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Every warehouse operator applying for and receiving a license from the department under this chapter shall file with the department, acceptable to the department, a surety bond to the state of Minnesota. Bonds must be in the amount of $10,000.

The bond must be conditioned for the faithful discharge of all duties as a household goods warehouse operator operating under this chapter and full compliance with the laws of the state and rules and orders of the department. Failure to maintain the bond as required shall void the license.

The bond must be continuous until canceled. To cancel a bond, the surety must provide 90 days' written notice of the bond's termination date to the licensee and the department.

In lieu of the bond required by this section, the applicant may deposit with the commissioner of management and budget cash; a certified check; a cashier's check; a postal, bank, or express money order; assignable bonds or notes of the United States; or an assignment of bank savings account or investment certificate or an irrevocable bank letter of credit as defined in section 336.5-103, in the same amount as would be required for a bond.

In lieu of the bond required by this section, a warehouse operator that does not provide for the storage of household goods may provide proof of legal liability insurance coverage in the amount of $50,000 or more. A warehouse operator must notify the department with written notice of the cancellation of the policy. If the policy is terminated without notification to the department, the warehouse operator is subject to penalties under section 231.39.

Official Publication of the State of Minnesota
Revisor of Statutes