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shall not be issued tinless the applicant shall execute and file at the 

 time of filing the application, or within such further time as the 

 commissioner may allow, a bond or other security satisfactory to the 

 commissioner or shall be relieved therefrom as provided in section 

 forty-two E. The commissioner, if satisfied with the financial 

 responsibility and good faith of the applicant and with the bond or 

 other security filed with him, shall issue to such applicant, upon payment 

 of a fee of five dollars, a license entitling the applicant to receive 

 milk from producers for the license year or balance thereof as the case 

 may be. 



Section 42B. The bond required by the preceding section shall be 

 payable to the commissioner and shall be in a sum fixed by him. Said 

 sxom shall be substantially equivalent to the total value, as determined 

 by the commissioner, of milk received by the applicant from all producers 

 during an average pay period in the three months immediately preceding 

 the date of application for a license, plus ten per cent of such total 

 value, or, if the applicant is not currently receiving milk from 

 producers, shall be substantially equivalent to the total value, as 

 estimated by the commissioner, of milk to be received from all producers 

 in an average pay period during the term for which the license is to 

 issue, plus ten per cent thereof. Such bond shall be in a form prescribed 

 by the commissioner and shall be executed by the applicant and by a 

 surety company authorized to do business in the commonwealth. It shall 

 be upon the condition that the applicant, if granted a license, shall 

 faithfully comply with all pertinent provisions of this chapter and shall 

 promptly pay all amounts due or to become due to producers during the 

 license period for which application is made. In lieu of such bond, the 

 commissioner may accept a note of like amount payable to him, secured by 

 a mortgage of real estate or by a deposit of cash or collateral with him. 

 Any such mortgage, or note secured by cash or collateral, shall be upon 

 the same condition as is herein provided for a bond. Any cash or collatera 

 deposited under this section or under section forty-two D shall be de- 

 posited by the commissioner with the state treasiirer, who shall hold the 

 same subject to section forty-two C. 



Section 42C. Each producer shall notify the commissioner in writing 

 of any default in the timely payment for milk on the part of a licensee, 

 such notification to be made within ninety days after the date on which 

 payment for milk is regularly due under the provisions of chapter 94A, 

 rules or regulations issued under the authority thereof, or of a federal 

 milk marketing order effective in the commonwealth. Upon default by 

 the licensee in any of the conditions of his bond or other security, 

 if there is reason to believe that the licensee is in arrears in his 

 payments to producers for milk received by him, the commissioner shall 

 give notice to all producers so affected to file verified claims with 

 him, and may, if he deems it advisable, fix a limit of time within which 

 such claims shall be filed. The commissioner or his duly authorized 

 assistant shall examine claims so filed and shall certify the amounts 

 determined by him to be due thereon. Upon such default, the commissioner 

 I ^ or his duly authorized assistant may bring such action as is deemed 

 M)necessary upon any bond given under the two preceding sections, may 



