant as a state-chartered\n\nwarehouseman. Insurable property owned by the warehouseman may only\n\nbe included in the net worth of the warehouse, provided it is\n\ninsured to at least eighty percent (80%) of its appraised value.\n\nThe Board may require a certified property appraisal provided by an\n\nappraiser approved by the Board. If the net worth of the applicant\n\nor charter holder is less than One Million Dollars ($1,000,000.00),\n\na financial statement shall be submitted annually. Financial\n\nstatements shall be prepared and submitted by an independent\n\ncertified public accountant, describing the current financial\n\nposition of the applicant, and include such other information\n\nrequired by the Board. Corporate surety bonds shall be on a form\n\nprescribed by the Board, on condition that the applicant will\n\nfulfill all obligations as a warehouseman. The Board may require\nnually. Financial\n\nstatements shall be prepared and submitted by an independent\n\ncertified public accountant, describing the current financial\n\nposition of the applicant, and include such other information\n\nrequired by the Board. Corporate surety bonds shall be on a form\n\nprescribed by the Board, on condition that the applicant will\n\nfulfill all obligations as a warehouseman. The Board may require\n\nthe applicant or charter holder to provide a profit and loss\n\nstatement and an audited financial statement prepared by an\n\nindependent certified public accountant.\n\nD. The bond, certificates of deposit, or irrevocable letter of\n\ncredit issued by a financial institution that is insured by the\n\nFederal Deposit Insurance Corporation (FDIC) or chartered by the\n\nfarm credit system organized under the “Farm Credit Act of 1971”\n\nshall be payable to the Board for the benefit of all persons storing\n\ncommodities with the applicant as a state-chartered warehouseman.\n\nThe amount of bond or certificates of deposit to be furnished for\n\neach state-chartered warehouse shall be fixed at a rate of twenty-\n\nfive cents ($0.25) per bushel of chartered capacity, provided that\n\nthe amount of the bond or certificates of deposit shall be not less\n\nthan Fifty Thousand Dollars ($50,000.00) nor more than Five Hundred\n\nThousand Dollars ($500,000.00). The chartered capacity shall be the\n\nmaximum number of bushels of commodities that the warehouse may\n\naccommodate. Depositors, including producers, suffering a loss due\n\nto a violation of any of the terms of the Public Warehouse and\n\nCommodity Indemnity Act may recover such loss up to the amount of\n\nthe bond or certificates of deposit, and claims therefor may be\n\ninstituted with the Board by such person. Each state charter issued\n\npursuant to the provisions of this section shall be for the life of\n\nthe person. Such state charter may be suspended, revoked or denied\n\nby the Board, after notice by registered mail and an opportunity to\n\nbe heard has been given, for a failure to maintain the financial\n\nstatus required or adequate insurance on all commodities received in\n\nstore, or received for storage or for handling for restorage, or for\n\na violation of any of the provisions of the Public Warehouse and\n\nCommodity Indemnity Act or of any rule of the Board adopted pursuant\n\nthereto. Upon evidence of just and good cause, such state charter\n\nmay be temporarily suspended without a hearing, for a period of not\n\nto exceed thirty (30) days. Whenever a state charter is suspended\n\nor revoked, the Board shall immediately give notice thereof, by\n\nregistered United States mail, to the holder of such charter, who\n\nmay, within twenty (20) days after receipt of such notice, appeal to\n\nthe district court of Oklahoma County. The district court, after a\n\nfull hearing, shall make an order either sustaining the action of\n\nthe Board or reinstating the charter.\n\nE. Upon cancellation of the bond, all indemnifications held by\n\nthe bonding company shall be released to the warehouseman following\n\nthe second consecutive satisfactory inspection or examination by the\n\nBoard.","path":["OK Code","Title 2"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os2.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"ba36b6a7cb6fc89ea1e19edebb561d5e5e914c3185e77552d594dad1a32bbe3c","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-2-2-9-215","next":"us-ok/okla.-stat.-tit.-2-2-9-23"},"notice":"GroundRules: Original legal text. Not legal advice."}