The PACA requires bonds to be posted by a licensee where the firm or one of its principals has been involved in bankruptcy or when a PACA licensee employs an individual who is under PACA employment restrictions. The purpose of the bond is to provide assurance that the licensee’s business will be conducted in accordance with the PACA and that it will pay any reparation order issued against the firm. If a reparation order involving transactions that occurred during the bonding period are not paid by the licensee, the USDA, on behalf of the unpaid reparation holder will make claim on the bond and have the funds distributed to the unpaid complainant in the reparation complaint.
The EMPLOYMENT BOND TABLE (PDF)
lists those firms who have posted a bond in order to employ an individual that is currently under employment restrictions. Individuals listed here are restricted from employment with another PACA licensee. Licensed firms interested in employing a restricted individual must first obtain USDA approval and post a surety bond. (These bonds are held for 4 years plus 9 months)
The LICENSE BOND TABLE (PDF)
lists firms have posted a surety bond in order to obtain a PACA license. These firms or principals of the firms were involved with a bankruptcy within the past 3 years. (These bonds are held for 3 years plus 9 months)
For information about restrictions on employment or obtaining a license, see License and Employment Restrictions and Bonds on our website or contact any PACA Office.