60-10 Credit-Sale Contract Indemnity
Download pdf
Loading PDF...
<![CDATA[CHAPTER 60-10CREDIT-SALE CONTRACT INDEMNITY60-10-01.Credit-sale contracts - Assessment on grain - Submission ofassessment. An assessment at the rate of two-tenths of one percent is placed on the value of<br>all grain sold in this state under a credit-sale contract, as provided for in sections 60-02-19.1 and<br>60-02.1-14.The licensee purchasing the grain shall note the assessment on the contractrequired under sections 60-02-19.1 and 60-02.1-14 and shall deduct the assessment from the<br>purchase price payable to the seller. The licensee shall submit any assessment collected under<br>this section to the public service commission no later than thirty days after each calendar quarter.<br>The commission shall deposit the assessments received under this section in the credit-sale<br>contract indemnity fund.60-10-02.Credit-salecontractindemnityfund-Creation-Continuingappropriation. There is created in the state treasury the credit-sale contract indemnity fund.<br>The state treasurer shall invest available moneys in the fund in accordance with section 21-10-07<br>and in cooperation with the public service commission and shall deposit any income earned<br>through the investments into the fund. The fund and earnings of the fund are appropriated to the<br>public service commission on a continuing basis to be used exclusively to carry out the intent and<br>purpose of this chapter.60-10-03. Credit-sale contract indemnity fund - Suspension of assessment. At theend of the calendar quarter in which the credit-sale contract indemnity fund reaches a level of six<br>million dollars, the public service commission shall suspend collection of the assessment<br>required by this chapter. If after suspension of collection the balance in the fund is less than<br>three million dollars, the public service commission shall require collection of the assessment.60-10-04. Credit-sale contract indemnity fund - Eligibility for reimbursement. Aperson is eligible to receive indemnity payments from the credit-sale contract indemnity fund if:1.After August 1, 2003, the person sold grain to a licensed warehouse or a grain buyer<br>in this state under the provisions of a credit-sale contract;2.The licensed warehouse to which the person sold grain or the grain buyer to whom<br>the person sold grain becomes insolvent; and3.The licensed warehouse or the grain buyer, as a result of the insolvency, does not<br>fully compensate the person in accordance with the credit-sale contract.60-10-05. Credit-sale contract indemnity fund - Availability of money. Upon theinsolvency of a licensed warehouse or a grain buyer and a declaration that the public service<br>commission serve as the trustee, the public service commission shall make the proceeds of the<br>credit-sale contract indemnity fund available for use in meeting the licensee's obligations with<br>respect to the reimbursement of any person who sold grain to the licensee under a credit-sale<br>contract and who was not fully compensated in accordance with the contract.60-10-06. Credit-sale contract indemnity fund - Reimbursement limit. The amountpayable to any eligible person from the credit-sale contract indemnity fund for each insolvency<br>may not exceed the lesser of eighty percent of the amount owed to that eligible person in<br>accordance with all of that person's unsatisfied credit-sale contracts or two hundred eighty<br>thousand dollars.60-10-07.Credit-sale contract indemnity fund - Prorated claims.If claims forindemnity payments from the credit-sale contract indemnity fund exceed the amount in the fund,<br>the public service commission shall prorate the claims and pay the prorated amounts. As future<br>assessments are collected, the public service commission shall continue to forward indemnity<br>payments to each eligible person until the person receives the maximum amount payable in<br>accordance with this chapter.Page No. 160-10-08. Reimbursement for later insolvencies. The public service commission shallensure that all persons eligible for payment from the indemnity fund as a result of an insolvency<br>are fully compensated to the extent permitted by this chapter before any payments from the<br>indemnity fund are initiated as a result of a later insolvency.The chronological order ofinsolvencies is determined by the date the public service commission is appointed trustee under<br>section 60-02.1-29 or 60-04-03.60-10-09. Credit-sale contract indemnity fund - Reimbursement for administrativeexpenses.Any expense incurred by the public service commission in administrating thecredit-sale contract indemnity fund is reimbursable from the fund before any other claim for<br>indemnity is paid.60-10-10.Credit-sale contract indemnity fund assessment - Failure to collectassessment - Penalty. Any person who knowingly or intentionally refuses or fails to collect the<br>assessment required under this chapter from producers or to submit any assessment collected<br>from producers to the public service commission for deposit in the credit-sale contract indemnity<br>fund is guilty of a class A misdemeanor.60-10-11. Revocation and suspension. The commission may suspend or revoke thelicense of any licensee for cause upon notice and hearing for violation of this chapter.60-10-12.Cease and desist.If a person engages in an activity or practice that iscontrary to this chapter or rules adopted by the commission, the commission, upon its own<br>motion without complaint and with or without a hearing, may order the person to cease and<br>desist from the activity until further order of the commission.The order may include anycorrective action up to and including license suspension. A cease and desist order must be<br>accompanied by a notice of opportunity to be heard on the order within fifteen days of the<br>issuance of the order.60-10-13. Claims. A claim concerning a grain buyer must be administered in a mannerconsistent with chapter 60-02.1. A claim concerning a state licensed grain warehouse must be<br>administered in a manner consistent with chapter 60-04. A payment may not be made from the<br>credit-sale contract indemnity fund for a claim based on losses resulting from the sale of grain to<br>a person not licensed under chapter 60-02, chapter 60-02.1, or the United States Warehouse Act<br>[Pub. L. 106-472; 114 Stat. 2061; 7 U.S.C. 241 et seq.].60-10-14.Subrogation.Money paid from the credit-sale contract indemnity fund insatisfaction of a valid claim constitutes a debt obligation of the person against whom the claim<br>was made. The commission may take action on behalf of the fund against a person to recover<br>the amount of payment made, plus costs and attorney's fees. Any recovery for reimbursement to<br>the fund must include interest computed at the weight average prime rate charged by the Bank of<br>North Dakota.Upon payment of a claim from the credit-sale contract indemnity fund, theclaimant shall subrogate its interest, if any, to the commission in a cause of action against all<br>parties, to the amount of the loss that the claimant was reimbursed by the fund.60-10-15.Unlicensed facility-based grain buyer.This chapter also applies to afacility-based grain buyer, as defined in section 60-02.1-01, which is licensed under the United<br>States Warehouse Act but which does not possess a state grain buyer license. The commission<br>has the duty and power to examine and inspect, during regular business hours, all books,<br>documents, and records related to collections and remittances pertaining to the credit-sale<br>contract indemnity fund.In the case of insolvency, credit-sale contract payments to validclaimants must be reduced by an amount equal to the credit-sale contract indemnity payments<br>received from payments administered by the United States department of agriculture.60-10-16.Roving grain buyers - Exception - Applicability of provisions.Notwithstanding any other law, this chapter does not apply to any person that purchases, solicits,<br>or merchandises grain, which has been cleaned, processed, and made ready for consumption,<br>from a public warehouseman licensed and bonded under chapter 60-02 or from a facility-based<br>grain buyer licensed and bonded under chapter 60-02.1. If the person engages in any activityPage No. 2other than those described in this section, the person is subject to the law governing those other<br>activities.Page No. 3Document Outlinechapter 60-10 credit-sale contract indemnity]]>