276.501. Insolvency, director may request ex parte order to be named trustee and be given immediate possession--procedure--order, contents--dealer may file response, when--hearing, when--notice, dutie

MISSOURI STATUTES AND CODES

276.501. Insolvency, director may request ex parte order to be named trustee and be given immediate possession--procedure--order, contents--dealer may file response, when--hearing, when--notice, dutie

Insolvency, director may request ex parte order to be named trusteeand be given immediate possession--procedure--order,contents--dealer may file response, when--hearing, when--notice,duties of director--director not to operate business, liabilitylimited--recovery of expenses.

276.501. 1. If at any time the director has evidence that a dealeris insolvent or is unable to satisfy the claims of all sellers, thedirector may petition the circuit court in the county where the dealer'sprincipal place of business is located, for an ex parte order authorizingthe director or his authorized agent to seize, and take title andpossession, as trustee, of any grain in the dealer's possession or underthe dealer's control, and of all pertinent records and property as providedfor in subsection 2 of this section.

2. Upon receipt of the director's verified petition setting forth thecircumstances of the dealer's failure to comply with sections 276.401 to276.582, and further stating reasons why immediate possession by thedirector or his authorized agent is necessary for the protection of grainsellers or sureties, the court is authorized to issue an ex parte orderauthorizing the director or his authorized agent to take immediatepossession for the purposes stated in this section. A copy of the petitionand order shall be sent to the dealer. If appropriate, the court may orderthe director's taking possession of only grain-related assets and not theentire business of the dealer. Such order may include, but is not limitedto, the following:

(1) The director locking down and securing, by padlocks or otherappropriate means, the grain storage bins, scales, offices, equipment androlling stock of the dealer;

(2) Removing and excluding the dealer, or any and all of the dealer'semployees, from the facility;

(3) Prohibiting the dealer from engaging in any grain-relatedbusiness transactions whatever during the director's possession of thegrain-related assets of the dealer's business;

(4) Authorizing all financial institutions to place all businessaccounts of the dealer under the director's authority and to freeze alltransactions involving such accounts except to honor outstanding checkswritten previous to the issuance of the court's order. If it appears thatthe dealer has conducted, in part, his grain dealer business through theuse of personal accounts as opposed to business accounts, or intermingledtwo or more such accounts, the court may authorize the applicable financialinstitutions to place such personal accounts, as well as the businessaccounts, under the authority of the director in order to allow thedirector to accurately determine the extent of all grain-relatedobligations incurred by the dealer, the correct status of same and thedealer's resources to pay his grain-related obligations;

(5) Authorizing the director to redeliver or sell depositor ordealer-owned grain, as appropriate in the circumstances and setting forththe conditions for doing such;

(6) Authorizing the director to deposit all grain-related assets andproceeds therefrom in an interest-bearing escrow account to be disbursedonly upon orders of the court;

(7) Directing the dealer to provide the director with allgrain-related business documents which come into his possession subsequentto the director's possession of the grain-related assets, as well as anyother grain-related documents which the dealer may have knowledge of andwhich are not at the dealer's facility.

3. At any time within ten days after the director or his authorizedagent takes possession, the dealer may file with the court a response tothe petition of the director stating reasons why the director or hisauthorized agent should not be allowed to retain possession. The courtshall set the matter for hearing on a date not more than fifteen days fromthe date of the filing of the dealer's response. The order placing thedirector or his authorized agent in possession shall not be stayed nor setaside until such time as the court, after hearing, determines thatpossession should be restored to the dealer.

4. Upon taking possession, the director shall give written notice ofhis action to the surety on the bond of the dealer and may notify all knownsellers as shown by the dealer's records.

5. The director or his authorized agent shall retain possessionobtained under this section until such time as the dealer or the surety onthe bond shall have satisfied the claims of all sellers, or until such timeas the director or his authorized agent is ordered by the court tosurrender possession. At no time while the director or his authorizedagent is in possession of a dealer's business, as authorized by thissection, shall the director, or his authorized agent be required to operatethe dealer's business; nor shall the director or his authorized agent beliable for any claims which have arisen or could arise from thenonoperation of the dealer's business.

6. If at any time, the director, whether or not he or his authorizedagent has possession as authorized by this section, has evidence that adealer is insolvent or is unable to satisfy the claims of all sellers, thedirector may petition the circuit court for the appointment of a receiverto operate or liquidate the business of the dealer in accordance with law.

7. All necessary expenses incurred by the director, his authorizedagents or any receiver appointed under this section, in carrying out theprovisions of this section may be recovered from the dealer in a separatecivil action brought by the director in the circuit court or as part of theseizure or receivership action filed under this section. If the directoror any of his authorized agents seize and take possession of the grain,records or property at the dealer's facility, the dealer may be assessedand shall pay as part of the necessary expenses incurred a fee of onehundred dollars per person for each day or part thereof that each suchperson performs such activities. The cost of liability insurance necessaryto protect the director, the receiver, and others engaged in carrying outthe provisions of this section, may be recovered as part of the necessaryexpenses.