State of Illinois
91st General Assembly

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 1        AN ACT to amend the Grain Code by changing Section 10-25.

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

 4        Section 5.  The Grain Code is amended by changing Section
 5    10-25 as follows:

 6        (240 ILCS 40/10-25)
 7        Sec. 10-25.  Warehouse receipts and storage of grain.
 8        (a)  When  grain  is  delivered  to  a  warehouseman at a
 9    location where grain is also purchased,  the  licensee  shall
10    give  written  evidence of delivery of grain and that written
11    evidence shall be marked to indicate  whether  the  grain  is
12    delivered  for  storage  or  for  sale.   In  the  absence of
13    adequate evidence of sale, the grain shall be construed to be
14    in storage.
15        (b)  Upon demand by a  depositor,  a  warehouseman  shall
16    issue warehouse receipts for grain delivered into storage.
17        (c)  There  shall  be  no  charge for the first warehouse
18    receipt issued to a depositor  for  a  given  lot  of  grain.
19    Charges  for  any  additional  warehouse  receipts  for grain
20    previously  covered  by   a   warehouse   receipt   must   be
21    commensurate  with  the  cost  of  issuance of the additional
22    warehouse receipt.
23        (d)  A warehouseman shall issue warehouse  receipts  only
24    in accordance with the following requirements:
25             (1)  Warehouse   receipts   shall   be   in  a  form
26        prescribed by the Department and  when  issued  from  the
27        same warehouse shall be consecutively numbered.
28             (2)  In  the  case  of a lost or destroyed warehouse
29        receipt, the new warehouse receipt shall  bear  the  same
30        date  as  the original and shall be plainly marked on its
31        face "duplicate in lieu of lost  or  destroyed  warehouse
                            -2-                LRB9101397MWks
 1        receipt  number .......", and the warehouseman shall duly
 2        fill in the blank with the appropriate warehouse  receipt
 3        number.
 4             (3)  Warehouse   receipts  shall  be  printed  by  a
 5        printer approved by the Department.
 6             (4)  Negotiable warehouse receipts shall  be  issued
 7        only  for grain actually in storage with the warehouseman
 8        from  which  it  is  issued  or   redeposited   by   that
 9        warehouseman  as  provided  in  subsection (e) of Section
10        10-20.
11             (5)  A  warehouseman  shall  not   insert   in   any
12        negotiable  warehouse  receipt  issued by it any language
13        that in any way  limits  or  modifies  its  liability  or
14        responsibility.
15        (e)  Upon  delivery  of  grain  covered  by  a negotiable
16    warehouse receipt, the holder  of  the  negotiable  warehouse
17    receipt    must   surrender   the   warehouse   receipt   for
18    cancellation, and a warehouseman must cancel and issue a  new
19    negotiable  warehouse  receipt  for  the  balance of grain in
20    storage.
21        (f)  When all grain, the storage of which is evidenced by
22    a warehouse receipt, is delivered from storage, the warehouse
23    receipt shall be plainly marked across its face with the word
24    "cancelled"  and  shall  have  written  on  it  the  date  of
25    cancellation, the name of the person canceling the  warehouse
26    receipt,  and  any such other information that as required by
27    rule, and is thereafter void.
28        (g)  When a warehouseman delivers grain  out  of  storage
29    but  fails  to  collect  and  cancel the negotiable warehouse
30    receipt, the warehouseman shall be liable to any purchaser of
31    the negotiable warehouse receipt for value in good faith  for
32    failure  to  deliver  the grain to the purchaser, whether the
33    purchaser acquired the negotiable warehouse receipt before or
34    after the delivery of the grain by  the  warehouseman.    If,
                            -3-                LRB9101397MWks
 1    however,  grain  has  been lawfully sold by a warehouseman to
 2    satisfy its warehouseman's lien, the warehouseman  shall  not
 3    be  liable  for  failure to deliver the grain pursuant to the
 4    demands of a holder of a negotiable warehouse receipt to  the
 5    extent of the amount of grain sold.
 6        (h)  Except  as  otherwise provided by this Code or other
 7    applicable law, a warehouseman shall deliver the  grain  upon
 8    demand  made  by the holder of a warehouse receipt pertaining
 9    to that grain if the demand is accompanied by:
10             (1)  satisfaction of the warehouseman's lien;
11             (2)  in the case of a negotiable warehouse  receipt,
12        a properly endorsed negotiable warehouse receipt; or
13             (3)  in  the  case  of  a  non-negotiable  warehouse
14        receipt, written evidence that the grain was delivered to
15        the  warehouseman  and  that the depositor is entitled to
16        it.
17        (i)  If no warehouse receipt is issued to a depositor,  a
18    warehouseman  shall  deliver  grain  upon  the  demand  of  a
19    depositor if the demand is accompanied by satisfaction of the
20    warehouseman's  lien  and written evidence that the grain was
21    delivered to the warehouseman and the depositor  is  entitled
22    to it.
23        (j)  If  a warehouseman refuses or fails to deliver grain
24    in compliance with a  demand  by  a  holder  of  a  warehouse
25    receipt  or a depositor, the burden is on the warehouseman to
26    establish the existence of a lawful excuse for the refusal.
27        (k)  If a warehouse receipt has been lost or destroyed, a
28    warehouseman may issue a  substitute  warehouse  receipt,  as
29    provided   for   in   this  Section,  upon  delivery  to  the
30    warehouseman of an affidavit  under  oath  stating  that  the
31    applicant for the substitute warehouse receipt is entitled to
32    the   original   warehouse  receipt  and  setting  forth  the
33    circumstances that resulted in the loss or destruction of the
34    original warehouse receipt.   The  warehouseman  may  request
                            -4-                LRB9101397MWks
 1    from  the  depositor  a bond in double the value of the grain
 2    represented by the original warehouse receipt at the time  of
 3    issuance of the substitute warehouse receipt so as to protect
 4    the  warehouseman  from  any liability or expense that it, or
 5    any person injured by the delivery, may incur  by  reason  of
 6    the original warehouse receipt remaining outstanding.
 7        (l)  A   warehouse   receipt  that  is  to  be  used  for
 8    collateral purposes by a warehouseman must be first issued by
 9    the warehouseman to itself.
10        (m)  The Department shall approve temporary storage space
11    in an amount to be determined by the Department  if  all  the
12    following conditions are met:
13             (1)  The  warehouseman pays all fees and assessments
14        associated with the temporary storage space.
15             (2)  The warehouseman demonstrates that there  is  a
16        need for additional storage on a temporary basis due to a
17        bumper crop or otherwise.
18             (3)  The  structure  for  the storage of grain meets
19        all of the following requirements:
20                  (A)   The grain storage area  has  a  permanent
21             base made of concrete, asphalt, or a material having
22             similar structural qualities.
23                  (B)    Hot  spot  detectors, aeration fans, and
24             ducts are provided to assure  that  the  quality  of
25             grain in storage is maintained.
26                  (C)    The  grain  storage  structure has rigid
27             sidewalls  made  of  concrete,  wood,  metal,  or  a
28             material having similar structural qualities.
29                  (D)   The grain storage structure  is  equipped
30             with a waterproof covering of sufficient strength to
31             support  a  person's weight and with inlets to allow
32             airflow.
33                  (E)   Access to the grain is provided  for  the
34             purpose of sampling and making examinations.
                            -5-                LRB9101397MWks
 1             (4)  Temporary  storage space shall be considered an
 2        increase in the licensed storage capacity of the licensee
 3        and shall be subject to Section 5-30.
 4             (5)  The  authorization  to  use  temporary  storage
 5        space for the storage of grain shall expire at the end of
 6        6 months after the date of approval by the Department  or
 7        May 15th, whichever comes first.
 8        (n)  The  Department  may approve emergency storage space
 9    at the request of the licensee according to rule.
10    (Source: P.A. 89-287, eff. 1-1-96.)

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