203C.40 - PRIORITIZATION OF INSPECTIONS OF WAREHOUSE OPERATORS.
203C.40 PRIORITIZATION OF INSPECTIONS OF WAREHOUSE
OPERATORS.
The department shall develop a system to prioritize the
inspections of warehouse operators provided in section 203C.2. The
system of prioritization shall be computed each year based on the
risk of loss to the grain depositors and sellers indemnity fund
caused by the possible insolvency of the warehouse operator. The
department shall compute the risk by utilizing an available
statistical model to measure the financial condition of warehouse
operators. Procedures for utilizing the statistical model shall be
adopted by department rules. The statistical model shall be used to
provide risk ratings. A risk rating shall be used as a factor by the
department to prioritize its inspection schedule. The department may
inspect a warehouse operator at any time based on a risk of loss to
the fund according to the risk rating. A substantial risk of loss to
the grain depositors and sellers indemnity fund caused by the
possible insolvency of the warehouse operator based on the
statistical model shall be good cause. Section History: Recent Form
92 Acts, ch 1239, §77
Referred to in § 203C.1, 203C.2