Michigan SB 887 — which was enacted on May 31, 2012, and went into effect immediately — repeals previous bond requirements for the state’s grain dealers.
Grain dealers with facilities for open storage or storage under warehouse receipts were previously required to post bonds that met the following criteria.
- The first 1,000 bushels of storage capacity required a $15,000 bond.
- Every additional 10,000 bushels of capacity or fraction of this amount required an additional $5,000 of coverage.
- Blanket bonds to cover more than one facility were accepted.
- Blanket bonds were required to be equal to the cumulative sum required for the dealer surety bond based on total capacity or $400,000, whichever was less.
Even though these surety bond requirements were eliminated, Michigan grain dealers must still adhere to certain licensing and registration guidelines, including paying a yearly licensing fee to the state.
Click here to read Michigan SB 887 in its entirety.