60-10 Credit-Sale Contract Indemnity - North Dakota Statutes

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CHAPTER 60-10CREDIT-SALE CONTRACT INDEMNITY60-10-01.Credit-sale contracts - Assessment on grain - Submission ofassessment. An assessment at the rate of two-tenths of one percent is placed on the value of
all grain sold in this state under a credit-sale contract, as provided for in sections 60-02-19.1 and
60-02.1-14.The licensee purchasing the grain shall note the assessment on the contractrequired under sections 60-02-19.1 and 60-02.1-14 and shall deduct the assessment from the
purchase price payable to the seller. The licensee shall submit any assessment collected under
this section to the public service commission no later than thirty days after each calendar quarter.
The commission shall deposit the assessments received under this section in the credit-sale
contract indemnity fund.60-10-02.Credit-salecontractindemnityfund-Creation-Continuingappropriation. There is created in the state treasury the credit-sale contract indemnity fund.
The state treasurer shall invest available moneys in the fund in accordance with section 21-10-07
and in cooperation with the public service commission and shall deposit any income earned
through the investments into the fund. The fund and earnings of the fund are appropriated to the
public service commission on a continuing basis to be used exclusively to carry out the intent and
purpose of this chapter.60-10-03. Credit-sale contract indemnity fund - Suspension of assessment. At theend of the calendar quarter in which the credit-sale contract indemnity fund reaches a level of six
million dollars, the public service commission shall suspend collection of the assessment
required by this chapter. If after suspension of collection the balance in the fund is less than
three million dollars, the public service commission shall require collection of the assessment.60-10-04. Credit-sale contract indemnity fund - Eligibility for reimbursement. Aperson is eligible to receive indemnity payments from the credit-sale contract indemnity fund if:1.After August 1, 2003, the person sold grain to a licensed warehouse or a grain buyer
in this state under the provisions of a credit-sale contract;2.The licensed warehouse to which the person sold grain or the grain buyer to whom
the person sold grain becomes insolvent; and3.The licensed warehouse or the grain buyer, as a result of the insolvency, does not
fully compensate the person in accordance with the credit-sale contract.60-10-05. Credit-sale contract indemnity fund - Availability of money. Upon theinsolvency of a licensed warehouse or a grain buyer and a declaration that the public service
commission serve as the trustee, the public service commission shall make the proceeds of the
credit-sale contract indemnity fund available for use in meeting the licensee's obligations with
respect to the reimbursement of any person who sold grain to the licensee under a credit-sale
contract and who was not fully compensated in accordance with the contract.60-10-06. Credit-sale contract indemnity fund - Reimbursement limit. The amountpayable to any eligible person from the credit-sale contract indemnity fund for each insolvency
may not exceed the lesser of eighty percent of the amount owed to that eligible person in
accordance with all of that person's unsatisfied credit-sale contracts or two hundred eighty
thousand dollars.60-10-07.Credit-sale contract indemnity fund - Prorated claims.If claims forindemnity payments from the credit-sale contract indemnity fund exceed the amount in the fund,
the public service commission shall prorate the claims and pay the prorated amounts. As future
assessments are collected, the public service commission shall continue to forward indemnity
payments to each eligible person until the person receives the maximum amount payable in
accordance with this chapter.Page No. 160-10-08. Reimbursement for later insolvencies. The public service commission shallensure that all persons eligible for payment from the indemnity fund as a result of an insolvency
are fully compensated to the extent permitted by this chapter before any payments from the
indemnity fund are initiated as a result of a later insolvency.The chronological order ofinsolvencies is determined by the date the public service commission is appointed trustee under
section 60-02.1-29 or 60-04-03.60-10-09. Credit-sale contract indemnity fund - Reimbursement for administrativeexpenses.Any expense incurred by the public service commission in administrating thecredit-sale contract indemnity fund is reimbursable from the fund before any other claim for
indemnity is paid.60-10-10.Credit-sale contract indemnity fund assessment - Failure to collectassessment - Penalty. Any person who knowingly or intentionally refuses or fails to collect the
assessment required under this chapter from producers or to submit any assessment collected
from producers to the public service commission for deposit in the credit-sale contract indemnity
fund is guilty of a class A misdemeanor.60-10-11. Revocation and suspension. The commission may suspend or revoke thelicense of any licensee for cause upon notice and hearing for violation of this chapter.60-10-12.Cease and desist.If a person engages in an activity or practice that iscontrary to this chapter or rules adopted by the commission, the commission, upon its own
motion without complaint and with or without a hearing, may order the person to cease and
desist from the activity until further order of the commission.The order may include anycorrective action up to and including license suspension. A cease and desist order must be
accompanied by a notice of opportunity to be heard on the order within fifteen days of the
issuance of the order.60-10-13. Claims. A claim concerning a grain buyer must be administered in a mannerconsistent with chapter 60-02.1. A claim concerning a state licensed grain warehouse must be
administered in a manner consistent with chapter 60-04. A payment may not be made from the
credit-sale contract indemnity fund for a claim based on losses resulting from the sale of grain to
a person not licensed under chapter 60-02, chapter 60-02.1, or the United States Warehouse Act
[Pub. L. 106-472; 114 Stat. 2061; 7 U.S.C. 241 et seq.].60-10-14.Subrogation.Money paid from the credit-sale contract indemnity fund insatisfaction of a valid claim constitutes a debt obligation of the person against whom the claim
was made. The commission may take action on behalf of the fund against a person to recover
the amount of payment made, plus costs and attorney's fees. Any recovery for reimbursement to
the fund must include interest computed at the weight average prime rate charged by the Bank of
North Dakota.Upon payment of a claim from the credit-sale contract indemnity fund, theclaimant shall subrogate its interest, if any, to the commission in a cause of action against all
parties, to the amount of the loss that the claimant was reimbursed by the fund.60-10-15.Unlicensed facility-based grain buyer.This chapter also applies to afacility-based grain buyer, as defined in section 60-02.1-01, which is licensed under the United
States Warehouse Act but which does not possess a state grain buyer license. The commission
has the duty and power to examine and inspect, during regular business hours, all books,
documents, and records related to collections and remittances pertaining to the credit-sale
contract indemnity fund.In the case of insolvency, credit-sale contract payments to validclaimants must be reduced by an amount equal to the credit-sale contract indemnity payments
received from payments administered by the United States department of agriculture.60-10-16.Roving grain buyers - Exception - Applicability of provisions.Notwithstanding any other law, this chapter does not apply to any person that purchases, solicits,
or merchandises grain, which has been cleaned, processed, and made ready for consumption,
from a public warehouseman licensed and bonded under chapter 60-02 or from a facility-based
grain buyer licensed and bonded under chapter 60-02.1. If the person engages in any activityPage No. 2other than those described in this section, the person is subject to the law governing those other
activities.Page No. 3Document Outlinechapter 60-10 credit-sale contract indemnity