Iowa Admin. Code r. 21-66.13
66.13(1) General requirement. In addition to the bond required in Iowa Code section 163.30, a feeder pig dealer shall maintain on file with the department evidence of financial responsibility consisting of a surety bond furnished by a surety or an irrevocable letter of credit issued by a financial institution. “Financial institution” means a bank or savings and loan association authorized by this state, or by the laws of the United States, which is a member of the Federal Deposit Insurance Corporation, the Federal Savings and Loan Insurance Corporation or the National Bank for Cooperatives established in the Agricultural Credit Act, Pub. L. No.
100-233.
Bonds and irrevocable letters of credit filed with the department shall be on the forms prescribed by the animal industry bureau. Bonds and irrevocable letters of credit shall be written so as to provide funds to protect purchasers of feeder pigs who incur damages in Iowa as a result of sick or diseased pigs obtained from a feeder pig dealer or who otherwise suffer damages arising from a breach of contract relating to the sale of feeder pigs by the feeder pig dealer described in the bond or irrevocable letter of credit.
Evidence of financial responsibility shall be provided to the department before the feeder pig dealer’s license is issued or renewed pursuant to Iowa Code section 163.30. The evidence of additional financial responsibility shall not be for less than $5,000 or for more than $25,000. The department may increase the amount of the evidence of financial responsibility for a dealer upon a showing of good cause. Terms of the bond or irrevocable letter of credit shall provide that if the bond or irrevocable letter of credit is canceled as to future transactions, written notice of the cancellation shall be provided to the department at least 30 days in advance of the cancellation. Such notice shall be provided to the department either by personal delivery to the department or by certified mail. The feeder pig dealer shall provide an adequate replacement bond or irrevocable letter of credit prior to the effective date of the cancellation. The dealer’s failure to submit an adequate replacement bond or irrevocable letter of credit shall result in the immediate suspension of the dealer’s license to do business until such bond or irrevocable letter of credit is provided.
66.13(3) Amount of bond. The amount of financial responsibility shall be based on the annual volume of feeder pig sales in Iowa reported by the feeder pig dealer to the department or, at the option of the feeder pig dealer, the annual volume of all livestock or feeder pig sales reported to the United States Packers and Stockyards Administration. The following table shall be used to determine the level of additional financial responsibility:
TABLE FOR COMPUTING SURETY BOND
OR IRREVOCABLE LETTER OF CREDIT EQUIVALENTS
| Volume Range in Dollars | Additional Financial Responsibility Required | |
| (not less than) | (not more than) | |
| $ 1 | $ 6,500,000 | $ 5,000 |
| $ 6,500,001 | $ 7,150,000 | $ 6,000 |
| $ 7,150,001 | $ 7,800,000 | $ 7,000 |
| $ 7,800,001 | $ 8,450,000 | $ 8,000 |
| $ 8,450,001 | $ 9,100,000 | $ 9,000 |
| $ 9,100,001 | $ 9,750,000 | $10,000 |
| $ 9,750,001 | $16,250,000 | $11,000 |
| $16,250,001 | $22,750,000 | $12,000 |
| $22,750,001 | $29,250,000 | $13,000 |
| $29,250,001 | $35,750,000 | $14,000 |
| $35,750,001 | $42,250,000 | $15,000 |
| $42,250,001 | $48,750,000 | $16,000 |
| $48,750,001 | $55,250,000 | $17,000 |
| $55,250,001 | $61,750,000 | $18,000 |
| $61,750,001 | $68,250,000 | $19,000 |
| $68,250,001 | $74,750,000 | $20,000 |
| $74,750,001 | $81,250,000 | $21,000 |
| $81,250,001 | $87,750,000 | $22,000 |
| $87,750,001 | $94,250,000 | $23,000 |
| $94,250,001 | $100,750,000 | $24,000 |
| $100,750,001 | And higher | $25,000 |
66.13(5) Procedure. A person filing a claim against the bond or irrevocable letter of credit shall submit both of the following before such claim shall be considered to be completed:
66.13(6) Disputes. The department shall review any claim filed and, upon determining that a completed form and the required documents have been submitted, shall provide written notification of the claim to both the feeder pig dealer and the issuer of the bond or irrevocable letter of credit. The feeder pig dealer and the issuer of the bond or irrevocable letter of credit shall have 20 calendar days to file a written dispute of the claim. The dispute of the claim shall be limited to the following grounds only:
This rule is intended to implement Iowa Code section 163.30, Iowa Code Supplement chapter 202C and 2004 Iowa Acts, House File 2475.