IC 26-4-6
Chapter 6. Payments to Producers Under the Grain Indemnity
Program
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, the
money in the fund:
(1) is not available for any purpose other than the payment of
claims approved by the board or refunds to producers who do
not 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. If
subsection (a) is held to be invalid, repealed, or substantially
amended, this article shall immediately become invalid and the
money remaining in the fund shall be distributed to participants in
the fund in a manner that is proportional to the amount of producer
premiums 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 expenses
or the fund from the administrative expenses account established by
IC 26-4-4-2(b) and to pay the fund's legal fees and legal expenses
from 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 compensate
from the fund, in an amount described in section 4 of this chapter and
in the manner described in subsection (c), a claimant who has
incurred a financial loss or storage loss due to a failure of a grain
buyer or warehouse operator licensed under IC 26-3-7.
(b) The time for payment may be extended if the board and
claimant 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 the
grain 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 interest
under IC 26-1-9.1-320(a)(1) or IC 26-1-9-307(1)(a) before
its 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 cause
the 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 this
chapter by causing the issuance of a check payable jointly to the
order of the claimant and any secured party described in subdivision
(1) who has given the notices described in subdivision (2). If only
one (1) secured party described in subdivision (1) is a payee, the
rights of the secured party in the check shall be to the extent of the
indebtedness of the claimant to the secured party. If two (2) or more
secured parties described in subdivision (1) are payees, the nature,
extent, and priority of their respective rights in the check are
determined in the same manner as the nature, extent, and priority of
their 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 the
failure of a warehouse operator licensed under IC 26-3-7 is entitled
to be compensated by the board from the fund for one hundred
percent (100%) of the storage loss incurred less all credits and
offsets and any producer premium that would have been due on the
sale of the grain. The gross amount of the storage loss shall be as
determined by the agency for warehouses licensed under IC 26-3-7
or by the United States Department of Agriculture for warehouses
licensed under the United States Warehouse Act. The warehouse
operator and claimants may submit to the agency evidence related to
outstanding 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 failure
of a grain buyer is entitled to be compensated by the board from the
fund for eighty percent (80%) of the loss incurred less all credits and
offsets and any producer premium that should have been due on the
sale of the grain. The agency shall determine the loss incurred in the
following manner:
(1) For grain that has been priced, the loss shall be the value of
the priced grain less any outstanding charges against the grain.
(2) For grain sold to a grain buyer who is also a warehouse
operator and that has not been priced, the loss shall be
established using the price determined for the storage
obligations.
(3) For grain sold to a grain buyer who is not a warehouse
operator and that has not been priced, the loss shall be
established using a price determined by the agency using the
same procedures used by the agency to determine the price at
the 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 be
required to subrogate to the board or corporation all the claimant's
rights to collect on a bond issued under IC 26-3-7 or the United
States Warehouse Act and all the claimant's rights to any other
compensation arising from the failure of the grain buyer or
warehouse operator. If so required, the claimant shall assign all the
claimant's rights, title, and interest in any judgment concerning the
failure 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 under
this chapter to a claimant who has incurred a financial loss or storage
loss due to the failure of a warehouse or grain buyer when the board
determines the existence of any of the following:
(1) The claimant as payee has failed to present for payment a
negotiable instrument issued as payment for grain within ninety
(90) days from the date the negotiable instrument is tendered to
the claimant in satisfaction of obligations for grain purchased
by the licensed grain establishment.
(2) The claimant has engaged in conduct or practices that differ
from generally accepted marketing practices within the grain
industry to an extent that the claimant's actions have
substantially contributed to the claimant's loss. The Indiana
grain indemnity board may consider whether contracts not
excluded under IC 26-3-7-4 are to be generally accepted
marketing 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 grain
buyer
Sec. 8. After the agency has determined that a grain buyer or
warehouse has defaulted payment or failed, the board shall have the
following duties:
(1) Determine the valid claims and the amount of such claims
to be paid to claimants for financial losses that were incurred
due 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 with
the provisions of this chapter.
(3) Collect money through subrogated claims against bonds
filed under IC 26-3-7 in the place of claimants who collected for
a loss incurred due to a warehouse or grain buyer failure.
(4) Borrow money as authorized under IC 26-4-3-9 if the fund
has insufficient money to cover approved claims.
(5) Deposit into the fund any remaining grain assets of a failed
grain buyer or warehouse operator for the purpose of repayment
to the fund the money used to pay claimants, subject to any
priority lien right a holder of a mortgage, security interest, or
other encumbrance may possess under any other applicable law.
Any repayment into the fund may not exceed the principal
amount 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 approved
claims in accordance with this chapter and the board is unable
to borrow funds for whatever reason, authorize payment of all
the 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.
IC 26-4-6
Chapter 6. Payments to Producers Under the Grain Indemnity
Program
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, the
money in the fund:
(1) is not available for any purpose other than the payment of
claims approved by the board or refunds to producers who do
not 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. If
subsection (a) is held to be invalid, repealed, or substantially
amended, this article shall immediately become invalid and the
money remaining in the fund shall be distributed to participants in
the fund in a manner that is proportional to the amount of producer
premiums 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 expenses
or the fund from the administrative expenses account established by
IC 26-4-4-2(b) and to pay the fund's legal fees and legal expenses
from 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 compensate
from the fund, in an amount described in section 4 of this chapter and
in the manner described in subsection (c), a claimant who has
incurred a financial loss or storage loss due to a failure of a grain
buyer or warehouse operator licensed under IC 26-3-7.
(b) The time for payment may be extended if the board and
claimant 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 the
grain 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 interest
under IC 26-1-9.1-320(a)(1) or IC 26-1-9-307(1)(a) before
its 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 cause
the 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 this
chapter by causing the issuance of a check payable jointly to the
order of the claimant and any secured party described in subdivision
(1) who has given the notices described in subdivision (2). If only
one (1) secured party described in subdivision (1) is a payee, the
rights of the secured party in the check shall be to the extent of the
indebtedness of the claimant to the secured party. If two (2) or more
secured parties described in subdivision (1) are payees, the nature,
extent, and priority of their respective rights in the check are
determined in the same manner as the nature, extent, and priority of
their 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 the
failure of a warehouse operator licensed under IC 26-3-7 is entitled
to be compensated by the board from the fund for one hundred
percent (100%) of the storage loss incurred less all credits and
offsets and any producer premium that would have been due on the
sale of the grain. The gross amount of the storage loss shall be as
determined by the agency for warehouses licensed under IC 26-3-7
or by the United States Department of Agriculture for warehouses
licensed under the United States Warehouse Act. The warehouse
operator and claimants may submit to the agency evidence related to
outstanding 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 failure
of a grain buyer is entitled to be compensated by the board from the
fund for eighty percent (80%) of the loss incurred less all credits and
offsets and any producer premium that should have been due on the
sale of the grain. The agency shall determine the loss incurred in the
following manner:
(1) For grain that has been priced, the loss shall be the value of
the priced grain less any outstanding charges against the grain.
(2) For grain sold to a grain buyer who is also a warehouse
operator and that has not been priced, the loss shall be
established using the price determined for the storage
obligations.
(3) For grain sold to a grain buyer who is not a warehouse
operator and that has not been priced, the loss shall be
established using a price determined by the agency using the
same procedures used by the agency to determine the price at
the 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 be
required to subrogate to the board or corporation all the claimant's
rights to collect on a bond issued under IC 26-3-7 or the United
States Warehouse Act and all the claimant's rights to any other
compensation arising from the failure of the grain buyer or
warehouse operator. If so required, the claimant shall assign all the
claimant's rights, title, and interest in any judgment concerning the
failure 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 under
this chapter to a claimant who has incurred a financial loss or storage
loss due to the failure of a warehouse or grain buyer when the board
determines the existence of any of the following:
(1) The claimant as payee has failed to present for payment a
negotiable instrument issued as payment for grain within ninety
(90) days from the date the negotiable instrument is tendered to
the claimant in satisfaction of obligations for grain purchased
by the licensed grain establishment.
(2) The claimant has engaged in conduct or practices that differ
from generally accepted marketing practices within the grain
industry to an extent that the claimant's actions have
substantially contributed to the claimant's loss. The Indiana
grain indemnity board may consider whether contracts not
excluded under IC 26-3-7-4 are to be generally accepted
marketing 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 grain
buyer
Sec. 8. After the agency has determined that a grain buyer or
warehouse has defaulted payment or failed, the board shall have the
following duties:
(1) Determine the valid claims and the amount of such claims
to be paid to claimants for financial losses that were incurred
due 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 with
the provisions of this chapter.
(3) Collect money through subrogated claims against bonds
filed under IC 26-3-7 in the place of claimants who collected for
a loss incurred due to a warehouse or grain buyer failure.
(4) Borrow money as authorized under IC 26-4-3-9 if the fund
has insufficient money to cover approved claims.
(5) Deposit into the fund any remaining grain assets of a failed
grain buyer or warehouse operator for the purpose of repayment
to the fund the money used to pay claimants, subject to any
priority lien right a holder of a mortgage, security interest, or
other encumbrance may possess under any other applicable law.
Any repayment into the fund may not exceed the principal
amount 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 approved
claims in accordance with this chapter and the board is unable
to borrow funds for whatever reason, authorize payment of all
the 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.
IC 26-4-6
Chapter 6. Payments to Producers Under the Grain Indemnity
Program
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, the
money in the fund:
(1) is not available for any purpose other than the payment of
claims approved by the board or refunds to producers who do
not 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. If
subsection (a) is held to be invalid, repealed, or substantially
amended, this article shall immediately become invalid and the
money remaining in the fund shall be distributed to participants in
the fund in a manner that is proportional to the amount of producer
premiums 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 expenses
or the fund from the administrative expenses account established by
IC 26-4-4-2(b) and to pay the fund's legal fees and legal expenses
from 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 compensate
from the fund, in an amount described in section 4 of this chapter and
in the manner described in subsection (c), a claimant who has
incurred a financial loss or storage loss due to a failure of a grain
buyer or warehouse operator licensed under IC 26-3-7.
(b) The time for payment may be extended if the board and
claimant 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 the
grain 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 interest
under IC 26-1-9.1-320(a)(1) or IC 26-1-9-307(1)(a) before
its 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 cause
the 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 this
chapter by causing the issuance of a check payable jointly to the
order of the claimant and any secured party described in subdivision
(1) who has given the notices described in subdivision (2). If only
one (1) secured party described in subdivision (1) is a payee, the
rights of the secured party in the check shall be to the extent of the
indebtedness of the claimant to the secured party. If two (2) or more
secured parties described in subdivision (1) are payees, the nature,
extent, and priority of their respective rights in the check are
determined in the same manner as the nature, extent, and priority of
their 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 the
failure of a warehouse operator licensed under IC 26-3-7 is entitled
to be compensated by the board from the fund for one hundred
percent (100%) of the storage loss incurred less all credits and
offsets and any producer premium that would have been due on the
sale of the grain. The gross amount of the storage loss shall be as
determined by the agency for warehouses licensed under IC 26-3-7
or by the United States Department of Agriculture for warehouses
licensed under the United States Warehouse Act. The warehouse
operator and claimants may submit to the agency evidence related to
outstanding 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 failure
of a grain buyer is entitled to be compensated by the board from the
fund for eighty percent (80%) of the loss incurred less all credits and
offsets and any producer premium that should have been due on the
sale of the grain. The agency shall determine the loss incurred in the
following manner:
(1) For grain that has been priced, the loss shall be the value of
the priced grain less any outstanding charges against the grain.
(2) For grain sold to a grain buyer who is also a warehouse
operator and that has not been priced, the loss shall be
established using the price determined for the storage
obligations.
(3) For grain sold to a grain buyer who is not a warehouse
operator and that has not been priced, the loss shall be
established using a price determined by the agency using the
same procedures used by the agency to determine the price at
the 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 be
required to subrogate to the board or corporation all the claimant's
rights to collect on a bond issued under IC 26-3-7 or the United
States Warehouse Act and all the claimant's rights to any other
compensation arising from the failure of the grain buyer or
warehouse operator. If so required, the claimant shall assign all the
claimant's rights, title, and interest in any judgment concerning the
failure 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 under
this chapter to a claimant who has incurred a financial loss or storage
loss due to the failure of a warehouse or grain buyer when the board
determines the existence of any of the following:
(1) The claimant as payee has failed to present for payment a
negotiable instrument issued as payment for grain within ninety
(90) days from the date the negotiable instrument is tendered to
the claimant in satisfaction of obligations for grain purchased
by the licensed grain establishment.
(2) The claimant has engaged in conduct or practices that differ
from generally accepted marketing practices within the grain
industry to an extent that the claimant's actions have
substantially contributed to the claimant's loss. The Indiana
grain indemnity board may consider whether contracts not
excluded under IC 26-3-7-4 are to be generally accepted
marketing 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 grain
buyer
Sec. 8. After the agency has determined that a grain buyer or
warehouse has defaulted payment or failed, the board shall have the
following duties:
(1) Determine the valid claims and the amount of such claims
to be paid to claimants for financial losses that were incurred
due 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 with
the provisions of this chapter.
(3) Collect money through subrogated claims against bonds
filed under IC 26-3-7 in the place of claimants who collected for
a loss incurred due to a warehouse or grain buyer failure.
(4) Borrow money as authorized under IC 26-4-3-9 if the fund
has insufficient money to cover approved claims.
(5) Deposit into the fund any remaining grain assets of a failed
grain buyer or warehouse operator for the purpose of repayment
to the fund the money used to pay claimants, subject to any
priority lien right a holder of a mortgage, security interest, or
other encumbrance may possess under any other applicable law.
Any repayment into the fund may not exceed the principal
amount 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 approved
claims in accordance with this chapter and the board is unable
to borrow funds for whatever reason, authorize payment of all
the 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.
