75-43-35 - Actions on bonds or against self-insurers for failure to redeem warehouse receipts.
§ 75-43-35. Actions on bonds or against self-insurers for failure to redeem warehouse receipts.
(1) In the absence of any contrary contractual agreement between the parties, it shall be the duty of the farm warehouseman to redeem a warehouse receipt within ten (10) days of the demand for the redemption of such receipt. Any holder of a warehouse receipt issued to a farm warehouseman by the commissioner, who has made demand for redemption of such receipt, which demand was, without lawful excuse, not satisfied within ten (10) days, shall notify the commissioner in writing and shall have the right to bring action against the farm warehouseman and the surety on the farm warehouseman's bond for payment of the market value of the grain represented by such warehouse receipt, such market value to be determined as of the date of the demand, plus legal interest accrued from the date of the demand. The surety has the responsibility to pay within fifteen (15) days following receipt by the surety of the notice of the demand for redemption. In the event the farm warehouseman is a self-insurer, as provided in Section 75-43-29, the holder of a warehouse receipt shall have the right to bring action against the farm warehouseman to the extent of the amount posted in lieu of the bond. The commissioner shall pay to the holder of the warehouse receipt, to the extent of the bond posted, any judgment obtained by the holder of a warehouse receipt against a self-insurer. The commissioner may also pay to the holder of a warehouse receipt the amount of the market value of the grain, provided that the farm warehouseman agrees to such payment; provided, however, the license of the farm warehouseman shall be suspended upon such payment until such time as the warehouseman posts a bond as provided in this chapter, or posts with the commissioner a sum equivalent to that paid by the commissioner on behalf of such warehouseman.
(2) In all actions in which judgment is rendered against any surety company under the provisions of this section, if it appears from evidence that the surety company has wilfully and without just cause refused to pay the loss upon demand, the court, in rendering judgment, shall allow the plaintiff the amount of the plaintiff's expenses, including court costs and attorney's fees, to be recovered and collected as part of the costs. The amount of any payment of costs and attorney's fees under this subsection will not reduce the surety's remaining liability on its bond.
Sources: Laws, 1978, ch. 434, § 12, eff from and after July 1, 1978.