This milk dealer bond guarantees payment for the milk supplied by the farmers and dairies. This milk dealer bond is secured only after obtaining license from the commissioner of the agricultural department. Without the corporate surety bond or collateral surety bond approved by the agricultural department, no dealer can either purchase or acquire milk from the producers. The corporate surety bond is a bond which is executed by the state for the principal, the surety and the obligee. The agriculture department has no rights to reject the corporate bond. Application for license to be obtained, to start business as a dealer, sub dealer, cheese manufacturer, and dry milk manufacturer shall be made to the commissioner. The bond requirements will be has prescribed by the Department of Agriculture, for the payment of milk purchased by the milk dealer from the producers.
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