Common use of Inventory Protection Clause in Contracts

Inventory Protection. Processor shall furnish to DA a surety bond obtained only from a surety company listed in the Department of Treasury Circular 570, "Surety Companies Acceptable on Federal Bonds," an irrevocable letter of credit, or an escrow account. Such bond, letter of credit, or escrow account shall be made payable to the DA. The bond shall guarantee that the processor shall faithfully account for, return, or pay for all of the DF received or carried forward, in accordance with this Agreement. Inventory protection is required by the DA prior to the delivery of DF to the processor. The minimum amount of the bond, letter of credit or escrow account, shall be determined by: value of the DF on hand and on order minus anticipated usage rate during the Agreement period. The bond shall remain in effect until all donated food is properly accounted for, paid for or returned in accorance with this Agreement. Liability for loss is provided in Article 18 of this Agreement.

Inventory Protection. Processor shall furnish to the DA a surety bond obtained only from a surety company listed in the Department of Treasury Circular 570, "Surety Companies Acceptable on Federal Bonds," , an irrevocable letter of credit, or an escrow account. Such bond, letter of credit, or escrow account shall be made payable to the DA. The bond shall guarantee that the processor shall faithfully account for, return, or pay for all of the DF received or carried forward, in accordance with this Agreement. Inventory protection is required by the DA prior to the delivery of DF to the processor. The minimum amount of the bond, letter of credit or escrow account, shall be determined by: value of the DF on hand and on order minus anticipated usage rate during the Agreement period. The bond shall remain in effect until all donated commodity food is properly accounted for, paid for or returned in accorance accordance with this Agreement. Liability for loss is provided in Article 18 of this Agreement.