---
kind: "section"
citation: "7 U.S.C. § 245"
title: "7"
title_heading: "Agriculture"
number: "245"
heading: "Bonding and other financial assurance requirements"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/245"
units:
  - "Chapter 10 — Warehouses"
---

# §245. Bonding and other financial assurance requirements

- (a) **In general—** As a condition of receiving a license or [approval](/usc/7/241.md?p=2) under this chapter (including regulations promulgated under this chapter), the [person](/usc/7/241.md?p=7) applying for the license or [approval](/usc/7/241.md?p=2) shall execute and file with the [Secretary](/usc/7/241.md?p=9) a bond, or provide such other financial assurance as the [Secretary](/usc/7/241.md?p=9) determines appropriate, to secure the [person](/usc/7/241.md?p=7)’s performance of the activities so licensed or approved.
- (b) **Service of process—** To qualify as a suitable bond or other financial assurance under [subsection (a)](#a), the surety, sureties, or financial institution shall be subject to service of process in suits on the bond or other financial assurance in the [State](/usc/7/198.md?p=5), district, or territory in which the [warehouse](/usc/7/241.md?p=10) is located.
- (c) **Additional assurances—** If the [Secretary](/usc/7/241.md?p=9) determines that a previously approved bond or other financial assurance is insufficient, the [Secretary](/usc/7/241.md?p=9) may suspend or revoke the license or [approval](/usc/7/241.md?p=2) covered by the bond or other financial assurance if the [person](/usc/7/241.md?p=7) that filed the bond or other financial assurance does not provide such additional bond or other financial assurance as the [Secretary](/usc/7/241.md?p=9) determines appropriate.
- (d) **Third party actions—** Any [person](/usc/7/241.md?p=7) injured by the breach of any obligation arising under this chapter for which a bond or other financial assurance has been obtained as required by this section may sue with respect to the bond or other financial assurance in a district court of the United States to recover the damages that the [person](/usc/7/241.md?p=7) sustained as a result of the breach.

## Source credit

(Aug. 11, 1916, ch. 313, pt. C, § 6, as added Pub. L. 106–472, title II, § 201, Nov. 9, 2000, 114 Stat. 2064.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 245, acts Aug. 11, 1916, ch. 313, pt. C, § 5, 39 Stat. 486; Feb. 23, 1923, ch. 106, 42 Stat. 1282, related to term and renewal of license, prior to the general amendment of this chapter by Pub. L. 106–472.

A prior section 6 of act Aug. 11, 1916, ch. 313, pt. C, was classified to section 247 of this title, prior to the general amendment of this chapter by Pub. L. 106–472.