The State of North Carolina Department of Agriculture and Consumer Services (Department) requires grain dealers to obtain a $100,000 Grain Dealer Bond. This bond provided by Jet Insurance Company is a monetary guarantee held by the Department to the benefit of any seller of grain to the dealer who remains unpaid.
With Jet, grain dealers can avoid long application processes and most likely caused by agents and insurance companies asking what is this bond anyways? Jet knows Surety in all its forms.
The cost of the $100,000 Grain Dealer Bond starts at $100 monthly or $1,000 annually. This bond will require a review of the financial standing of the grain dealer. Additional paperwork such as business and personal financial statements may be requested from the grain dealer in order to determine financial risk posed to sellers of grain.
Only at Jet do grain dealers have the option of selecting a monthly payment method. Regardless of credit, Jet has payment options that work for everyone!
Yes, Jet can! The bond form will be filed via mail for the grain dealer accompanied by the necessary signatures from the grain dealer and the Surety all done automatically online.
A copy of the bond will be made available to the grain dealer upon purchase as well as a receipt of the transaction. If you choose to have the original sent to you, just select that option at checkout.
The bond will be filed directly to the address stated below:
State of North Carolina Department
of Agriculture and Consumer Services
1001 Mail Service Center
Raleigh, NC, 27699
At Jet, it is possible! Grain dealers may choose to cancel their bond after they have provided a written notice to the Jet. We will not supplement additional changes to the grain dealer for choosing to cancel their bond. If the grain dealer bond was purchased in monthly terms, Jet will simply cancel the payment process.
Should there be a potential refund for this bond, Jet will calculate the cancellation provision to determine the refund amount. This bond has a cancellation provision period of 30 days in which the bond will remain active after Jet notifies the Department. Any refund must take into account this 30 day period as the bond is still active at that time.
The grain dealer must operate their business in compliance with the regulations stated within the North Carolina State Statutes Chapter 106 - Article 53. Per 106-605, the grain dealer must make payment to a seller or may face action against their bond. If you do owe a seller money and find yourself short, be sure to work with them and the Department to avoid escalation.
Per § 106-612, the NCDA&CS has the authority and access to the grain dealers' buildings, yards, warehouses, storage and transportation facilities during normal business hours in order to thoroughly investigate any claims made against the grain dealer.
Beyond not making payment for grain, any dealer that has acted against the State statute will be guilty of a Class 2 misdemeanor. If the grain dealer continues to act against the State statutes, each day and violation will be considered as separate offenses. According to § 106-610, the following grain dealer actions can lead to disciplinary action, including a bond claim:
The Department of Agriculture and Consumer Services exists to provide services that promote the improvement of agriculture, agribusiness and forest efforts. The grain dealer bond provides the Department with the reassurance that the grain dealer will operate a legitimate business and pay people they owe money to. Simply the bond is a tool to promote a healthy agriculture trade in North Carolina.
Jet is here to ensure that grain dealers across North Carolina are properly bonded to meet their licensing requirements. Should trouble arise, Jet will fulfill its obligations as a surety company to protect the public as well.
Jet has thought long and hard about the bonding application process so you won’t have to. At Jet, we have eliminated any unnecessary paperwork or lengthy waiting times.
The application for this bond starts with our online application to capture necessary information about your business. Based on that review we may need to do a deeper review into your financial standing. Business and personal financial statements may be required in order for Jet to determine the rate available.
After the grain dealer has completed the application and there has been a thorough review of the grain dealer's financial standing, the bond will be available for purchase through the provided rate.
The Grain Dealer Bond must be renewed if you plan on continuing business operations beyond the bond’s expiration date.
Grain dealers that have purchased their bond on a monthly basis will not have to worry about a renewal process. So long as the payments continue, your bond will remain active with Jet. Bonds that have been purchased on annual terms will need to be renewed before the expiration date. Jet will notify the grain dealer with plenty of time prior to the expiration of your bond so that a renewal payment can be made.
Per § 106-607, grain dealers licenses have a common expiration date of the fifteenth of June in which the grain dealer will be expected to renew their license with proper timing. The grain dealer must plan accordingly with the purchase of their bond to ensure that they remain in compliance with the licensing requirements.