State of Illinois
91st General Assembly
Public Acts

[ Home ]  [ ILCS ] [ Search ] [ Bottom ]
 [ Other General Assemblies ]

Public Act 91-0213

SB1070 Enrolled                                LRB9102813LDmb

    AN ACT to amend the Grain Code by changing Sections 1-10,
1-15, 5-30, 10-10, 10-15, 10-25, 25-10, 25-20, and 30-5.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

    Section  5.   The  Grain  Code  is  amended  by  changing
Sections 1-10, 1-15, 5-30, 10-10, 10-15, 10-25, 25-10, 25-20,
and 30-5 as follows:

    (240 ILCS 40/1-10)
    Sec. 1-10.  Definitions.  As used in this Act:
    "Board"  means  the  governing body of the Illinois Grain
Insurance Corporation.
    "Certificate" means a document, other than  the  license,
issued by the Department that certifies that a grain dealer's
license has been issued and is in effect.
    "Claimant" means:
    (a)  a person, including, without limitation, a lender:
         (1)  who possesses warehouse receipts issued from an
    Illinois  location  covering  grain  owned or stored by a
    failed warehouseman; or
         (2)  who has other written  evidence  of  a  storage
    obligation  of  a  failed  warehouseman  issued  from  an
    Illinois  location in favor of the holder, including, but
    not limited to, scale  tickets,  settlement  sheets,  and
    ledger cards; or
         (3)  who  has loaned money to a warehouseman and was
    to receive a warehouse receipt issued  from  an  Illinois
    location  as  security  for  that  loan,  who surrendered
    warehouse receipts as part of a grain sale at an Illinois
    location, or who delivered grain out of storage with  the
    warehouseman  as  part  of  a  grain  sale at an Illinois
    location; and
              (i)  the grain dealer  or  warehouseman  failed
         within   21  days  after  the  loan  of  money,  the
         surrender of warehouse receipts, or the delivery  of
         grain,  as the case may be, and no warehouse receipt
         was issued or payment in full was not  made  on  the
         grain sale, as the case may be; or
              (ii)  written notice was given by the person to
         the  Department  within  21  days  after the loan of
         money, the surrender of warehouse receipts,  or  the
         delivery  of grain, as the case may be, stating that
         no warehouse receipt was issued or payment  in  full
         made on the grain sale, as the case may be; or
    (b)  a  producer  not  included  in  item  (a)(3)  in the
definition of "Claimant" who possesses evidence of  the  sale
at  an Illinois location of grain delivered to a failed grain
dealer and who was not paid in full.
    "Class  I  warehouseman"  means  a  warehouseman  who  is
authorized to issue negotiable and  non-negotiable  warehouse
receipts.
    "Class  II  warehouseman"  means  a  warehouseman  who is
authorized to issue only non-negotiable warehouse receipts.
    "Code" means the Grain Code.
    "Collateral" means:
    (a)  irrevocable letters of credit;
    (b)  certificates of deposit;
    (c)  cash or a cash equivalent; or
    (d)  any other property acceptable to the  Department  to
the  extent  there  exists  equity in that property.  For the
purposes of this item (d), "equity" is the  amount  by  which
the fair market value of the property exceeds the amount owed
to  a  creditor  who  has  a valid, prior, perfected security
interest in or other lien on the property.
    "Corporation"  means   the   Illinois   Grain   Insurance
Corporation.
    "Daily   position   record"   means   a  grain  inventory
accountability  record  maintained  on  a  daily  basis  that
includes  an  accurate  reflection  of   changes   in   grain
inventory,  storage  obligations,  company-owned inventory by
commodity, and other information  that  is  required  by  the
Department.
    "Daily  grain  transaction  report" means a record of the
daily transactions of a grain dealer showing  the  amount  of
all grain received and shipped during each day and the amount
on hand at the end of each day.
    "Date of delivery of grain" means:
    (a)  the  date  grain  is delivered to a grain dealer for
the purpose of sale;
    (b)  the date grain is delivered to  a  warehouseman  for
the purpose of storage; or
    (c)  in   reference   to   grain   in   storage   with  a
warehouseman,  the  date  a  warehouse  receipt  representing
stored grain is delivered to  the  issuer  of  the  warehouse
receipt for the purpose of selling the stored grain or, if no
warehouse receipt was issued:
         (1)  the date the purchase price for stored grain is
    established; or
         (2)  if  sold  by  price later contract, the date of
    the price later contract.
    "Department"   means   the   Illinois    Department    of
Agriculture.
    "Depositor"  means a person who has evidence of a storage
obligation from a warehouseman.
    "Director", unless otherwise provided, means the Illinois
Director of Agriculture, or the Director's designee.
    "Emergency storage" means space measured in  bushels  and
used  for a period of time not to exceed 3 months for storage
of grain as a consequence of an emergency situation.
    "Equity assets" means:
    (a)  The equity in any property of the licensee or failed
licensee, other than grain assets.  For purposes of this item
(a):
         (1)  "equity" is the amount by which the fair market
    value of the  property  exceeds  the  amount  owed  to  a
    creditor  who  has  a valid security interest in or other
    lien on the property that was perfected before  the  date
    of failure of the licensee;
         (2)  a  creditor  is  not  deemed  to  have  a valid
    security interest or other lien on property  if  (i)  the
    property can be directly traced as being from the sale of
    grain  by  the  licensee  or  failed  licensee;  (ii) the
    security interest was taken as additional  collateral  on
    account  of  an antecedent debt owed to the creditor; and
    (iii) the security interest or other lien  was  perfected
    (A)  on  or  within 90 days before the date of failure of
    the licensee or  (B)  when  the  creditor  is  a  related
    person,  within  one  year  of the date of failure of the
    licensee.
    "Failure" means, in reference to a licensee:
    (a)  a  formal declaration of insolvency;
    (b)  a revocation of a license;
    (c)  a failure to  apply  for  license  renewal,  leaving
indebtedness to claimants;
    (d)  a denial of license renewal, leaving indebtedness to
claimants; or
    (e)  a   voluntary   surrender   of  a  license,  leaving
indebtedness to claimants.
    "Federal warehouseman" means a warehouseman  licensed  by
the   United   States  government  under  the  United  States
Warehouse Act (7 U.S.C. 241 et seq.).
    "Fund" means the Illinois Grain Insurance Fund.
    "Grain" means corn, soybeans, wheat, oats,  rye,  barley,
grain  sorghum, canola, buckwheat, flaxseed, edible soybeans,
and other like agricultural commodities designated by rule.
    "Grain assets" means:
    (a)  all grain owned and all grain stored by  a  licensee
or failed licensee, wherever located;
    (b)  redeposited grain of a licensee or failed licensee;
    (c)  identifiable  proceeds,  including,  but not limited
to, insurance proceeds, received by or due to a  licensee  or
failed   licensee   resulting   from   the   sale,  exchange,
destruction, loss, or theft of grain, or other disposition of
grain by the licensee or failed licensee; or
    (d)  assets in hedging  or  speculative  margin  accounts
held  by  commodity  or  security  exchanges  on  behalf of a
licensee or failed licensee and any moneys due or  to  become
due  to  a  licensee  or  failed  licensee,  less any secured
financing directly associated with those  assets  or  moneys,
from any transactions on those exchanges.
    For   purposes  of  this  Act,  storage  charges,  drying
charges, price later  contract  service  charges,  and  other
grain  service  charges  received  by or due to a licensee or
failed licensee shall not be deemed to be grain  assets,  nor
shall  such charges be deemed to be proceeds from the sale or
other  disposition  of  grain  by  a  licensee  or  a  failed
licensee, or to have been directly  or  indirectly  traceable
from, to have resulted from, or to have been derived in whole
or  in  part from, or otherwise related to, the sale or other
disposition of grain by the licensee or failed licensee.
    "Grain dealer" means a person  who  is  licensed  by  the
Department  to  engage  in  the business of buying grain from
producers.
    "Grain Indemnity Trust Account"  means  a  trust  account
established  by the Director under Section 40.23 of the Civil
Administrative Code of Illinois that is used for the  receipt
and  disbursement  of  moneys paid from the Fund and proceeds
from the liquidation of and  collection  upon  grain  assets,
equity  assets,  collateral,  or guarantees of or relating to
failed licensees.  The Grain Indemnity Trust Account shall be
used to pay valid claims, authorized refunds from  the  Fund,
and   expenses   incurred  in  preserving,  liquidating,  and
collecting upon grain assets, equity assets, collateral,  and
guarantees relating to failed licensees.
    "Guarantor" means a person who assumes all or part of the
obligations of a licensee to claimants.
    "Guarantee"  means  a document executed by a guarantor by
which the guarantor assumes all or part of the obligations of
a licensee to claimants.
    "Incidental  grain  dealer"  means  a  grain  dealer  who
purchases grain  only  in  connection  with  a  feed  milling
operation  and  whose total purchases of grain from producers
during the grain dealer's fiscal year do not exceed $100,000.
    "Licensed  storage  capacity"  means  the  maximum  grain
storage  capacity  measured  in  bushels  approved   by   the
applicable licensing agency for use by a warehouseman.
    "Licensee"  means  a  grain dealer or warehouseman who is
licensed by the Department and a federal warehouseman that is
a participant in the Fund, under subsection  (c)  of  Section
30-10.
    "Official  grain  standards"  means  the  official  grade
designations  as  adopted  by the United States Department of
Agriculture under the United States Grain Standards  Act  and
regulations adopted under that Act (7 U.S.C. 71 et seq. and 7
CFR 810.201 et seq.).
    "Permanent   storage  capacity"  means  the  capacity  of
permanent structures available for  storage  of  grain  on  a
regular and continuous basis and measured in bushels.
    "Person"  means  any individual or entity, including, but
not limited to,  a  sole  proprietorship,  a  partnership,  a
corporation,   a   cooperative,  an  association,  a  limited
liability company, an estate, or a trust.
    "Price later contract" means a written contract  for  the
sale  of  grain whereby any part of the purchase price may be
established by the seller after delivery of the  grain  to  a
grain  dealer according to a pricing formula contained in the
contract.  Title to the grain passes to the grain  dealer  at
the time of delivery.  The precise form and the general terms
and conditions of the contract shall be established by rule.
    "Producer"  means  the owner, tenant, or operator of land
who has an interest in  and  receives  all  or  part  of  the
proceeds from the sale of the grain produced on the land.
    "Producer protection holding corporation" means a holding
corporation  to  receive, hold title to, and liquidate assets
of or relating to a  failed  licensee,  including  assets  in
reference  to  collateral  or guarantees relating to a failed
licensee.
    "Related persons" means affiliates  of  a  licensee,  key
persons  of a licensee, owners of a licensee, and persons who
have control over a  licensee.   For  the  purposes  of  this
definition:
         (a)  "Affiliate"  means  a  person who has direct or
    indirect control  of  a  licensee,  is  controlled  by  a
    licensee, or is under common control with a licensee.
         (b)  "Key  person"  means  an officer, a director, a
    trustee, a partner, a proprietor, a manager,  a  managing
    agent,  or  the  spouse  of  a licensee.  An officer or a
    director  of  an  entity  organized  or  operating  as  a
    cooperative, however, shall not be  considered  to  be  a
    "key person".
         (c)  "Owner"  means  the  holder of: over 10% of the
    total combined voting power of a corporation or over  10%
    of the total value of shares of all classes of stock of a
    corporation;  over  a 10% interest in a partnership; over
    10% of the value of a trust computed actuarially; or over
    10% of the legal or  beneficial  interest  in  any  other
    business,  association,  endeavor,  or  entity  that is a
    licensee.  For purposes of computing these percentages, a
    holder is deemed to own stock or  other  interests  in  a
    business  entity  whether  the  ownership  is  direct  or
    indirect.
         (d)  "Control" means the power to exercise authority
    over  or  direct the management or policies of a business
    entity.
         (e)  "Indirect" means an interest in a business held
    by the holder not through the holder's actual holdings in
    the business, but through the holder's holdings in  other
    businesses.
         (f)  Notwithstanding  any  other  provision  of this
    Act, the term "related person" does not include a lender,
    secured party, or other lien holder solely by  reason  of
    the existence of the loan, security interest, or lien, or
    solely  by  reason of the lender, secured party, or other
    lien holder having or  exercising  any  right  or  remedy
    provided  by  law  or  by  agreement with a licensee or a
    failed licensee.
    "Successor agreement"  means  an  agreement  by  which  a
licensee  succeeds  to  the  grain  obligations  of  a former
licensee.
    "Temporary storage space" means space measured in bushels
and used for 6 months or less  for  storage  of  grain  on  a
temporary  basis  due  to  a  need  for additional storage in
excess of permanent storage capacity.
    "Trust account" means the Grain Indemnity Trust Account.
    "Valid claim" means a claim,  submitted  by  a  claimant,
whose  amount  and  category  have  been  determined  by  the
Department,  to  the extent that determination is not subject
to further administrative review or appeal.
    "Warehouse" means a building, structure, or enclosure  in
which  grain  is  stored  for  the  public  for compensation,
whether grain of different owners is  commingled  or  whether
identity of different lots of grain is preserved.
    "Warehouse  receipt"  means  a receipt for the storage of
grain issued  by a warehouseman.
    "Warehouseman" means a person who is licensed:
         (a)  by the Department to engage in the business  of
    storing grain for compensation; or
         (b)  under  the  United  States  Warehouse  Act  who
    participates  in the Fund under subsection (c) of Section
    30-10.
(Source: P.A. 89-287, eff. 1-1-96.)

    (240 ILCS 40/1-15)
    Sec. 1-15.  Powers and duties of Director.  The  Director
has  all powers necessary and proper to fully and effectively
execute the provisions of this Code and has the general  duty
to  implement  this  Code.   The Director's powers and duties
include, but are not limited to, the following:
    (1)  The Director may, upon application, issue or  refuse
to  issue  licenses  under  this  Code,  and the Director may
extend,  renew,  reinstate,  suspend,   revoke,   or   accept
voluntary surrender of  licenses under this Code.
    (2)  The Director shall examine and inspect each licensee
at  least  once each calendar year.  The Director may inspect
the premises used by a licensee  at  any  time.   The  books,
accounts,  records, and papers of a licensee are at all times
during business hours subject to inspection by the  Director.
Each  licensee  may  also  be required to make reports of its
activities, obligations, and  transactions  that  are  deemed
necessary  by the Director to determine whether the interests
of producers  and  the  holders  of  warehouse  receipts  are
adequately  protected and safeguarded.  The Director may take
action or issue orders that in the opinion  of  the  Director
are necessary to prevent fraud upon or discrimination against
producers or depositors by a licensee.
    (3)  The Director may, upon his or her initiative or upon
the  written  verified  complaint of any person setting forth
facts that if proved would constitute grounds for  a  refusal
to issue or renew a license or for a suspension or revocation
of  a license, investigate the actions of any person applying
for, holding, or claiming to hold a license  or  any  related
party of that person.
    (4)  The  Director  (but not the Director's designee) may
issue subpoenas and bring before the  Department  any  person
and  take testimony either at an administrative hearing or by
deposition with witness fees and mileage fees and in the same
manner as prescribed in the Code  of  Civil  Procedure.   The
Director  or  the Director's designee may administer oaths to
witnesses at any proceeding that the Department is authorized
by law to conduct.  The  Director  (but  not  the  Director's
designee)  may  issue  subpoenas  duces  tecum to command the
production of records  relating  to  a  licensee,  guarantor,
related business, related person, or related party. Subpoenas
are subject to the rules of the Department.
    (5)  Notwithstanding   other   judicial   remedies,   the
Director  may  file  a  complaint  and  apply for a temporary
restraining order  or  preliminary  or  permanent  injunction
restraining   or  enjoining  any  person  from  violating  or
continuing to violate this Code or its rules.
    (6)  The Director shall act  as  Trustee  for  the  Trust
Account,  act  as  Trustee  over  all collateral, guarantees,
grain assets, and equity assets held by  the  Department  for
the  benefit  of  claimants,  and exercise certain powers and
perform related duties under Section 20-5 of  this  Code  and
Section  40.23  of the Civil Administrative Code of Illinois,
except that the provisions of the Trust and Trustees  Act  do
not  apply  to  the  Trust Account or any other trust created
under this Code.
    (7)  The Director shall personally serve as president  of
the Corporation.
    (8)  The  Director shall collect and deposit all monetary
penalties, printer registration fees, funds, and  assessments
authorized under this Code into the Fund.
    (9)  The  Director  may  initiate any action necessary to
pay refunds from the Fund.
    (10)  The Director shall maintain a  holding  corporation
to  receive,  hold  title  to,  and  liquidate  assets  of or
relating to a failed licensee, including assets in  reference
to  collateral  or  guarantees, and deposit the proceeds into
the Fund.
    (11)  The  Director  may  initiate,  participate  in,  or
withdraw from any proceedings to liquidate and  collect  upon
grain  assets,  equity  assets,  collateral,  and  guarantees
relating to a failed licensee, including, but not limited to,
all  powers  needed  to  carry  out the provisions of Section
20-15.
    (12)  The Director, as Trustee or otherwise, may take any
action that may be reasonable or appropriate to enforce  this
Code and its rules.
(Source: P.A. 89-287, eff. 1-1-96.)

    (240 ILCS 40/5-30)
    Sec.  5-30.    Grain  Insurance  Fund  assessments.   The
Illinois   Grain   Insurance   Fund   is   established  as  a
continuation of the fund created  under  the  Illinois  Grain
Insurance  Act,  now repealed. Licensees and applicants for a
new license shall  pay  assessments  as  set  forth  in  this
Section.
    (a)  Subject   to  subsection  (e)  of  this  Section,  a
licensee that is newly licensed after the effective  date  of
this  Code  shall  pay  an  assessment  into  the  Fund for 3
consecutive  years.   Except  as  provided  in  item  (6)  of
subsection (b) of this Section, the first assessment shall be
paid at the time of or before the issuance of a new  license,
the  second  assessment  shall be paid on or before the first
anniversary date of the issuance of the new license, and  the
third  assessment  shall  be  paid  on  or  before the second
anniversary date of the issuance of the new license.   For  a
grain   dealer,   the  initial  payment  of  each  of  the  3
assessments shall be based upon the total estimated value  of
grain  purchases  by the grain dealer for the applicable year
with the final assessment amount determined as set  forth  in
item  (6)  of  subsection  (b)  of  this  Section.  After the
licensee has  paid  or  was  required  to  pay  the  first  3
assessments  to the Department for payment into the Fund, the
licensee shall be subject to subsequent  assessments  as  set
forth in subsection (d) of this Section.
    (b)  Grain dealer assessments.
         (1)  The  first  assessment for a grain dealer shall
    be an amount equal to:
              (A)  $0.000145 multiplied by the total value of
         grain purchases for the grain dealer's first  fiscal
         year  as  shown in the final financial statement for
         that year provided to the Department  under  Section
         5-20; and
              (B)  $0.000255  multiplied  by  that portion of
         the value of grain purchases for the grain  dealer's
         first  fiscal year that  exceeds the adjusted equity
         of the licensee multiplied by 20, as  shown  on  the
         final  financial  statement for the licensee's first
         fiscal year provided to the Department under Section
         5-20.
         (2)  The minimum assessment for the first assessment
    shall be $1,000 and the maximum shall be $10,000.
         (3)  The second assessment for a grain dealer  shall
    be an amount equal to:
              (A)  $0.0000725  multiplied  by the total value
         of grain purchases for  the  grain  dealer's  second
         fiscal   year   as  shown  in  the  final  financial
         statement for that year provided to  the  Department
         under Section 5-20; and
              (B)  $0.0001275  multiplied  by that portion of
         the value of grain purchases for the grain  dealer's
         second  fiscal year that exceeds the adjusted equity
         of the licensee multiplied by 20, as  shown  on  the
         final  financial statement for the licensee's second
         fiscal year provided to the Department under Section
         5-20.
         (4)  The third assessment for a grain  dealer  shall
    be an amount equal to:
              (A)  $0.0000725  multiplied  by the total value
         of grain purchases  for  the  grain  dealer's  third
         fiscal   year   as  shown  in  the  final  financial
         statement for that year provided to  the  Department
         under Section 5-20; and
              (B)  $0.0001275  multiplied  by that portion of
         the value of grain purchases for the grain  dealer's
         third  fiscal  year that exceeds the adjusted equity
         of the licensee multiplied by 20, as  shown  on  the
         final  financial  statement for the licensee's third
         fiscal year.
         (5)  The minimum second and third assessments  shall
    be  $500  per year and the maximum for each year shall be
    $5,000.
         (6)  Each  of  the  first  3  assessments  shall  be
    adjusted up or down based upon the  actual  annual  grain
    purchases  for  each year as shown in the final financial
    statement for that year provided to the Department  under
    Section 5-20.  The adjustments shall be determined by the
    Department  within  30  days  of  the date of approval of
    renewal of a license. Refunds shall be paid  out  of  the
    Fund within 60 days after the Department's determination.
    Additional  amounts owed for assessments shall be paid as
    provided in subsection (f) of this Section.
         (7)  For the purposes of  grain  dealer  assessments
    under  subsection (b) of this Section, the total value of
    grain purchases shall be the total value  of  first  time
    grain purchases by at Illinois locations from producers.
    (c)  Warehouseman assessments.
         (1)  The  first  assessment for a warehouseman shall
    be an amount equal to:
              (A)  $0.00085 multiplied by the total permanent
         storage capacity of the warehouseman at the time  of
         license issuance; and
              (B)  $0.00099 multiplied by that portion of the
         permanent  storage  capacity  of the warehouseman at
         the  time  of  license  issuance  that  exceeds  the
         adjusted equity of the licensee multiplied by 5, all
         as shown on the final financial  statement  for  the
         licensee  provided  to  the Department under Section
         5-10.
         (2)  The minimum assessment for the first assessment
    shall be $1,000 and the maximum shall be $10,000.
         (3)  The second and third assessments  shall  be  an
    amount equal to:
              (A)  $0.000425    multiplied   by   the   total
         permanent storage capacity of  the  warehouseman  at
         the time of license issuance; and
              (B)  $0.000495  multiplied  by  that portion of
         the  permanent  licensed  storage  capacity  of  the
         warehouseman at the time of  license  issuance  that
         exceeds   the   adjusted   equity  of  the  licensee
         multiplied by 5, as shown  on  the  final  financial
         statement  for  the licensee's last completed fiscal
         year provided to the Department under Section 5-20.
         (4)  The minimum assessment for the second and third
    assessments shall be $500 per assessment and the  maximum
    for each assessment shall be $5,000.
         (5)  Every warehouseman shall pay an assessment when
    increasing  available  permanent  storage  capacity in an
    amount equal to $0.001 multiplied by the total number  of
    bushels  to  be added to permanent storage capacity.  The
    minimum assessment on any increase in  permanent  storage
    capacity shall be $50 and the maximum assessment shall be
    $20,000.   The  assessment  based  upon  an  increase  in
    permanent storage capacity shall be paid at or before the
    time of approval of the  increase  in  permanent  storage
    capacity.   This  assessment  on  the increased permanent
    storage capacity does not relieve the warehouseman of any
    assessments as  set  forth  in  subsection  (d)  of  this
    Section.
         (6)  Every  warehouseman  shall pay an assessment of
    $0.0005 per  bushel  when  increasing  available  storage
    capacity  by use of temporary storage space.  The minimum
    assessment on temporary storage space shall be $100.  The
    assessment based upon temporary storage  space  shall  be
    paid  at  or before the time of approval of the amount of
    the temporary storage space.    This  assessment  on  the
    temporary  storage  space  capacity  does not relieve the
    warehouseman  of  any  assessments  as   set   forth   in
    subsection (d) of this Section.
         (7)  Every  warehouseman  shall pay an assessment of
    $0.001 per bushel  of  emergency    storage  space.   The
    minimum  assessment  on any emergency storage space shall
    be $100.  The assessment  based  upon  emergency  storage
    space  shall be paid at or before the time of approval of
    the  amount  of  the  emergency  storage   space.    This
    assessment  on  the  emergency  storage  space  does  not
    relieve  the warehouseman of any assessments as set forth
    in subsection (d) of this Section.
    (d)  Subsequent assessments.
         (1)  If the equity in the Fund is  below  $3,000,000
    on September 1st of any year, every grain dealer who has,
    or  was required to have, already paid the first, second,
    and third assessments shall be assessed by the Department
    an amount equal to:
              (A)  $0.0000725 multiplied by the  total  value
         of  grain  purchases  for  the  grain  dealer's last
         completed  fiscal  year  as  shown  in   the   final
         financial  statement  for  that year provided to the
         Department under Section 5-20; and
              (B)  $0.0001275 multiplied by that  portion  of
         the  value of grain purchases for the grain dealer's
         last completed fiscal year that exceeds the adjusted
         equity of the licensee multiplied by 20, as shown on
         the final financial  statement  for  the  licensee's
         last   completed   fiscal   year   provided  to  the
         Department under Section 5-20.
         The minimum amount for a subsequent assessment shall
    be $500 per year and the maximum amount shall  be  $5,000
    per  year.   For the purposes of grain dealer assessments
    under this item (1) of subsection (d)  of  this  Section,
    the  total  value  of  grain purchases shall be the total
    value of  first  time  grain  purchases  by  of  Illinois
    locations from producers.
         (2)  If  the  equity in the Fund is below $3,000,000
    on September 1st of any year, every warehouseman who has,
    or was required to have, already paid the first,  second,
    and third assessments shall be assessed by the Department
    an amount equal to:
              (A)  $0.000425 multiplied by the total licensed
         storage capacity of the warehouseman as of September
         1st of that year; and
              (B)  $0.000495  multiplied  by  that portion of
         the licensed storage capacity of the warehouseman as
         of September 1st  of  that  year  that  exceeds  the
         adjusted  equity of the licensee multiplied by 5, as
         shown on  the  final  financial  statement  for  the
         licensee's  last  completed  fiscal year provided to
         the Department under Section 5-20.
         The minimum amount for a subsequent assessment shall
    be $500 per year and the maximum amount shall  be  $5,000
    per year.
         (3)  If  the  due date for the payment by a licensee
    of the third assessment is after September 1st in a  year
    when  the  equity  in  the Fund is below $3,000,000, that
    licensee shall not be subject to a subsequent  assessment
    for that year.
    (e)  Newly licensed; exemptions.
         (1)  For  the purpose of assessing fees for the Fund
    under subsection (a) of this Section, and subject to  the
    provisions of item (e)(2) of this Section, the Department
    shall consider the following to be newly licensed:
              (A)  A  person  that becomes a licensee for the
         first time after the effective date of this Code.
              (B)  A licensee who has a lapse in licensing of
         more  than  30  days.   A  license  shall   not   be
         considered  to  be  lapsed  after  its revocation or
         termination if an administrative or judicial  action
         is  pending or if an order from an administrative or
         judicial body continues an existing license.
              (C)  A  grain  dealer   that   is   a   general
         partnership   in   which   there   is  a  change  in
         partnership interests and  that  change  is  greater
         than 50% during the partnership's fiscal year.
              (D)  A   grain   dealer   that   is  a  limited
         partnership in  which  there  is  a  change  in  the
         controlling  interest  of a general partner and that
         change is greater than 50% of the total  controlling
         interest  during  the  limited  partnership's fiscal
         year.
              (E)  A grain dealer that is a limited liability
         company in which there is  a  change  in  membership
         interests and that change is greater than 50% during
         the limited liability company's fiscal year.
              (F)  A  grain  dealer  that  is the result of a
         statutory consolidation if that person has  adjusted
         equity  of  less  than  90% of the combined adjusted
         equity of the predecessor persons who  consolidated.
         For  the  purposes  of  this paragraph, the adjusted
         equity of the resulting person shall  be  determined
         from  the  approved or certified financial statement
         submitted to the Department  for  the  first  fiscal
         year  of  the  resulting person.  For the purpose of
         this paragraph, the combined adjusted equity of  the
         predecessor persons shall be determined by combining
         the  adjusted  equity  of each predecessor person as
         set forth in the most recent approved  or  certified
         financial   statement  of  each  predecessor  person
         submitted to the Department.
              (G)  A grain dealer that is  the  result  of  a
         statutory  merger if that person has adjusted equity
         of less than 90% of the combined adjusted equity  of
         the   predecessor   persons  who  merged.   For  the
         purposes of this paragraph, the adjusted  equity  of
         the  resulting  person  shall be determined from the
         approved or certified financial statement  submitted
         to  the  Department for the first fiscal year of the
         resulting person ending after the merger.   For  the
         purposes  of  this  paragraph, the combined adjusted
         equity  of  the   predecessor   persons   shall   be
         determined  by combining the adjusted equity of each
         predecessor person as set forth in the  most  recent
         approved  or certified financial statement submitted
         to the Department for the last fiscal year  of  each
         predecessor  person  ending on the date of or before
         the merger.
              (H)  A  grain  dealer   that   is   a   general
         partnership   in   which   there   is  a  change  in
         partnership interests and that change is 50% or less
         during the partnership's fiscal year if the adjusted
         equity of the partnership after the change  is  less
         than  90%  of the adjusted equity of the partnership
         before  the  change.   For  the  purpose   of   this
         paragraph,  the  adjusted  equity of the partnership
         after  the  change  shall  be  determined  from  the
         approved or certified financial statement  submitted
         to  the  Department for the first fiscal year ending
         after  the  change.   For  the  purposes   of   this
         paragraph,  the  adjusted  equity of the partnership
         before the  change  shall  be  determined  from  the
         approved  or certified financial statement submitted
         to the Department for the last fiscal  year  of  the
         partnership  ending  on  the  date  of or before the
         change.
              (I)  A  grain  dealer   that   is   a   limited
         partnership  in  which  there  is  a  change  in the
         controlling interest of a general partner  and  that
         change  is  50%  or  less  of  the total controlling
         interest during the partnership's fiscal year if the
         adjusted equity of the partnership after the  change
         is  less  than  90%  of  the  adjusted equity of the
         partnership before the change.  For the purposes  of
         this   paragraph,   the   adjusted   equity  of  the
         partnership after the  change  shall  be  determined
         from  the  approved or certified financial statement
         submitted to the Department  for  the  first  fiscal
         year  ending  after the change.  For the purposes of
         this  paragraph,  the   adjusted   equity   of   the
         partnership  before  the  change shall be determined
         from the approved or certified  financial  statement
         submitted to the Department for the last fiscal year
         of  the  partnership ending on the date of or before
         the change.
              (J)  A grain dealer that is a limited liability
         company in which there is  a  change  in  membership
         interests  and  that  change  is  50% or less of the
         total  membership  interests  during   the   limited
         liability  company's  fiscal  year  if  the adjusted
         equity of the limited liability  company  after  the
         change  is  less  than 90% of the adjusted equity of
         the limited liability  company  before  the  change.
         For  the  purposes  of  this paragraph, the adjusted
         equity of the limited liability  company  after  the
         change  shall  be  determined  from  the approved or
         certified  financial  statement  submitted  to   the
         Department  for  the  first fiscal year ending after
         the change.  For the purposes of this paragraph, the
         adjusted equity of  the  limited  liability  company
         before  the  change  shall  be  determined  from the
         approved or certified financial statement  submitted
         to  the  Department  for the last fiscal year of the
         limited liability company ending on the date  of  or
         before the change.
              (K)  A  grain  dealer  that  is the result of a
         statutory consolidation or merger if one or more  of
         the predecessor  persons that consolidated or merged
         into  the resulting  grain dealer was not a licensee
         under this Code at the time of the consolidation  or
         merger.
         (2)  For  the purpose of assessing fees for the Fund
    as set forth in  subsection  (a)  of  this  Section,  the
    Department  shall  consider  the  following  as not being
    newly  licensed  and,  therefore,  exempt  from   further
    assessment unless an assessment is required by subsection
    (d) of this Section:
              (A)  A  person  resulting  solely  from  a name
         change of a licensee.
              (B)  A warehouseman changing  from  a  Class  I
         warehouseman  to  a  Class II warehouseman or from a
         Class II warehouseman  to  a  Class  I  warehouseman
         under this Code.
              (C)  A  licensee  that  becomes  a wholly owned
         subsidiary of another licensee.
              (D)  Subject to item (e)(1)(K) of this Section,
         a  person  that  is  the  result  of   a   statutory
         consolidation  if  that  person  has adjusted equity
         greater  than  or  equal  to  90%  of  the  combined
         adjusted  equity  of  the  predecessor  persons  who
         consolidated.  For the purposes of  this  paragraph,
         the adjusted equity of the resulting person shall be
         determined  from the approved or certified financial
         statement submitted to the Department for the  first
         fiscal  year  of  the  resulting  person.   For  the
         purpose  of  this  paragraph,  the combined adjusted
         equity  of  the   predecessor   persons   shall   be
         determined  by  combining  the  net  worth  of  each
         predecessor  person as set forth in the  most recent
         approved or certified financial  statement  of  each
         predecessor person submitted to the Department.
              (E)  Subject to item (e)(1)(K) of this Section,
         a person that is the result of a statutory merger if
         that  person  has  adjusted  equity  greater than or
         equal to 90% of the combined adjusted equity of  the
         predecessor persons who merged.  For the purposes of
         this paragraph, the adjusted equity of the resulting
         person  shall  be  determined  from  the approved or
         certified  financial  statement  submitted  to   the
         Department   for   the  first  fiscal  year  of  the
         resulting person ending after the merger.   For  the
         purposes  of  this  paragraph, the combined adjusted
         equity  of  the   predecessor   persons   shall   be
         determined  by combining the adjusted equity of each
         predecessor person as set forth in the  most  recent
         approved or certified financial statement, submitted
         to  the  Department for the last fiscal year of each
         predecessor person ending on the date of  or  before
         the merger.
              (F)  A  general partnership in which there is a
         change in partnership interests and that  change  is
         50% or less during the partnership's fiscal year and
         the  adjusted  equity  of  the partnership after the
         change is greater  than  or  equal  to  90%  of  the
         adjusted   equity  of  the  partnership  before  the
         change.  For the purposes  of  this  paragraph,  the
         adjusted  equity of the partnership after the change
         shall be determined from the approved  or  certified
         financial  statement submitted to the Department for
         the first fiscal year ending after the change.   For
         the  purposes of this paragraph, the adjusted equity
         of  the  partnership  before  the  change  shall  be
         determined from the approved or certified  financial
         statement  submitted  to the Department for the last
         fiscal year of the partnership ending on the date of
         or before the change.
              (G)  A limited partnership in which there is  a
         change  in  the  controlling  interest  of a general
         partner and that change is 50% or less of the  total
         controlling interest during the partnership's fiscal
         year  and  the  adjusted  equity  of the partnership
         after the change is greater than or equal to 90%  of
         the  adjusted  equity  of the partnership before the
         change.  For the purposes  of  this  paragraph,  the
         adjusted  equity of the partnership after the change
         shall be determined from the approved  or  certified
         financial  statement submitted to the Department for
         the first fiscal year ending after the change.   For
         the  purposes of this paragraph, the adjusted equity
         of  the  partnership  before  the  change  shall  be
         determined from the approved or certified  financial
         statement  submitted  to the Department for the last
         fiscal year of the partnership ending on the date of
         or before the change.
              (H)  A limited liability company in which there
         is a change in membership interests and that  change
         is  50%  or  less  of the total membership interests
         during the limited liability company's  fiscal  year
         if  the  adjusted  equity  of  the limited liability
         company after the change is greater than or equal to
         90% of the adjusted equity of the limited  liability
         company before the change.  For the purposes of this
         paragraph,   the  adjusted  equity  of  the  limited
         liability  company  after  the   change   shall   be
         determined  from the approved or certified financial
         statement submitted to the Department for the  first
         fiscal  year  ending  after  the  change.   For  the
         purposes  of  this paragraph, the adjusted equity of
         the limited  liability  company  before  the  change
         shall  be  determined from the approved or certified
         financial statement submitted to the Department  for
         the  last  fiscal  year  of  the  limited  liability
         company  ending on the date of or before the change.
              (I)  A licensed warehouseman that is the result
         of a statutory merger or consolidation to the extent
         the  combined  storage  capacity  of  the  resulting
         warehouseman  has  been  assessed  under  this  Code
         before the statutory merger or consolidation, except
         that  any  storage   capacity   of   the   resulting
         warehouseman  that  has not previously been assessed
         under this Code shall be  assessed  as  provided  in
         items (c)(5), (c)(6), and (c)(7) of this Section.
              (J)  A federal warehouseman who participated in
         the  Fund  under  Section 30-10 and who subsequently
         received an  Illinois  license  to  the  extent  the
         storage  capacity  of  the warehouseman was assessed
         under this Code prior to Illinois licensing.
    (f)  Except for the  first  assessment  made  under  this
Section,  and  assessments  under  items  (c)(5), (c)(6), and
(c)(7) of this Section, all assessments shall be paid to  the
Department  within  60  days  after  the  date  posted on the
written notice of assessment.  The Department  shall  forward
all paid assessments to the Fund.
(Source: P.A. 89-287, eff. 1-1-96.)

    (240 ILCS 40/10-10)
    Sec. 10-10.  Duties and requirements of grain dealers.
    (a)  Long and short market position.
         (1)  Grain  dealers  shall  at all times maintain an
    accurate and  current  long  and  short  market  position
    record  for  each  grain  commodity.  The position record
    shall at a minimum contain the net position of all  grain
    owned,  wherever  located,  grain purchased and sold, and
    any grain option contract purchased or sold.
         (2)  Grain dealers, except grain  dealers  regularly
    and  continuously  reporting  to  the  Commodity  Futures
    Trading Commission or grain dealers who have obtained the
    permission  of the Department to have different open long
    or short market positions, may maintain an open  position
    in the grain commodity of which the grain dealer buys the
    greatest  number of bushels per fiscal year not to exceed
    one bushel for each $10 of adjusted equity at fiscal year
    end up to a maximum open position of 50,000  bushels  and
    one-half  that number of bushels up to 25,000 bushels for
    all other grain commodities that the grain dealer buys. A
    grain dealer, however, may maintain an open  position  of
    up  to   5,000 bushels for each grain commodity the grain
    dealer buys.
    (b)  The license issued by  the  Department  to  a  grain
dealer  shall  be  posted  in  the  principal  office  of the
licensee in this State.  A certificate  shall  be  posted  in
each  location  where  the  licensee engages in business as a
grain dealer.  In the case of a licensee operating a truck or
tractor trailer unit for the purpose of purchasing grain, the
licensee shall have a certificate carried in  each  truck  or
tractor  trailer  unit used in connection with the licensee's
grain dealer business.
    (c)  The licensee  must  have  at  all  times  sufficient
financial  resources  to  pay  producers  on demand for grain
purchased from them.
    (d)  A licensee that is solely a grain dealer shall on  a
daily  basis  maintain  an  accurate  and current daily grain
transaction report.
    (e)  A licensee  that  is  both  a  grain  dealer  and  a
warehouseman  shall  at  all  times  maintain an accurate and
current daily position record.
    (f)  In the case of a change  of  ownership  of  a  grain
dealer,  the obligations of a grain dealer do not cease until
the grain dealer its successor  is  properly  licensed  under
this   Code,  it  has  surrendered  all  unused  price  later
contracts to the Department and the successor has executed  a
successor's   agreement,   or  the  successor  has  otherwise
provided for the grain obligations of its predecessor.
    (g)  If a grain dealer proposes to cease  doing  business
as  a  grain dealer and there is no successor, it is the duty
of the grain dealer  to  surrender  all  unused  price  later
contracts  to  the  Department,  together  with  an affidavit
accounting for all grain dealer obligations setting forth the
arrangements made with producers for final disposition of the
grain dealer obligations and  indicating  the  procedure  for
payment  in full of all outstanding grain obligations.  It is
the duty of the Department to give notice by publication that
a grain dealer has ceased doing business without a successor.
After payment in full of all outstanding  grain  obligations,
it is the duty of the grain dealer to surrender its license.
(Source: P.A. 89-287, eff. 1-1-96.)

    (240 ILCS 40/10-15)
    Sec. 10-15.  Price later contracts.
    (a)  Price  later  contracts  shall  be  written on forms
prescribed by the Department.   Price  later  contract  forms
shall  be  printed  by  a  person  authorized  to print those
contracts by the Department after that person has  agreed  to
comply with each of the following:
         (1)  That all price later contracts shall be printed
    as    prescribed  by  the Department and shall be printed
    only for a licensed grain dealer.
         (2)  That  all  price  later  contracts   shall   be
    numbered  consecutively  and  a  complete record of these
    contracts shall be retained showing for whom printed  and
    the consecutive numbers printed on the contracts.
         (3)  That  a duplicate copy of all invoices rendered
    for printing price later contracts  that  will  show  the
    consecutive  numbers  printed  on  the contracts, and the
    number of contracts printed, shall be promptly  forwarded
    to the Department.
         (4)  that   the   person  shall  register  with  the
    Department and pay an annual registration fee of $100  to
    print price later contracts.
    (b)  A  grain  dealer  purchasing  grain  by  price later
contract shall at all  times  own  grain,  rights  in  grain,
proceeds  from the sale of grain, and other assets acceptable
to the Department as set forth in this Code totaling  90%  of
the  unpaid  balance  of  the  grain dealer's obligations for
grain purchased by price later contract.  That  amount  shall
at  all times remain unencumbered and shall be represented by
the aggregate of the following:
         (1)  Grain owned by the grain dealer valued by means
    of the hedging procedures method  that  includes  marking
    open contracts to market.
         (2)  Cash on hand.
         (3)  Cash  held  on  account  in  federally or State
    licensed financial institutions.
         (4)  Investments  held   in   time   accounts   with
    federally or State licensed financial institutions.
         (5)  Direct obligations of the U.S. government.
         (6)  Funds  on  deposit  Balances  in  grain  margin
    accounts determined by marking to market.
         (7)  Balances  due  or to become due to the licensee
    on price later contracts.
         (8)  Marketable securities, including mutual funds.
         (9)  Irrevocable letters of credit in favor  of  the
    Department and acceptable to the Department.
         (10)  Price later contract service charges due or to
    become due to the licensee.
         (11) Other evidence of proceeds  from  or  of  grain
    that is acceptable to the Department.
    (c)  For  the  purpose  of  computing the dollar value of
grain  and  the  balance  due   on   price   later   contract
obligations,  the  value  of  grain  shall  be figured at the
current market price.
    (d)  Title to grain sold by price  later  contract  shall
transfer  to  a  grain  dealer on the date of delivery of the
grain.  Therefore, no storage  charges  shall  be  made  with
respect  to  grain  purchased  by  price  later  contract.  A
service charge for handling the  contract,  however,  may  be
made.
    (e)  Subject  to  subsection  (f)  of  this Section, if a
price later contract is not signed by all parties  within  30
days  of  the  last  date of delivery of grain intended to be
sold by price later contract, then the grain intended  to  be
sold  by  price  later  contract  shall be priced on the next
business day after 30 days from the last date of delivery  of
grain  intended  to  be  sold  by price later contract at the
market price of the grain at the close of the  next  business
day  after  the 29th day. When the grain is priced under this
subsection, the grain dealer shall send notice to the  seller
of  the  grain  within  10 days. The notice shall contain the
number of bushels sold, the price per bushel, all  applicable
discounts,  the  net  proceeds, and a notice that states that
the Grain Insurance  Fund  shall  provide  protection  for  a
period  of  only  160  days  from  the date of pricing of the
grain.
    (f)  If grain is in storage with a  warehouseman  and  is
intended to be sold by price later contract, that grain shall
be  considered as remaining in storage and not be deemed sold
by price later  contract  until  the  date  the  price  later
contract is signed by all parties.
    (g)  Scale  tickets  or  other  approved  documents  with
respect  to  grain purchased by a grain dealer by price later
contract shall contain the  following:   "Sold  Grain;  Price
Later".
    (h)  Price  later contracts shall be issued consecutively
and recorded by the grain dealer as established by rule.
    (i)  A  grain  dealer  shall  not  issue   a   collateral
warehouse  receipt  on  grain  purchased  by  a  price  later
contract  to  the extent the purchase price has not been paid
by the grain dealer.
    (j)  Failure to comply  with  the  requirements  of  this
Section may result in suspension of the privilege to purchase
grain by price later contract for up to one year.
(Source: P.A. 89-287, eff. 1-1-96.)

    (240 ILCS 40/10-25)
    Sec. 10-25.  Warehouse receipts and storage of grain.
    (a)  When  grain  is  delivered  to  a  warehouseman at a
location where grain is also purchased,  the  licensee  shall
give  written  evidence of delivery of grain and that written
evidence shall be marked to indicate  whether  the  grain  is
delivered  for  storage  or  for  sale.   In  the  absence of
adequate evidence of sale, the grain shall be construed to be
in storage.
    (b)  Upon demand by a  depositor,  a  warehouseman  shall
issue warehouse receipts for grain delivered into storage.
    (c)  There  shall  be  no  charge for the first warehouse
receipt issued to a depositor  for  a  given  lot  of  grain.
Charges  for  any  additional  warehouse  receipts  for grain
previously  covered  by   a   warehouse   receipt   must   be
commensurate  with  the  cost  of  issuance of the additional
warehouse receipt.
    (d)  A warehouseman shall issue warehouse  receipts  only
in accordance with the following requirements:
         (1)  Warehouse   receipts   shall  be  consecutively
    numbered in a form prescribed by the Department and  when
    issued  from the same warehouse shall be consecutively by
    the warehouseman numbered.
         (2)  In the case of a lost  or  destroyed  warehouse
    receipt,  the  new  warehouse receipt shall bear the same
    date as the original and shall be plainly marked  on  its
    face  "duplicate  in  lieu of lost or destroyed warehouse
    receipt number .......", and the warehouseman shall  duly
    fill  in the blank with the appropriate warehouse receipt
    number.
         (3)  Warehouse receipts shall be printed by a person
    authorized printer approved by the Department. The person
    shall register with the  Department  and  pay  an  annual
    registration fee of $100 to print warehouse receipts.
         (4)  Negotiable  warehouse  receipts shall be issued
    only for grain actually in storage with the  warehouseman
    from   which   it   is  issued  or  redeposited  by  that
    warehouseman as provided in  subsection  (e)  of  Section
    10-20.
         (5)  A   warehouseman   shall   not  insert  in  any
    negotiable warehouse receipt issued by  it  any  language
    that  in  any  way  limits  or  modifies its liability or
    responsibility.
    (e)  Upon delivery  of  grain  covered  by  a  negotiable
warehouse  receipt,  the  holder  of the negotiable warehouse
receipt   must   surrender   the   warehouse   receipt    for
cancellation,  and a warehouseman must cancel and issue a new
negotiable warehouse receipt for  the  balance  of  grain  in
storage.
    (f)  When all grain, the storage of which is evidenced by
a warehouse receipt, is delivered from storage, the warehouse
receipt shall be plainly marked across its face with the word
"cancelled"  and  shall  have  written  on  it  the  date  of
cancellation,  the name of the person canceling the warehouse
receipt, and such other information as required by rule,  and
is thereafter void.
    (g)  When  a  warehouseman  delivers grain out of storage
but fails to collect  and  cancel  the  negotiable  warehouse
receipt, the warehouseman shall be liable to any purchaser of
the  negotiable warehouse receipt for value in good faith for
failure to deliver the grain to the  purchaser,  whether  the
purchaser acquired the negotiable warehouse receipt before or
after  the  delivery  of  the grain by the warehouseman.  If,
however, grain has been lawfully sold by  a  warehouseman  to
satisfy  its  warehouseman's lien, the warehouseman shall not
be liable for failure to deliver the grain  pursuant  to  the
demands  of a holder of a negotiable warehouse receipt to the
extent of the amount of grain sold.
    (h)  Except as otherwise provided by this Code  or  other
applicable  law,  a warehouseman shall deliver the grain upon
demand made by the holder of a warehouse  receipt  pertaining
to that grain if the demand is accompanied by:
         (1)  satisfaction of the warehouseman's lien;
         (2)  in  the case of a negotiable warehouse receipt,
    a properly endorsed negotiable warehouse receipt; or
         (3)  in  the  case  of  a  non-negotiable  warehouse
    receipt, written evidence that the grain was delivered to
    the warehouseman and that the depositor  is  entitled  to
    it.
    (i)  If  no warehouse receipt is issued to a depositor, a
warehouseman  shall  deliver  grain  upon  the  demand  of  a
depositor if the demand is accompanied by satisfaction of the
warehouseman's lien and written evidence that the  grain  was
delivered  to  the warehouseman and the depositor is entitled
to it.
    (j)  If a warehouseman refuses or fails to deliver  grain
in  compliance  with  a  demand  by  a  holder of a warehouse
receipt or a depositor, the burden is on the warehouseman  to
establish the existence of a lawful excuse for the refusal.
    (k)  If a warehouse receipt has been lost or destroyed, a
warehouseman  may  issue  a  substitute warehouse receipt, as
provided  for  in  this  Section,  upon   delivery   to   the
warehouseman  of  an  affidavit  under  oath stating that the
applicant for the substitute warehouse receipt is entitled to
the  original  warehouse  receipt  and  setting   forth   the
circumstances that resulted in the loss or destruction of the
original  warehouse  receipt.   The  warehouseman may request
from the depositor a bond in double the value  of  the  grain
represented  by the original warehouse receipt at the time of
issuance of the substitute warehouse receipt so as to protect
the warehouseman from any liability or expense  that  it,  or
any  person  injured  by the delivery, may incur by reason of
the original warehouse receipt remaining outstanding.
    (l)  A  warehouse  receipt  that  is  to  be   used   for
collateral purposes by a warehouseman must be first issued by
the warehouseman to itself.
    (m)  The Department shall approve temporary storage space
in  an  amount  to be determined by the Department if all the
following conditions are met:
         (1)  The warehouseman pays all fees and  assessments
    associated with the temporary storage space.
         (2)  The  warehouseman  demonstrates that there is a
    need for additional storage on a temporary basis due to a
    bumper crop or otherwise.
         (3)  The structure for the storage  of  grain  meets
    all of the following requirements:
              (A)    The  grain  storage area has a permanent
         base made of concrete, asphalt, or a material having
         similar structural qualities.
              (B)   Hot spot detectors,  aeration  fans,  and
         ducts  are  provided  to  assure that the quality of
         grain in storage is maintained.
              (C)   The grain  storage  structure  has  rigid
         sidewalls  made  of  concrete,  wood,  metal,  or  a
         material having similar structural qualities.
              (D)    The  grain storage structure is equipped
         with a waterproof covering of sufficient strength to
         support a person's weight and with inlets  to  allow
         airflow.
              (E)    Access  to the grain is provided for the
         purpose of sampling and making examinations.
         (4)  Temporary storage space shall be considered  an
    increase in the licensed storage capacity of the licensee
    and shall be subject to Section 5-30.
         (5)  The  authorization  to  use  temporary  storage
    space for the storage of grain shall expire at the end of
    6  months after the date of approval by the Department or
    May 15th, whichever comes first.
    (n)  The Department may approve emergency  storage  space
at the request of the licensee according to rule.
(Source: P.A. 89-287, eff. 1-1-96.)

    (240 ILCS 40/25-10)
    Sec. 25-10.  Claimant compensation.  Within 30 days after
the  day  on  which a claim becomes a valid claim, a claimant
shall be compensated to the extent  of  its  valid  claim  in
accordance with the following provisions:
    (a)  Valid  claims  filed by warehouse claimants shall be
paid 100% of the amount determined by the Department  out  of
the  net  proceeds  of the liquidation of grain assets as set
forth in this subsection (a).  To the extent the net proceeds
are insufficient, warehouse claimants shall be paid their pro
rata share of the net proceeds of the  liquidation  of  grain
assets  and,  subject  to  subsection (j) of this Section, an
additional amount per claimant not to exceed the  balance  of
their respective claims out of the Fund.
    (b)  Subject  to  subsection  (j) of this Section, if the
net proceeds as set forth in subsection (a) of  this  Section
are  insufficient  to  pay  in full all valid claims filed by
warehouse claimants as payment becomes due, the balance shall
be paid out of the Fund in accordance with subsection (b)  of
Section 25-20.
    (c)  Valid claims filed by producers who:
         (1)  have  delivered grain within 21 days before the
    date of failure for which pricing of that grain has  been
    completed before date of failure; or
         (2)  gave written notice to the Department within 21
    days  of the date of delivery of grain, if the pricing of
    that grain has been completed, that payment in  full  for
    that grain has not been made;
shall  be  paid,  subject  to subsection (j) of this Section,
100% of the amount of  the  valid  claim  determined  by  the
Department.  Valid claims that are included in subsection (c)
of this Section shall receive no payment under subsection (d)
of  this Section, and any claimant having a valid claim under
this subsection (c) determined by the  Department  to  be  in
excess of the limits, if any, imposed under subsection (j) of
this  Section  shall  be  paid  only  sums in excess of those
limits to the extent  additional  money  is  available  under
subsection (d)(2) of Section 25-20.
    (d)  Valid claims that are not included in subsection (c)
of  this  Section  that  are filed by producers who completed
delivery and pricing of  grain  in  reference  to  the  valid
claim, whichever is later, within 160 days before the date of
failure  shall  be  paid 85% of the amount of the valid claim
determined by the Department or $100,000, whichever is  less,
per claimant. For claims filed by producers for grain sold on
a  price  later  contract,  however, the later of the date of
execution of the contract or the date of delivery of grain in
reference to the grain covered by the  price  later  contract
must  not be more than 270 days before the date of failure in
order for the claimant to receive any compensation.
    (e)  Valid claims filed by producers for grain sold on  a
price  later contract, for which the final price has not been
established, shall be paid 85% of the  amount  of  the  valid
claims determined by the Department or $100,000, whichever is
less,  per claimant, if the later of the date of execution of
the contract or the date of delivery of grain in reference to
the grain covered by the price  later  contract  occurred  no
more than 270 days before the date of failure.  The execution
of  subsequent  price later contracts by the producer and the
licensee for  grain  previously  covered  by  a  price  later
contract  shall not extend the coverage of a claim beyond the
original 270 days.
    (f)  The maximum payment to producers  under  subsections
(d)  and (e) of this Section, combined, shall be $100,000 per
claimant.
    (g)  The following claims shall be barred and  disallowed
in  their  entirety and shall not be entitled to any recovery
from the Fund or the Trust Account:
         (1)  Claims filed by producers who completed pricing
    of the grain in reference to their claim in excess of 160
    days before the date of failure.
         (2)  Claims filed by producers for grain sold  on  a
    price  later  contract  if  the  later  of  the  date  of
    execution  of  the  contract  or  the date of delivery of
    grain in reference to the  grain  covered  by  the  price
    later  contract  occurred  more  than 270 days before the
    date of failure.
    (h)  To the extent moneys are available,  additional  pro
rata  payments  may be made to claimants under subsection (d)
of Section 25-20.
    (i)  For purposes of  this  Section,  a  claim  filed  in
connection with warehouse receipts that are possessed under a
collateral  pledge  of  a  producer, or that are subject to a
perfected security interest,  or  that  were  acquired  by  a
secured  party  or  of  lien  holder under an obligation of a
producer, shall be deemed to be a claim filed by the producer
and not a claim filed  by  the  secured  party  or  the  lien
holder,  regardless  of  whether  the  producer is in default
under that collateral pledge, security  agreement,  or  other
obligation.
    (j)  With  respect  to  any failure occurring on or after
July 1, 1998,  the  maximum  payment  out  of  the  Fund  for
claimants  under  subsection (a), (b), or (c) of this Section
shall be $1,000,000 per claimant and the maximum payment  out
of the Fund for claimants under subsections (c), (d), and (e)
of this Section, combined, shall be $1,000,000 per claimant.
(Source: P.A. 89-287, eff. 1-1-96.)

    (240 ILCS 40/25-20)
    Sec. 25-20.  Priorities and repayments.
    (a)  All  valid  claims  shall  be  paid  from  the Trust
Account,  as  provided  in  Section  25-10,  first  from  the
proceeds realized from liquidation of and collection upon the
grain assets relating to the failed licensee, as to warehouse
claimants, and the equity assets as to  a  secured  party  or
lien  holder  who has consented to the Department liquidating
and  collecting  upon  the  equity  asset  as  set  forth  in
subsection (f) of Section 20-15,  and  the  remaining  equity
assets,  collateral,  and  guarantees  relating to the failed
licensee, as to grain dealer claimants.
    (b)  If the proceeds realized  from  liquidation  of  and
collection  upon the grain assets, equity assets, collateral,
and  guarantees  relating  to   the   failed   licensee   are
insufficient  to  pay all valid claims as provided in Section
25-10 and subsection (a) of this Section as payment on  those
claims becomes due, the Director shall request from the Board
sufficient funds to be transferred from the Fund to the Trust
Account  to  pay  the balance owed to claimants as determined
under Section 25-10.  If a request is made  by  the  Director
for  a  transfer of funds to the Trust Account from the Fund,
the Board shall act on that request within 25 days after  the
date  of  that request.  Once moneys are transferred from the
Fund to the Trust Account, the Director shall pay the balance
owed to claimants in accordance with Section 25-10.
    (c)  Net proceeds from liquidation of grain assets as set
forth in subsection (a) of  Section  25-10  received  by  the
Department,  to  the  extent  not  already  paid to warehouse
claimants, shall be prorated among the fund and all warehouse
claimants who have not had their valid claims paid in full.
         (1)  The pro rata distribution to the Fund shall  be
    based  upon  the  total  amount  of  valid  claims of all
    warehouse claimants who have had their valid claims  paid
    in  full.   The  pro  rata distribution to each warehouse
    claimant who has not had his or her valid claims paid  in
    full  shall  be  based  upon  the  total  amount  of that
    claimant's original valid claims.
         (2)  If the net proceeds  from  the  liquidation  of
    grain  assets  as  set forth in subsection (a) of Section
    25-10 exceed all amounts  needed  to  satisfy  all  valid
    claims   filed   by   warehouse  claimants,  the  balance
    remaining shall be paid into the Trust Account or as  set
    forth in subsection (h) (g) of Section 25-20.
    (d)  Subject  to  subsections  (c) and (h) (g) of Section
25-20:
         (1)  The proceeds realized from liquidation  of  and
    collection   upon   the   grain  assets,  equity  assets,
    collateral,  and  guarantees  relating  to   the   failed
    licensee  or  any  other  assets  relating  to the failed
    licensee that are received  by  the  Department,  to  the
    extent not already paid to claimants, shall be first used
    to  repay  the  Fund  for moneys transferred to the Trust
    Account.
         (2)  After the Fund is repaid in full for the moneys
    transferred from it to pay the valid claims in  reference
    to  a  failed  licensee,  any remaining proceeds realized
    from liquidation of and collection upon the grain assets,
    equity assets, collateral, and guarantees relating to the
    failed licensee thereafter  received  by  the  Department
    shall  be  prorated to the claimants holding valid claims
    who have not received 100% of the amount of  their  valid
    claims  based  upon  the  unpaid  amount  of  their valid
    claims.
    (e)  After all claimants have received 100% of the amount
of their valid claims, to the  extent  moneys  are  available
interest  at  the  rate of 6% per annum shall be assessed and
paid to the Fund on all moneys transferred from the  Fund  to
the Trust Account.
    (f)  After  the  Fund is paid the interest as provided in
subsection (e) of this Section, then those claims barred  and
disallowed  under  subsection  (g)  of Section 25-10 shall be
paid on a pro rata basis only to the extent that  moneys  are
available.
    (g)  Once  all  claims  become valid claims and have been
paid in full and all interest as provided in  subsection  (e)
of  this  Section is paid in full, and all claims are paid in
full under subsection (f), any remaining grain assets, equity
assets, collateral, and guarantees, and the proceeds realized
from liquidation of and collection  upon  the  grain  assets,
equity  assets,  collateral,  and  guarantees relating to the
failed licensee, shall be returned to the failed licensee  or
its  assignee,  or  as  otherwise  directed  by  a  court  of
competent jurisdiction.
    (h)  If  amounts  in the Fund are insufficient to pay all
valid claims, the General Assembly shall appropriate  to  the
Corporation  amounts  sufficient to satisfy the valid claims.
If for any reason the  General  Assembly  fails  to  make  an
appropriation  to satisfy outstanding valid claims, this Code
constitutes an irrevocable and  continuing  appropriation  of
all  amounts  necessary  for that purpose and the irrevocable
and continuing authority  for  and  direction  to  the  State
Comptroller  and to the State Treasurer to make the necessary
transfers and disbursements from the revenues  and  funds  of
the State for that purpose.  Subject to payments to warehouse
claimants  as  set  forth in subsection (c) of Section 25-20,
the State  shall  be  reimbursed  as  soon  as  funds  become
available  for  any amounts paid under subsection (g) of this
Section upon replenishment of the Fund from assessments under
subsection (d) of Section  5-30  and  collection  upon  grain
assets, equity assets, collateral, and guarantees relating to
the failed licensee.
    (i)  The  Department shall have those rights of equitable
subrogation which may result from a claimant  receiving  from
the  Fund  payment  in  full of the obligations of the failed
licensee to the claimant.
(Source: P.A. 89-287, eff. 1-1-96.)

    (240 ILCS 40/30-5)
    Sec. 30-5.   Illinois Grain Insurance Corporation.
    (a)  The Corporation is  a  political  subdivision,  body
politic,  and public corporation. The governing powers of the
Corporation are vested in the Board of Directors composed  of
the  Director,  who  shall personally serve as president; the
Attorney General or his or her designee, who shall  serve  as
secretary;  the  State  Treasurer or his or her designee, who
shall serve as treasurer; the Director of the  Department  of
Insurance  or  his  or  her  designee;  and  the chief fiscal
officer of  the  Department.   Three  members  of  the  Board
constitute  a  quorum  at  any  meeting of the Board, and the
affirmative vote of 3 members is  necessary  for  any  action
taken  by the Board at a meeting, except that a lesser number
may adjourn a meeting from time to time.  A  vacancy  in  the
membership of the Board does not impair the right of a quorum
to  exercise all the rights and perform all the duties of the
Board and Corporation.
    (b)  The Corporation has the following  powers,  together
with  all  powers incidental or necessary to the discharge of
those powers in corporate form:
         (1)  To have perpetual succession by  its  corporate
    name as a corporate body.
         (2)    To  adopt,  alter,  and  repeal  bylaws,  not
    inconsistent  with  the  provisions of this Code, for the
    regulation and conduct of its affairs and business.
         (3)  To adopt and make use of a corporate  seal  and
    to alter the seal at pleasure.
         (4)  To  avail  itself  of  the  use of information,
    services, facilities,  and  employees  of  the  State  of
    Illinois in carrying out the provisions of this Code.
         (5)  To  receive  funds,  printer registration fees,
    and penalties assessed by the Department under this  Code
    Section 5-30.
         (6)  To  administer  the  Fund by investing funds of
    the Corporation that the  Board  may  determine  are  not
    presently needed for its corporate purposes.
         (7)  To  receive  funds  from the Trust  Account for
    deposit into the  Fund.
         (8)  Upon the  request  of  the  Director,  to  make
    payment  from  the Fund to the Trust Account when payment
    is necessary to compensate claimants in  accordance  with
    the provisions of Section 25-20 or for payment of refunds
    to  licensees  in  accordance with the provisions of this
    Code.
         (9)  To have those  powers  that  are  necessary  or
    appropriate  for  the exercise of the powers specifically
    conferred upon the Corporation and all incidental  powers
    that are customary in corporations.
(Source: P.A. 89-287, eff. 1-1-96.)

    Section  99.  Effective date.  This Act takes effect upon
becoming law.

[ Top ]