(a) A warehouse operator may not cancel a letter of credit approved by the department
in lieu of a bond unless the department gives written approval of a substitute bond
or letter of credit.
(b) The issuer of the letter of credit may cancel a letter of credit by sending notice
of intent to cancel by registered or certified mail to the department. Cancellation of a letter of credit may not take effect before the 91st day after
the date the issuer mails notice of intent to cancel. On receipt of notice of cancellation of a letter of credit, the department shall
promptly notify the warehouse operator involved. Liability under the letter of credit ceases to accrue on the effective date of cancellation. Notwithstanding cancellation under this subsection or other law to the contrary,
the department or a depositor may collect under the letter of credit for any claim
that arose during the period during which the letter of credit was in effect, provided
that the claim is filed within the applicable limitations period established under
(c) The issuer of a letter of credit shall send a copy of the notice required by this
section to any government agency requesting the copy. Notwithstanding any other provision of this chapter, a public grain warehouse license
is automatically suspended if the warehouse operator fails to file a new bond or letter
of credit before the cancellation of a letter of credit is effective.
(d) The suspension of a license under this section continues as long as the warehouse
operator fails to maintain the bond or letter of credit required by this chapter.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
Was this helpful?
Response sent, thank you
Welcome to FindLaw's Cases & Codes
A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw's Learn About the Law.