Section 42B: Bond; amount; form; condition; note, cash or collateral in lieu of bond
291 words·~1 min read·
/ma/part-i/title-xv/chapter-94/42bA research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 42B. The bond required by the preceding section shall be payable to the commissioner and shall be in a sum fixed by him. Said sum shall be substantially equivalent to the total value, as determined by the commissioner, of milk received by the applicant from all producers during an average pay period in the three months immediately preceding the date of application for a license, plus ten per cent of such total value, or, if the applicant is not currently receiving milk from producers, shall be substantially equivalent to the total value, as estimated by the commissioner, of milk to be received from all producers in an average pay period during the term for which the license is to issue, plus ten per cent thereof.
Such bond shall be in a form prescribed by the commissioner and shall be executed by the applicant and by a surety company authorized to do business in the commonwealth. It shall be upon the condition that the applicant, if granted a license, shall faithfully comply with all pertinent provisions of this chapter and shall promptly pay all amounts due or to become due to producers during the license period for which application is made. In lieu of such bond, the commissioner may accept a note of like amount payable to him, secured by a mortgage of real estate or by a deposit of cash or collateral with him.
Any such mortgage, or note secured by cash or collateral, shall be upon the same condition as is herein provided for a bond. Any cash or collateral deposited under this section or under section forty-two D shall be deposited by the commissioner with the state treasurer, who shall hold the same subject to section forty-two C.