203C.11 - SUSPENSION OR REVOCATION FOR INSUFFICIENT EVIDENCE OF FINANCIAL RESPONSIBILITY -- NOTICE.
203C.11 SUSPENSION OR REVOCATION FOR INSUFFICIENT
EVIDENCE OF FINANCIAL RESPONSIBILITY -- NOTICE.
1. When the department determines that insurance is not fully
provided as required under section 203C.15, it may require the
licensed warehouse operator to provide additional evidence of
insurance coverage so that the insurance conforms with the
requirements of this chapter. If additional insurance is not
provided within thirty days after receipt by the licensee of notice
by certified mail, the license of the warehouse operator concerned
shall be automatically suspended. If additional insurance is not
filed within another ten days, the warehouse license shall be
automatically revoked. When a license is revoked, the department
shall notify each holder of an outstanding warehouse receipt and all
known persons who have grain retained in open storage of the
revocation. The department shall further notify each receipt holder
and all known persons who have grain retained in open storage that
the grain must be removed from the warehouse not later than the
thirtieth day following the revocation. The notice shall be sent by
ordinary mail to the last known address of each person having grain
in storage as provided in this subsection.
2. If the department determines that the net worth of a licensed
warehouse operator is not in compliance with the requirements of
section 203C.6, the department shall issue a notice to the warehouse
operator and shall suspend the warehouse operator's license if the
warehouse operator does not provide evidence of compliance within
thirty days of the issuance of the notice. The department shall
inspect the warehouse at the end of the thirty-day period. If
evidence of compliance is not provided within sixty days of the
issuance of the notice, the department shall revoke the warehouse
operator's license, and shall again inspect the warehouse. If a
license is revoked, the department shall give notice of the
revocation to each holder of an outstanding warehouse receipt and to
all known persons who have grain retained in open storage. The
revocation notice shall state that the grain must be removed from the
warehouse not later than the thirtieth day after the issuance of the
revocation notice. The revocation notice shall be sent by ordinary
mail to the last known address of each person having grain in storage
as provided in this subsection. The department shall conduct a final
inspection of the warehouse at the end of the thirty-day period
following the issuance of the revocation notice.
3. When the department receives notice that a deficiency bond or
irrevocable letter of credit is being canceled by the issuer, and
determines that upon the cancellation the warehouse operation will
not be in compliance with section 203C.6, the department shall
suspend the warehouse operator's license if a new deficiency bond or
irrevocable letter of credit is not received by the department within
sixty days of receipt by the department of the notice of
cancellation. If a new deficiency bond or irrevocable letter of
credit is not received by the department within thirty days following
suspension, the warehouse operator's license shall be revoked. When
a license is revoked, the department shall notify each holder of an
outstanding warehouse receipt and all known persons who have grain
retained in open storage of the revocation, and shall further notify
each receipt holder and all known persons who have grain retained in
open storage that the grain must be removed from the warehouse not
later than the thirtieth day following revocation. The notice shall
be sent by ordinary mail to the last known address of each person
having grain in storage as provided in this subsection. Section History: Early Form
[C24, 27, 31, § 9748; C35, § 9751-g30; C39, § 9751.30; C46,
50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, § 543.11; 81 Acts, ch
180, § 23; 82 Acts, ch 1093, § 2] Section History: Recent Form
86 Acts, ch 1006, § 4; 86 Acts, ch 1152, § 20, 21
C93, § 203C.11
Referred to in § 203C.3