Illinois General Assembly - Full Text of Public Act 094-0054
Illinois General Assembly

Previous General Assemblies

Public Act 094-0054


 

Public Act 0054 94TH GENERAL ASSEMBLY



 


 
Public Act 094-0054
 
SB0214 Enrolled LRB094 06129 JAM 36194 b

    AN ACT concerning warehouses.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Grain Code is amended by changing Sections
20-20, 25-20, 30-5, 30-15, and 35-5 as follows:
 
    (240 ILCS 40/20-20)
    Sec. 20-20. Liquidation expenses; Asset Preservation
Account.
    (a) The Trustee shall pay from the Trust Account all
reasonable expenses incurred by the trustee on or after the
date of failure in reference to seizing, preserving, and
liquidating the grain assets, equity assets, collateral, and
guarantees of or relating to a failed licensee, including, but
not limited to, the hiring of temporary field personnel,
equipment rental, auction expenses, mandatory commodity
check-offs, and clerical expenses.
    (b) Except as to claimants holding valid claims, any
outstanding indebtedness of a failed licensee that has accrued
before the date of failure shall not be paid by the Trustee and
shall represent a separate cause of action of the creditor
against the failed licensee.
    (c) The Trustee shall report all expenditures paid from the
Trust Account to the Corporation at least annually.
    (d) To the extent assets are available under subsection (g)
of Section 25-20 and upon presentation of documentation
satisfactory to the Trustee, the Trustee shall transfer from
the Trust Account to the Regulatory Fund an amount not to
exceed the expenses incurred by the Department in performance
of its duties under Article 20 of this Code, in reference to
the failed licensee.
    (e) The Department shall establish and maintain an Asset
Preservation Account as provided in Section 205-410 of the
Department of Agriculture Law of the Civil Administrative Code
of Illinois that shall contain a maximum of $50,000. The funds
in the Asset Preservation Account are to be used solely by the
Trustee for the reasonable expenses incurred by the Department
on or after the date of failure for preserving and liquidating
grain assets, equity assets, collateral, and guarantees of or
relating to a failed licensee, provided that the Department has
made a determination that the benefit of preserving and
liquidating the grain assets, equity assets, collateral, and
guarantees exceeds the anticipated costs of the preservation
and liquidation, and only to the extent that all liquid and
available moneys in the Grain Indemnity Trust Account relating
to the particular failure have been exhausted. The Asset
Preservation Account shall be funded by the income earned on
the assets in the Fund. The income must be transferred to the
Asset Preservation Account on a monthly basis, within 10
business days after the end of each calendar month, and to the
extent necessary to maintain the $50,000 balance. The Trustee,
or his or her designee, must file a report of all receipts by
and disbursements from the Asset Preservation Account with the
Board prior to each meeting of the Board.
(Source: P.A. 93-225, eff. 7-21-03.)
 
    (240 ILCS 40/25-20)
    Sec. 25-20. Priorities and repayments.
    (a) All valid claims shall be paid from the Trust Account,
as provided in Section 25-10, first from the proceeds realized
from liquidation of and collection upon the grain assets
relating to the failed licensee, as to warehouse claimants, and
the equity assets as to a secured party or lien holder who has
consented to the Department liquidating and collecting upon the
equity asset as set forth in subsection (f) of Section 20-15,
and the remaining equity assets, collateral, and guarantees
relating to the failed licensee, as to grain dealer claimants.
    (b) If the proceeds realized from liquidation of and
collection upon the grain assets, equity assets, collateral,
and guarantees relating to the failed licensee are insufficient
to pay all valid claims as provided in Section 25-10 and
subsection (a) of this Section as payment on those claims
becomes due, the Director shall request from the Board
sufficient funds to be transferred from the Fund to the Trust
Account to pay the balance owed to claimants as determined
under Section 25-10. If a request is made by the Director for a
transfer of funds to the Trust Account from the Fund, the Board
shall act on that request within 25 days after the date of that
request. Once moneys are transferred from the Fund to the Trust
Account, the Director shall pay the balance owed to claimants
in accordance with Section 25-10.
    (c) Net proceeds from liquidation of grain assets as set
forth in subsection (a) of Section 25-10 received by the
Department, to the extent not already paid to warehouse
claimants, shall be prorated among the fund and all warehouse
claimants who have not had their valid claims paid in full.
        (1) The pro rata distribution to the Fund shall be
    based upon the total amount of valid claims of all
    warehouse claimants who have had their valid claims paid in
    full. The pro rata distribution to each warehouse claimant
    who has not had his or her valid claims paid in full shall
    be based upon the total amount of that claimant's original
    valid claims.
        (2) If the net proceeds from the liquidation of grain
    assets as set forth in subsection (a) of Section 25-10
    exceed all amounts needed to satisfy all valid claims filed
    by warehouse claimants, the balance remaining shall be paid
    into the Trust Account or as set forth in subsection (h).
    (d) Subject to subsections (c) and (h):
        (1) The proceeds realized from liquidation of and
    collection upon the grain assets, equity assets,
    collateral, and guarantees relating to the failed licensee
    or any other assets relating to the failed licensee that
    are received by the Department, to the extent not already
    paid to claimants, shall be first used to repay the Fund
    for moneys transferred to the Trust Account.
        (2) After the Fund is repaid in full for the moneys
    transferred from it to pay the valid claims in reference to
    a failed licensee, any remaining proceeds realized from
    liquidation of and collection upon the grain assets, equity
    assets, collateral, and guarantees relating to the failed
    licensee thereafter received by the Department shall be
    prorated to the claimants holding valid claims who have not
    received 100% of the amount of their valid claims based
    upon the unpaid amount of their valid claims.
    (e) After all claimants have received 100% of the amount of
their valid claims, to the extent moneys are available interest
at the rate of 6% per annum shall be assessed and paid to the
Fund on all moneys transferred from the Fund to the Trust
Account.
    (f) After the Fund is paid the interest as provided in
subsection (e) of this Section, then those claims barred and
disallowed under items (1) and (2) of subsection (g) of Section
25-10 shall be paid on a pro rata basis only to the extent that
moneys are available.
    (g) Once all claims become valid claims and have been paid
in full and all interest as provided in subsection (e) of this
Section is paid in full, and all claims are paid in full under
subsection (f), and all payments are made as required under
Section 20-20(d), any remaining grain assets, equity assets,
collateral, and guarantees, and the proceeds realized from
liquidation of and collection upon the grain assets, equity
assets, collateral, and guarantees relating to the failed
licensee, shall be returned to the failed licensee or its
assignee, or as otherwise directed by a court of competent
jurisdiction.
    (h) If amounts in the Fund are insufficient to pay all
valid claims, the Corporation shall transfer from the Reserve
Fund to the Fund amounts sufficient to satisfy the valid
claims, and to the extent the amounts thus transferred are
insufficient to pay all valid claims, the General Assembly
shall appropriate to the Corporation amounts sufficient to
satisfy the valid claims. If for any reason the General
Assembly fails to make an appropriation to satisfy outstanding
valid claims, this Code constitutes an irrevocable and
continuing appropriation of all amounts necessary for that
purpose and the irrevocable and continuing authority for and
direction to the State Comptroller and to the State Treasurer
to make the necessary transfers and disbursements from the
revenues and funds of the State for that purpose. Subject to
payments to warehouse claimants as set forth in subsection (c)
of Section 25-20, the State shall be first reimbursed, and the
Reserve Fund shall thereafter be reimbursed to the extent
needed to restore the Reserve Fund to a level of $2,000,000 of
principal (not including income on the assets in the Reserve
Fund) as soon as funds become available for any amounts paid
under subsection (g) of this Section upon replenishment of the
Fund from assessments under subsections (d), (f), and (g) of
Section 5-30 and collection upon grain assets, equity assets,
collateral, and guarantees relating to the failed licensee.
    (i) The Department shall have those rights of equitable
subrogation which may result from a claimant receiving from the
Fund payment in full of the obligations of the failed licensee
to the claimant.
(Source: P.A. 93-225, eff. 7-21-03.)
 
    (240 ILCS 40/30-5)
    Sec. 30-5. Illinois Grain Insurance Corporation.
    (a) The Corporation is a political subdivision, body
politic, and public corporation. The governing powers of the
Corporation are vested in the Board of Directors composed of
the Director, who shall personally serve as president; the
Attorney General or his or her designee, who shall serve as
secretary; the State Treasurer or his or her designee, who
shall serve as treasurer; the Director of the Department of
Insurance or his or her designee; and the chief fiscal officer
of the Department. Three members of the Board constitute a
quorum at any meeting of the Board, and the affirmative vote of
3 members is necessary for any action taken by the Board at a
meeting, except that a lesser number may adjourn a meeting from
time to time. A vacancy in the membership of the Board does not
impair the right of a quorum to exercise all the rights and
perform all the duties of the Board and Corporation.
    (b) The Corporation has the following powers, together with
all powers incidental or necessary to the discharge of those
powers in corporate form:
        (1) To have perpetual succession by its corporate name
    as a corporate body.
        (2) To adopt, alter, and repeal bylaws, not
    inconsistent with the provisions of this Code, for the
    regulation and conduct of its affairs and business.
        (3) To adopt and make use of a corporate seal and to
    alter the seal at pleasure.
        (4) To avail itself of the use of information,
    services, facilities, and employees of the State of
    Illinois in carrying out the provisions of this Code.
        (5) To receive funds, printer registration fees, and
    penalties assessed by the Department under this Code.
        (6) To administer the Fund by investing funds of the
    Corporation that the Board may determine are not presently
    needed for its corporate purposes.
        (7) To receive funds from the Trust Account for deposit
    into the Fund.
        (8) Upon the request of the Director, to make payment
    from the Fund and the Reserve Fund to the Trust Account
    when payment is necessary to compensate claimants in
    accordance with the provisions of Section 25-20 or for
    payment of refunds to licensees in accordance with the
    provisions of this Code.
        (9) To authorize, receive, and disburse funds by
    electronic means.
        (10) To make any inquiry and investigation deemed
    appropriate with regard to the failure of any licensee,
    including but not limited to analyzing the causes of and
    reasons for the failure; determining the adequacy and
    accuracy of Department examinations and other regulatory
    measures with regard to the failed licensee; and analyzing
    whether the handling of the liquidation and payment process
    by the Department was done in a manner that served the
    interests of those persons whose interests this Code was
    designed to protect.
        (11) To have those powers that are necessary or
    appropriate for the exercise of the powers specifically
    conferred upon the Corporation and all incidental powers
    that are customary in corporations.
        (12) To make payments from the Fund to the Asset
    Preservation Account in accordance with Section 20-20(e)
    of this Code.
    (c) A committee of advisors shall be created to provide
technical assistance and advice and make recommendations to the
Board. The advisory committee shall assist the board in
understanding pertinent developments in grain production and
marketing and the grain industry. The advisory committee shall
be composed of one grain producer designated by the Illinois
Farm Bureau; one grain producer designated by the Illinois
Farmers Union; one grain producer designated by the Illinois
Corn Growers Association; one grain producer designated by the
Illinois Soybean Association; 2 representatives of the grain
industry, designated by the Grain and Feed Association of
Illinois; and 2 representatives of the lending industry, one
each designated by the Illinois Bankers Association and the
Community Bankers of Illinois. Members of the advisory
committee shall serve terms of 2 years from the date of their
designation. Members of the advisory committee shall have the
right to attend all meetings of the Board and participate in
Board discussions, but shall not have a vote.
(Source: P.A. 93-225, eff. 7-21-03.)
 
    (240 ILCS 40/30-15)
    Sec. 30-15. Investments of the Fund.
    (a) All assessments by the Department under Section 5-30
shall be held by the Corporation in the Fund.
    (b) Subject to applicable law, the assets of the Fund may
be invested and reinvested at the discretion of the
Corporation, and the income from these investments shall be
deposited to the credit of the Fund and shall be available for
the same purposes as all other assets of the Fund.
    (c) Except as provided in Section 20-20(e), the The assets
of the Fund shall not be available for any purpose other than
the payment of valid claims under this Code and the payment of
refunds of amounts that the Board determines have been
inappropriately paid into the Fund, and may not be transferred
to any other fund, other than the Trust Account when necessary
to pay valid claims under this Code or to pay refunds
authorized by the Board.
(Source: P.A. 89-287, eff. 1-1-96.)
 
    (240 ILCS 40/35-5)
    Sec. 35-5. Regulatory Fund.
    (a) The Regulatory Fund is created as a trust fund in the
State Treasury. The Regulatory Fund shall receive license,
certificate, and extension fees under Sections 5-10, 5-15, and
5-20 and funds under subsection (g) of Section 25-20 and shall
pay expenses as set forth in this Article 35.
    (b) Any funds received by the Director under Sections 5-10,
5-15, and 5-20 and funds disbursed for deposit to the
Regulatory Fund under subsection (g) of Section 25-20 shall be
deposited with the Treasurer as ex officio custodian and held
separate and apart from any public money of this State, with
interest accruing on moneys in the Regulatory Fund deposited
into the Regulatory Fund. Disbursement from the Fund for
expenses as set forth in this Article 35 shall be by voucher
ordered by the Director, accompanied by documentation
satisfactory to the Treasurer and the Comptroller supporting
the payment warrant drawn by the Comptroller and countersigned
by the Treasurer. Moneys in the Regulatory Fund shall not be
subject to appropriation by the General Assembly but shall be
subject to audit by the Auditor General. Interest earned on
moneys deposited into the Regulatory Fund shall be deposited
into the Regulatory Fund.
    (c) Fees deposited into the Regulatory Fund under Sections
5-10, 5-15, and 5-20 shall be expended only for the following
program expenses of the Department;
        (1) Implementation and monitoring of programs of the
    Department solely under this Code, including an electronic
    warehouse receipt program.
        (2) Employment or engagement of certified public
    accountants to assist in oversight and regulation of
    licensees in the course of an intermediate or advanced
    examination under Section 1-15.
        (3) Training and education of examiners and other
    Department employees in reference to Department programs
    established to implement the Department's duties solely
    under the Code.
    (d) Any expenses incurred by the Department in performance
of its duties under Article 20 of the Code shall be reimbursed
to the Department out of the net assets of a liquidation to the
extent available under subsection (g) (q) of Section 25-20 and
shall be deposited into the Regulatory Fund and shall be
expended solely for program expenses under the Code.
(Source: P.A. 93-225, eff. 7-21-03.)

Effective Date: 1/1/2006