---
kind: "section"
citation: "7 C.F.R. § 1421.404"
title: "7"
number: "1421.404"
heading: "Financial security."
url: "https://uscodex.org/cfr/7/1421.404"
---

# §1421.404. Financial security.

- (a) **In order to be approved to handle MALs and LDPs, a DMA must—**
  - (1) **Have a current net worth ratio of at least 1—** 1; and
  - (2) **Provide security equal to $100,000 or a greater amount as determined by CCC.**
- (b) [Reserved]

## Notes

### Amendments

[80 FR 128, Jan. 2, 2015]

### Source

Source: 70 FR 33799, June 10, 2005, unless otherwise noted.

### Authority

Authority: 7 U.S.C. 9031-9040 and 15 U.S.C. 714b and c.

### Amendments

[80 FR 128, Jan. 2, 2015]