North Dakota Grain Elevator Warehouse Surety Bond
North Dakota state law requires that a Grain Elevator Warehouse be licensed and file a surety bond with the state. The North Dakota Public Service Commission (PSC) encourages farmers to only sell grain to warehouses that meet the license and surety bond standards.
Surety Bond and License Requirements:
- Applicants will need to complete the application and pay the license fee.
- In addition to the application, a copy of the warehouse receipt, the scale ticket that will be used and a copy of their Certificate of Insurance on Grain.
- Include a copy of the storage and handling policy the business will follow.
- Include a diagram and bin chart for the storage within the warehouse facility.
- If applicable, a copy of the credit-sale contract will also need to be included.
- Applicants that are a partnership will need to include a copy of the agreement.
- A Grain elevator warehouse will need to obtain a corporate capacity surety bond. The bond amount ranges from $65,000 to $2,000,000 depending on total annual grain purchase volume. A minimum $65,000 surety bond is required for the first year and there-after, the bond amount will be based on the volume of bushels purchased.
- An optional 30% bond reduction can be utilized if there is a conversion policy of 10 days or less or a 15% bond reduction if the conversion policy is 11 to 21 days. The Public Service Commission will need to approve the conversion policy before accepting a reduced bond amount.
How Much Will This Bond Cost?
The premium that you pay for a North Dakota Grain Elevator Warehouse Surety Bond will depend on credit and the bond amount needed. Our rates start at 1% of the bond amount with good credit. Bond amounts over $50,000 will require personal and/or business financial statements. Contact our Surety Bond Agents for a free quote.
Related Links:
North Dakota Grain Elevator Warehouse InformationNorth Dakota Grain Elevator Warehouse License ApplicationMore Surety Bond Questions?
Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.
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