Common use of Acceptable Forms Clause in Contracts

Acceptable Forms. The Warehouse Operator may offer as financial assurance any of the following: A. a Warehouse Operator’s surety bond, or B. a deposit with AMS of U.S. bonds, U.S. Treasury notes or other public debt obligations of the United States or obligations that are unconditionally guaranteed as to both interest and principal by the United States, subject to each of the following restrictions: (1) the obligation deposited will not be considered a part of the Warehouse Operator's assets; (2) any deficiency in allowable net worth exceeding the $200,000 minimum may be offset by the Warehouse Operator furnishing an acceptable financial assurance for the difference. The deposit may be replaced or continued in the required amount from year-to-year; and (3) the deposit will not be released until one year after revocation of the license that it supports, or until after satisfaction of any claim against the deposit, whichever is later or approved by AMS; or