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Florida Citrus Fruit Dealer Surety Bond
What is a Florida Citrus Fruit Dealer Bond?
A Florida Citrus Fruit Dealer Bond is a surety bond that is required to be posted in order to be licensed as a Citrus fruit dealer in the State of Florida.
A Citrus fruit dealer is defined as any person or entity who in any manner makes or attempts to make money on citrus fruit, other than producing or growing citrus fruit. The term does not include any persons or firms whose sales are direct to consumers and not for resale.
Citrus fruit includes all varieties and regulated hybrids of citrus fruit including any citrus products containing 20% or more citrus fruit or citrus fruit juice. The term does not include limes, lemons, candies, preserves, jellies, marmalade, or citrus hybrids for which specific standards have not been established by the department.
Florida Citrus Fruit Dealer Surety Bonds are individually underwritten so the cost can vary and is heavily dependent on the personal credit report of the applicant as well as experience. Applicants with good credit scores (generally 680 or higher) pay as low as 1% of the total bond amount. Of course, we will always provide you with the lowest rates available on the market. And can typically handle all credit types - from excellent to poor - as such those terms vary.
The surety bond amount is calculated by the total volume of fruit handled by the dealer during the previous season. The volume of fruit handled is measured in terms of boxes of fruit. Repeat license applicants shall post a minimum bond no less than what was required during the previous season. New license applicants shall post a bond based on the volume of fruit the applicant expects to handle during the season. The Department has the bond requirements listed on the second page of the bond form. The minimum bond amount required is $1,000 and the maximum bond amount allowed is $100,000. Below is the schedule for which the department uses to determine the bond amount based on the volume of boxes handled:
$1,000 up to 2,000 boxes;
$2,000 up to 5,000 boxes;
$3,750 up to 7,500 boxes;
$5,000 up to 10,000 boxes;
$10,000 up to 20,000 boxes;
$1,000 for each additional 20,000 boxes or fraction thereof in excess of 20,000 boxes.
So for example, if a dealer handles 15,000 boxes of fruit, the dealer will be required to post a surety bond in the amount of $10,000. Assuming the dealer qualifies for the best rate available on the market (1%), then the dealer will pay only $100 for their $10,000 surety bond.
The FL Citrus Fruit Dealer Bond guarantees that the principal (Citrus fruit dealer) will fully comply with all of the provisions of Florida Statutes, Chapter 601 - Florida Citrus Code and the Florida Administrative Code, Chapter 20. These rules and regulations hold fruit dealers to certain standards relating to the purchase, handling, sale and accounting for sales of citrus fruit. The bond also guarantees the principal will deliver all citrus fruit contracted for and will fully account for any advance payments or deposits made.
The Florida Citrus Fruit Dealer license is granted by the Florida Department of Agriculture and Consumer Services (FDACS), Division of Fruit and Vegetables, and the Florida Department of Citrus, under Florida Statutes, Section 601.55. As required by Florida Statutes, Section 601.61, a surety bond must be submitted before any license is issued. The Obligee on the bond is the Commissioner of Agriculture of the State of Florida.
Continuation certificates are not accepted for Florida Citrus Fruit Dealer Surety Bonds, therefore these bonds do not renew every year. The surety bond is effective from the date it is issued until May 1st of the year immediately following the end of the shipping season for which the bond is given. The surety bond may be canceled by the surety by giving at least 30 days written notice to the Obligee (Commissioner of Agriculture).
Contact The ProSure Group. As surety bond experts in business in Florida since 1993, The ProSure Group has issued numerous Citrus Fruit Dealer Bonds and has partnerships with more than 30 different surety companies. This ensures that we get you the best, most competitive pricing and terms available in the marketplace. You just need to complete our simple application and one of our specialists will quickly contact you.