SFAA Addresses Changes to Georgia Bond Requirements for Livestock Sales
SFAA Addresses Changes to Georgia Bond Requirements for Livestock Sales SFAA submitted comments to the Georgia Department of Agriculture (Department) to address proposed regulations that implement a new law that permits livestock dealers and auction operators to obtain a letter of credit, certificate of deposit, or “other written instrument” in lieu of the bond. SFAA promoted the value of bonds in comparison to other forms of security based on the surety?s prequalification of the bond principal and the financial protection offered in the event of a default. The proposed rules also implement a change in the law that deleted the specified bond amounts for a livestock auction operator and for dealers purchasing livestock at an auction. Instead, the amount of the bond or other security will be determined through a memorandum of agreement with the Department, which must be sufficient to secure the performance of the dealer or the operator’s obligations. To ensure that the amount of financial protection is the same, the amount required should be the same regardless of the form of security that is furnished.
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