40-15-10. Bond required to operate auction agency--Terms of bond--Approval--Amount--Violation as misdemeanor.
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/sd/title-40/chapter-40-15/40-15-10A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
No person may operate a livestock auction agency without first filing with the Animal Industry Board a corporate surety bond as required under the provisions of the Federal Packers and Stockyard Act, 1921, as amended to January 1, 2002, for livestock agencies selling on commission. The bond shall be filed with the Animal Industry Board and a certified copy thereof shall be filed with the chief of the Packers and Stockyards Division of the United States Department of Agriculture.
The obligee of the bond is the Animal Industry Board with the executive secretary thereof as trustee, with full power and authority to consider claims and pay valid claims from bond proceeds, subject to applicable federal law. The bond shall be for the benefit of all persons sustaining loss which may be covered by the obligation of the bond. The bond shall be approved by the Animal Industry Board as to its sufficiency and by the attorney general as to form prior to filing. The amount of the bond may not be less than twenty thousand dollars.
Any person who operates a livestock auction agency in violation of this section is guilty of a Class 1 misdemeanor.