[ Search ] [ Legislation ] [ Bill Summary ]
[ Home ] [ Back ] [ Bottom ]
| [ Introduced ] | [ Engrossed ] | [ House Amendment 001 ] |
| [ House Amendment 004 ] | [ House Amendment 005 ] | [ Senate Amendment 003 ] |
90_SB1707sam001
LRB9009226LDdvam01
1 AMENDMENT TO SENATE BILL 1707
2 AMENDMENT NO. . Amend Senate Bill 1707 by replacing
3 the title with the following:
4 "AN ACT in relation to agricultural matters, amending
5 named Acts."; and
6 by inserting the following after the end of Section 10:
7 "Section 15. The Grain Code is amended by changing
8 Sections 1-10, 1-15, 5-30, 10-10, 10-15, 10-25, 25-10, 25-20,
9 and 30-5 as follows:
10 (240 ILCS 40/1-10)
11 Sec. 1-10. Definitions. As used in this Act:
12 "Board" means the governing body of the Illinois Grain
13 Insurance Corporation.
14 "Certificate" means a document, other than the license,
15 issued by the Department that certifies that a grain dealer's
16 license has been issued and is in effect.
17 "Claimant" means:
18 (a) a person, including, without limitation, a lender:
19 (1) who possesses warehouse receipts issued from an
20 Illinois location covering grain owned or stored by a
21 failed warehouseman; or
-2- LRB9009226LDdvam01
1 (2) who has other written evidence of a storage
2 obligation of a failed warehouseman issued from an
3 Illinois location in favor of the holder, including, but
4 not limited to, scale tickets, settlement sheets, and
5 ledger cards; or
6 (3) who has loaned money to a warehouseman and was
7 to receive a warehouse receipt issued from an Illinois
8 location as security for that loan, who surrendered
9 warehouse receipts as part of a grain sale at an Illinois
10 location, or who delivered grain out of storage with the
11 warehouseman as part of a grain sale at an Illinois
12 location; and
13 (i) the grain dealer or warehouseman failed
14 within 21 days after the loan of money, the
15 surrender of warehouse receipts, or the delivery of
16 grain, as the case may be, and no warehouse receipt
17 was issued or payment in full was not made on the
18 grain sale, as the case may be; or
19 (ii) written notice was given by the person to
20 the Department within 21 days after the loan of
21 money, the surrender of warehouse receipts, or the
22 delivery of grain, as the case may be, stating that
23 no warehouse receipt was issued or payment in full
24 made on the grain sale, as the case may be; or
25 (b) a producer not included in item (a)(3) in the
26 definition of "Claimant" who possesses evidence of the sale
27 at an Illinois location of grain delivered to a failed grain
28 dealer and who was not paid in full.
29 "Class I warehouseman" means a warehouseman who is
30 authorized to issue negotiable and non-negotiable warehouse
31 receipts.
32 "Class II warehouseman" means a warehouseman who is
33 authorized to issue only non-negotiable warehouse receipts.
34 "Code" means the Grain Code.
-3- LRB9009226LDdvam01
1 "Collateral" means:
2 (a) irrevocable letters of credit;
3 (b) certificates of deposit;
4 (c) cash or a cash equivalent; or
5 (d) any other property acceptable to the Department to
6 the extent there exists equity in that property. For the
7 purposes of this item (d), "equity" is the amount by which
8 the fair market value of the property exceeds the amount owed
9 to a creditor who has a valid, prior, perfected security
10 interest in or other lien on the property.
11 "Corporation" means the Illinois Grain Insurance
12 Corporation.
13 "Daily position record" means a grain inventory
14 accountability record maintained on a daily basis that
15 includes an accurate reflection of changes in grain
16 inventory, storage obligations, company-owned inventory by
17 commodity, and other information that is required by the
18 Department.
19 "Daily grain transaction report" means a record of the
20 daily transactions of a grain dealer showing the amount of
21 all grain received and shipped during each day and the amount
22 on hand at the end of each day.
23 "Date of delivery of grain" means:
24 (a) the date grain is delivered to a grain dealer for
25 the purpose of sale;
26 (b) the date grain is delivered to a warehouseman for
27 the purpose of storage; or
28 (c) in reference to grain in storage with a
29 warehouseman, the date a warehouse receipt representing
30 stored grain is delivered to the issuer of the warehouse
31 receipt for the purpose of selling the stored grain or, if no
32 warehouse receipt was issued:
33 (1) the date the purchase price for stored grain is
34 established; or
-4- LRB9009226LDdvam01
1 (2) if sold by price later contract, the date of
2 the price later contract.
3 "Department" means the Illinois Department of
4 Agriculture.
5 "Depositor" means a person who has evidence of a storage
6 obligation from a warehouseman.
7 "Director", unless otherwise provided, means the Illinois
8 Director of Agriculture, or the Director's designee.
9 "Emergency storage" means space measured in bushels and
10 used for a period of time not to exceed 3 months for storage
11 of grain as a consequence of an emergency situation.
12 "Equity assets" means:
13 (a) The equity in any property of the licensee or failed
14 licensee, other than grain assets. For purposes of this item
15 (a):
16 (1) "equity" is the amount by which the fair market
17 value of the property exceeds the amount owed to a
18 creditor who has a valid security interest in or other
19 lien on the property that was perfected before the date
20 of failure of the licensee;
21 (2) a creditor is not deemed to have a valid
22 security interest or other lien on property if (i) the
23 property can be directly traced as being from the sale of
24 grain by the licensee or failed licensee; (ii) the
25 security interest was taken as additional collateral on
26 account of an antecedent debt owed to the creditor; and
27 (iii) the security interest or other lien was perfected
28 (A) on or within 90 days before the date of failure of
29 the licensee or (B) when the creditor is a related
30 person, within one year of the date of failure of the
31 licensee.
32 "Failure" means, in reference to a licensee:
33 (a) a formal declaration of insolvency;
34 (b) a revocation of a license;
-5- LRB9009226LDdvam01
1 (c) a failure to apply for license renewal, leaving
2 indebtedness to claimants;
3 (d) a denial of license renewal, leaving indebtedness to
4 claimants; or
5 (e) a voluntary surrender of a license, leaving
6 indebtedness to claimants.
7 "Federal warehouseman" means a warehouseman licensed by
8 the United States government under the United States
9 Warehouse Act (7 U.S.C. 241 et seq.).
10 "Fund" means the Illinois Grain Insurance Fund.
11 "Grain" means corn, soybeans, wheat, oats, rye, barley,
12 grain sorghum, canola, buckwheat, flaxseed, edible soybeans,
13 and other like agricultural commodities designated by rule.
14 "Grain assets" means:
15 (a) all grain owned and all grain stored by a licensee
16 or failed licensee, wherever located;
17 (b) redeposited grain of a licensee or failed licensee;
18 (c) identifiable proceeds, including, but not limited
19 to, insurance proceeds, received by or due to a licensee or
20 failed licensee resulting from the sale, exchange,
21 destruction, loss, or theft of grain, or other disposition of
22 grain by the licensee or failed licensee; or
23 (d) assets in hedging or speculative margin accounts
24 held by commodity or security exchanges on behalf of a
25 licensee or failed licensee and any moneys due or to become
26 due to a licensee or failed licensee, less any secured
27 financing directly associated with those assets or moneys,
28 from any transactions on those exchanges.
29 For purposes of this Act, storage charges, drying
30 charges, price later contract service charges, and other
31 grain service charges received by or due to a licensee or
32 failed licensee shall not be deemed to be grain assets, nor
33 shall such charges be deemed to be proceeds from the sale or
34 other disposition of grain by a licensee or a failed
-6- LRB9009226LDdvam01
1 licensee, or to have been directly or indirectly traceable
2 from, to have resulted from, or to have been derived in whole
3 or in part from, or otherwise related to, the sale or other
4 disposition of grain by the licensee or failed licensee.
5 "Grain dealer" means a person who is licensed by the
6 Department to engage in the business of buying grain from
7 producers.
8 "Grain Indemnity Trust Account" means a trust account
9 established by the Director under Section 40.23 of the Civil
10 Administrative Code of Illinois that is used for the receipt
11 and disbursement of moneys paid from the Fund and proceeds
12 from the liquidation of and collection upon grain assets,
13 equity assets, collateral, or guarantees of or relating to
14 failed licensees. The Grain Indemnity Trust Account shall be
15 used to pay valid claims, authorized refunds from the Fund,
16 and expenses incurred in preserving, liquidating, and
17 collecting upon grain assets, equity assets, collateral, and
18 guarantees relating to failed licensees.
19 "Guarantor" means a person who assumes all or part of the
20 obligations of a licensee to claimants.
21 "Guarantee" means a document executed by a guarantor by
22 which the guarantor assumes all or part of the obligations of
23 a licensee to claimants.
24 "Incidental grain dealer" means a grain dealer who
25 purchases grain only in connection with a feed milling
26 operation and whose total purchases of grain from producers
27 during the grain dealer's fiscal year do not exceed $100,000.
28 "Licensed storage capacity" means the maximum grain
29 storage capacity measured in bushels approved by the
30 applicable licensing agency for use by a warehouseman.
31 "Licensee" means a grain dealer or warehouseman who is
32 licensed by the Department and a federal warehouseman that is
33 a participant in the Fund, under subsection (c) of Section
34 30-10.
-7- LRB9009226LDdvam01
1 "Official grain standards" means the official grade
2 designations as adopted by the United States Department of
3 Agriculture under the United States Grain Standards Act and
4 regulations adopted under that Act (7 U.S.C. 71 et seq. and 7
5 CFR 810.201 et seq.).
6 "Permanent storage capacity" means the capacity of
7 permanent structures available for storage of grain on a
8 regular and continuous basis and measured in bushels.
9 "Person" means any individual or entity, including, but
10 not limited to, a sole proprietorship, a partnership, a
11 corporation, a cooperative, an association, a limited
12 liability company, an estate, or a trust.
13 "Price later contract" means a written contract for the
14 sale of grain whereby any part of the purchase price may be
15 established by the seller after delivery of the grain to a
16 grain dealer according to a pricing formula contained in the
17 contract. Title to the grain passes to the grain dealer at
18 the time of delivery. The precise form and the general terms
19 and conditions of the contract shall be established by rule.
20 "Producer" means the owner, tenant, or operator of land
21 who has an interest in and receives all or part of the
22 proceeds from the sale of the grain produced on the land.
23 "Producer protection holding corporation" means a holding
24 corporation to receive, hold title to, and liquidate assets
25 of or relating to a failed licensee, including assets in
26 reference to collateral or guarantees relating to a failed
27 licensee.
28 "Related persons" means affiliates of a licensee, key
29 persons of a licensee, owners of a licensee, and persons who
30 have control over a licensee. For the purposes of this
31 definition:
32 (a) "Affiliate" means a person who has direct or
33 indirect control of a licensee, is controlled by a
34 licensee, or is under common control with a licensee.
-8- LRB9009226LDdvam01
1 (b) "Key person" means an officer, a director, a
2 trustee, a partner, a proprietor, a manager, a managing
3 agent, or the spouse of a licensee. An officer or a
4 director of an entity organized or operating as a
5 cooperative, however, shall not be considered to be a
6 "key person".
7 (c) "Owner" means the holder of: over 10% of the
8 total combined voting power of a corporation or over 10%
9 of the total value of shares of all classes of stock of a
10 corporation; over a 10% interest in a partnership; over
11 10% of the value of a trust computed actuarially; or over
12 10% of the legal or beneficial interest in any other
13 business, association, endeavor, or entity that is a
14 licensee. For purposes of computing these percentages, a
15 holder is deemed to own stock or other interests in a
16 business entity whether the ownership is direct or
17 indirect.
18 (d) "Control" means the power to exercise authority
19 over or direct the management or policies of a business
20 entity.
21 (e) "Indirect" means an interest in a business held
22 by the holder not through the holder's actual holdings in
23 the business, but through the holder's holdings in other
24 businesses.
25 (f) Notwithstanding any other provision of this
26 Act, the term "related person" does not include a lender,
27 secured party, or other lien holder solely by reason of
28 the existence of the loan, security interest, or lien, or
29 solely by reason of the lender, secured party, or other
30 lien holder having or exercising any right or remedy
31 provided by law or by agreement with a licensee or a
32 failed licensee.
33 "Successor agreement" means an agreement by which a
34 licensee succeeds to the grain obligations of a former
-9- LRB9009226LDdvam01
1 licensee.
2 "Temporary storage space" means space measured in bushels
3 and used for 6 months or less for storage of grain on a
4 temporary basis due to a need for additional storage in
5 excess of permanent storage capacity.
6 "Trust account" means the Grain Indemnity Trust Account.
7 "Valid claim" means a claim, submitted by a claimant,
8 whose amount and category have been determined by the
9 Department, to the extent that determination is not subject
10 to further administrative review or appeal.
11 "Warehouse" means a building, structure, or enclosure in
12 which grain is stored for the public for compensation,
13 whether grain of different owners is commingled or whether
14 identity of different lots of grain is preserved.
15 "Warehouse receipt" means a receipt for the storage of
16 grain issued by a warehouseman.
17 "Warehouseman" means a person who is licensed:
18 (a) by the Department to engage in the business of
19 storing grain for compensation; or
20 (b) under the United States Warehouse Act who
21 participates in the Fund under subsection (c) of Section
22 30-10.
23 (Source: P.A. 89-287, eff. 1-1-96.)
24 (240 ILCS 40/1-15)
25 Sec. 1-15. Powers and duties of Director. The Director
26 has all powers necessary and proper to fully and effectively
27 execute the provisions of this Code and has the general duty
28 to implement this Code. The Director's powers and duties
29 include, but are not limited to, the following:
30 (1) The Director may, upon application, issue or refuse
31 to issue licenses under this Code, and the Director may
32 extend, renew, reinstate, suspend, revoke, or accept
33 voluntary surrender of licenses under this Code.
-10- LRB9009226LDdvam01
1 (2) The Director shall examine and inspect each licensee
2 at least once each calendar year. The Director may inspect
3 the premises used by a licensee at any time. The books,
4 accounts, records, and papers of a licensee are at all times
5 during business hours subject to inspection by the Director.
6 Each licensee may also be required to make reports of its
7 activities, obligations, and transactions that are deemed
8 necessary by the Director to determine whether the interests
9 of producers and the holders of warehouse receipts are
10 adequately protected and safeguarded. The Director may take
11 action or issue orders that in the opinion of the Director
12 are necessary to prevent fraud upon or discrimination against
13 producers or depositors by a licensee.
14 (3) The Director may, upon his or her initiative or upon
15 the written verified complaint of any person setting forth
16 facts that if proved would constitute grounds for a refusal
17 to issue or renew a license or for a suspension or revocation
18 of a license, investigate the actions of any person applying
19 for, holding, or claiming to hold a license or any related
20 party of that person.
21 (4) The Director (but not the Director's designee) may
22 issue subpoenas and bring before the Department any person
23 and take testimony either at an administrative hearing or by
24 deposition with witness fees and mileage fees and in the same
25 manner as prescribed in the Code of Civil Procedure. The
26 Director or the Director's designee may administer oaths to
27 witnesses at any proceeding that the Department is authorized
28 by law to conduct. The Director (but not the Director's
29 designee) may issue subpoenas duces tecum to command the
30 production of records relating to a licensee, guarantor,
31 related business, related person, or related party. Subpoenas
32 are subject to the rules of the Department.
33 (5) Notwithstanding other judicial remedies, the
34 Director may file a complaint and apply for a temporary
-11- LRB9009226LDdvam01
1 restraining order or preliminary or permanent injunction
2 restraining or enjoining any person from violating or
3 continuing to violate this Code or its rules.
4 (6) The Director shall act as Trustee for the Trust
5 Account, act as Trustee over all collateral, guarantees,
6 grain assets, and equity assets held by the Department for
7 the benefit of claimants, and exercise certain powers and
8 perform related duties under Section 20-5 of this Code and
9 Section 40.23 of the Civil Administrative Code of Illinois,
10 except that the provisions of the Trust and Trustees Act do
11 not apply to the Trust Account or any other trust created
12 under this Code.
13 (7) The Director shall personally serve as president of
14 the Corporation.
15 (8) The Director shall collect and deposit all monetary
16 penalties, printer registration fees, funds, and assessments
17 authorized under this Code into the Fund.
18 (9) The Director may initiate any action necessary to
19 pay refunds from the Fund.
20 (10) The Director shall maintain a holding corporation
21 to receive, hold title to, and liquidate assets of or
22 relating to a failed licensee, including assets in reference
23 to collateral or guarantees, and deposit the proceeds into
24 the Fund.
25 (11) The Director may initiate, participate in, or
26 withdraw from any proceedings to liquidate and collect upon
27 grain assets, equity assets, collateral, and guarantees
28 relating to a failed licensee, including, but not limited to,
29 all powers needed to carry out the provisions of Section
30 20-15.
31 (12) The Director, as Trustee or otherwise, may take any
32 action that may be reasonable or appropriate to enforce this
33 Code and its rules.
34 (Source: P.A. 89-287, eff. 1-1-96.)
-12- LRB9009226LDdvam01
1 (240 ILCS 40/5-30)
2 Sec. 5-30. Grain Insurance Fund assessments. The
3 Illinois Grain Insurance Fund is established as a
4 continuation of the fund created under the Illinois Grain
5 Insurance Act, now repealed. Licensees and applicants for a
6 new license shall pay assessments as set forth in this
7 Section.
8 (a) Subject to subsection (e) of this Section, a
9 licensee that is newly licensed after the effective date of
10 this Code shall pay an assessment into the Fund for 3
11 consecutive years. Except as provided in item (6) of
12 subsection (b) of this Section, the first assessment shall be
13 paid at the time of or before the issuance of a new license,
14 the second assessment shall be paid on or before the first
15 anniversary date of the issuance of the new license, and the
16 third assessment shall be paid on or before the second
17 anniversary date of the issuance of the new license. For a
18 grain dealer, the initial payment of each of the 3
19 assessments shall be based upon the total estimated value of
20 grain purchases by the grain dealer for the applicable year
21 with the final assessment amount determined as set forth in
22 item (6) of subsection (b) of this Section. After the
23 licensee has paid or was required to pay the first 3
24 assessments to the Department for payment into the Fund, the
25 licensee shall be subject to subsequent assessments as set
26 forth in subsection (d) of this Section.
27 (b) Grain dealer assessments.
28 (1) The first assessment for a grain dealer shall
29 be an amount equal to:
30 (A) $0.000145 multiplied by the total value of
31 grain purchases for the grain dealer's first fiscal
32 year as shown in the final financial statement for
33 that year provided to the Department under Section
34 5-20; and
-13- LRB9009226LDdvam01
1 (B) $0.000255 multiplied by that portion of
2 the value of grain purchases for the grain dealer's
3 first fiscal year that exceeds the adjusted equity
4 of the licensee multiplied by 20, as shown on the
5 final financial statement for the licensee's first
6 fiscal year provided to the Department under Section
7 5-20.
8 (2) The minimum assessment for the first assessment
9 shall be $1,000 and the maximum shall be $10,000.
10 (3) The second assessment for a grain dealer shall
11 be an amount equal to:
12 (A) $0.0000725 multiplied by the total value
13 of grain purchases for the grain dealer's second
14 fiscal year as shown in the final financial
15 statement for that year provided to the Department
16 under Section 5-20; and
17 (B) $0.0001275 multiplied by that portion of
18 the value of grain purchases for the grain dealer's
19 second fiscal year that exceeds the adjusted equity
20 of the licensee multiplied by 20, as shown on the
21 final financial statement for the licensee's second
22 fiscal year provided to the Department under Section
23 5-20.
24 (4) The third assessment for a grain dealer shall
25 be an amount equal to:
26 (A) $0.0000725 multiplied by the total value
27 of grain purchases for the grain dealer's third
28 fiscal year as shown in the final financial
29 statement for that year provided to the Department
30 under Section 5-20; and
31 (B) $0.0001275 multiplied by that portion of
32 the value of grain purchases for the grain dealer's
33 third fiscal year that exceeds the adjusted equity
34 of the licensee multiplied by 20, as shown on the
-14- LRB9009226LDdvam01
1 final financial statement for the licensee's third
2 fiscal year.
3 (5) The minimum second and third assessments shall
4 be $500 per year and the maximum for each year shall be
5 $5,000.
6 (6) Each of the first 3 assessments shall be
7 adjusted up or down based upon the actual annual grain
8 purchases for each year as shown in the final financial
9 statement for that year provided to the Department under
10 Section 5-20. The adjustments shall be determined by the
11 Department within 30 days of the date of approval of
12 renewal of a license. Refunds shall be paid out of the
13 Fund within 60 days after the Department's determination.
14 Additional amounts owed for assessments shall be paid as
15 provided in subsection (f) of this Section.
16 (7) For the purposes of grain dealer assessments
17 under subsection (b) of this Section, the total value of
18 grain purchases shall be the total value of first time
19 grain purchases by at Illinois locations from producers.
20 (c) Warehouseman assessments.
21 (1) The first assessment for a warehouseman shall
22 be an amount equal to:
23 (A) $0.00085 multiplied by the total permanent
24 storage capacity of the warehouseman at the time of
25 license issuance; and
26 (B) $0.00099 multiplied by that portion of the
27 permanent storage capacity of the warehouseman at
28 the time of license issuance that exceeds the
29 adjusted equity of the licensee multiplied by 5, all
30 as shown on the final financial statement for the
31 licensee provided to the Department under Section
32 5-10.
33 (2) The minimum assessment for the first assessment
34 shall be $1,000 and the maximum shall be $10,000.
-15- LRB9009226LDdvam01
1 (3) The second and third assessments shall be an
2 amount equal to:
3 (A) $0.000425 multiplied by the total
4 permanent storage capacity of the warehouseman at
5 the time of license issuance; and
6 (B) $0.000495 multiplied by that portion of
7 the permanent licensed storage capacity of the
8 warehouseman at the time of license issuance that
9 exceeds the adjusted equity of the licensee
10 multiplied by 5, as shown on the final financial
11 statement for the licensee's last completed fiscal
12 year provided to the Department under Section 5-20.
13 (4) The minimum assessment for the second and third
14 assessments shall be $500 per assessment and the maximum
15 for each assessment shall be $5,000.
16 (5) Every warehouseman shall pay an assessment when
17 increasing available permanent storage capacity in an
18 amount equal to $0.001 multiplied by the total number of
19 bushels to be added to permanent storage capacity. The
20 minimum assessment on any increase in permanent storage
21 capacity shall be $50 and the maximum assessment shall be
22 $20,000. The assessment based upon an increase in
23 permanent storage capacity shall be paid at or before the
24 time of approval of the increase in permanent storage
25 capacity. This assessment on the increased permanent
26 storage capacity does not relieve the warehouseman of any
27 assessments as set forth in subsection (d) of this
28 Section.
29 (6) Every warehouseman shall pay an assessment of
30 $0.0005 per bushel when increasing available storage
31 capacity by use of temporary storage space. The minimum
32 assessment on temporary storage space shall be $100. The
33 assessment based upon temporary storage space shall be
34 paid at or before the time of approval of the amount of
-16- LRB9009226LDdvam01
1 the temporary storage space. This assessment on the
2 temporary storage space capacity does not relieve the
3 warehouseman of any assessments as set forth in
4 subsection (d) of this Section.
5 (7) Every warehouseman shall pay an assessment of
6 $0.001 per bushel of emergency storage space. The
7 minimum assessment on any emergency storage space shall
8 be $100. The assessment based upon emergency storage
9 space shall be paid at or before the time of approval of
10 the amount of the emergency storage space. This
11 assessment on the emergency storage space does not
12 relieve the warehouseman of any assessments as set forth
13 in subsection (d) of this Section.
14 (d) Subsequent assessments.
15 (1) If the equity in the Fund is below $3,000,000
16 on September 1st of any year, every grain dealer who has,
17 or was required to have, already paid the first, second,
18 and third assessments shall be assessed by the Department
19 an amount equal to:
20 (A) $0.0000725 multiplied by the total value
21 of grain purchases for the grain dealer's last
22 completed fiscal year as shown in the final
23 financial statement for that year provided to the
24 Department under Section 5-20; and
25 (B) $0.0001275 multiplied by that portion of
26 the value of grain purchases for the grain dealer's
27 last completed fiscal year that exceeds the adjusted
28 equity of the licensee multiplied by 20, as shown on
29 the final financial statement for the licensee's
30 last completed fiscal year provided to the
31 Department under Section 5-20.
32 The minimum amount for a subsequent assessment shall
33 be $500 per year and the maximum amount shall be $5,000
34 per year. For the purposes of grain dealer assessments
-17- LRB9009226LDdvam01
1 under this item (1) of subsection (d) of this Section,
2 the total value of grain purchases shall be the total
3 value of first time grain purchases by of Illinois
4 locations from producers.
5 (2) If the equity in the Fund is below $3,000,000
6 on September 1st of any year, every warehouseman who has,
7 or was required to have, already paid the first, second,
8 and third assessments shall be assessed by the Department
9 an amount equal to:
10 (A) $0.000425 multiplied by the total licensed
11 storage capacity of the warehouseman as of September
12 1st of that year; and
13 (B) $0.000495 multiplied by that portion of
14 the licensed storage capacity of the warehouseman as
15 of September 1st of that year that exceeds the
16 adjusted equity of the licensee multiplied by 5, as
17 shown on the final financial statement for the
18 licensee's last completed fiscal year provided to
19 the Department under Section 5-20.
20 The minimum amount for a subsequent assessment shall
21 be $500 per year and the maximum amount shall be $5,000
22 per year.
23 (3) If the due date for the payment by a licensee
24 of the third assessment is after September 1st in a year
25 when the equity in the Fund is below $3,000,000, that
26 licensee shall not be subject to a subsequent assessment
27 for that year.
28 (e) Newly licensed; exemptions.
29 (1) For the purpose of assessing fees for the Fund
30 under subsection (a) of this Section, and subject to the
31 provisions of item (e)(2) of this Section, the Department
32 shall consider the following to be newly licensed:
33 (A) A person that becomes a licensee for the
34 first time after the effective date of this Code.
-18- LRB9009226LDdvam01
1 (B) A licensee who has a lapse in licensing of
2 more than 30 days. A license shall not be
3 considered to be lapsed after its revocation or
4 termination if an administrative or judicial action
5 is pending or if an order from an administrative or
6 judicial body continues an existing license.
7 (C) A grain dealer that is a general
8 partnership in which there is a change in
9 partnership interests and that change is greater
10 than 50% during the partnership's fiscal year.
11 (D) A grain dealer that is a limited
12 partnership in which there is a change in the
13 controlling interest of a general partner and that
14 change is greater than 50% of the total controlling
15 interest during the limited partnership's fiscal
16 year.
17 (E) A grain dealer that is a limited liability
18 company in which there is a change in membership
19 interests and that change is greater than 50% during
20 the limited liability company's fiscal year.
21 (F) A grain dealer that is the result of a
22 statutory consolidation if that person has adjusted
23 equity of less than 90% of the combined adjusted
24 equity of the predecessor persons who consolidated.
25 For the purposes of this paragraph, the adjusted
26 equity of the resulting person shall be determined
27 from the approved or certified financial statement
28 submitted to the Department for the first fiscal
29 year of the resulting person. For the purpose of
30 this paragraph, the combined adjusted equity of the
31 predecessor persons shall be determined by combining
32 the adjusted equity of each predecessor person as
33 set forth in the most recent approved or certified
34 financial statement of each predecessor person
-19- LRB9009226LDdvam01
1 submitted to the Department.
2 (G) A grain dealer that is the result of a
3 statutory merger if that person has adjusted equity
4 of less than 90% of the combined adjusted equity of
5 the predecessor persons who merged. For the
6 purposes of this paragraph, the adjusted equity of
7 the resulting person shall be determined from the
8 approved or certified financial statement submitted
9 to the Department for the first fiscal year of the
10 resulting person ending after the merger. For the
11 purposes of this paragraph, the combined adjusted
12 equity of the predecessor persons shall be
13 determined by combining the adjusted equity of each
14 predecessor person as set forth in the most recent
15 approved or certified financial statement submitted
16 to the Department for the last fiscal year of each
17 predecessor person ending on the date of or before
18 the merger.
19 (H) A grain dealer that is a general
20 partnership in which there is a change in
21 partnership interests and that change is 50% or less
22 during the partnership's fiscal year if the adjusted
23 equity of the partnership after the change is less
24 than 90% of the adjusted equity of the partnership
25 before the change. For the purpose of this
26 paragraph, the adjusted equity of the partnership
27 after the change shall be determined from the
28 approved or certified financial statement submitted
29 to the Department for the first fiscal year ending
30 after the change. For the purposes of this
31 paragraph, the adjusted equity of the partnership
32 before the change shall be determined from the
33 approved or certified financial statement submitted
34 to the Department for the last fiscal year of the
-20- LRB9009226LDdvam01
1 partnership ending on the date of or before the
2 change.
3 (I) A grain dealer that is a limited
4 partnership in which there is a change in the
5 controlling interest of a general partner and that
6 change is 50% or less of the total controlling
7 interest during the partnership's fiscal year if the
8 adjusted equity of the partnership after the change
9 is less than 90% of the adjusted equity of the
10 partnership before the change. For the purposes of
11 this paragraph, the adjusted equity of the
12 partnership after the change shall be determined
13 from the approved or certified financial statement
14 submitted to the Department for the first fiscal
15 year ending after the change. For the purposes of
16 this paragraph, the adjusted equity of the
17 partnership before the change shall be determined
18 from the approved or certified financial statement
19 submitted to the Department for the last fiscal year
20 of the partnership ending on the date of or before
21 the change.
22 (J) A grain dealer that is a limited liability
23 company in which there is a change in membership
24 interests and that change is 50% or less of the
25 total membership interests during the limited
26 liability company's fiscal year if the adjusted
27 equity of the limited liability company after the
28 change is less than 90% of the adjusted equity of
29 the limited liability company before the change.
30 For the purposes of this paragraph, the adjusted
31 equity of the limited liability company after the
32 change shall be determined from the approved or
33 certified financial statement submitted to the
34 Department for the first fiscal year ending after
-21- LRB9009226LDdvam01
1 the change. For the purposes of this paragraph, the
2 adjusted equity of the limited liability company
3 before the change shall be determined from the
4 approved or certified financial statement submitted
5 to the Department for the last fiscal year of the
6 limited liability company ending on the date of or
7 before the change.
8 (K) A grain dealer that is the result of a
9 statutory consolidation or merger if one or more of
10 the predecessor persons that consolidated or merged
11 into the resulting grain dealer was not a licensee
12 under this Code at the time of the consolidation or
13 merger.
14 (2) For the purpose of assessing fees for the Fund
15 as set forth in subsection (a) of this Section, the
16 Department shall consider the following as not being
17 newly licensed and, therefore, exempt from further
18 assessment unless an assessment is required by subsection
19 (d) of this Section:
20 (A) A person resulting solely from a name
21 change of a licensee.
22 (B) A warehouseman changing from a Class I
23 warehouseman to a Class II warehouseman or from a
24 Class II warehouseman to a Class I warehouseman
25 under this Code.
26 (C) A licensee that becomes a wholly owned
27 subsidiary of another licensee.
28 (D) Subject to item (e)(1)(K) of this Section,
29 a person that is the result of a statutory
30 consolidation if that person has adjusted equity
31 greater than or equal to 90% of the combined
32 adjusted equity of the predecessor persons who
33 consolidated. For the purposes of this paragraph,
34 the adjusted equity of the resulting person shall be
-22- LRB9009226LDdvam01
1 determined from the approved or certified financial
2 statement submitted to the Department for the first
3 fiscal year of the resulting person. For the
4 purpose of this paragraph, the combined adjusted
5 equity of the predecessor persons shall be
6 determined by combining the net worth of each
7 predecessor person as set forth in the most recent
8 approved or certified financial statement of each
9 predecessor person submitted to the Department.
10 (E) Subject to item (e)(1)(K) of this Section,
11 a person that is the result of a statutory merger if
12 that person has adjusted equity greater than or
13 equal to 90% of the combined adjusted equity of the
14 predecessor persons who merged. For the purposes of
15 this paragraph, the adjusted equity of the resulting
16 person shall be determined from the approved or
17 certified financial statement submitted to the
18 Department for the first fiscal year of the
19 resulting person ending after the merger. For the
20 purposes of this paragraph, the combined adjusted
21 equity of the predecessor persons shall be
22 determined by combining the adjusted equity of each
23 predecessor person as set forth in the most recent
24 approved or certified financial statement, submitted
25 to the Department for the last fiscal year of each
26 predecessor person ending on the date of or before
27 the merger.
28 (F) A general partnership in which there is a
29 change in partnership interests and that change is
30 50% or less during the partnership's fiscal year and
31 the adjusted equity of the partnership after the
32 change is greater than or equal to 90% of the
33 adjusted equity of the partnership before the
34 change. For the purposes of this paragraph, the
-23- LRB9009226LDdvam01
1 adjusted equity of the partnership after the change
2 shall be determined from the approved or certified
3 financial statement submitted to the Department for
4 the first fiscal year ending after the change. For
5 the purposes of this paragraph, the adjusted equity
6 of the partnership before the change shall be
7 determined from the approved or certified financial
8 statement submitted to the Department for the last
9 fiscal year of the partnership ending on the date of
10 or before the change.
11 (G) A limited partnership in which there is a
12 change in the controlling interest of a general
13 partner and that change is 50% or less of the total
14 controlling interest during the partnership's fiscal
15 year and the adjusted equity of the partnership
16 after the change is greater than or equal to 90% of
17 the adjusted equity of the partnership before the
18 change. For the purposes of this paragraph, the
19 adjusted equity of the partnership after the change
20 shall be determined from the approved or certified
21 financial statement submitted to the Department for
22 the first fiscal year ending after the change. For
23 the purposes of this paragraph, the adjusted equity
24 of the partnership before the change shall be
25 determined from the approved or certified financial
26 statement submitted to the Department for the last
27 fiscal year of the partnership ending on the date of
28 or before the change.
29 (H) A limited liability company in which there
30 is a change in membership interests and that change
31 is 50% or less of the total membership interests
32 during the limited liability company's fiscal year
33 if the adjusted equity of the limited liability
34 company after the change is greater than or equal to
-24- LRB9009226LDdvam01
1 90% of the adjusted equity of the limited liability
2 company before the change. For the purposes of this
3 paragraph, the adjusted equity of the limited
4 liability company after the change shall be
5 determined from the approved or certified financial
6 statement submitted to the Department for the first
7 fiscal year ending after the change. For the
8 purposes of this paragraph, the adjusted equity of
9 the limited liability company before the change
10 shall be determined from the approved or certified
11 financial statement submitted to the Department for
12 the last fiscal year of the limited liability
13 company ending on the date of or before the change.
14 (I) A licensed warehouseman that is the result
15 of a statutory merger or consolidation to the extent
16 the combined storage capacity of the resulting
17 warehouseman has been assessed under this Code
18 before the statutory merger or consolidation, except
19 that any storage capacity of the resulting
20 warehouseman that has not previously been assessed
21 under this Code shall be assessed as provided in
22 items (c)(5), (c)(6), and (c)(7) of this Section.
23 (J) A federal warehouseman who participated in
24 the Fund under Section 30-10 and who subsequently
25 received an Illinois license to the extent the
26 storage capacity of the warehouseman was assessed
27 under this Code prior to Illinois licensing.
28 (f) Except for the first assessment made under this
29 Section, and assessments under items (c)(5), (c)(6), and
30 (c)(7) of this Section, all assessments shall be paid to the
31 Department within 60 days after the date posted on the
32 written notice of assessment. The Department shall forward
33 all paid assessments to the Fund.
34 (Source: P.A. 89-287, eff. 1-1-96.)
-25- LRB9009226LDdvam01
1 (240 ILCS 40/10-10)
2 Sec. 10-10. Duties and requirements of grain dealers.
3 (a) Long and short market position.
4 (1) Grain dealers shall at all times maintain an
5 accurate and current long and short market position
6 record for each grain commodity. The position record
7 shall at a minimum contain the net position of all grain
8 owned, wherever located, grain purchased and sold, and
9 any grain option contract purchased or sold.
10 (2) Grain dealers, except grain dealers regularly
11 and continuously reporting to the Commodity Futures
12 Trading Commission or grain dealers who have obtained the
13 permission of the Department to have different open long
14 or short market positions, may maintain an open position
15 in the grain commodity of which the grain dealer buys the
16 greatest number of bushels per fiscal year not to exceed
17 one bushel for each $10 of adjusted equity at fiscal year
18 end up to a maximum open position of 50,000 bushels and
19 one-half that number of bushels up to 25,000 bushels for
20 all other grain commodities that the grain dealer buys. A
21 grain dealer, however, may maintain an open position of
22 up to 5,000 bushels for each grain commodity the grain
23 dealer buys.
24 (b) The license issued by the Department to a grain
25 dealer shall be posted in the principal office of the
26 licensee in this State. A certificate shall be posted in
27 each location where the licensee engages in business as a
28 grain dealer. In the case of a licensee operating a truck or
29 tractor trailer unit for the purpose of purchasing grain, the
30 licensee shall have a certificate carried in each truck or
31 tractor trailer unit used in connection with the licensee's
32 grain dealer business.
33 (c) The licensee must have at all times sufficient
34 financial resources to pay producers on demand for grain
-26- LRB9009226LDdvam01
1 purchased from them.
2 (d) A licensee that is solely a grain dealer shall on a
3 daily basis maintain an accurate and current daily grain
4 transaction report.
5 (e) A licensee that is both a grain dealer and a
6 warehouseman shall at all times maintain an accurate and
7 current daily position record.
8 (f) In the case of a change of ownership of a grain
9 dealer, the obligations of a grain dealer do not cease until
10 the grain dealer its successor is properly licensed under
11 this Code, it has surrendered all unused price later
12 contracts to the Department and the successor has executed a
13 successor's agreement, or the successor has otherwise
14 provided for the grain obligations of its predecessor.
15 (g) If a grain dealer proposes to cease doing business
16 as a grain dealer and there is no successor, it is the duty
17 of the grain dealer to surrender all unused price later
18 contracts to the Department, together with an affidavit
19 accounting for all grain dealer obligations setting forth the
20 arrangements made with producers for final disposition of the
21 grain dealer obligations and indicating the procedure for
22 payment in full of all outstanding grain obligations. It is
23 the duty of the Department to give notice by publication that
24 a grain dealer has ceased doing business without a successor.
25 After payment in full of all outstanding grain obligations,
26 it is the duty of the grain dealer to surrender its license.
27 (Source: P.A. 89-287, eff. 1-1-96.)
28 (240 ILCS 40/10-15)
29 Sec. 10-15. Price later contracts.
30 (a) Price later contracts shall be written on forms
31 prescribed by the Department. Price later contract forms
32 shall be printed by a person authorized to print those
33 contracts by the Department after that person has agreed to
-27- LRB9009226LDdvam01
1 comply with each of the following:
2 (1) That all price later contracts shall be printed
3 as prescribed by the Department and shall be printed
4 only for a licensed grain dealer.
5 (2) That all price later contracts shall be
6 numbered consecutively and a complete record of these
7 contracts shall be retained showing for whom printed and
8 the consecutive numbers printed on the contracts.
9 (3) That a duplicate copy of all invoices rendered
10 for printing price later contracts that will show the
11 consecutive numbers printed on the contracts, and the
12 number of contracts printed, shall be promptly forwarded
13 to the Department.
14 (4) that the person shall register with the
15 Department and pay an annual registration fee of $100 to
16 print price later contracts.
17 (b) A grain dealer purchasing grain by price later
18 contract shall at all times own grain, rights in grain,
19 proceeds from the sale of grain, and other assets acceptable
20 to the Department as set forth in this Code totaling 90% of
21 the unpaid balance of the grain dealer's obligations for
22 grain purchased by price later contract. That amount shall
23 at all times remain unencumbered and shall be represented by
24 the aggregate of the following:
25 (1) Grain owned by the grain dealer valued by means
26 of the hedging procedures method that includes marking
27 open contracts to market.
28 (2) Cash on hand.
29 (3) Cash held on account in federally or State
30 licensed financial institutions.
31 (4) Investments held in time accounts with
32 federally or State licensed financial institutions.
33 (5) Direct obligations of the U.S. government.
34 (6) Funds on deposit Balances in grain margin
-28- LRB9009226LDdvam01
1 accounts determined by marking to market.
2 (7) Balances due or to become due to the licensee
3 on price later contracts.
4 (8) Marketable securities, including mutual funds.
5 (9) Irrevocable letters of credit in favor of the
6 Department and acceptable to the Department.
7 (10) Price later contract service charges due or to
8 become due to the licensee.
9 (11) Other evidence of proceeds from or of grain
10 that is acceptable to the Department.
11 (c) For the purpose of computing the dollar value of
12 grain and the balance due on price later contract
13 obligations, the value of grain shall be figured at the
14 current market price.
15 (d) Title to grain sold by price later contract shall
16 transfer to a grain dealer on the date of delivery of the
17 grain. Therefore, no storage charges shall be made with
18 respect to grain purchased by price later contract. A
19 service charge for handling the contract, however, may be
20 made.
21 (e) Subject to subsection (f) of this Section, if a
22 price later contract is not signed by all parties within 30
23 days of the last date of delivery of grain intended to be
24 sold by price later contract, then the grain intended to be
25 sold by price later contract shall be priced on the next
26 business day after 30 days from the last date of delivery of
27 grain intended to be sold by price later contract at the
28 market price of the grain at the close of the next business
29 day after the 29th day. When the grain is priced under this
30 subsection, the grain dealer shall send notice to the seller
31 of the grain within 10 days. The notice shall contain the
32 number of bushels sold, the price per bushel, all applicable
33 discounts, the net proceeds, and a notice that states that
34 the Grain Insurance Fund shall provide protection for a
-29- LRB9009226LDdvam01
1 period of only 160 days from the date of pricing of the
2 grain.
3 (f) If grain is in storage with a warehouseman and is
4 intended to be sold by price later contract, that grain shall
5 be considered as remaining in storage and not be deemed sold
6 by price later contract until the date the price later
7 contract is signed by all parties.
8 (g) Scale tickets or other approved documents with
9 respect to grain purchased by a grain dealer by price later
10 contract shall contain the following: "Sold Grain; Price
11 Later".
12 (h) Price later contracts shall be issued consecutively
13 and recorded by the grain dealer as established by rule.
14 (i) A grain dealer shall not issue a collateral
15 warehouse receipt on grain purchased by a price later
16 contract to the extent the purchase price has not been paid
17 by the grain dealer.
18 (j) Failure to comply with the requirements of this
19 Section may result in suspension of the privilege to purchase
20 grain by price later contract for up to one year.
21 (Source: P.A. 89-287, eff. 1-1-96.)
22 (240 ILCS 40/10-25)
23 Sec. 10-25. Warehouse receipts and storage of grain.
24 (a) When grain is delivered to a warehouseman at a
25 location where grain is also purchased, the licensee shall
26 give written evidence of delivery of grain and that written
27 evidence shall be marked to indicate whether the grain is
28 delivered for storage or for sale. In the absence of
29 adequate evidence of sale, the grain shall be construed to be
30 in storage.
31 (b) Upon demand by a depositor, a warehouseman shall
32 issue warehouse receipts for grain delivered into storage.
33 (c) There shall be no charge for the first warehouse
-30- LRB9009226LDdvam01
1 receipt issued to a depositor for a given lot of grain.
2 Charges for any additional warehouse receipts for grain
3 previously covered by a warehouse receipt must be
4 commensurate with the cost of issuance of the additional
5 warehouse receipt.
6 (d) A warehouseman shall issue warehouse receipts only
7 in accordance with the following requirements:
8 (1) Warehouse receipts shall be consecutively
9 numbered in a form prescribed by the Department and when
10 issued from the same warehouse shall be consecutively by
11 the warehouseman numbered.
12 (2) In the case of a lost or destroyed warehouse
13 receipt, the new warehouse receipt shall bear the same
14 date as the original and shall be plainly marked on its
15 face "duplicate in lieu of lost or destroyed warehouse
16 receipt number .......", and the warehouseman shall duly
17 fill in the blank with the appropriate warehouse receipt
18 number.
19 (3) Warehouse receipts shall be printed by a person
20 authorized printer approved by the Department. The person
21 shall register with the Department and pay an annual
22 registration fee of $100 to print warehouse receipts.
23 (4) Negotiable warehouse receipts shall be issued
24 only for grain actually in storage with the warehouseman
25 from which it is issued or redeposited by that
26 warehouseman as provided in subsection (e) of Section
27 10-20.
28 (5) A warehouseman shall not insert in any
29 negotiable warehouse receipt issued by it any language
30 that in any way limits or modifies its liability or
31 responsibility.
32 (e) Upon delivery of grain covered by a negotiable
33 warehouse receipt, the holder of the negotiable warehouse
34 receipt must surrender the warehouse receipt for
-31- LRB9009226LDdvam01
1 cancellation, and a warehouseman must cancel and issue a new
2 negotiable warehouse receipt for the balance of grain in
3 storage.
4 (f) When all grain, the storage of which is evidenced by
5 a warehouse receipt, is delivered from storage, the warehouse
6 receipt shall be plainly marked across its face with the word
7 "cancelled" and shall have written on it the date of
8 cancellation, the name of the person canceling the warehouse
9 receipt, and such other information as required by rule, and
10 is thereafter void.
11 (g) When a warehouseman delivers grain out of storage
12 but fails to collect and cancel the negotiable warehouse
13 receipt, the warehouseman shall be liable to any purchaser of
14 the negotiable warehouse receipt for value in good faith for
15 failure to deliver the grain to the purchaser, whether the
16 purchaser acquired the negotiable warehouse receipt before or
17 after the delivery of the grain by the warehouseman. If,
18 however, grain has been lawfully sold by a warehouseman to
19 satisfy its warehouseman's lien, the warehouseman shall not
20 be liable for failure to deliver the grain pursuant to the
21 demands of a holder of a negotiable warehouse receipt to the
22 extent of the amount of grain sold.
23 (h) Except as otherwise provided by this Code or other
24 applicable law, a warehouseman shall deliver the grain upon
25 demand made by the holder of a warehouse receipt pertaining
26 to that grain if the demand is accompanied by:
27 (1) satisfaction of the warehouseman's lien;
28 (2) in the case of a negotiable warehouse receipt,
29 a properly endorsed negotiable warehouse receipt; or
30 (3) in the case of a non-negotiable warehouse
31 receipt, written evidence that the grain was delivered to
32 the warehouseman and that the depositor is entitled to
33 it.
34 (i) If no warehouse receipt is issued to a depositor, a
-32- LRB9009226LDdvam01
1 warehouseman shall deliver grain upon the demand of a
2 depositor if the demand is accompanied by satisfaction of the
3 warehouseman's lien and written evidence that the grain was
4 delivered to the warehouseman and the depositor is entitled
5 to it.
6 (j) If a warehouseman refuses or fails to deliver grain
7 in compliance with a demand by a holder of a warehouse
8 receipt or a depositor, the burden is on the warehouseman to
9 establish the existence of a lawful excuse for the refusal.
10 (k) If a warehouse receipt has been lost or destroyed, a
11 warehouseman may issue a substitute warehouse receipt, as
12 provided for in this Section, upon delivery to the
13 warehouseman of an affidavit under oath stating that the
14 applicant for the substitute warehouse receipt is entitled to
15 the original warehouse receipt and setting forth the
16 circumstances that resulted in the loss or destruction of the
17 original warehouse receipt. The warehouseman may request
18 from the depositor a bond in double the value of the grain
19 represented by the original warehouse receipt at the time of
20 issuance of the substitute warehouse receipt so as to protect
21 the warehouseman from any liability or expense that it, or
22 any person injured by the delivery, may incur by reason of
23 the original warehouse receipt remaining outstanding.
24 (l) A warehouse receipt that is to be used for
25 collateral purposes by a warehouseman must be first issued by
26 the warehouseman to itself.
27 (m) The Department shall approve temporary storage space
28 in an amount to be determined by the Department if all the
29 following conditions are met:
30 (1) The warehouseman pays all fees and assessments
31 associated with the temporary storage space.
32 (2) The warehouseman demonstrates that there is a
33 need for additional storage on a temporary basis due to a
34 bumper crop or otherwise.
-33- LRB9009226LDdvam01
1 (3) The structure for the storage of grain meets
2 all of the following requirements:
3 (A) The grain storage area has a permanent
4 base made of concrete, asphalt, or a material having
5 similar structural qualities.
6 (B) Hot spot detectors, aeration fans, and
7 ducts are provided to assure that the quality of
8 grain in storage is maintained.
9 (C) The grain storage structure has rigid
10 sidewalls made of concrete, wood, metal, or a
11 material having similar structural qualities.
12 (D) The grain storage structure is equipped
13 with a waterproof covering of sufficient strength to
14 support a person's weight and with inlets to allow
15 airflow.
16 (E) Access to the grain is provided for the
17 purpose of sampling and making examinations.
18 (4) Temporary storage space shall be considered an
19 increase in the licensed storage capacity of the licensee
20 and shall be subject to Section 5-30.
21 (5) The authorization to use temporary storage
22 space for the storage of grain shall expire at the end of
23 6 months after the date of approval by the Department or
24 May 15th, whichever comes first.
25 (n) The Department may approve emergency storage space
26 at the request of the licensee according to rule.
27 (Source: P.A. 89-287, eff. 1-1-96.)
28 (240 ILCS 40/25-10)
29 Sec. 25-10. Claimant compensation. Within 30 days after
30 the day on which a claim becomes a valid claim, a claimant
31 shall be compensated to the extent of its valid claim in
32 accordance with the following provisions:
33 (a) Valid claims filed by warehouse claimants shall be
-34- LRB9009226LDdvam01
1 paid 100% of the amount determined by the Department out of
2 the net proceeds of the liquidation of grain assets as set
3 forth in this subsection (a). To the extent the net proceeds
4 are insufficient, warehouse claimants shall be paid their pro
5 rata share of the net proceeds of the liquidation of grain
6 assets and, subject to subsection (j) of this Section, an
7 additional amount per claimant not to exceed the balance of
8 their respective claims out of the Fund.
9 (b) Subject to subsection (j) of this Section, if the
10 net proceeds as set forth in subsection (a) of this Section
11 are insufficient to pay in full all valid claims filed by
12 warehouse claimants as payment becomes due, the balance shall
13 be paid out of the Fund in accordance with subsection (b) of
14 Section 25-20.
15 (c) Valid claims filed by producers who:
16 (1) have delivered grain within 21 days before the
17 date of failure for which pricing of that grain has been
18 completed before date of failure; or
19 (2) gave written notice to the Department within 21
20 days of the date of delivery of grain, if the pricing of
21 that grain has been completed, that payment in full for
22 that grain has not been made;
23 shall be paid, subject to subsection (j) of this Section,
24 100% of the amount of the valid claim determined by the
25 Department. Valid claims that are included in subsection (c)
26 of this Section shall receive no payment under subsection (d)
27 of this Section, and any claimant having a valid claim under
28 this subsection (c) determined by the Department to be in
29 excess of the limits, if any, imposed under subsection (j) of
30 this Section shall be paid only sums in excess of those
31 limits to the extent additional money is available under
32 subsection (d)(2) of Section 25-20.
33 (d) Valid claims that are not included in subsection (c)
34 of this Section that are filed by producers who completed
-35- LRB9009226LDdvam01
1 delivery and pricing of grain in reference to the valid
2 claim, whichever is later, within 160 days before the date of
3 failure shall be paid 85% of the amount of the valid claim
4 determined by the Department or $100,000, whichever is less,
5 per claimant. For claims filed by producers for grain sold on
6 a price later contract, however, the later of the date of
7 execution of the contract or the date of delivery of grain in
8 reference to the grain covered by the price later contract
9 must not be more than 270 days before the date of failure in
10 order for the claimant to receive any compensation.
11 (e) Valid claims filed by producers for grain sold on a
12 price later contract, for which the final price has not been
13 established, shall be paid 85% of the amount of the valid
14 claims determined by the Department or $100,000, whichever is
15 less, per claimant, if the later of the date of execution of
16 the contract or the date of delivery of grain in reference to
17 the grain covered by the price later contract occurred no
18 more than 270 days before the date of failure. The execution
19 of subsequent price later contracts by the producer and the
20 licensee for grain previously covered by a price later
21 contract shall not extend the coverage of a claim beyond the
22 original 270 days.
23 (f) The maximum payment to producers under subsections
24 (d) and (e) of this Section, combined, shall be $100,000 per
25 claimant.
26 (g) The following claims shall be barred and disallowed
27 in their entirety and shall not be entitled to any recovery
28 from the Fund or the Trust Account:
29 (1) Claims filed by producers who completed pricing
30 of the grain in reference to their claim in excess of 160
31 days before the date of failure.
32 (2) Claims filed by producers for grain sold on a
33 price later contract if the later of the date of
34 execution of the contract or the date of delivery of
-36- LRB9009226LDdvam01
1 grain in reference to the grain covered by the price
2 later contract occurred more than 270 days before the
3 date of failure.
4 (h) To the extent moneys are available, additional pro
5 rata payments may be made to claimants under subsection (d)
6 of Section 25-20.
7 (i) For purposes of this Section, a claim filed in
8 connection with warehouse receipts that are possessed under a
9 collateral pledge of a producer, or that are subject to a
10 perfected security interest, or that were acquired by a
11 secured party or of lien holder under an obligation of a
12 producer, shall be deemed to be a claim filed by the producer
13 and not a claim filed by the secured party or the lien
14 holder, regardless of whether the producer is in default
15 under that collateral pledge, security agreement, or other
16 obligation.
17 (j) With respect to any failure occurring on or after
18 July 1, 1998, the maximum payment out of the Fund for
19 claimants under subsection (a), (b), or (c) of this Section
20 shall be $1,000,000 per claimant and the maximum payment out
21 of the Fund for claimants under subsections (c), (d), and (e)
22 of this Section, combined, shall be $1,000,000 per claimant.
23 (Source: P.A. 89-287, eff. 1-1-96.)
24 (240 ILCS 40/25-20)
25 Sec. 25-20. Priorities and repayments.
26 (a) All valid claims shall be paid from the Trust
27 Account, as provided in Section 25-10, first from the
28 proceeds realized from liquidation of and collection upon the
29 grain assets relating to the failed licensee, as to warehouse
30 claimants, and the equity assets as to a secured party or
31 lien holder who has consented to the Department liquidating
32 and collecting upon the equity asset as set forth in
33 subsection (f) of Section 20-15, and the remaining equity
-37- LRB9009226LDdvam01
1 assets, collateral, and guarantees relating to the failed
2 licensee, as to grain dealer claimants.
3 (b) If the proceeds realized from liquidation of and
4 collection upon the grain assets, equity assets, collateral,
5 and guarantees relating to the failed licensee are
6 insufficient to pay all valid claims as provided in Section
7 25-10 and subsection (a) of this Section as payment on those
8 claims becomes due, the Director shall request from the Board
9 sufficient funds to be transferred from the Fund to the Trust
10 Account to pay the balance owed to claimants as determined
11 under Section 25-10. If a request is made by the Director
12 for a transfer of funds to the Trust Account from the Fund,
13 the Board shall act on that request within 25 days after the
14 date of that request. Once moneys are transferred from the
15 Fund to the Trust Account, the Director shall pay the balance
16 owed to claimants in accordance with Section 25-10.
17 (c) Net proceeds from liquidation of grain assets as set
18 forth in subsection (a) of Section 25-10 received by the
19 Department, to the extent not already paid to warehouse
20 claimants, shall be prorated among the fund and all warehouse
21 claimants who have not had their valid claims paid in full.
22 (1) The pro rata distribution to the Fund shall be
23 based upon the total amount of valid claims of all
24 warehouse claimants who have had their valid claims paid
25 in full. The pro rata distribution to each warehouse
26 claimant who has not had his or her valid claims paid in
27 full shall be based upon the total amount of that
28 claimant's original valid claims.
29 (2) If the net proceeds from the liquidation of
30 grain assets as set forth in subsection (a) of Section
31 25-10 exceed all amounts needed to satisfy all valid
32 claims filed by warehouse claimants, the balance
33 remaining shall be paid into the Trust Account or as set
34 forth in subsection (h) (g) of Section 25-20.
-38- LRB9009226LDdvam01
1 (d) Subject to subsections (c) and (h) (g) of Section
2 25-20:
3 (1) The proceeds realized from liquidation of and
4 collection upon the grain assets, equity assets,
5 collateral, and guarantees relating to the failed
6 licensee or any other assets relating to the failed
7 licensee that are received by the Department, to the
8 extent not already paid to claimants, shall be first used
9 to repay the Fund for moneys transferred to the Trust
10 Account.
11 (2) After the Fund is repaid in full for the moneys
12 transferred from it to pay the valid claims in reference
13 to a failed licensee, any remaining proceeds realized
14 from liquidation of and collection upon the grain assets,
15 equity assets, collateral, and guarantees relating to the
16 failed licensee thereafter received by the Department
17 shall be prorated to the claimants holding valid claims
18 who have not received 100% of the amount of their valid
19 claims based upon the unpaid amount of their valid
20 claims.
21 (e) After all claimants have received 100% of the amount
22 of their valid claims, to the extent moneys are available
23 interest at the rate of 6% per annum shall be assessed and
24 paid to the Fund on all moneys transferred from the Fund to
25 the Trust Account.
26 (f) After the Fund is paid the interest as provided in
27 subsection (e) of this Section, then those claims barred and
28 disallowed under subsection (g) of Section 25-10 shall be
29 paid on a pro rata basis only to the extent that moneys are
30 available.
31 (g) Once all claims become valid claims and have been
32 paid in full and all interest as provided in subsection (e)
33 of this Section is paid in full, and all claims are paid in
34 full under subsection (f), any remaining grain assets, equity
-39- LRB9009226LDdvam01
1 assets, collateral, and guarantees, and the proceeds realized
2 from liquidation of and collection upon the grain assets,
3 equity assets, collateral, and guarantees relating to the
4 failed licensee, shall be returned to the failed licensee or
5 its assignee, or as otherwise directed by a court of
6 competent jurisdiction.
7 (h) If amounts in the Fund are insufficient to pay all
8 valid claims, the General Assembly shall appropriate to the
9 Corporation amounts sufficient to satisfy the valid claims.
10 If for any reason the General Assembly fails to make an
11 appropriation to satisfy outstanding valid claims, this Code
12 constitutes an irrevocable and continuing appropriation of
13 all amounts necessary for that purpose and the irrevocable
14 and continuing authority for and direction to the State
15 Comptroller and to the State Treasurer to make the necessary
16 transfers and disbursements from the revenues and funds of
17 the State for that purpose. Subject to payments to warehouse
18 claimants as set forth in subsection (c) of Section 25-20,
19 the State shall be reimbursed as soon as funds become
20 available for any amounts paid under subsection (g) of this
21 Section upon replenishment of the Fund from assessments under
22 subsection (d) of Section 5-30 and collection upon grain
23 assets, equity assets, collateral, and guarantees relating to
24 the failed licensee.
25 (i) The Department shall have those rights of equitable
26 subrogation which may result from a claimant receiving from
27 the Fund payment in full of the obligations of the failed
28 licensee to the claimant.
29 (Source: P.A. 89-287, eff. 1-1-96.)
30 (240 ILCS 40/30-5)
31 Sec. 30-5. Illinois Grain Insurance Corporation.
32 (a) The Corporation is a political subdivision, body
33 politic, and public corporation. The governing powers of the
-40- LRB9009226LDdvam01
1 Corporation are vested in the Board of Directors composed of
2 the Director, who shall personally serve as president; the
3 Attorney General or his or her designee, who shall serve as
4 secretary; the State Treasurer or his or her designee, who
5 shall serve as treasurer; the Director of the Department of
6 Insurance or his or her designee; and the chief fiscal
7 officer of the Department. Three members of the Board
8 constitute a quorum at any meeting of the Board, and the
9 affirmative vote of 3 members is necessary for any action
10 taken by the Board at a meeting, except that a lesser number
11 may adjourn a meeting from time to time. A vacancy in the
12 membership of the Board does not impair the right of a quorum
13 to exercise all the rights and perform all the duties of the
14 Board and Corporation.
15 (b) The Corporation has the following powers, together
16 with all powers incidental or necessary to the discharge of
17 those powers in corporate form:
18 (1) To have perpetual succession by its corporate
19 name as a corporate body.
20 (2) To adopt, alter, and repeal bylaws, not
21 inconsistent with the provisions of this Code, for the
22 regulation and conduct of its affairs and business.
23 (3) To adopt and make use of a corporate seal and
24 to alter the seal at pleasure.
25 (4) To avail itself of the use of information,
26 services, facilities, and employees of the State of
27 Illinois in carrying out the provisions of this Code.
28 (5) To receive funds, printer registration fees,
29 and penalties assessed by the Department under this Code
30 Section 5-30.
31 (6) To administer the Fund by investing funds of
32 the Corporation that the Board may determine are not
33 presently needed for its corporate purposes.
34 (7) To receive funds from the Trust Account for
-41- LRB9009226LDdvam01
1 deposit into the Fund.
2 (8) Upon the request of the Director, to make
3 payment from the Fund to the Trust Account when payment
4 is necessary to compensate claimants in accordance with
5 the provisions of Section 25-20 or for payment of refunds
6 to licensees in accordance with the provisions of this
7 Code.
8 (9) To have those powers that are necessary or
9 appropriate for the exercise of the powers specifically
10 conferred upon the Corporation and all incidental powers
11 that are customary in corporations.
12 (Source: P.A. 89-287, eff. 1-1-96.)".