Regulation on methodology for determining the amount under the bank guarantee that the public warehouse for agricultural products submits to the Compensation Fund.

This Regulation, as for the purposes established by the Serbian Law on public warehouses for agricultural products, prescribes the methodology for determining the amount under the bank guarantee that a public warehouse for agricultural products is obliged to submit to the Compensation Fund. In order to ensure the collection of all claims of the Compensation Fund from public warehouses, arising in connection with the storage of agricultural products, the public warehouse submits to the Compensation Fund an irrevocable, unconditional and payable on first call-bank guarantee in the amount equivalent up to 10% of the goods (also in relation to the total registered capacity of that specific public warehouse). The guarantee is issued with a validity period of 60 days longer than the expiration of the license for the operation of that public warehouse. Stored products or goods in terms of this Regulation are as follows: cereals and industrial plants; and fresh or semi-processed fruits and vegetables.