7 U.S.C. § 499d : US Code - Section 499D: Issuance of license

Search 7 U.S.C. § 499d : US Code - Section 499D: Issuance of license

(a) Authority to do business; termination; renewal
Whenever an applicant has paid the prescribed fee the Secretary,
except as provided elsewhere in this chapter, shall issue to such
applicant a license, which shall entitle the licensee to do
business as a commission merchant and/or dealer and/or broker
unless and until it is suspended or revoked by the Secretary in
accordance with the provisions of this chapter, or is automatically
suspended under section 499g(d) of this title, but said license
shall automatically terminate on the anniversary date of the
license at the end of the annual or multiyear period covered by the
license fee unless the licensee submits the required renewal
application and pays the applicable renewal fee (if such fee is
required): Provided, That notice of the necessity of renewing the
license and of paying the renewal fee (if such fee is required)
shall be mailed at least thirty days before the anniversary date:
Provided, further, That if the renewal fee (if required) is not
paid by the anniversary date the licensee may obtain a renewal of
that license at any time within thirty days by paying the fee
provided in section 499c(b) of this title, plus $50, which shall be
deposited in the Perishable Agricultural Commodities Act fund
provided for by section 499c(b) of this title: And provided
further, That the license of any licensee shall terminate upon said
licensee, or in case the licensee is a partnership, any partner,
being discharged as a bankrupt, unless the Secretary finds upon
examination of the circumstances of such bankruptcy, which he shall
examine if requested to do so by said licensee, that such
circumstances do not warrant such termination.
(b) Refusal of license; grounds
The Secretary shall refuse to issue a license to an applicant if
he finds that the applicant, or any person responsibly connected
with the applicant, is prohibited from employment with a licensee
under section 499h(b) of this title or is a person who, or is or
was responsibly connected with a person who - 
(A) has had his license revoked under the provisions of section
499h of this title within two years prior to the date of the
application or whose license is currently under suspension;
(B) within two years prior to the date of application has been
found after notice and opportunity for hearing to have committed
any flagrant or repeated violation of section 499b of this title,
but this provision shall not apply to any case in which the
license of the person found to have committed such violation was
suspended and the suspension period has expired or is not in
effect;
(C) within two years prior to the date of the application, has
been found guilty in a Federal court of having violated the
provisions of sections 491, 493 to 497 of this title, relating to
the prevention of destruction and dumping of farm produce; or
(D) has failed, except in the case of bankruptcy and subject to
his right of appeal under section 499g(c) of this title, to pay
any reparation order issued against him within two years prior to
the date of the application.
(c) Issuance of license upon furnishing bond; issuance after three
years without bond; effect of termination of bond; increase or
decrease in amount; payment of increase
An applicant ineligible for a license by reason of the provisions
of subsection (b) of this section may, upon the expiration of the
two-year period applicable to him, be issued a license by the
Secretary if such applicant furnishes a surety bond in the form and
amount satisfactory to the Secretary as assurance that his business
will be conducted in accordance with this chapter and that he will
pay all reparation orders which may be issued against him in
connection with transactions occurring within four years following
the issuance of the license, subject to his right of appeal under
section 499g(c) of this title. In the event such applicant does not
furnish such a surety bond, the Secretary shall not issue a license
to him until three years have elapsed after the date of the
applicable order of the Secretary or decision of the court on
appeal. If the surety bond so furnished is terminated for any
reason without the approval of the Secretary the license shall be
automatically canceled as of the date of such termination and no
new license shall be issued to such person during the four-year
period without a new surety bond covering the remainder of such
period. The Secretary, based on changes in the nature and volume of
business conducted by a bonded licensee, may require an increase or
authorize a reduction in the amount of the bond. A bonded licensee
who is notified by the Secretary to provide a bond in an increased
amount shall do so within a reasonable time to be specified by the
Secretary, and upon failure of the licensee to provide such bond
his license shall be automatically suspended until such bond is
provided. The Secretary may not issue a license to an applicant
under this subsection if the applicant or any person responsibly
connected with the applicant is prohibited from employment with a
licensee under section 499h(b) of this title.
(d) Withholding license pending investigation
The Secretary may withhold the issuance of a license to an
applicant, for a period not to exceed thirty days pending an
investigation, for the purpose of determining (a) whether the
applicant is unfit to engage in the business of a commission
merchant, dealer, or broker because the applicant, or in case the
applicant is a partnership, any general partner, or in case the
applicant is a corporation, any officer or holder of more than 10
per centum of the stock, prior to the date of the filing of the
application engaged in any practice of the character prohibited by
this chapter or was convicted of a felony in any State or Federal
court, or (b) whether the application contains any materially false
or misleading statement or involves any misrepresentation,
concealment, or withholding of facts respecting any violation of
the chapter by any officer, agent, or employee of the applicant. If
after investigation the Secretary believes that the applicant
should be refused a license, the applicant shall be given an
opportunity for hearing within sixty days from the date of the
application to show cause why the license should not be refused. If
after the hearing the Secretary finds that the applicant is unfit
to engage in the business of a commission merchant, dealer, or
broker because the applicant, or in case the applicant is a
partnership, any general partner, or in case the applicant is a
corporation, any officer or holder of more than 10 per centum of
the stock, prior to the date of the filing of the application
engaged in any practice of the character prohibited by this chapter
or was convicted of a felony in any State or Federal court, or
because the application contains a materially false or misleading
statement made by the applicant or by its representative on its
behalf, or involves a misrepresentation, concealment, or
withholding of facts respecting any violation of the chapter by any
officer, agent, or employee, the Secretary may refuse to issue a
license to the applicant.
(e) Refusal of license
The Secretary may refuse to issue a license to an applicant if he
finds that the applicant, or in case the applicant is a
partnership, any general partner, or in case the applicant is a
corporation, any officer or holder of more than 10 per centum of
the stock, has, within three years prior to the date of the
application, been adjudicated or discharged as a bankrupt, or was a
general partner of a partnership or officer or holder of more than
10 per centum of the stock of a corporation adjudicated or
discharged as a bankrupt, and if he finds that the circumstances of
such bankruptcy warrant such a refusal, unless the applicant
furnishes a bond of such nature and amount as may be determined by
the Secretary or other assurance satisfactory to the Secretary that
the business of the applicant will be conducted in accordance with
this chapter.