In this state along with the license application, an Alabama grain dealer surety bond must also be posted, in accordance with the Acts of Alabama, Act No. 81-391. In many states in the US, local governments require that any business that trades in grain to get a license in order to operate within that state. Other requirements of Alabama include a Certificate of Insurance in an amount that should be able to cover the grain of all the depositors. The permit fee differs, depending on the capacity. For those with no storage capacity, only $25 should be paid. While those with less than 500,000 bushels capacity must pay $50 for each location while those with a capacity of more than 500,000 bushels need to pay $100 for each location.
The bond amount must be equal to 10% of the dollar amount the dealer spends on grain in a 12 month period, rounding it to the nearest thousandth. The bond is required for anyone who buys and resells products of grain. The minimum bond is $25,000 per location, and the maximum Grain Dealer Surety Bond amount is at $100,000.
The Alabama Grain Dealer Surety Bond guarantee’s that the dealer will pay all money owed to the producer of the grains. A bond is needed for each location.
Surety Solutions Insurance Services, Inc. (Surety1) has been issuing surety bonds for the State of Alabama since 2003, and we are rated A+ by the Better Business Bureau for our outstanding service. At Surety1 can make things easier for you. To receive a firm quote, complete our easy to navigate online application and within 1 business day an agent will be in touch with a firm quote. Then you choose your shipping option, sign some important paper work and receive your Alabama Grain Dealer Surety Bond.