75-44-21 - Maintenance of net assets for payment of indebtedness arising from conduct of warehouse.
§ 75-44-21. Maintenance of net assets for payment of indebtedness arising from conduct of warehouse.
(1) Each grain warehouseman shall have and maintain above all exemptions and liabilities, total net assets available for the payment of any indebtedness arising from the conduct of the grain warehouse in an amount equal to at least twenty cents (20) multiplied by the maximum number of bushels of grain for which the grain warehouse is licensed, provided that no person may be licensed as a grain warehouseman under the regulations in this part unless he has available net assets of at least twenty thousand dollars ($20,000.00); and provided further, that any deficiency in net assets required above the minimum of twenty thousand dollars ($20,000.00) may, at the discretion of the commissioner, be supplied by a commensurate increase in the amount of the grain warehouseman's bond furnished pursuant to Sections 75-44-29, 75-44-31, 75-44-33 and 75-44-35. In determining total available net assets, credit may be given for insurable assets such as buildings, machinery, equipment and merchandise inventory only to the extent of the current market value of such assets and only to the extent that such assets are protected by insurance against loss or damage. Such insurance shall be in the form of lawful policies issued by one or more insurance companies authorized to do business and subject to service of process in suits brought in this state, and which provide that no cancellation shall be effective unless thirty (30) days' advance notice of such cancellation is given to the commissioner.
(2) If a grain warehouseman is licensed or is applying for license to operate two (2) or more grain warehouses, the maximum total number of bushels which all such facilities will accommodate when stored in the manner customary to the warehouses, as determined by the commissioner, shall be considered in determining whether the grain warehouseman meets the available net assets requirement of subsection (1) of this section.
(3) For the purposes of subsections (1) and (2) of this section only, capital stock as such shall not be considered a liability.
Sources: Laws, 1977, ch. 409, § 11; Laws, 1981, ch. 354, § 8; Laws, 1982, ch. 367, § 1, eff from and after July 1, 1982.