Tennessee Firm Posts $400,000 Surety Bond to Obtain PACA License
WASHINGTON, DC - Nashville, Tennessee-based Legendary Baking I LLC, trading as J. Horners, recently posted a $400,000 surety bond with the U.S. Department of Agriculture (USDA). As part of the Perishable Agricultural Commodities Act (PACA) regulations, the company was required to post the bond following its prior involvement in bankruptcy. In order to operate in the produce industry, Legendary Baking posted the bond as a prerequisite to obtain a new operating license.
Direct from the USDA Agricultural Marketing Service:
USDA will hold the bond for three years and nine months, providing assurance to the industry that the company will be able to pay for produce purchased and to conduct business according to PACA rules.
The PACA Division, which is in the Fair Trade Practices Program in the Agricultural Marketing Service, regulates fair trading practices of produce businesses that are operating subject to PACA, including buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry. In the past three years, USDA resolved approximately 3,625 PACA claims involving more than $104 million. PACA staff also assisted more than 7,600 callers with issues valued at approximately $166 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.
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