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(240 ILCS 40/25-5)
Adjudication of claims.
When a licensee has
experienced a failure, the Department shall process the claims in
the following manner:
(a) The Department shall publish once each week for 3
successive weeks in at least 3 newspapers of general circulation within the
the licensee, and shall mail or deliver to each claimant whose
name and post office address are known or are reasonably
ascertainable by the Department, a notice stating:
(1) That the licensee has experienced a failure and
the date of that failure.
(2) The place and post office address where claims
(3) The procedure for filing claims, as determined by
(4) That a claimant's claims shall be barred if not
filed with the Department on or before the later of:
(A) the claim date, which shall be 90 days after
the date of failure of the licensee; or
(B) 7 days from the date notice was mailed to a
claimant if the date notice was mailed to that claimant is on or before the claim date.
(b) Time of notice.
(1) The first date of publication of the notice as
provided for in subsection (a) of this Section shall be within 30 days after the date of failure.
(2) The published notice as provided for in
subsection (a) of this Section shall be published in at least 3 newspapers of general circulation in the area formerly served by the failed licensee.
(3) The notice as provided for in subsection (a) of
this Section shall be mailed by certified mail, return receipt requested, within 60 days after the date of failure to each claimant whose name and post office address are known by the Department within 60 days after the date of failure.
(c) Every claim filed must be in writing, verified, and signed
by a person who has the legal authority to file a claim on
behalf of the claimant
and must state information sufficient to notify the Department of the
nature of the claim and the amount sought.
(d) A claim shall be barred and disallowed in
its entirety if:
(1) notice is published and given to the claimant as
provided for in subsections (a) and (b) of this Section and the claimant does not file a claim with the Department on or before the claim date; or
(2) the claimant's name or post office address is not
known by the Department or cannot, within 60 days after the date of failure, be reasonably ascertained by the Department and the claimant does not file a claim with the Department on or before the later of the claim date or 7 days after the date notice was mailed to that claimant if the date notice was mailed to that claimant is on or before the claim date.
(e) Subsequent notice.
(1) If, more than 60 days after the date of failure
but before the claim date, the Department learns of the name and post office address of a claimant who was previously not notified by the Department by mail, the Department shall mail by certified mail, return receipt requested, the notice to the claimant as provided for in subsection (a) of this Section.
(2) The notice mailed as provided for in item (e)(1)
of this Section shall not extend the period of time in which a claimant may file its claim beyond the claim date. A claimant to whom notice is mailed under item (e)(1) of this Section, however, shall have the later of the claim date or 7 days after the date notice was mailed to file a claim with the Department.
(f) The Department shall determine the validity, category,
and amount of each claim within 120 days after the date of failure of
the licensee and shall give written notice within that time period
claimant and to the failed licensee
of the Department's determination as to the validity, category, and
amount of each claim.
(g) A claimant or the
failed licensee may request a hearing on the Department's
determination within 30 days after receipt of the written
notice and the hearing shall be held
in the county of the location of the principal office or place of business, in Illinois, of the failed licensee and
in accordance with rules.
Under no circumstances shall payment to claimants who have not requested a
delayed by reason of the request for a hearing by any unrelated claimant.
(h) Within 30 days after a failure of a licensee, the Director shall
appoint an Administrative Law Judge for the hearings. The Director shall
appoint a person licensed to practice law in this State; who is believed to be
knowledgeable with regard to agriculture and the grain industry in Illinois;
who has no conflict of interest; and who at the time of his or her appointment
is not working for or employed by the Department in any capacity whatsoever.
(i) For the purposes of this Article, the "reasonably
ascertainable" standard shall be satisfied when the Department
conducts a review of the failed licensee's books and records and an
interview of office and clerical personnel of the failed licensee.
(j) It is the intent of this Act that the time periods and deadlines in
this Section 25-5 are absolute, and
are not to be tolled, or their operation halted or delayed.
In the event of a bankruptcy by a licensee,
the Director shall seek to have commenced any
proceedings that are necessary and
appropriate to lift the automatic stay or make it otherwise inapplicable to the
of the Department with regard to the claims determination process. In all other
cases, the Department shall seek to have commenced the proceedings necessary to
expeditiously remove or lift any order of any court
or administrative agency that might attempt to delay the time periods and
deadlines contained in this Section 25-5.
(Source: P.A. 96-464, eff. 8-14-09.)