Chapter 01. General Regulations

“Certified public accountant” means any person permitted to engage in the practice of public accounting by the State Board of Accountancy.

“Department” means the Maryland Department of Agriculture.

“Fair market value” means the market value established by a contract or by the Department for a loss of grain at the time of the loss.

“Grain” means corn, wheat, rye, oats, barley, sorghum, soybeans, and sunflowers.

“Grain dealer” means a person who is in the business of buying, receiving, exchanging, or storing grain from a person who grows grain. Grain dealer does not mean a farmer who buys, receives, exchanges, or stores grain for use in the farming business of that farmer.

“Person” means:

“Secretary” means Secretary of Agriculture or the Secretary's designee.

Receives grain, in the course of his business, from a grower under a deferred payment contract. “Deferred payment contract” means a grain sales contract when the grower conveys title to the grain to a person for an agreed price, but payment for the grain is delayed until an agreed later date.

Receives grain, in the course of his business, from a grower under a deferred price contract. “Deferred price contract” includes such contracts as a so-called “price later contract”, “open price contract”, “delayed price contract”, and means a grain sales contract when the title to grain is conveyed to a person from a grower, but when the grower (seller) is allowed to determine the price of grain at a later date either based on a future month's price for grain set by a commodity exchange or by some other mutually agreed method of price determination.

In the course of his business, stores grain for a grower for later use by the grower for:

Is in the business of buying, receiving, exchanging, or storing grain for a person whose grain is grown by an agent, tenant, or employee.

Immediately notify the Department of this change in status; and

Be issued a new license by the Department after he has done the following:

Posted a surety bond, irrevocable letter of credit, or cash guaranty, as required by Regulation .05 of this chapter, or

Filed a financial statement as required by Regulation .06 of this chapter;

Type A license if the applicant posts an amount less than $15,000;

Type B license if the applicant posts an amount less than $35,000; and

Type C or D license if the applicant posts an amount less than $100,000.

Show the same name for the following matters:

Name the Maryland Department of Agriculture as the obligee or as the beneficiary of the surety bond, irrevocable letter of credit or cash guaranty.

Type A license if the financial statement indicates a minimum net worth less than $15,000;

Type B license if the financial statement indicates a minimum net worth less than $35,000; and

Type C or D license if the financial statement indicates a minimum net worth less than $100,000.

Is prepared and signed by a person who is not the applicant or a member of the applicant's business or family;

Establishes a net worth for the applicant; and

Is signed by the applicant.

Financial statement reviewed by a certified public accountant establishing the net worth of the applicant's business as provided in §A of this regulation; or

Letter from a certified public accountant stating that a review of the applicant's business records shows a net worth as provided in §A of this regulation.

An insurance policy certified to be true by the insurance company or agency; or

An insurance binder or other evidence of insurance that contains or refers to other papers accompanying these forms that contain the information specified in §§B, C, and E of this regulation, if the policy is:

Fraudulent or deceptive statements on an application for a license;

Conviction of a violation of any of the provisions of this chapter;

Failure to maintain adequate insurance on all grain received into the physical control or possession of the grain dealer; or

Failure to notify the Secretary and to comply with the requirements of Regulation .03E of this chapter by a person who is handling more grain than allowed by the scope of the license.

Makes fraudulent or deceptive statements on an application for a license;

Submits fraudulent or deceptive financial or insurance documentation;

Fails to maintain adequate insurance on all grain received into the physical control or possession of the grain dealer;

Refuses to make business records available upon request;

Operates as a grain dealer without first obtaining a license; or

Violates any other provisions of this chapter.

In this regulation, “violation” means a criminal conviction or an administrative finding that a person has committed any of the acts provided under §A of this regulation.

For a violation of an act referenced under §A of this regulation, a civil penalty may be imposed by the Secretary, considering the nature and gravity of each violation, consistent with the following standards: