Illinois General Assembly - Full Text of Public Act 094-0211
Illinois General Assembly

Previous General Assemblies

Public Act 094-0211




Public Act 094-0211
HB0942 Enrolled LRB094 06131 JAM 36196 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 Section
10-25 as follows:
    (240 ILCS 40/10-25)
    Sec. 10-25. Warehouse receipts and storage of grain.
    (a) When grain is delivered to a warehouseman at a location
where grain is also purchased, the licensee shall give written
evidence of delivery of grain and that written evidence shall
be marked to indicate whether the grain is delivered for
storage or for sale. In the absence of adequate evidence of
sale, the grain shall be construed to be in storage.
    (b) Upon demand by a depositor, a warehouseman shall issue
warehouse receipts for grain delivered into storage.
    (c) There shall be no charge for the first warehouse
receipt issued to a depositor for a given lot of grain. Charges
for any additional warehouse receipts for grain previously
covered by a warehouse receipt must be commensurate with the
cost of issuance of the additional warehouse receipt.
    (d) A warehouseman shall issue warehouse receipts only in
accordance with the following requirements:
        (1) Warehouse receipts shall be consecutively numbered
    in a form prescribed by the Department and issued
    consecutively by the warehouseman.
        (2) In the case of a lost or destroyed warehouse
    receipt, the new warehouse receipt shall bear the same date
    as the original and shall be plainly marked on its face
    "duplicate in lieu of lost or destroyed warehouse receipt
    number .......", and the warehouseman shall duly fill in
    the blank with the appropriate warehouse receipt number.
        (3) Warehouse receipts shall be printed by a person
    authorized by the Department. The person shall register
    with the Department and pay an annual registration fee of
    $100 to print warehouse receipts.
        (4) Negotiable warehouse receipts shall be issued only
    for grain actually in storage with the warehouseman from
    which it is issued or redeposited by that warehouseman as
    provided in subsection (e) of Section 10-20.
        (5) A warehouseman shall not insert in any negotiable
    warehouse receipt issued by it any language that in any way
    limits or modifies its liability or responsibility.
    (e) Upon delivery of grain covered by a negotiable
warehouse receipt, the holder of the negotiable warehouse
receipt must surrender the warehouse receipt for cancellation,
and a warehouseman must cancel and issue a new negotiable
warehouse receipt for the balance of grain in storage.
    (f) When all grain, the storage of which is evidenced by a
warehouse receipt, is delivered from storage, the warehouse
receipt shall be plainly marked across its face with the word
"cancelled" and shall have written on it the date of
cancellation, the name of the person canceling the warehouse
receipt, and such other information as required by rule, and is
thereafter void.
    (g) When a warehouseman delivers grain out of storage but
fails to collect and cancel the negotiable warehouse receipt,
the warehouseman shall be liable to any purchaser of the
negotiable warehouse receipt for value in good faith for
failure to deliver the grain to the purchaser, whether the
purchaser acquired the negotiable warehouse receipt before or
after the delivery of the grain by the warehouseman. If,
however, grain has been lawfully sold by a warehouseman to
satisfy its warehouseman's lien, the warehouseman shall not be
liable for failure to deliver the grain pursuant to the demands
of a holder of a negotiable warehouse receipt to the extent of
the amount of grain sold.
    (h) Except as otherwise provided by this Code or other
applicable law, a warehouseman shall deliver the grain upon
demand made by the holder of a warehouse receipt pertaining to
that grain if the demand is accompanied by:
        (1) satisfaction of the warehouseman's lien;
        (2) in the case of a negotiable warehouse receipt, a
    properly endorsed negotiable warehouse receipt; or
        (3) in the case of a non-negotiable warehouse receipt,
    written evidence that the grain was delivered to the
    warehouseman and that the depositor is entitled to it.
    (i) If no warehouse receipt is issued to a depositor, a
warehouseman shall deliver grain upon the demand of a depositor
if the demand is accompanied by satisfaction of the
warehouseman's lien and written evidence that the grain was
delivered to the warehouseman and the depositor is entitled to
    (j) If a warehouseman refuses or fails to deliver grain in
compliance with a demand by a holder of a warehouse receipt or
a depositor, the burden is on the warehouseman to establish the
existence of a lawful excuse for the refusal.
    (k) If a warehouse receipt has been lost or destroyed, a
warehouseman may issue a substitute warehouse receipt, as
provided for in this Section, upon delivery to the warehouseman
of an affidavit under oath stating that the applicant for the
substitute warehouse receipt is entitled to the original
warehouse receipt and setting forth the circumstances that
resulted in the loss or destruction of the original warehouse
receipt. The warehouseman may request from the depositor a bond
in double the value of the grain represented by the original
warehouse receipt at the time of issuance of the substitute
warehouse receipt so as to protect the warehouseman from any
liability or expense that it, or any person injured by the
delivery, may incur by reason of the original warehouse receipt
remaining outstanding.
    (l) A warehouse receipt that is to be used for collateral
purposes by a warehouseman must be first issued by the
warehouseman to itself.
    (m) The Department shall approve temporary storage space in
an amount to be determined by the Department if all the
following conditions are met:
        (1) The warehouseman pays all fees and assessments
    associated with the temporary storage space.
        (2) The warehouseman demonstrates that there is a need
    for additional storage on a temporary basis due to a bumper
    crop or otherwise.
        (3) The structure for the storage of grain meets all of
    the following requirements:
            (A) The grain storage area has a permanent base
        made of concrete, asphalt, or a material having similar
        structural qualities.
            (B) Hot spot detectors, aeration fans, and ducts
        are provided to assure that the quality of grain in
        storage is maintained.
            (C) The grain storage structure has rigid
        sidewalls made of concrete, wood, metal, or a material
        having similar structural qualities.
            (D) The grain storage structure is equipped with a
        waterproof covering of sufficient strength to support
        a person's weight and with inlets to allow airflow.
            (E) Access to the grain is provided for the purpose
        of sampling and making examinations.
        (4) Temporary storage space shall be considered an
    increase in the licensed storage capacity of the licensee
    and shall be subject to Section 5-30.
        (5) The authorization to use temporary storage space
    for the storage of grain shall expire at the end of 6
    months after the date of approval by the Department or May
    15th, whichever comes first.
    (n) The Department may approve emergency storage space at
the request of the licensee according to rule.
    (o) The issuance and transfer of the warehouse receipts in
electronic form pursuant to rules promulgated by the Department
are specifically authorized by this Code, and any such
warehouse receipts shall have the same validity and
enforceability, for all purposes, as those in non-electrical
form. For purposes of this Code, the words "written" and
"printed", and derivatives thereof, when used in relation to
warehouse receipts, shall include warehouse receipts created
or displayed electronically.
(Source: P.A. 91-213, eff. 7-20-99.)
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 7/14/2005