203.12B - APPOINTMENT OF DEPARTMENT AS RECEIVER.
203.12B APPOINTMENT OF DEPARTMENT AS RECEIVER.
1. As used in this section:
a. "Grain dealer assets" means the same as defined in section
203.12A, including any proceeds from a deficiency bond or irrevocable
letter of credit, or any insurance policy relating to those assets.
b. "Interested seller" means a person who delivers or has
delivered grain to a grain dealer who has not been paid as provided
in section 203.8 or according to the terms of a credit-sale contract
breached by the grain dealer.
c. "Issuer" means a person who issues a deficiency bond or an
irrevocable letter of credit pursuant to section 203.3, or an issuer
of grain assets.
2. a. The department may file a verified petition in district
court requesting that the department be appointed as a receiver, and
the district court shall appoint the department as receiver, in order
to protect interested sellers, if any of the following apply:
(1) The grain dealer's license is revoked or suspended under
section 203.10.
(2) There is evidence that the grain dealer has engaged or is
engaging in business under this chapter without obtaining a license
as required pursuant to section 203.3.
b. Upon being appointed as a receiver, the department shall
take custody and provide for the disposition of the grain dealer
assets of the grain dealer under the supervision of the court.
(1) The petition shall be filed in the county in which the grain
dealer maintains its principal place of business in this state. The
court may issue ex parte any temporary order as it determines
necessary to preserve or protect the grain dealer assets and the
rights of interested sellers.
(2) The petition shall be accompanied by the department's plan
for disposition of grain dealer assets which shall provide terms as
may be necessary to preserve or protect the grain dealer assets and
the rights of interested sellers, less expenses incurred by the
department in connection with the receivership. The plan may provide
for the delivery or sale of grain as provided in section 203C.4. The
plan may provide for the operation of the business of the grain
dealer on a temporary basis and any other course of action or
procedure which will serve the interests of interested sellers.
(3) The petition shall be filed with the clerk of the district
court who shall set a date for a hearing in the same manner as
provided in section 203C.3.
(4) Copies of the petition, the notice of hearing, and the
department's plan of disposition shall be delivered to the following:
(a) The grain dealer and each issuer who shall receive copies
delivered in the manner required for service of an original notice.
(b) Interested sellers as determined by the department who shall
receive copies delivered by ordinary mail.
(5) The failure of a person to receive the required notification
shall not invalidate the proceedings on the petition or any part of
the petition for the appointment of the department as the receiver.
(6) A person is not a party to the action unless admitted by the
court upon application.
3. When appointed as a receiver, the department shall publish
notice of the appointment in the same manner provided in section
203C.3.
4. The department may employ or appoint a person to appear on
behalf of the department in any proceedings before the court as
provided in section 203C.3.
5. An action of the department shall not be subject to the
provisions of chapter 17A. A person employed or appointed by the
department as receiver shall be deemed to be an employee of the state
as defined in section 669.2. Chapter 669 is applicable to any claim
as defined in section 669.2 against the person carrying out the
duties of the department acting as receiver.
6. When the department is appointed as a receiver, the issuer
shall be joined as a party, and may be ordered by the court to pay
indemnification proceeds, and shall be discharged from further
liability as provided in section 203C.4. The department shall
provide notice to interested sellers within one hundred twenty days
after the date of appointment. A failure of a person to file a
timely claim as provided by the department shall defeat the claim,
except to the extent of any excess grain dealer assets remaining
after all timely claims are paid in full.
7. If the court approves the sale of grain, the department shall
employ or appoint a merchandiser who shall enjoy the same status,
exercise the same powers, and receive compensation to the same extent
as a merchandiser employed or appointed pursuant to section 203C.4.
A person employed or appointed as a merchandiser must meet the
following requirements:
a. Be experienced or knowledgeable in the operation of grain
dealers as provided in this chapter.
b. Be experienced or knowledgeable in the marketing of grain.
c. Not have had a license issued pursuant to section 203.3
suspended or revoked.
d. Not have any pecuniary interest in the grain dealer assets
of the grain dealer and not have a business relationship with the
grain dealer.
8. The sale of the grain shall proceed in the same manner as
grain sold pursuant to section 203C.4. The department may, with the
approval of the court, continue the operation of all or any part of
the business of the grain dealer on a temporary basis and take any
other course of action or procedure which will serve the interests of
interested sellers. The department is entitled to reimbursement out
of grain dealer assets for costs directly attributable to the
receivership. The department shall be reimbursed from the grain
dealer assets in the same manner as provided in section 203C.4. If
the approved plan of disposition requires a distribution of cash
proceeds, the department shall submit to the court a proposed plan of
distribution of those proceeds. The plan shall be approved and
executed and the department shall be discharged and the receivership
terminated in the same manner as provided in section 203C.4. Section History: Recent Form
96 Acts, ch 1030, § 2; 2009 Acts, ch 41, §216