TITLE 8: AGRICULTURE AND ANIMALS
CHAPTER I: DEPARTMENT OF AGRICULTURE
SUBCHAPTER a: GENERAL RULES
PART 3
DEPARTMENT OF AGRICULTURE ACTING AS TRUSTEE
ON BEHALF OF CLAIMANTS
SECTION 3.10 BONDING
Section 3.10 Bonding
Pursuant to the Acts listed in
Section 40.23 of the Civil Administrative Code of Illinois [20 ILCS 205/40.23]
and the rules promulgated for the administration of such Acts, certain license
holders or registrants are required to post a Surety Bond being a commercial
Surety Bond or pledge other security for the purpose of providing a fund to
satisfy certain specific creditors in the event of a failure. The Surety Bond
shall be executed on forms supplied by the Department. Every bond shall be
signed by the licensee/registrant in the same manner as the application for
license/registration, acknowledged before a notary public, and if the
application is a corporation, the corporate seal shall be affixed thereto.
(Source: Amended at 22 Ill. Reg. 11698, effective June 25, 1998)
 | TITLE 8: AGRICULTURE AND ANIMALS
CHAPTER I: DEPARTMENT OF AGRICULTURE
SUBCHAPTER a: GENERAL RULES
PART 3
DEPARTMENT OF AGRICULTURE ACTING AS TRUSTEE
ON BEHALF OF CLAIMANTS
SECTION 3.20 INVESTIGATION BY TRUSTEE
Section 3.20 Investigation
by Trustee
a) When there is a failure of a licensee/registrant for which a
Surety Bond has been posted, the Trustee shall conduct an investigation to
accumulate claims and documents as may be available to support claims against
the Surety Bond. At the same time as public notice is given in the newspaper,
the Trustee shall give notice by certified or registered mail to the Surety
posting the bond of the possibility that claims may be forthcoming against the
bond. Within the first two weeks of its investigation, the Department of
Agriculture shall place at least 3 notices in a newspaper in the business'
licensed location informing persons with claims to submit them to the
Department.
b) When a failure occurs, the Department of Agriculture shall
give a written order of suspension in accordance with the provisions of the
licensing/registration Act.
(Source: Amended at 22 Ill. Reg. 11698, effective June 25, 1998)
| TITLE 8: AGRICULTURE AND ANIMALS
CHAPTER I: DEPARTMENT OF AGRICULTURE
SUBCHAPTER a: GENERAL RULES
PART 3
DEPARTMENT OF AGRICULTURE ACTING AS TRUSTEE
ON BEHALF OF CLAIMANTS
SECTION 3.30 VALID CLAIMS
Section 3.30 Valid Claims
a) Claims to be valid against a Surety Bond held by the Trustee
shall be defined as bona fide obligations covered by enabling statute and/or
Section 40.23 of the Civil Administrative Code of Illinois which are filed by
claimants within the statute of claims limitation as established by the
enabling statute, if one prevails, or the Mechanics Lien Act [770 ILCS 60], or
30 days from the date the business is closed, whichever is less.
b) The closing date of a business shall be the date the business
failed.
c) All claims determined as being valid claims by the Illinois
Department of Agriculture shall be considered as valid claims for the purposes
of filing a claim against the surety bond pledged.
(Source: Amended at 22 Ill. Reg. 11698, effective June 25, 1998)
| TITLE 8: AGRICULTURE AND ANIMALS
CHAPTER I: DEPARTMENT OF AGRICULTURE
SUBCHAPTER a: GENERAL RULES
PART 3
DEPARTMENT OF AGRICULTURE ACTING AS TRUSTEE
ON BEHALF OF CLAIMANTS
SECTION 3.40 HEARING TO VERIFY CLAIMANTS AND CLAIM AMOUNTS
Section 3.40 Hearing to
Verify Claimants and Claim Amounts
The Trustee shall give at least
a 10-day notice by registered or certified mail to the Surety posting the bond,
the licensee/registrant, as well as to all known claimants, advising them of
the date, time and place of the administrative hearing. A hearing to receive
claims not previously submitted to the Trustee and to verify claimants and
their amount shall be held by the Trustee in accordance with Section 3.60 of
this Part. Notice of the date, time and place of the hearing shall be
published in the official state newspaper and once in a newspaper in the
business' licensed location. In the event that the surety fails to object to
any of the valid claims (8 Ill. Adm. Code 1.114), the surety shall pay within
35 days from the date of the hearing officer's decision, to the Director of the
Illinois Department of Agriculture, as Trustee, the amount of the surety bond
ordered to be paid to the Director of the Illinois Department of Agriculture,
as Trustee, for the purpose of paying the valid claims. When requested, the
Trustee will provide a breakdown on how the trust account was distributed. The
final administrative decision (see 8 Ill. Adm. Code 1.77(f) and 1.124) shall be
subject to judicial review in accordance with the Administrative Review Law
[735 ILCS 5/Art. III].
(Source: Amended at 22 Ill. Reg. 11698, effective June 25, 1998)
| TITLE 8: AGRICULTURE AND ANIMALS
CHAPTER I: DEPARTMENT OF AGRICULTURE
SUBCHAPTER a: GENERAL RULES
PART 3
DEPARTMENT OF AGRICULTURE ACTING AS TRUSTEE
ON BEHALF OF CLAIMANTS
SECTION 3.50 TRUST ACCOUNTS
Section 3.50 Trust Accounts
The Department of Agriculture
shall establish and deposit funds received from a liquidated bond into an
interest-bearing trust account in a federally insured financial institution
until payment to claimants is made. The funds in a trust account shall be paid
to claimants with valid claims by check written by the Department. An
accounting of the funds which are deposited in the trust account shall be
maintained by the Department on a separate accounting record for each trust
account, identifiable as to the source of such funds, and any accrued interest
shall be prorated among the identified funds in amounts equal to the same
percentage as each identified fund is to the total of the trust account.
Accrued interest from funds in a trust account shall be available for payment
of valid claims. In determining the type of account in which to deposit bond
proceeds, the Department shall consider interest rates, the anticipated period
of time before payment to claimants with valid claims will be made, maturity
dates, and any other factors which could affect the maximization of funds for
the benefit of claimants. Reports shall be made to the Comptroller of funds
held in such accounts in accordance with Section 16 of the State Comptroller
Act [15 ILCS 405/16].
(Source: Amended at 22 Ill. Reg. 11698, effective June 25, 1998)
| TITLE 8: AGRICULTURE AND ANIMALS
CHAPTER I: DEPARTMENT OF AGRICULTURE
SUBCHAPTER a: GENERAL RULES
PART 3
DEPARTMENT OF AGRICULTURE ACTING AS TRUSTEE
ON BEHALF OF CLAIMANTS
SECTION 3.60 ADMINISTRATIVE HEARINGS
Section 3.60 Administrative
Hearings
Administrative hearings held by
the Department are governed by the procedures established in the Illinois
Administrative Procedure Act [5 ILCS 100] and the Department's Administrative
Rules (8 Ill. Adm. Code 1) which pertain to administrative proceedings, contested
cases, petitions and availability of Department of Agriculture files for public
disclosure. All decisions and actions of the Department of Agriculture are
subject to the Illinois Administrative Procedure Act and the Department's
Administrative Rules.
(Source: Amended at 22 Ill. Reg. 11698, effective June 25, 1998)
| TITLE 8: AGRICULTURE AND ANIMALS
CHAPTER I: DEPARTMENT OF AGRICULTURE
SUBCHAPTER a: GENERAL RULES
PART 3
DEPARTMENT OF AGRICULTURE ACTING AS TRUSTEE
ON BEHALF OF CLAIMANTS
SECTION 3.70 CANCELLATION OF SURETY BOND
Section 3.70 Cancellation of
Surety Bond
Persons having Surety Bonds
filed with the Department of Agriculture shall use the following procedure in
regard to cancellation of Surety Bonds:
a) Notice of cancellation shall be sent by certified or
registered mail or written notification delivered personally to the Director of
the Department of Agriculture, State Fairgrounds, P.O. Box 19281, Springfield,
Illinois 62794-9281. A copy of the notice of cancellation shall be delivered to
the principal on the same day as notice is delivered to the Director.
b) Notice shall contain the Surety Bond number, amount of surety,
and the name of principal.
c) The date of the notice of cancellation and the effective date
of the termination of the bond shall be set as follows:
1) The date of notice of cancellation shall be the date the
notice is received by the Department of Agriculture.
2) The effective date of termination of the bond can be no sooner
than the date of notice plus the required notice period as established in the
licensing act. The notice of cancellation shall not affect the liability
accrued or which may accrue under such bond before the effective date of
termination.
(Source: Amended at 22 Ill. Reg. 11698, effective June 25, 1998)
SUBPART B: PROCEDURE FOR THE COLLECTION, CONTROL AND DISTRIBUTION OF COLLATERAL FILED IN LIEU OF A SURETY BOND WITH THE DIRECTOR OF THE ILLINOIS DEPARTMENT OF AGRICULTURE ACTING ON BEHALF OF CLAIMANTS
| TITLE 8: AGRICULTURE AND ANIMALS
CHAPTER I: DEPARTMENT OF AGRICULTURE
SUBCHAPTER a: GENERAL RULES
PART 3
DEPARTMENT OF AGRICULTURE ACTING AS TRUSTEE
ON BEHALF OF CLAIMANTS
SECTION 3.80 INVESTIGATION BY TRUSTEE
Section 3.80 Investigation
by Trustee
a) When there is a failure of licensee/registrant for which
collateral acceptable to the Department has been pledged, the Trustee shall
conduct an investigation to accumulate claims and documents as may be available
to support claims against the collateral. Within the first two weeks of its
investigation, the Department of Agriculture shall place at least 3 notices in
a newspaper in the business' licensed location informing persons with claims to
submit them to the Department.
b) When a failure occurs, the Department of Agriculture shall
give a written order of suspension in accordance with the provisions of the
licensing/registration act.
(Source: Amended at 22 Ill. Reg. 11698, effective June 25, 1998)
| TITLE 8: AGRICULTURE AND ANIMALS
CHAPTER I: DEPARTMENT OF AGRICULTURE
SUBCHAPTER a: GENERAL RULES
PART 3
DEPARTMENT OF AGRICULTURE ACTING AS TRUSTEE
ON BEHALF OF CLAIMANTS
SECTION 3.90 COLLATERAL
Section 3.90 Collateral
a) Pursuant to the Acts listed in Section 40.23 of the Civil
Administrative Code of Illinois and rules promulgated for the administration of
such Acts, certain license holders or registrants are required to post a surety
bond or are permitted to pledge collateral acceptable to the Department for the
purpose of providing a fund to satisfy certain specific creditors in the event
of a failure.
b) Collateral shall be made payable to the Illinois Department of
Agriculture, Director, as Trustee. The collateral shall be kept in the custody
of the Director. Only Certificates of Deposit issued by financial institutions
that are members of the Federal Deposit Insurance Corporation or the Federal
Savings and Loan Insurance Corporation will be accepted by the Department as
collateral security. Letters of Credit shall be in accordance with Article V of
the Uniform Commercial Code [810 ILCS 5/Art. V]. Notice of request for
cancellation and return of the collateral shall be sent by the
licensee/registrant by certified mail to the Director, Illinois Department of
Agriculture, P.O. Box 19281, Springfield, Illinois 62794-9281. The notice
shall contain the name and address of the principal, the amount of the
collateral and reason for requesting the return of the collateral.
c) In the event the amount of the collateral is changed, the
licensee/registrant shall submit new collateral acceptable to the Department.
The date the new collateral is to be effective shall be set by the Department
and any liability accruing under the prior collateral will be transferred to
the new collateral. The effective date of the new collateral shall be set
whereby there is no lapse of time that claimants are not protected by pledged
security. The Department will release the original collateral upon receipt of
the new collateral.
d) The financial institution shall pay directly to the purchaser
that amount of interest that will enable the Certificate of Deposit to be
withdrawn at full face value at any time. In the event the business fails, the
Trustee shall liquidate the Certificate of Deposit and any interest accrued
will be paid to the Trustee. When the Trustee liquidates the Certificate of
Deposit, the financial institution will be notified in writing of such action
by certified or registered mail or by personal demand by an authorized
representative of the Department.
e) In the event of a failure of any licensee or registrant and
where the Department's investigation reveals claims against the collateral, the
Department of Agriculture shall liquidate the collateral to the extent
necessary to satisfy claimants. The Department shall establish and deposit
funds received from a liquidated collateral into an interest-bearing trust
account in a federally insured financial institution until payment to claimants
is made. The funds in a trust account shall be paid to claimants with valid
claims by check written by the Department. An accounting of the funds which
are deposited in the trust account shall be maintained by the Department on a
separate accounting record for each trust account, identifiable as to the
source of such funds, and any accrued interest shall be prorated among the
identified funds in amounts equal to the same percentage as each identified
fund is to the total trust account. Accrued interest from funds in a trust
account shall be available for payment of valid claims. In determining the
type of account in which to deposit trust funds, the Department shall consider
interest rates, the anticipated period of time before payment to claimants with
valid claims will be made, maturity dates and any other factors which could
affect the maximization of funds for the benefit of claimants. Reports shall
be made to the Comptroller of funds held in such accounts in accordance with
the State Comptroller Act. When requested, the Trustee will provide a
breakdown of how the trust account was distributed.
f) In the event of a failure of a licensee/registrant and where
the Department's investigation reveals no valid claims against the collateral,
the procedure as set forth in Section 3.140 shall be followed.
(Source: Amended at 22 Ill. Reg. 11698, effective June 25, 1998)
| TITLE 8: AGRICULTURE AND ANIMALS
CHAPTER I: DEPARTMENT OF AGRICULTURE
SUBCHAPTER a: GENERAL RULES
PART 3
DEPARTMENT OF AGRICULTURE ACTING AS TRUSTEE
ON BEHALF OF CLAIMANTS
SECTION 3.100 VALID CLAIMS
Section 3.100 Valid Claims
a) Claims to be valid against collateral held by the Trustee
shall be defined as bona fide obligations covered by enabling statute and/or
Section 40.23 of the Civil Administrative Code of Illinois which are filed by
claimants or which are disclosed by the Illinois Department of Agriculture. Any
claim to be a valid claim against collateral must be filed with the Department
or disclosed by the Illinois Department of Agriculture within the statute of
claims limitation as established by the enabling statute, if one prevails, or
the Mechanics Lien Act [770 ILCS 60] or 30 days from the date the business is
closed, whichever is less. The closing date of a business shall be the date
the business failed.
b) All claims determined as being valid claims by the Illinois Department
of Agriculture shall be considered as valid claims for the purposes of filing a
claim against the collateral.
(Source: Amended at 22 Ill. Reg. 11698, effective June 25, 1998)
| TITLE 8: AGRICULTURE AND ANIMALS
CHAPTER I: DEPARTMENT OF AGRICULTURE
SUBCHAPTER a: GENERAL RULES
PART 3
DEPARTMENT OF AGRICULTURE ACTING AS TRUSTEE
ON BEHALF OF CLAIMANTS
SECTION 3.110 HEARING TO VERIFY CLAIMANTS AND CLAIM AMOUNTS
Section 3.110 Hearing to
Verify Claimants and Claim Amounts
The Trustee shall give at least
a 10-day notice by registered or certified mail to the licensee/registrant
posting the collateral, as well as to all known claimants advising them of the
date, time and place of an administrative hearing. A hearing to receive claims
not previously submitted to the Trustee and to verify claimants and their
amount shall be held by the Trustee in accordance with 8 Ill. Adm. Code 3.60.
Notice of the date, time and place of the hearing shall be published in the
official State newspaper and once in a newspaper in the business' licensed
location. The administrative law judge, in his/her findings, shall order that
all, any portion or none of the collateral be used by the Trustee for the
payment of valid claims.
(Source: Amended at 22 Ill. Reg. 11698, effective June 25, 1998)
| TITLE 8: AGRICULTURE AND ANIMALS
CHAPTER I: DEPARTMENT OF AGRICULTURE
SUBCHAPTER a: GENERAL RULES
PART 3
DEPARTMENT OF AGRICULTURE ACTING AS TRUSTEE
ON BEHALF OF CLAIMANTS
SECTION 3.120 DISPUTE OF CLAIMS BY LICENSEE/REGISTRANT
Section 3.120 Dispute of
Claims by Licensee/Registrant
In the event that the
licensee/registrant fails to object to any of the valid claims (8 Ill. Adm.
Code 1.315), the Trustee shall distribute the trust funds in accordance with 8
Ill. Adm. Code 3.130. The final administrative decision (see 8 Ill. Adm. Code 1.77(f)
and 1.124) shall be subject to judicial review in accordance with the
Administrative Review Law [735 ILCS 5/Art. III].
(Source: Amended at 22 Ill. Reg. 11698, effective June 25, 1998)
| TITLE 8: AGRICULTURE AND ANIMALS
CHAPTER I: DEPARTMENT OF AGRICULTURE
SUBCHAPTER a: GENERAL RULES
PART 3
DEPARTMENT OF AGRICULTURE ACTING AS TRUSTEE
ON BEHALF OF CLAIMANTS
SECTION 3.130 RELEASE OF PAYMENT TO CLAIMANTS
Section 3.130 Release of
Payment to Claimants
No portion of the collateral
shall be paid to claimants by the Director of the Illinois Department of
Agriculture, as Trustee, until such time as 30 days have passed after a final
administrative order without appeal or action on a rehearing before the administrative
law judge (8 Ill. Adm. Code 1.114). After a final administrative determination
and payment to the claimants with valid claims is made, the Director of the
Illinois Department of Agriculture shall return the net balance, if any, to the
person pledging the collateral.
(Source: Amended at 22 Ill. Reg. 11698, effective June 25, 1998)
| TITLE 8: AGRICULTURE AND ANIMALS
CHAPTER I: DEPARTMENT OF AGRICULTURE
SUBCHAPTER a: GENERAL RULES
PART 3
DEPARTMENT OF AGRICULTURE ACTING AS TRUSTEE
ON BEHALF OF CLAIMANTS
SECTION 3.140 RETURN OF COLLATERAL WHEN THERE IS NO BUSINESS FAILURE
Section 3.140 Return of
Collateral When There Is No Business Failure
If a business ceases operation,
the collateral shall be released to the licensee registrant at the conclusion
of the time period for filing claims (see 8 Ill. Adm. Code 3.100), provided an
investigation by the Department of Agriculture reveals that no apparent
statutory liability arose during the period of time the business was
operating. Notification that the business has ceased and request for the
release of the collateral shall be delivered in writing to the Department at
its Springfield office by the licensee/registrant. Within the first two weeks
of its investigation, the Department shall place at least 3 notices in a
newspaper in the business' licensed location informing persons with claims to
submit them.
(Source: Amended at 22 Ill. Reg. 11698, effective June 25, 1998)
SUBPART C: PROCEDURE FOR THE COLLECTION, CONTROL AND DISTRIBUTION OF GRAIN AND OTHER ASSETS RECEIVED BY THE DIRECTOR OF THE ILLINOIS DEPARTMENT OF AGRICULTURE ACTING AS TRUSTEE ON BEHALF OF THE CLAIMANTS
| TITLE 8: AGRICULTURE AND ANIMALS
CHAPTER I: DEPARTMENT OF AGRICULTURE
SUBCHAPTER a: GENERAL RULES
PART 3
DEPARTMENT OF AGRICULTURE ACTING AS TRUSTEE
ON BEHALF OF CLAIMANTS
SECTION 3.180 INVESTIGATION AND AUDIT BY TRUSTEE (REPEALED)
Section 3.180 Investigation
and Audit by Trustee (Repealed)
(Source: Repealed at 22 Ill. Reg. 11698, effective June 25, 1998)
| TITLE 8: AGRICULTURE AND ANIMALS
CHAPTER I: DEPARTMENT OF AGRICULTURE
SUBCHAPTER a: GENERAL RULES
PART 3
DEPARTMENT OF AGRICULTURE ACTING AS TRUSTEE
ON BEHALF OF CLAIMANTS
SECTION 3.190 VALID CLAIMS (REPEALED)
Section 3.190 Valid Claims
(Repealed)
(Source: Repealed at 22 Ill. Reg. 11698, effective June 25, 1998)
| TITLE 8: AGRICULTURE AND ANIMALS
CHAPTER I: DEPARTMENT OF AGRICULTURE
SUBCHAPTER a: GENERAL RULES
PART 3
DEPARTMENT OF AGRICULTURE ACTING AS TRUSTEE
ON BEHALF OF CLAIMANTS
SECTION 3.200 HEARING TO VERIFY CLAIMANTS AND CLAIM AMOUNTS (REPEALED)
Section 3.200 Hearing to
Verify Claimants and Claim Amounts (Repealed)
(Source: Repealed at 22 Ill. Reg. 11698, effective June 25, 1998)
| TITLE 8: AGRICULTURE AND ANIMALS
CHAPTER I: DEPARTMENT OF AGRICULTURE
SUBCHAPTER a: GENERAL RULES
PART 3
DEPARTMENT OF AGRICULTURE ACTING AS TRUSTEE
ON BEHALF OF CLAIMANTS
SECTION 3.210 DISPUTE OF CLAIMS BY LICENSEE/REGISTRANT (REPEALED)
Section 3.210 Dispute of
Claims by Licensee/Registrant (Repealed)
(Source: Repealed at 22 Ill. Reg. 11698, effective June 25, 1998)
| TITLE 8: AGRICULTURE AND ANIMALS
CHAPTER I: DEPARTMENT OF AGRICULTURE
SUBCHAPTER a: GENERAL RULES
PART 3
DEPARTMENT OF AGRICULTURE ACTING AS TRUSTEE
ON BEHALF OF CLAIMANTS
SECTION 3.220 RELEASE OF ASSETS TO CLAIMANTS (REPEALED)
Section 3.220 Release of
Assets to Claimants (Repealed)
(Source: Repealed at 22 Ill. Reg. 11698, effective June 25, 1998)
| TITLE 8: AGRICULTURE AND ANIMALS
CHAPTER I: DEPARTMENT OF AGRICULTURE
SUBCHAPTER a: GENERAL RULES
PART 3
DEPARTMENT OF AGRICULTURE ACTING AS TRUSTEE
ON BEHALF OF CLAIMANTS
SECTION 3.230 DISPOSITION OF ASSETS; TRUST ACCOUNTS (REPEALED)
Section 3.230 Disposition of
Assets; Trust Accounts (Repealed)
(Source: Repealed at 22 Ill. Reg. 11698, effective June 25, 1998)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
