Timber buyer’s bond cost
Illinois timber buyer’s bond amounts vary and are dependent on the amount of money spent on timber plots in the previous year. Timber buyers must post a $500 surety bond if they purchased timber amounting to $5,000 or less in the previous year.
The bond amount is increased by $100 for each additional $1,000 paid to timber growers, up to $10,000. The required bond amount for new timber buyers must be based on the estimated dollar amount for timber purchased in the next year and must be greater than $500.
Why this bond
A timber buyer is any person who is engaged in the business of buying timber from timber growers and then sawing it into lumber.
An Illinois timber buyer’s bond is mandated by the Illinois Department of Natural Resources for the protection of timber sellers. According to the Illinois Compiled Statutes (225 ILCS 735/5), it is unlawful for timber buyers to:
- Knowingly and willfully fail to pay, as agreed, for the timber purchased
- Cut or cause to be cut any timber without the grower’s consent
- Commit any fraudulent act in connection with the purchase or cutting of timber
- Fail to file the report or pay the fees required by the Act
- Resist or obstruct any officer, employee or agent of the Department
Timber buyer’s bond details
Illinois timber buyer’s surety bonds are continuous until canceled. If the surety wishes to terminate the bond, 60 days’ notice prior to termination must be given to the state.
The state requires that the bond amount must double if the timber buyer has had a previous claim made against his or her bond.
Become a timber buyer
All Illinois timber buyers must be licensed. The license runs for a period of one year and must be renewed annually. A license will only be granted if the applicant:
- Purchases a surety bond in the correct amount
- Fills out an Illinois timber buyer’s license application
- Pays all fees
- And more
Apply for your surety bond
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