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Public Act 91-0213
SB1070 Enrolled LRB9102813LDmb
AN ACT to amend the Grain Code by changing Sections 1-10,
1-15, 5-30, 10-10, 10-15, 10-25, 25-10, 25-20, and 30-5.
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 1-10, 1-15, 5-30, 10-10, 10-15, 10-25, 25-10, 25-20,
and 30-5 as follows:
(240 ILCS 40/1-10)
Sec. 1-10. Definitions. As used in this Act:
"Board" means the governing body of the Illinois Grain
Insurance Corporation.
"Certificate" means a document, other than the license,
issued by the Department that certifies that a grain dealer's
license has been issued and is in effect.
"Claimant" means:
(a) a person, including, without limitation, a lender:
(1) who possesses warehouse receipts issued from an
Illinois location covering grain owned or stored by a
failed warehouseman; or
(2) who has other written evidence of a storage
obligation of a failed warehouseman issued from an
Illinois location in favor of the holder, including, but
not limited to, scale tickets, settlement sheets, and
ledger cards; or
(3) who has loaned money to a warehouseman and was
to receive a warehouse receipt issued from an Illinois
location as security for that loan, who surrendered
warehouse receipts as part of a grain sale at an Illinois
location, or who delivered grain out of storage with the
warehouseman as part of a grain sale at an Illinois
location; and
(i) the grain dealer or warehouseman failed
within 21 days after the loan of money, the
surrender of warehouse receipts, or the delivery of
grain, as the case may be, and no warehouse receipt
was issued or payment in full was not made on the
grain sale, as the case may be; or
(ii) written notice was given by the person to
the Department within 21 days after the loan of
money, the surrender of warehouse receipts, or the
delivery of grain, as the case may be, stating that
no warehouse receipt was issued or payment in full
made on the grain sale, as the case may be; or
(b) a producer not included in item (a)(3) in the
definition of "Claimant" who possesses evidence of the sale
at an Illinois location of grain delivered to a failed grain
dealer and who was not paid in full.
"Class I warehouseman" means a warehouseman who is
authorized to issue negotiable and non-negotiable warehouse
receipts.
"Class II warehouseman" means a warehouseman who is
authorized to issue only non-negotiable warehouse receipts.
"Code" means the Grain Code.
"Collateral" means:
(a) irrevocable letters of credit;
(b) certificates of deposit;
(c) cash or a cash equivalent; or
(d) any other property acceptable to the Department to
the extent there exists equity in that property. For the
purposes of this item (d), "equity" is the amount by which
the fair market value of the property exceeds the amount owed
to a creditor who has a valid, prior, perfected security
interest in or other lien on the property.
"Corporation" means the Illinois Grain Insurance
Corporation.
"Daily position record" means a grain inventory
accountability record maintained on a daily basis that
includes an accurate reflection of changes in grain
inventory, storage obligations, company-owned inventory by
commodity, and other information that is required by the
Department.
"Daily grain transaction report" means a record of the
daily transactions of a grain dealer showing the amount of
all grain received and shipped during each day and the amount
on hand at the end of each day.
"Date of delivery of grain" means:
(a) the date grain is delivered to a grain dealer for
the purpose of sale;
(b) the date grain is delivered to a warehouseman for
the purpose of storage; or
(c) in reference to grain in storage with a
warehouseman, the date a warehouse receipt representing
stored grain is delivered to the issuer of the warehouse
receipt for the purpose of selling the stored grain or, if no
warehouse receipt was issued:
(1) the date the purchase price for stored grain is
established; or
(2) if sold by price later contract, the date of
the price later contract.
"Department" means the Illinois Department of
Agriculture.
"Depositor" means a person who has evidence of a storage
obligation from a warehouseman.
"Director", unless otherwise provided, means the Illinois
Director of Agriculture, or the Director's designee.
"Emergency storage" means space measured in bushels and
used for a period of time not to exceed 3 months for storage
of grain as a consequence of an emergency situation.
"Equity assets" means:
(a) The equity in any property of the licensee or failed
licensee, other than grain assets. For purposes of this item
(a):
(1) "equity" is the amount by which the fair market
value of the property exceeds the amount owed to a
creditor who has a valid security interest in or other
lien on the property that was perfected before the date
of failure of the licensee;
(2) a creditor is not deemed to have a valid
security interest or other lien on property if (i) the
property can be directly traced as being from the sale of
grain by the licensee or failed licensee; (ii) the
security interest was taken as additional collateral on
account of an antecedent debt owed to the creditor; and
(iii) the security interest or other lien was perfected
(A) on or within 90 days before the date of failure of
the licensee or (B) when the creditor is a related
person, within one year of the date of failure of the
licensee.
"Failure" means, in reference to a licensee:
(a) a formal declaration of insolvency;
(b) a revocation of a license;
(c) a failure to apply for license renewal, leaving
indebtedness to claimants;
(d) a denial of license renewal, leaving indebtedness to
claimants; or
(e) a voluntary surrender of a license, leaving
indebtedness to claimants.
"Federal warehouseman" means a warehouseman licensed by
the United States government under the United States
Warehouse Act (7 U.S.C. 241 et seq.).
"Fund" means the Illinois Grain Insurance Fund.
"Grain" means corn, soybeans, wheat, oats, rye, barley,
grain sorghum, canola, buckwheat, flaxseed, edible soybeans,
and other like agricultural commodities designated by rule.
"Grain assets" means:
(a) all grain owned and all grain stored by a licensee
or failed licensee, wherever located;
(b) redeposited grain of a licensee or failed licensee;
(c) identifiable proceeds, including, but not limited
to, insurance proceeds, received by or due to a licensee or
failed licensee resulting from the sale, exchange,
destruction, loss, or theft of grain, or other disposition of
grain by the licensee or failed licensee; or
(d) assets in hedging or speculative margin accounts
held by commodity or security exchanges on behalf of a
licensee or failed licensee and any moneys due or to become
due to a licensee or failed licensee, less any secured
financing directly associated with those assets or moneys,
from any transactions on those exchanges.
For purposes of this Act, storage charges, drying
charges, price later contract service charges, and other
grain service charges received by or due to a licensee or
failed licensee shall not be deemed to be grain assets, nor
shall such charges be deemed to be proceeds from the sale or
other disposition of grain by a licensee or a failed
licensee, or to have been directly or indirectly traceable
from, to have resulted from, or to have been derived in whole
or in part from, or otherwise related to, the sale or other
disposition of grain by the licensee or failed licensee.
"Grain dealer" means a person who is licensed by the
Department to engage in the business of buying grain from
producers.
"Grain Indemnity Trust Account" means a trust account
established by the Director under Section 40.23 of the Civil
Administrative Code of Illinois that is used for the receipt
and disbursement of moneys paid from the Fund and proceeds
from the liquidation of and collection upon grain assets,
equity assets, collateral, or guarantees of or relating to
failed licensees. The Grain Indemnity Trust Account shall be
used to pay valid claims, authorized refunds from the Fund,
and expenses incurred in preserving, liquidating, and
collecting upon grain assets, equity assets, collateral, and
guarantees relating to failed licensees.
"Guarantor" means a person who assumes all or part of the
obligations of a licensee to claimants.
"Guarantee" means a document executed by a guarantor by
which the guarantor assumes all or part of the obligations of
a licensee to claimants.
"Incidental grain dealer" means a grain dealer who
purchases grain only in connection with a feed milling
operation and whose total purchases of grain from producers
during the grain dealer's fiscal year do not exceed $100,000.
"Licensed storage capacity" means the maximum grain
storage capacity measured in bushels approved by the
applicable licensing agency for use by a warehouseman.
"Licensee" means a grain dealer or warehouseman who is
licensed by the Department and a federal warehouseman that is
a participant in the Fund, under subsection (c) of Section
30-10.
"Official grain standards" means the official grade
designations as adopted by the United States Department of
Agriculture under the United States Grain Standards Act and
regulations adopted under that Act (7 U.S.C. 71 et seq. and 7
CFR 810.201 et seq.).
"Permanent storage capacity" means the capacity of
permanent structures available for storage of grain on a
regular and continuous basis and measured in bushels.
"Person" means any individual or entity, including, but
not limited to, a sole proprietorship, a partnership, a
corporation, a cooperative, an association, a limited
liability company, an estate, or a trust.
"Price later contract" means a written contract for the
sale of grain whereby any part of the purchase price may be
established by the seller after delivery of the grain to a
grain dealer according to a pricing formula contained in the
contract. Title to the grain passes to the grain dealer at
the time of delivery. The precise form and the general terms
and conditions of the contract shall be established by rule.
"Producer" means the owner, tenant, or operator of land
who has an interest in and receives all or part of the
proceeds from the sale of the grain produced on the land.
"Producer protection holding corporation" means a holding
corporation to receive, hold title to, and liquidate assets
of or relating to a failed licensee, including assets in
reference to collateral or guarantees relating to a failed
licensee.
"Related persons" means affiliates of a licensee, key
persons of a licensee, owners of a licensee, and persons who
have control over a licensee. For the purposes of this
definition:
(a) "Affiliate" means a person who has direct or
indirect control of a licensee, is controlled by a
licensee, or is under common control with a licensee.
(b) "Key person" means an officer, a director, a
trustee, a partner, a proprietor, a manager, a managing
agent, or the spouse of a licensee. An officer or a
director of an entity organized or operating as a
cooperative, however, shall not be considered to be a
"key person".
(c) "Owner" means the holder of: over 10% of the
total combined voting power of a corporation or over 10%
of the total value of shares of all classes of stock of a
corporation; over a 10% interest in a partnership; over
10% of the value of a trust computed actuarially; or over
10% of the legal or beneficial interest in any other
business, association, endeavor, or entity that is a
licensee. For purposes of computing these percentages, a
holder is deemed to own stock or other interests in a
business entity whether the ownership is direct or
indirect.
(d) "Control" means the power to exercise authority
over or direct the management or policies of a business
entity.
(e) "Indirect" means an interest in a business held
by the holder not through the holder's actual holdings in
the business, but through the holder's holdings in other
businesses.
(f) Notwithstanding any other provision of this
Act, the term "related person" does not include a lender,
secured party, or other lien holder solely by reason of
the existence of the loan, security interest, or lien, or
solely by reason of the lender, secured party, or other
lien holder having or exercising any right or remedy
provided by law or by agreement with a licensee or a
failed licensee.
"Successor agreement" means an agreement by which a
licensee succeeds to the grain obligations of a former
licensee.
"Temporary storage space" means space measured in bushels
and used for 6 months or less for storage of grain on a
temporary basis due to a need for additional storage in
excess of permanent storage capacity.
"Trust account" means the Grain Indemnity Trust Account.
"Valid claim" means a claim, submitted by a claimant,
whose amount and category have been determined by the
Department, to the extent that determination is not subject
to further administrative review or appeal.
"Warehouse" means a building, structure, or enclosure in
which grain is stored for the public for compensation,
whether grain of different owners is commingled or whether
identity of different lots of grain is preserved.
"Warehouse receipt" means a receipt for the storage of
grain issued by a warehouseman.
"Warehouseman" means a person who is licensed:
(a) by the Department to engage in the business of
storing grain for compensation; or
(b) under the United States Warehouse Act who
participates in the Fund under subsection (c) of Section
30-10.
(Source: P.A. 89-287, eff. 1-1-96.)
(240 ILCS 40/1-15)
Sec. 1-15. Powers and duties of Director. The Director
has all powers necessary and proper to fully and effectively
execute the provisions of this Code and has the general duty
to implement this Code. The Director's powers and duties
include, but are not limited to, the following:
(1) The Director may, upon application, issue or refuse
to issue licenses under this Code, and the Director may
extend, renew, reinstate, suspend, revoke, or accept
voluntary surrender of licenses under this Code.
(2) The Director shall examine and inspect each licensee
at least once each calendar year. The Director may inspect
the premises used by a licensee at any time. The books,
accounts, records, and papers of a licensee are at all times
during business hours subject to inspection by the Director.
Each licensee may also be required to make reports of its
activities, obligations, and transactions that are deemed
necessary by the Director to determine whether the interests
of producers and the holders of warehouse receipts are
adequately protected and safeguarded. The Director may take
action or issue orders that in the opinion of the Director
are necessary to prevent fraud upon or discrimination against
producers or depositors by a licensee.
(3) The Director may, upon his or her initiative or upon
the written verified complaint of any person setting forth
facts that if proved would constitute grounds for a refusal
to issue or renew a license or for a suspension or revocation
of a license, investigate the actions of any person applying
for, holding, or claiming to hold a license or any related
party of that person.
(4) The Director (but not the Director's designee) may
issue subpoenas and bring before the Department any person
and take testimony either at an administrative hearing or by
deposition with witness fees and mileage fees and in the same
manner as prescribed in the Code of Civil Procedure. The
Director or the Director's designee may administer oaths to
witnesses at any proceeding that the Department is authorized
by law to conduct. The Director (but not the Director's
designee) may issue subpoenas duces tecum to command the
production of records relating to a licensee, guarantor,
related business, related person, or related party. Subpoenas
are subject to the rules of the Department.
(5) Notwithstanding other judicial remedies, the
Director may file a complaint and apply for a temporary
restraining order or preliminary or permanent injunction
restraining or enjoining any person from violating or
continuing to violate this Code or its rules.
(6) The Director shall act as Trustee for the Trust
Account, act as Trustee over all collateral, guarantees,
grain assets, and equity assets held by the Department for
the benefit of claimants, and exercise certain powers and
perform related duties under Section 20-5 of this Code and
Section 40.23 of the Civil Administrative Code of Illinois,
except that the provisions of the Trust and Trustees Act do
not apply to the Trust Account or any other trust created
under this Code.
(7) The Director shall personally serve as president of
the Corporation.
(8) The Director shall collect and deposit all monetary
penalties, printer registration fees, funds, and assessments
authorized under this Code into the Fund.
(9) The Director may initiate any action necessary to
pay refunds from the Fund.
(10) The Director shall maintain a holding corporation
to receive, hold title to, and liquidate assets of or
relating to a failed licensee, including assets in reference
to collateral or guarantees, and deposit the proceeds into
the Fund.
(11) The Director may initiate, participate in, or
withdraw from any proceedings to liquidate and collect upon
grain assets, equity assets, collateral, and guarantees
relating to a failed licensee, including, but not limited to,
all powers needed to carry out the provisions of Section
20-15.
(12) The Director, as Trustee or otherwise, may take any
action that may be reasonable or appropriate to enforce this
Code and its rules.
(Source: P.A. 89-287, eff. 1-1-96.)
(240 ILCS 40/5-30)
Sec. 5-30. Grain Insurance Fund assessments. The
Illinois Grain Insurance Fund is established as a
continuation of the fund created under the Illinois Grain
Insurance Act, now repealed. Licensees and applicants for a
new license shall pay assessments as set forth in this
Section.
(a) Subject to subsection (e) of this Section, a
licensee that is newly licensed after the effective date of
this Code shall pay an assessment into the Fund for 3
consecutive years. Except as provided in item (6) of
subsection (b) of this Section, the first assessment shall be
paid at the time of or before the issuance of a new license,
the second assessment shall be paid on or before the first
anniversary date of the issuance of the new license, and the
third assessment shall be paid on or before the second
anniversary date of the issuance of the new license. For a
grain dealer, the initial payment of each of the 3
assessments shall be based upon the total estimated value of
grain purchases by the grain dealer for the applicable year
with the final assessment amount determined as set forth in
item (6) of subsection (b) of this Section. After the
licensee has paid or was required to pay the first 3
assessments to the Department for payment into the Fund, the
licensee shall be subject to subsequent assessments as set
forth in subsection (d) of this Section.
(b) Grain dealer assessments.
(1) The first assessment for a grain dealer shall
be an amount equal to:
(A) $0.000145 multiplied by the total value of
grain purchases for the grain dealer's first fiscal
year as shown in the final financial statement for
that year provided to the Department under Section
5-20; and
(B) $0.000255 multiplied by that portion of
the value of grain purchases for the grain dealer's
first fiscal year that exceeds the adjusted equity
of the licensee multiplied by 20, as shown on the
final financial statement for the licensee's first
fiscal year provided to the Department under Section
5-20.
(2) The minimum assessment for the first assessment
shall be $1,000 and the maximum shall be $10,000.
(3) The second assessment for a grain dealer shall
be an amount equal to:
(A) $0.0000725 multiplied by the total value
of grain purchases for the grain dealer's second
fiscal year as shown in the final financial
statement for that year provided to the Department
under Section 5-20; and
(B) $0.0001275 multiplied by that portion of
the value of grain purchases for the grain dealer's
second fiscal year that exceeds the adjusted equity
of the licensee multiplied by 20, as shown on the
final financial statement for the licensee's second
fiscal year provided to the Department under Section
5-20.
(4) The third assessment for a grain dealer shall
be an amount equal to:
(A) $0.0000725 multiplied by the total value
of grain purchases for the grain dealer's third
fiscal year as shown in the final financial
statement for that year provided to the Department
under Section 5-20; and
(B) $0.0001275 multiplied by that portion of
the value of grain purchases for the grain dealer's
third fiscal year that exceeds the adjusted equity
of the licensee multiplied by 20, as shown on the
final financial statement for the licensee's third
fiscal year.
(5) The minimum second and third assessments shall
be $500 per year and the maximum for each year shall be
$5,000.
(6) Each of the first 3 assessments shall be
adjusted up or down based upon the actual annual grain
purchases for each year as shown in the final financial
statement for that year provided to the Department under
Section 5-20. The adjustments shall be determined by the
Department within 30 days of the date of approval of
renewal of a license. Refunds shall be paid out of the
Fund within 60 days after the Department's determination.
Additional amounts owed for assessments shall be paid as
provided in subsection (f) of this Section.
(7) For the purposes of grain dealer assessments
under subsection (b) of this Section, the total value of
grain purchases shall be the total value of first time
grain purchases by at Illinois locations from producers.
(c) Warehouseman assessments.
(1) The first assessment for a warehouseman shall
be an amount equal to:
(A) $0.00085 multiplied by the total permanent
storage capacity of the warehouseman at the time of
license issuance; and
(B) $0.00099 multiplied by that portion of the
permanent storage capacity of the warehouseman at
the time of license issuance that exceeds the
adjusted equity of the licensee multiplied by 5, all
as shown on the final financial statement for the
licensee provided to the Department under Section
5-10.
(2) The minimum assessment for the first assessment
shall be $1,000 and the maximum shall be $10,000.
(3) The second and third assessments shall be an
amount equal to:
(A) $0.000425 multiplied by the total
permanent storage capacity of the warehouseman at
the time of license issuance; and
(B) $0.000495 multiplied by that portion of
the permanent licensed storage capacity of the
warehouseman at the time of license issuance that
exceeds the adjusted equity of the licensee
multiplied by 5, as shown on the final financial
statement for the licensee's last completed fiscal
year provided to the Department under Section 5-20.
(4) The minimum assessment for the second and third
assessments shall be $500 per assessment and the maximum
for each assessment shall be $5,000.
(5) Every warehouseman shall pay an assessment when
increasing available permanent storage capacity in an
amount equal to $0.001 multiplied by the total number of
bushels to be added to permanent storage capacity. The
minimum assessment on any increase in permanent storage
capacity shall be $50 and the maximum assessment shall be
$20,000. The assessment based upon an increase in
permanent storage capacity shall be paid at or before the
time of approval of the increase in permanent storage
capacity. This assessment on the increased permanent
storage capacity does not relieve the warehouseman of any
assessments as set forth in subsection (d) of this
Section.
(6) Every warehouseman shall pay an assessment of
$0.0005 per bushel when increasing available storage
capacity by use of temporary storage space. The minimum
assessment on temporary storage space shall be $100. The
assessment based upon temporary storage space shall be
paid at or before the time of approval of the amount of
the temporary storage space. This assessment on the
temporary storage space capacity does not relieve the
warehouseman of any assessments as set forth in
subsection (d) of this Section.
(7) Every warehouseman shall pay an assessment of
$0.001 per bushel of emergency storage space. The
minimum assessment on any emergency storage space shall
be $100. The assessment based upon emergency storage
space shall be paid at or before the time of approval of
the amount of the emergency storage space. This
assessment on the emergency storage space does not
relieve the warehouseman of any assessments as set forth
in subsection (d) of this Section.
(d) Subsequent assessments.
(1) If the equity in the Fund is below $3,000,000
on September 1st of any year, every grain dealer who has,
or was required to have, already paid the first, second,
and third assessments shall be assessed by the Department
an amount equal to:
(A) $0.0000725 multiplied by the total value
of grain purchases for the grain dealer's last
completed fiscal year as shown in the final
financial statement for that year provided to the
Department under Section 5-20; and
(B) $0.0001275 multiplied by that portion of
the value of grain purchases for the grain dealer's
last completed fiscal year that exceeds the adjusted
equity of the licensee multiplied by 20, as shown on
the final financial statement for the licensee's
last completed fiscal year provided to the
Department under Section 5-20.
The minimum amount for a subsequent assessment shall
be $500 per year and the maximum amount shall be $5,000
per year. For the purposes of grain dealer assessments
under this item (1) of subsection (d) of this Section,
the total value of grain purchases shall be the total
value of first time grain purchases by of Illinois
locations from producers.
(2) If the equity in the Fund is below $3,000,000
on September 1st of any year, every warehouseman who has,
or was required to have, already paid the first, second,
and third assessments shall be assessed by the Department
an amount equal to:
(A) $0.000425 multiplied by the total licensed
storage capacity of the warehouseman as of September
1st of that year; and
(B) $0.000495 multiplied by that portion of
the licensed storage capacity of the warehouseman as
of September 1st of that year that exceeds the
adjusted equity of the licensee multiplied by 5, as
shown on the final financial statement for the
licensee's last completed fiscal year provided to
the Department under Section 5-20.
The minimum amount for a subsequent assessment shall
be $500 per year and the maximum amount shall be $5,000
per year.
(3) If the due date for the payment by a licensee
of the third assessment is after September 1st in a year
when the equity in the Fund is below $3,000,000, that
licensee shall not be subject to a subsequent assessment
for that year.
(e) Newly licensed; exemptions.
(1) For the purpose of assessing fees for the Fund
under subsection (a) of this Section, and subject to the
provisions of item (e)(2) of this Section, the Department
shall consider the following to be newly licensed:
(A) A person that becomes a licensee for the
first time after the effective date of this Code.
(B) A licensee who has a lapse in licensing of
more than 30 days. A license shall not be
considered to be lapsed after its revocation or
termination if an administrative or judicial action
is pending or if an order from an administrative or
judicial body continues an existing license.
(C) A grain dealer that is a general
partnership in which there is a change in
partnership interests and that change is greater
than 50% during the partnership's fiscal year.
(D) A grain dealer that is a limited
partnership in which there is a change in the
controlling interest of a general partner and that
change is greater than 50% of the total controlling
interest during the limited partnership's fiscal
year.
(E) A grain dealer that is a limited liability
company in which there is a change in membership
interests and that change is greater than 50% during
the limited liability company's fiscal year.
(F) A grain dealer that is the result of a
statutory consolidation if that person has adjusted
equity of less than 90% of the combined adjusted
equity of the predecessor persons who consolidated.
For the purposes of this paragraph, the adjusted
equity of the resulting person shall be determined
from the approved or certified financial statement
submitted to the Department for the first fiscal
year of the resulting person. For the purpose of
this paragraph, the combined adjusted equity of the
predecessor persons shall be determined by combining
the adjusted equity of each predecessor person as
set forth in the most recent approved or certified
financial statement of each predecessor person
submitted to the Department.
(G) A grain dealer that is the result of a
statutory merger if that person has adjusted equity
of less than 90% of the combined adjusted equity of
the predecessor persons who merged. For the
purposes of this paragraph, the adjusted equity of
the resulting person shall be determined from the
approved or certified financial statement submitted
to the Department for the first fiscal year of the
resulting person ending after the merger. For the
purposes of this paragraph, the combined adjusted
equity of the predecessor persons shall be
determined by combining the adjusted equity of each
predecessor person as set forth in the most recent
approved or certified financial statement submitted
to the Department for the last fiscal year of each
predecessor person ending on the date of or before
the merger.
(H) A grain dealer that is a general
partnership in which there is a change in
partnership interests and that change is 50% or less
during the partnership's fiscal year if the adjusted
equity of the partnership after the change is less
than 90% of the adjusted equity of the partnership
before the change. For the purpose of this
paragraph, the adjusted equity of the partnership
after the change shall be determined from the
approved or certified financial statement submitted
to the Department for the first fiscal year ending
after the change. For the purposes of this
paragraph, the adjusted equity of the partnership
before the change shall be determined from the
approved or certified financial statement submitted
to the Department for the last fiscal year of the
partnership ending on the date of or before the
change.
(I) A grain dealer that is a limited
partnership in which there is a change in the
controlling interest of a general partner and that
change is 50% or less of the total controlling
interest during the partnership's fiscal year if the
adjusted equity of the partnership after the change
is less than 90% of the adjusted equity of the
partnership before the change. For the purposes of
this paragraph, the adjusted equity of the
partnership after the change shall be determined
from the approved or certified financial statement
submitted to the Department for the first fiscal
year ending after the change. For the purposes of
this paragraph, the adjusted equity of the
partnership before the change shall be determined
from the approved or certified financial statement
submitted to the Department for the last fiscal year
of the partnership ending on the date of or before
the change.
(J) A grain dealer that is a limited liability
company in which there is a change in membership
interests and that change is 50% or less of the
total membership interests during the limited
liability company's fiscal year if the adjusted
equity of the limited liability company after the
change is less than 90% of the adjusted equity of
the limited liability company before the change.
For the purposes of this paragraph, the adjusted
equity of the limited liability company after the
change shall be determined from the approved or
certified financial statement submitted to the
Department for the first fiscal year ending after
the change. For the purposes of this paragraph, the
adjusted equity of the limited liability company
before the change shall be determined from the
approved or certified financial statement submitted
to the Department for the last fiscal year of the
limited liability company ending on the date of or
before the change.
(K) A grain dealer that is the result of a
statutory consolidation or merger if one or more of
the predecessor persons that consolidated or merged
into the resulting grain dealer was not a licensee
under this Code at the time of the consolidation or
merger.
(2) For the purpose of assessing fees for the Fund
as set forth in subsection (a) of this Section, the
Department shall consider the following as not being
newly licensed and, therefore, exempt from further
assessment unless an assessment is required by subsection
(d) of this Section:
(A) A person resulting solely from a name
change of a licensee.
(B) A warehouseman changing from a Class I
warehouseman to a Class II warehouseman or from a
Class II warehouseman to a Class I warehouseman
under this Code.
(C) A licensee that becomes a wholly owned
subsidiary of another licensee.
(D) Subject to item (e)(1)(K) of this Section,
a person that is the result of a statutory
consolidation if that person has adjusted equity
greater than or equal to 90% of the combined
adjusted equity of the predecessor persons who
consolidated. For the purposes of this paragraph,
the adjusted equity of the resulting person shall be
determined from the approved or certified financial
statement submitted to the Department for the first
fiscal year of the resulting person. For the
purpose of this paragraph, the combined adjusted
equity of the predecessor persons shall be
determined by combining the net worth of each
predecessor person as set forth in the most recent
approved or certified financial statement of each
predecessor person submitted to the Department.
(E) Subject to item (e)(1)(K) of this Section,
a person that is the result of a statutory merger if
that person has adjusted equity greater than or
equal to 90% of the combined adjusted equity of the
predecessor persons who merged. For the purposes of
this paragraph, the adjusted equity of the resulting
person shall be determined from the approved or
certified financial statement submitted to the
Department for the first fiscal year of the
resulting person ending after the merger. For the
purposes of this paragraph, the combined adjusted
equity of the predecessor persons shall be
determined by combining the adjusted equity of each
predecessor person as set forth in the most recent
approved or certified financial statement, submitted
to the Department for the last fiscal year of each
predecessor person ending on the date of or before
the merger.
(F) A general partnership in which there is a
change in partnership interests and that change is
50% or less during the partnership's fiscal year and
the adjusted equity of the partnership after the
change is greater than or equal to 90% of the
adjusted equity of the partnership before the
change. For the purposes of this paragraph, the
adjusted equity of the partnership after the change
shall be determined from the approved or certified
financial statement submitted to the Department for
the first fiscal year ending after the change. For
the purposes of this paragraph, the adjusted equity
of the partnership before the change shall be
determined from the approved or certified financial
statement submitted to the Department for the last
fiscal year of the partnership ending on the date of
or before the change.
(G) A limited partnership in which there is a
change in the controlling interest of a general
partner and that change is 50% or less of the total
controlling interest during the partnership's fiscal
year and the adjusted equity of the partnership
after the change is greater than or equal to 90% of
the adjusted equity of the partnership before the
change. For the purposes of this paragraph, the
adjusted equity of the partnership after the change
shall be determined from the approved or certified
financial statement submitted to the Department for
the first fiscal year ending after the change. For
the purposes of this paragraph, the adjusted equity
of the partnership before the change shall be
determined from the approved or certified financial
statement submitted to the Department for the last
fiscal year of the partnership ending on the date of
or before the change.
(H) A limited liability company in which there
is a change in membership interests and that change
is 50% or less of the total membership interests
during the limited liability company's fiscal year
if the adjusted equity of the limited liability
company after the change is greater than or equal to
90% of the adjusted equity of the limited liability
company before the change. For the purposes of this
paragraph, the adjusted equity of the limited
liability company after the change shall be
determined from the approved or certified financial
statement submitted to the Department for the first
fiscal year ending after the change. For the
purposes of this paragraph, the adjusted equity of
the limited liability company before the change
shall be determined from the approved or certified
financial statement submitted to the Department for
the last fiscal year of the limited liability
company ending on the date of or before the change.
(I) A licensed warehouseman that is the result
of a statutory merger or consolidation to the extent
the combined storage capacity of the resulting
warehouseman has been assessed under this Code
before the statutory merger or consolidation, except
that any storage capacity of the resulting
warehouseman that has not previously been assessed
under this Code shall be assessed as provided in
items (c)(5), (c)(6), and (c)(7) of this Section.
(J) A federal warehouseman who participated in
the Fund under Section 30-10 and who subsequently
received an Illinois license to the extent the
storage capacity of the warehouseman was assessed
under this Code prior to Illinois licensing.
(f) Except for the first assessment made under this
Section, and assessments under items (c)(5), (c)(6), and
(c)(7) of this Section, all assessments shall be paid to the
Department within 60 days after the date posted on the
written notice of assessment. The Department shall forward
all paid assessments to the Fund.
(Source: P.A. 89-287, eff. 1-1-96.)
(240 ILCS 40/10-10)
Sec. 10-10. Duties and requirements of grain dealers.
(a) Long and short market position.
(1) Grain dealers shall at all times maintain an
accurate and current long and short market position
record for each grain commodity. The position record
shall at a minimum contain the net position of all grain
owned, wherever located, grain purchased and sold, and
any grain option contract purchased or sold.
(2) Grain dealers, except grain dealers regularly
and continuously reporting to the Commodity Futures
Trading Commission or grain dealers who have obtained the
permission of the Department to have different open long
or short market positions, may maintain an open position
in the grain commodity of which the grain dealer buys the
greatest number of bushels per fiscal year not to exceed
one bushel for each $10 of adjusted equity at fiscal year
end up to a maximum open position of 50,000 bushels and
one-half that number of bushels up to 25,000 bushels for
all other grain commodities that the grain dealer buys. A
grain dealer, however, may maintain an open position of
up to 5,000 bushels for each grain commodity the grain
dealer buys.
(b) The license issued by the Department to a grain
dealer shall be posted in the principal office of the
licensee in this State. A certificate shall be posted in
each location where the licensee engages in business as a
grain dealer. In the case of a licensee operating a truck or
tractor trailer unit for the purpose of purchasing grain, the
licensee shall have a certificate carried in each truck or
tractor trailer unit used in connection with the licensee's
grain dealer business.
(c) The licensee must have at all times sufficient
financial resources to pay producers on demand for grain
purchased from them.
(d) A licensee that is solely a grain dealer shall on a
daily basis maintain an accurate and current daily grain
transaction report.
(e) A licensee that is both a grain dealer and a
warehouseman shall at all times maintain an accurate and
current daily position record.
(f) In the case of a change of ownership of a grain
dealer, the obligations of a grain dealer do not cease until
the grain dealer its successor is properly licensed under
this Code, it has surrendered all unused price later
contracts to the Department and the successor has executed a
successor's agreement, or the successor has otherwise
provided for the grain obligations of its predecessor.
(g) If a grain dealer proposes to cease doing business
as a grain dealer and there is no successor, it is the duty
of the grain dealer to surrender all unused price later
contracts to the Department, together with an affidavit
accounting for all grain dealer obligations setting forth the
arrangements made with producers for final disposition of the
grain dealer obligations and indicating the procedure for
payment in full of all outstanding grain obligations. It is
the duty of the Department to give notice by publication that
a grain dealer has ceased doing business without a successor.
After payment in full of all outstanding grain obligations,
it is the duty of the grain dealer to surrender its license.
(Source: P.A. 89-287, eff. 1-1-96.)
(240 ILCS 40/10-15)
Sec. 10-15. Price later contracts.
(a) Price later contracts shall be written on forms
prescribed by the Department. Price later contract forms
shall be printed by a person authorized to print those
contracts by the Department after that person has agreed to
comply with each of the following:
(1) That all price later contracts shall be printed
as prescribed by the Department and shall be printed
only for a licensed grain dealer.
(2) That all price later contracts shall be
numbered consecutively and a complete record of these
contracts shall be retained showing for whom printed and
the consecutive numbers printed on the contracts.
(3) That a duplicate copy of all invoices rendered
for printing price later contracts that will show the
consecutive numbers printed on the contracts, and the
number of contracts printed, shall be promptly forwarded
to the Department.
(4) that the person shall register with the
Department and pay an annual registration fee of $100 to
print price later contracts.
(b) A grain dealer purchasing grain by price later
contract shall at all times own grain, rights in grain,
proceeds from the sale of grain, and other assets acceptable
to the Department as set forth in this Code totaling 90% of
the unpaid balance of the grain dealer's obligations for
grain purchased by price later contract. That amount shall
at all times remain unencumbered and shall be represented by
the aggregate of the following:
(1) Grain owned by the grain dealer valued by means
of the hedging procedures method that includes marking
open contracts to market.
(2) Cash on hand.
(3) Cash held on account in federally or State
licensed financial institutions.
(4) Investments held in time accounts with
federally or State licensed financial institutions.
(5) Direct obligations of the U.S. government.
(6) Funds on deposit Balances in grain margin
accounts determined by marking to market.
(7) Balances due or to become due to the licensee
on price later contracts.
(8) Marketable securities, including mutual funds.
(9) Irrevocable letters of credit in favor of the
Department and acceptable to the Department.
(10) Price later contract service charges due or to
become due to the licensee.
(11) Other evidence of proceeds from or of grain
that is acceptable to the Department.
(c) For the purpose of computing the dollar value of
grain and the balance due on price later contract
obligations, the value of grain shall be figured at the
current market price.
(d) Title to grain sold by price later contract shall
transfer to a grain dealer on the date of delivery of the
grain. Therefore, no storage charges shall be made with
respect to grain purchased by price later contract. A
service charge for handling the contract, however, may be
made.
(e) Subject to subsection (f) of this Section, if a
price later contract is not signed by all parties within 30
days of the last date of delivery of grain intended to be
sold by price later contract, then the grain intended to be
sold by price later contract shall be priced on the next
business day after 30 days from the last date of delivery of
grain intended to be sold by price later contract at the
market price of the grain at the close of the next business
day after the 29th day. When the grain is priced under this
subsection, the grain dealer shall send notice to the seller
of the grain within 10 days. The notice shall contain the
number of bushels sold, the price per bushel, all applicable
discounts, the net proceeds, and a notice that states that
the Grain Insurance Fund shall provide protection for a
period of only 160 days from the date of pricing of the
grain.
(f) If grain is in storage with a warehouseman and is
intended to be sold by price later contract, that grain shall
be considered as remaining in storage and not be deemed sold
by price later contract until the date the price later
contract is signed by all parties.
(g) Scale tickets or other approved documents with
respect to grain purchased by a grain dealer by price later
contract shall contain the following: "Sold Grain; Price
Later".
(h) Price later contracts shall be issued consecutively
and recorded by the grain dealer as established by rule.
(i) A grain dealer shall not issue a collateral
warehouse receipt on grain purchased by a price later
contract to the extent the purchase price has not been paid
by the grain dealer.
(j) Failure to comply with the requirements of this
Section may result in suspension of the privilege to purchase
grain by price later contract for up to one year.
(Source: P.A. 89-287, eff. 1-1-96.)
(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 when
issued from the same warehouse shall be consecutively by
the warehouseman numbered.
(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 printer approved 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 it.
(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.
(Source: P.A. 89-287, eff. 1-1-96.)
(240 ILCS 40/25-10)
Sec. 25-10. Claimant compensation. Within 30 days after
the day on which a claim becomes a valid claim, a claimant
shall be compensated to the extent of its valid claim in
accordance with the following provisions:
(a) Valid claims filed by warehouse claimants shall be
paid 100% of the amount determined by the Department out of
the net proceeds of the liquidation of grain assets as set
forth in this subsection (a). To the extent the net proceeds
are insufficient, warehouse claimants shall be paid their pro
rata share of the net proceeds of the liquidation of grain
assets and, subject to subsection (j) of this Section, an
additional amount per claimant not to exceed the balance of
their respective claims out of the Fund.
(b) Subject to subsection (j) of this Section, if the
net proceeds as set forth in subsection (a) of this Section
are insufficient to pay in full all valid claims filed by
warehouse claimants as payment becomes due, the balance shall
be paid out of the Fund in accordance with subsection (b) of
Section 25-20.
(c) Valid claims filed by producers who:
(1) have delivered grain within 21 days before the
date of failure for which pricing of that grain has been
completed before date of failure; or
(2) gave written notice to the Department within 21
days of the date of delivery of grain, if the pricing of
that grain has been completed, that payment in full for
that grain has not been made;
shall be paid, subject to subsection (j) of this Section,
100% of the amount of the valid claim determined by the
Department. Valid claims that are included in subsection (c)
of this Section shall receive no payment under subsection (d)
of this Section, and any claimant having a valid claim under
this subsection (c) determined by the Department to be in
excess of the limits, if any, imposed under subsection (j) of
this Section shall be paid only sums in excess of those
limits to the extent additional money is available under
subsection (d)(2) of Section 25-20.
(d) Valid claims that are not included in subsection (c)
of this Section that are filed by producers who completed
delivery and pricing of grain in reference to the valid
claim, whichever is later, within 160 days before the date of
failure shall be paid 85% of the amount of the valid claim
determined by the Department or $100,000, whichever is less,
per claimant. For claims filed by producers for grain sold on
a price later contract, however, the later of the date of
execution of the contract or the date of delivery of grain in
reference to the grain covered by the price later contract
must not be more than 270 days before the date of failure in
order for the claimant to receive any compensation.
(e) Valid claims filed by producers for grain sold on a
price later contract, for which the final price has not been
established, shall be paid 85% of the amount of the valid
claims determined by the Department or $100,000, whichever is
less, per claimant, if the later of the date of execution of
the contract or the date of delivery of grain in reference to
the grain covered by the price later contract occurred no
more than 270 days before the date of failure. The execution
of subsequent price later contracts by the producer and the
licensee for grain previously covered by a price later
contract shall not extend the coverage of a claim beyond the
original 270 days.
(f) The maximum payment to producers under subsections
(d) and (e) of this Section, combined, shall be $100,000 per
claimant.
(g) The following claims shall be barred and disallowed
in their entirety and shall not be entitled to any recovery
from the Fund or the Trust Account:
(1) Claims filed by producers who completed pricing
of the grain in reference to their claim in excess of 160
days before the date of failure.
(2) Claims filed by producers for grain sold on a
price later contract if the later of the date of
execution of the contract or the date of delivery of
grain in reference to the grain covered by the price
later contract occurred more than 270 days before the
date of failure.
(h) To the extent moneys are available, additional pro
rata payments may be made to claimants under subsection (d)
of Section 25-20.
(i) For purposes of this Section, a claim filed in
connection with warehouse receipts that are possessed under a
collateral pledge of a producer, or that are subject to a
perfected security interest, or that were acquired by a
secured party or of lien holder under an obligation of a
producer, shall be deemed to be a claim filed by the producer
and not a claim filed by the secured party or the lien
holder, regardless of whether the producer is in default
under that collateral pledge, security agreement, or other
obligation.
(j) With respect to any failure occurring on or after
July 1, 1998, the maximum payment out of the Fund for
claimants under subsection (a), (b), or (c) of this Section
shall be $1,000,000 per claimant and the maximum payment out
of the Fund for claimants under subsections (c), (d), and (e)
of this Section, combined, shall be $1,000,000 per claimant.
(Source: P.A. 89-287, eff. 1-1-96.)
(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) (g) of Section 25-20.
(d) Subject to subsections (c) and (h) (g) of Section
25-20:
(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 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), 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 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 reimbursed as soon as funds become
available for any amounts paid under subsection (g) of this
Section upon replenishment of the Fund from assessments under
subsection (d) 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. 89-287, eff. 1-1-96.)
(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
Section 5-30.
(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 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 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.
(Source: P.A. 89-287, eff. 1-1-96.)
Section 99. Effective date. This Act takes effect upon
becoming law.
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