Any membership applicant, current member, or a Responsibly Connected Person, who fail to meet the conditions outlined in the DRC’s Operating Rules may be subject to the DRC’s bonding policy.
The DRC bonding policy requires that bonds or other forms of financial security be provided as an assurance to the membership that the entity posting the security will conduct under the DRC’s By-laws & Operating Rules. Depending on the circumstances, a bond may be posted by an applicant, a member, a responsibly connected person in respect of a member, or an employee of a member.
These are the most common circumstances that may trigger DRC to request financial security:
Membership applicants which:
• Have a CFIA Food safety license issued under the Safe Food for Canadians Regulations (SFCR) or a PACA license revoked or suspended within the last five years from the day a membership application is submitted.
• Have been terminated with cause or expelled from membership in the DRC within the last five years from the day a membership application is submitted.
• Have failed to comply with an arbitration award or a mediated agreement within the last five years from the day a membership application is submitted.
• Have filed for bankruptcy or suspended the payment of debts within the last five years from the day a membership application is submitted.
• Have suspended the operations of a business without fully meeting its financial obligations within the last ten years from the day a membership application is submitted.
Members which:
• Have failed to comply with an arbitration agreement or mediated agreement.
• Have failed to comply with DRC Trading Standards General Rules of Conduct.
If a member who has posted financial security violates a provision of DRC’s By-laws and Operating Rules during the bonding period, the DRC may distribute the funds, as provided in the Security Agreement between the member and the DRC.
For more information about the DRC’s Bonding Policy, call 1.613.234.0982 or submit an inquiry through our Help Desk General Inquiry form.
