(1) The owner or operator of any stockyard or buying station, any market agency, or any livestock dealer who is required to execute and maintain a surety bond or other security instrument or agreement in compliance with standards set out in the Packers and Stockyards Act, 7 U.S.C. secs. 181-229b, or regulations promulgated under the Act shall forward a copy of the bond or other security instrument or agreement to the department.
(2) The owner or operator of any stockyard or buying station, any market agency, or any livestock dealer who is not required to file a surety bond or other security instrument or agreement under requirements in the Packers and Stockyards Act, 7 U.S.C. secs. 181-229b, or the regulations promulgated under the Act, shall file with the department a surety bond issued by a surety company authorized to transact business within the Commonwealth of Kentucky, payable to the Commonwealth with the Commissioner as trustee, or other security instrument or agreement required by the Commissioner. The terms, conditions, and amount of the bond or other security instrument or agreement shall be determined by administrative regulation.
(3) In instances where two (2) or more stockyards or buying stations are owned and operated by the same person, each affiliated stockyard or buying station shall be required to show proof of credit worthiness independent of the other affiliates and shall be required to meet the provisions of subsection (1) or (2) of this section.