203C.4 - POWERS AND DUTIES OF RECEIVER.
203C.4 POWERS AND DUTIES OF RECEIVER.
1. When the department is appointed as receiver under this
chapter the issuer of a deficiency bond or of an irrevocable letter
of credit pursuant to section 203C.6 shall be joined as a party
defendant by the department. If required by the court, the issuer
shall pay the indemnification proceeds or so much thereof as the
court finds necessary into the court, and when so paid the issuer
shall be absolutely discharged from any further liability under the
bond or irrevocable letter of credit to the extent of the payment.
2. When appointed as receiver under this chapter the department
is authorized to give notice in the manner specified by the court to
persons holding warehouse receipts or other evidence of deposit
issued by the licensee to file their claims within one hundred twenty
days after the date of appointment. Failure to timely file a claim
shall defeat the claim with respect to the issuer of a deficiency
bond or of an irrevocable letter of credit, grain depositors and
sellers indemnity fund created in chapter 203D, and any commodities
or proceeds from the sale of commodities, except to the extent of any
excess commodities or proceeds of sale remaining after all timely
claims are paid in full.
3. When the court approves the sale of commodities, the
department shall employ a merchandiser to effect the sale of those
commodities. A person employed or appointed as a merchandiser is
deemed to be an employee of the state as defined in section 669.2 and
chapter 669 is applicable to any claim as defined in section 669.2
against the person acting as a merchandiser. A person employed as a
merchandiser must meet the following requirements:
a. The person shall be experienced or knowledgeable in the
operation of warehouses licensed under this chapter; and if the
person has ever held a license issued under this chapter, the person
shall never have had that license suspended or revoked.
b. The person shall be experienced or knowledgeable in the
marketing of agricultural products.
c. The person shall not be the holder of a warehouse receipt
or scale weight ticket issued by the licensee, and shall not have a
claim against the licensee whether as a secured or unsecured
creditor, and otherwise shall not have any pecuniary interest in the
licensee or the licensee's business. The merchandiser shall be
entitled to reasonable compensation as determined by the department,
payable out of funds appropriated for operating expenses of the
department. A sale of commodities shall be made in a commercially
reasonable manner and under the supervision of the warehouse bureau
of the department. The department shall provide for the payment out
of appropriations to the department of all expenses incurred in
handling and disposing of commodities. The department shall have
authority to sell the commodities, any provision of chapter 554 to
the contrary notwithstanding, and any commodities so sold shall be
free of all liens and other encumbrances.
4. The plan of disposition, as approved by the court, shall
provide for the distribution of the stored commodities, or the
proceeds from the sale of commodities, or the proceeds from any
insurance policy, deficiency bond, or irrevocable letter of credit,
less expenses incurred by the department in connection with the
receivership, to depositors as their interests are determined.
Distribution shall be without regard to any setoff, counterclaim, or
storage lien or charge.
5. The department may, with the approval of the court, continue
the operation of all or any part of the business of the licensee on a
temporary basis and take any other course of action or procedure
which will serve the interests of the depositors.
6. The department is entitled to reimbursement out of commodities
or proceeds held in receivership for all expenses incurred as court
costs or in handling and disposing of stored commodities, and for all
other costs directly attributable to the receivership. The right of
reimbursement of the department is prior to any claims against the
commodities or proceeds of sales of commodities, and constitutes a
claim against a deficiency bond or irrevocable letter of credit.
7. 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. Upon notice and hearing as
required by the court, the court shall accept or modify the proposed
plan. When the plan is approved by the court and executed by the
department, the department shall be discharged and the receivership
terminated.
8. At the termination of the receivership the department shall
file a final report containing the details of its actions, together
with such additional information as the court may require. Section History: Early Form
[C79, 81, § 543.4] Section History: Recent Form
86 Acts, ch 1152, § 16; 87 Acts, ch 147, §5; 89 Acts, ch 143,
§101, 502
C93, § 203C.4
Referred to in § 203.12B, 203C.3