276.421. Financial statement to accompany application, how prepared--false statement, penalty--minimum net worth required.

MISSOURI STATUTES AND CODES

276.421. Financial statement to accompany application, how prepared--false statement, penalty--minimum net worth required.

Financial statement to accompany application, how prepared--falsestatement, penalty--minimum net worth required.

276.421. 1. All applications shall be accompanied by a true andaccurate financial statement of the applicant, prepared within six monthsof the date of application, setting forth all the assets, liabilities andnet worth of the applicant. All applications shall also be accompanied bya true and accurate statement of income and expenses for the applicant'smost recently completed fiscal year. The financial statements required bythis chapter shall be prepared in conformity with generally acceptedaccounting principles; except that, the director may promulgate rulesallowing for the valuation of assets by competent appraisal.

2. The financial statement required by subsection 1 of this sectionshall be audited or reviewed by a certified public accountant. Thefinancial statement may not be audited or reviewed by the applicant, or anemployee of the applicant, if an individual, or, if the applicant is acorporation or partnership, by an officer, shareholder, partner, or adirect employee of the applicant.

3. The director may require any additional information orverification with respect to the financial resources of the applicant as hedeems necessary for the effective administration of this chapter. Thedirector may promulgate rules setting forth minimum standards of acceptancefor the various types of financial statements filed in accordance with theprovisions of this chapter. The director may promulgate rules requiring astatement of retained earnings, a statement of changes in financialposition, and notes and disclosures to the financial statements for alllicensed grain dealers or all grain dealers required to be licensed. Theadditional information or verification referred to herein may include, butis not limited to, requiring that the financial statement information bereviewed or audited in accordance with standards established by theAmerican Institute of Certified Public Accountants.

4. All grain dealers shall provide the director with a copy of allfinancial statements and updates to financial statements utilized to securethe bonds required by sections 276.401 to 276.582.

5. All financial statements submitted to the director for thepurposes of this chapter shall be accompanied by a certification by theapplicant or the chief executive officer of the applicant, subject to thepenalty provision set forth in subsection 4 of section 276.536, that to thebest of his knowledge and belief the financial statement accuratelyreflects the financial condition of the applicant for the fiscal periodcovered in the statement.

6. Any person who knowingly prepares or assists in the preparation ofan inaccurate or false financial statement which is submitted to thedirector for the purposes of this chapter, or who during the course ofproviding bookkeeping services or in reviewing or auditing a financialstatement which is submitted to the director for the purposes of thischapter, becomes aware of false information in the financial statement anddoes not disclose in notes accompanying the financial statements that suchfalse information exists, or does not disassociate himself from thefinancial statements prior to submission, is guilty of a class C felony.Additionally, such persons are liable for any damages incurred by sellersof grain selling to a grain dealer who is licensed or allowed to maintainhis license based upon inaccuracies or falsifications contained in thefinancial statement.

7. Except as set forth in section 276.511 which mandates higherrequirements for class I grain dealers, any licensed grain dealer orapplicant for a grain dealer's license who purchases less than four hundredthousand dollars worth of grain, during the dealer's last completed fiscalyear, in the state of Missouri and those states with whom Missouri hasentered into contracts or agreements as authorized by section 276.566 mustmaintain a minimum net worth equal to the greater of ten thousand dollarsor five percent of such grain purchases. If grain purchases during thedealer's last completed fiscal year are four hundred thousand dollars ormore, the dealer must maintain a net worth equal to the greater of twentythousand dollars or one percent of grain purchases. If the dealer orapplicant is deficient in meeting this net worth requirement, he must postadditional bond as required in section 276.436.