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What Are Alabama Surety Bond Requirements for a Cotton Warehouseman?

Cotton is piled up at a warehouse

Alabama Cotton Warehousemen must go through a permit process to be licensed. A part of the process includes obtaining a security such as an Alabama Cotton Warehouseman Surety Bond.

The State of Alabama Department of Agriculture and Industries, Gin and Warehouses Section, is responsible for issuing permits for public warehouses, grain dealers, cotton merchants and cotton gins, as well as inspections of gins and auditing of public warehouses and grain dealers.

Chapter 80-6-5 of the Alabama Department of Agriculture and Industries Gin and Warehouses Administrative Code defines the regulations for the operation of public warehouses.

The following is required for the permit:

1. Completion of the application for the public warehouse permit and payment of the permit fee.
2. Provide a copy of the Certificate of Insurance state that is for warehouseman’s legal liability.
3. The application requires the applicant’s signature to be notarized and must include the products stored and the highest estimated value of such. All addresses for storage must be included on the application.
4. Obtain a surety bond in the amount of $5,000 or provide a Letter of Credit, or cash. If providing cash or a letter of credit, the applicant must also file a Trust Fund Agreement form.
5. Licenses and bonds renew annually July 31st of each year.

What Does This Bond Cost?

The premium that you pay for an Alabama Cotton Warehouseman Surety Bond is dependent on credit.

Did You Know?

Those who store agricultural products can apply for a license under the US Secretary of Agriculture. The application is voluntary.

Related Links:

Alabama Department of Agriculture & Industries: Gins & Warehouses
United States Warehouse Act

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