Under the provisions of the law any person attempting to buy timber from a timber grower is required to be licensed and bonded. This includes buying through a shares arrangement. A person who buys only produced logs from a licensed buyer is not required to be licensed.

Each buyer is issued an agent card on which are listed his name and the company or individual whom he represents. The card also lists the amount of surety (bond) which the company has on file with the department. If a timber grower (landowner) is approached by a person attempting to purchase standing timber, the landowner should ask to see the person's timber buyer agent card. Check the person's name, who he represents and the amount of bond. The minimum bond required is $2,000 and allows the buyer to purchase up to $5,000 worth of timber annually. Each additional $1,000 in purchases requires an additional $100 of bond up to a maximum of $20,000 bond. If a landowner sees that a buyer is bonded for $2,000 and that person is attempting to purchase $20,000 worth of timber it is obvious that the buyer is underbonded. The landowner may still sell his timber to that buyer, but will be protected only to the bond amount.

The Indiana Timber Buyers law states that it shall be unlawful:

(a) For any timber buyer to fail to pay, as agreed, for any timber purchased.

(b) For any timber buyer to cut or cause to be cut or appropriate any timber not purchased.

(c) For a timber buyer to commit any false statement in connection with the application, bond or other information required to be

given to the department or timber grower.

(d) To fail to honestly account to the timber grower or the department for timber purchased or cut if the buyer is under a duty to

do so, and

(e) For a timber buyer to commit any fraudulent act in connection with the purchase or cutting of timber.

The best protection which a timber grower and buyer can have in the selling/buying of timber is a well written sale contract. The contract should identify at a minimum what is being sold, the price to be paid, date of payment, and any special agreements made between the buyer and the seller. If it is not in writing, it is one person's word against another. The timber grower should also be sure of his property lines and identify these for the timber buyer. Indiana Code 32-9-5-13 provides that: "No contract for sale of standing trees or standing timber shall be enforceable by action unless the said contract, or some memorandum there of be in writing signed by the person to be charged or his duly authorized agent." This law was formerly the Acts of 1901 C. 221 s. 13 and is still in effect.

Under the provisions of the law a person who cuts or causes to be cut timber which he has not purchased is liable to the timber grower for 3 times the stumpage value of the timber. As used above, persons may include but is not limited to timber buyers, timber cutters, landowners, adjacent landowners, consultants and land surveyors. If a landowner misrepresents his boundaries to a timber buyer or cutter, he may be found guilty and held liable. This representation might be intentional or unintentional. A consultant who is handling a timber sale for a landowner, and does not check and verify boundaries may be held liable. A surveyor who does a substandard land survey which causes timber trespass may be held liable. It is in the best interest of all persons involved to be sure of property boundaries.

Any timber grower or owner of illegally cut timber who feels that he has a legitimate claim against the licensed timber buyer may request a hearing before an administrative law judge employed by the Natural Resources Commission. A person requesting such a hearing should be prepared to present facts and evidence in support of his claim. If the Natural Resources Commission finds that there is a legitimate claim against the licensed timber buyer, the buyer would first be given the opportunity to settle this claim. If the buyer is unwilling or unable to satisfy this claim, an action may be started to forfeit his bond.