IC 26-4-6
    Chapter 6. Payments to Producers Under the Grain IndemnityProgram

IC 26-4-6-1
Restrictions on use of fund; nonseverability of provision
    Sec. 1. (a) Except as provided in section 2 of this chapter, themoney in the fund:
        (1) is not available for any purpose other than the payment ofclaims approved by the board or refunds to producers who donot want to participate in the fund; and
        (2) may not be transferred to any other fund.
    (b) The limiting and nontransferability provision of subsection (a)is declared to be nonseverable from the whole of this article. Ifsubsection (a) is held to be invalid, repealed, or substantiallyamended, this article shall immediately become invalid and themoney remaining in the fund shall be distributed to participants inthe fund in a manner that is proportional to the amount of producerpremiums each producer paid to the fund.
As added by P.L.250-1995, SEC.1. Amended by P.L.75-2010,SEC.27.

IC 26-4-6-2
Payment of administrative and legal expenses
    Sec. 2. The board is authorized to pay the administrative expensesor the fund from the administrative expenses account established byIC 26-4-4-2(b) and to pay the fund's legal fees and legal expensesfrom the fund.
As added by P.L.250-1995, SEC.1.

IC 26-4-6-3
Compensation from fund; extension
    Sec. 3. (a) Except as provided in subsection (b), within ninety (90)days of the board's approval of a claim, the board shall compensatefrom the fund, in an amount described in section 4 of this chapter andin the manner described in subsection (c), a claimant who hasincurred a financial loss or storage loss due to a failure of a grainbuyer or warehouse operator licensed under IC 26-3-7.
    (b) The time for payment may be extended if the board andclaimant mutually agree and put the terms of the payment in writing.
    (c) If:
        (1) a claimant engaged in farming operations granted to one (1)or more secured parties one (1) or more security interests in thegrain related to the claimant's claim under this section; and
        (2) one (1) or more secured parties described in subdivision (1)have given to:
            (A) the licensee prior written notice of the security interestunder IC 26-1-9.1-320(a)(1) or IC 26-1-9-307(1)(a) beforeits repeal; and
            (B) the board prior written notice of the security interest

with respect to the grain described in subdivision (1)sufficient to give the board a reasonable opportunity to causethe issuance of a joint check under this subsection;
the board may compensate the claimant described in subdivision (1)in the amount to which the claimant is entitled under section 4 of thischapter by causing the issuance of a check payable jointly to theorder of the claimant and any secured party described in subdivision(1) who has given the notices described in subdivision (2). If onlyone (1) secured party described in subdivision (1) is a payee, therights of the secured party in the check shall be to the extent of theindebtedness of the claimant to the secured party. If two (2) or moresecured parties described in subdivision (1) are payees, the nature,extent, and priority of their respective rights in the check aredetermined in the same manner as the nature, extent, and priority oftheir respective security interest under IC 26-1-9.1.
As added by P.L.250-1995, SEC.1. Amended by P.L.115-1999,SEC.5; P.L.1-2002, SEC.102; P.L.75-2010, SEC.28.

IC 26-4-6-4
Percentage of compensation
    Sec. 4. (a) A claimant who has incurred a storage loss due to thefailure of a warehouse operator licensed under IC 26-3-7 is entitledto be compensated by the board from the fund for one hundredpercent (100%) of the storage loss incurred less all credits andoffsets and any producer premium that would have been due on thesale of the grain. The gross amount of the storage loss shall be asdetermined by the agency for warehouses licensed under IC 26-3-7or by the United States Department of Agriculture for warehouseslicensed under the United States Warehouse Act. The warehouseoperator and claimants may submit to the agency evidence related tooutstanding charges against stored grain. If the evidence is submitted,the agency shall determine the storage loss payable by the board.
    (b) A claimant who has incurred a financial loss due to the failureof a grain buyer is entitled to be compensated by the board from thefund for eighty percent (80%) of the loss incurred less all credits andoffsets and any producer premium that should have been due on thesale of the grain. The agency shall determine the loss incurred in thefollowing manner:
        (1) For grain that has been priced, the loss shall be the value ofthe priced grain less any outstanding charges against the grain.
        (2) For grain sold to a grain buyer who is also a warehouseoperator and that has not been priced, the loss shall beestablished using the price determined for the storageobligations.
        (3) For grain sold to a grain buyer who is not a warehouseoperator and that has not been priced, the loss shall beestablished using a price determined by the agency using thesame procedures used by the agency to determine the price atthe warehouse.
As added by P.L.250-1995, SEC.1. Amended by P.L.75-2010,

SEC.29.

IC 26-4-6-5
Repealed
    (Repealed by P.L.75-2010, SEC.35.)

IC 26-4-6-6
Subrogation of claim
    Sec. 6. A claimant compensated under this chapter may berequired to subrogate to the board or corporation all the claimant'srights to collect on a bond issued under IC 26-3-7 or the UnitedStates Warehouse Act and all the claimant's rights to any othercompensation arising from the failure of the grain buyer orwarehouse operator. If so required, the claimant shall assign all theclaimant's rights, title, and interest in any judgment concerning thefailure to the board or corporation.
As added by P.L.250-1995, SEC.1. Amended by P.L.173-1999,SEC.20; P.L.75-2010, SEC.30.

IC 26-4-6-7
Denial of claim
    Sec. 7. The board shall deny the payment of compensation underthis chapter to a claimant who has incurred a financial loss or storageloss due to the failure of a warehouse or grain buyer when the boarddetermines the existence of any of the following:
        (1) The claimant as payee has failed to present for payment anegotiable instrument issued as payment for grain within ninety(90) days from the date the negotiable instrument is tendered tothe claimant in satisfaction of obligations for grain purchasedby the licensed grain establishment.
        (2) The claimant has engaged in conduct or practices that differfrom generally accepted marketing practices within the grainindustry to an extent that the claimant's actions havesubstantially contributed to the claimant's loss. The Indianagrain indemnity board may consider whether contracts notexcluded under IC 26-3-7-4 are to be generally acceptedmarketing practices within the grain industry.
As added by P.L.250-1995, SEC.1. Amended by P.L.139-1996,SEC.13.

IC 26-4-6-8
Duties of board following failure to pay by warehouse or grainbuyer
    Sec. 8. After the agency has determined that a grain buyer orwarehouse has defaulted payment or failed, the board shall have thefollowing duties:
        (1) Determine the valid claims and the amount of such claimsto be paid to claimants for financial losses that were incurreddue to the failure of a grain buyer or warehouse operator.
        (2) Authorize payment of money from the fund when necessary

for the purpose of compensating claimants in accordance withthe provisions of this chapter.
        (3) Collect money through subrogated claims against bondsfiled under IC 26-3-7 in the place of claimants who collected fora loss incurred due to a warehouse or grain buyer failure.
        (4) Borrow money as authorized under IC 26-4-3-9 if the fundhas insufficient money to cover approved claims.
        (5) Deposit into the fund any remaining grain assets of a failedgrain buyer or warehouse operator for the purpose of repaymentto the fund the money used to pay claimants, subject to anypriority lien right a holder of a mortgage, security interest, orother encumbrance may possess under any other applicable law.Any repayment into the fund may not exceed the principalamount paid to claimants plus interest at the rate paid on ninety(90) day United States Treasury bills.
        (6) If the amount in the fund is insufficient to pay all approvedclaims in accordance with this chapter and the board is unableto borrow funds for whatever reason, authorize payment of allthe approved claims on a pro rata basis.
As added by P.L.250-1995, SEC.1. Amended by P.L.173-1999,SEC.21; P.L.75-2010, SEC.31.