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1 | AN ACT concerning warehouses.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Grain Code is amended by changing Sections | ||||||
5 | 1-10, 1-25, 10-15, 10-25, and 25-5 as follows:
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6 | (240 ILCS 40/1-10)
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7 | Sec. 1-10. Definitions. As used in this Act:
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8 | "Board" means the governing body of the Illinois Grain | ||||||
9 | Insurance
Corporation.
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10 | "Certificate" means a document, other than the license, | ||||||
11 | issued by
the Department that certifies that a grain dealer's | ||||||
12 | license has
been issued and is in effect.
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13 | "Claimant" means:
| ||||||
14 | (a) a person, including, without limitation, a lender:
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15 | (1) who possesses warehouse receipts issued from an | ||||||
16 | Illinois location
covering grain
owned or stored by a | ||||||
17 | failed warehouseman; or
| ||||||
18 | (2) who has other written evidence of a storage
| ||||||
19 | obligation of a failed warehouseman issued from an Illinois | ||||||
20 | location in favor
of the holder,
including, but not limited | ||||||
21 | to, scale tickets,
settlement sheets, and ledger cards; or
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22 | (3) who has loaned
money to a warehouseman and was to | ||||||
23 | receive a warehouse receipt
issued from an Illinois |
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1 | location as security for that loan, who
surrendered | ||||||
2 | warehouse receipts as part of a grain sale at an Illinois | ||||||
3 | location,
or who
delivered grain out of storage with the | ||||||
4 | warehouseman as part of a grain sale at
an Illinois | ||||||
5 | location;
and
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6 | (i) the grain dealer or warehouseman failed within | ||||||
7 | 21 days after the
loan
of money, the surrender of | ||||||
8 | warehouse receipts, or the delivery of grain, as the
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9 | case may be, and no
warehouse receipt was issued or | ||||||
10 | payment in full was not made on the grain sale,
as the | ||||||
11 | case may be; or
| ||||||
12 | (ii) written notice was given by the person to the | ||||||
13 | Department within 21
days after the loan of money, the | ||||||
14 | surrender of warehouse receipts, or the
delivery of | ||||||
15 | grain, as the case may be, stating that no warehouse | ||||||
16 | receipt was
issued or payment in full made on the grain | ||||||
17 | sale, as the case may be; or
| ||||||
18 | (b) a producer not included in item (a)(3) in the | ||||||
19 | definition of "Claimant"
who possesses evidence of the sale at | ||||||
20 | an Illinois location of grain delivered
to a failed grain | ||||||
21 | dealer, or its designee in Illinois and who was not paid
in | ||||||
22 | full.
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23 | "Class I warehouseman" means a warehouseman who is | ||||||
24 | authorized to
issue negotiable and non-negotiable warehouse | ||||||
25 | receipts.
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26 | "Class II warehouseman" means a warehouseman who is |
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1 | authorized to
issue only non-negotiable warehouse receipts.
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2 | "Code" means this Grain Code.
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3 | "Collateral" means:
| ||||||
4 | (a) irrevocable letters of credit;
| ||||||
5 | (b) certificates of deposit;
| ||||||
6 | (c) cash or a cash equivalent; or
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7 | (d) any other property acceptable to the Department to the
| ||||||
8 | extent there exists equity in that property. For the purposes | ||||||
9 | of
this item (d), "equity" is the amount by which the fair
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10 | market value of the property exceeds the amount owed to a | ||||||
11 | creditor who
has a valid, prior, perfected security interest in | ||||||
12 | or other valid, prior,
perfected lien on
the property.
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13 | "Corporation" means the Illinois Grain Insurance | ||||||
14 | Corporation.
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15 | "Daily position record" means a grain inventory | ||||||
16 | accountability
record maintained on a daily basis that includes | ||||||
17 | an accurate
reflection of changes in grain inventory, storage | ||||||
18 | obligations,
company-owned inventory by commodity, and other | ||||||
19 | information
that is required by the Department.
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20 | "Daily grain transaction report" means a record of the | ||||||
21 | daily
transactions of a grain dealer showing the amount of all | ||||||
22 | grain
received and shipped during each day and the amount on | ||||||
23 | hand at the
end of each day.
| ||||||
24 | "Date of delivery of grain" means:
| ||||||
25 | (a) the date grain is delivered to a grain dealer, or its | ||||||
26 | designee in
Illinois, for
the
purpose of sale;
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1 | (b) the date grain is delivered to a warehouseman, or its | ||||||
2 | designee in
Illinois, for
the
purpose of storage; or
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3 | (c) in reference to grain in storage with a warehouseman,
| ||||||
4 | the date a warehouse receipt representing stored grain is | ||||||
5 | delivered
to the issuer of the warehouse receipt for the | ||||||
6 | purpose of selling the stored
grain
or, if no warehouse receipt | ||||||
7 | was issued:
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8 | (1) the date the purchase price for stored grain is
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9 | established; or
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10 | (2) if sold by price later contract, the date of the
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11 | price later contract.
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12 | "Department" means the Illinois Department of Agriculture.
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13 | "Depositor" means a person who has evidence of a storage
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14 | obligation from a warehouseman.
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15 | "Director", unless otherwise provided, means the Illinois | ||||||
16 | Director of
Agriculture, or the Director's designee.
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17 | "Electronic document" means a document that is generated, | ||||||
18 | sent, received,
or stored by electrical, digital, magnetic, | ||||||
19 | optical electromagnetic, or any
other similar means, | ||||||
20 | including, but not limited to, electronic data
interchange, | ||||||
21 | electronic mail,
telegram, telex, or telecopy.
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22 | "Electronic warehouse receipt" means a warehouse receipt | ||||||
23 | that is issued or
transmitted in the form of an electronic | ||||||
24 | document.
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25 | "Emergency storage" means space measured in bushels and | ||||||
26 | used for a
period of time not to exceed 3 months for storage of |
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1 | grain
as a consequence of an emergency situation.
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2 | "Equity assets" means:
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3 | (a) The equity in any property of the
licensee or failed
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4 | licensee, other than grain assets. For purposes of this item | ||||||
5 | (a):
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6 | (1) "equity" is the amount by which the fair market
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7 | value of the property exceeds the amount owed to a creditor | ||||||
8 | who
has a valid security interest in or other valid lien on | ||||||
9 | the property
that was perfected before the date of failure | ||||||
10 | of the
licensee;
| ||||||
11 | (2) a creditor is not deemed to have a valid
security | ||||||
12 | interest or other valid lien
on property if (i) the | ||||||
13 | property can be directly traced as being from the sale
of | ||||||
14 | grain by the licensee or failed licensee; (ii) the security | ||||||
15 | interest was
taken as additional collateral on account of | ||||||
16 | an antecedent debt owed to the
creditor; and (iii) the | ||||||
17 | security interest or other lien was perfected (A) on or
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18 | within 90 days before the date of failure of the licensee | ||||||
19 | or (B) when the
creditor is a related person, within one | ||||||
20 | year of the date of failure of the
licensee.
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21 | "Failure" means, in reference to a licensee:
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22 | (a) a formal declaration of insolvency;
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23 | (b) a revocation of a license;
| ||||||
24 | (c) a failure to apply for license renewal, leaving
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25 | indebtedness to claimants;
| ||||||
26 | (d) a denial of license renewal, leaving indebtedness to
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1 | claimants; or
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2 | (e) a voluntary surrender of a license, leaving
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3 | indebtedness to claimants.
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4 | "Federal warehouseman" means a warehouseman licensed
by | ||||||
5 | the United States government under the United
States Warehouse | ||||||
6 | Act (7 U.S.C. 241 et seq.).
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7 | "Fund" means the Illinois Grain Insurance Fund.
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8 | "Grain" means corn, soybeans, wheat, oats, rye, barley, | ||||||
9 | grain
sorghum, canola, buckwheat, flaxseed, edible soybeans, | ||||||
10 | and
other like agricultural commodities that may be
designated | ||||||
11 | by rule.
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12 | "Grain assets" means:
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13 | (a) all grain owned and all grain stored by a licensee or
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14 | failed licensee, wherever located, including redeposited grain | ||||||
15 | of a licensee
or failed licensee;
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16 | (b) (blank);
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17 | (c) identifiable proceeds, including, but not limited to, | ||||||
18 | insurance
proceeds,
received by or due to a licensee or failed | ||||||
19 | licensee resulting
from the sale, exchange,
destruction, loss, | ||||||
20 | or theft of grain, or other disposition of grain by the
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21 | licensee or failed licensee; or
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22 | (d) assets in hedging or speculative margin accounts held | ||||||
23 | by
commodity or security exchanges on behalf of a licensee or | ||||||
24 | failed
licensee and any moneys due or to become due to a | ||||||
25 | licensee or
failed licensee, less any secured financing | ||||||
26 | directly associated with those
assets or moneys, from any |
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1 | transactions on those exchanges.
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2 | For purposes of this Act, storage charges, drying charges, | ||||||
3 | price later
contract service charges, and other grain service | ||||||
4 | charges received by or due to
a licensee or failed licensee | ||||||
5 | shall not be deemed to be grain assets, nor shall
such charges | ||||||
6 | be deemed to be proceeds from the sale or other disposition of
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7 | grain by a licensee or a failed licensee, or to have been | ||||||
8 | directly or
indirectly traceable from, to have resulted from, | ||||||
9 | or to have been derived in
whole
or in part from, or otherwise | ||||||
10 | related to, the sale or other disposition of
grain by the | ||||||
11 | licensee or failed licensee.
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12 | "Grain dealer" means a person who is licensed by the | ||||||
13 | Department to
engage in the business of buying grain from | ||||||
14 | producers.
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15 | "Grain Indemnity Trust Account" means a trust account | ||||||
16 | established by
the Director under Section 205-410 of the | ||||||
17 | Department of
Agriculture Law (20 ILCS 205/205-410) that is | ||||||
18 | used for the receipt and
disbursement of
moneys paid from the | ||||||
19 | Fund and proceeds from the liquidation of and
collection upon | ||||||
20 | grain assets, equity assets, collateral, and
guarantees of or | ||||||
21 | relating to failed licensees. The Grain Indemnity
Trust Account | ||||||
22 | shall be used to pay valid claims, authorized refunds
from the | ||||||
23 | Fund, and expenses incurred in preserving, liquidating, and
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24 | collecting upon grain assets, equity assets, collateral, and
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25 | guarantees relating to failed licensees.
| ||||||
26 | "Guarantor" means a person who assumes all or part of the
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1 | obligations of a licensee to claimants.
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2 | "Guarantee" means a document executed by a guarantor by | ||||||
3 | which the
guarantor assumes all or part of the obligations of a | ||||||
4 | licensee
to claimants.
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5 | "Incidental grain dealer" means a grain dealer who | ||||||
6 | purchases
grain
only in connection with a feed milling | ||||||
7 | operation and whose total
purchases of grain from producers | ||||||
8 | during the grain dealer's fiscal
year do not exceed $100,000.
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9 | "Licensed storage capacity" means the maximum grain | ||||||
10 | storage capacity
measured in bushels approved by the applicable | ||||||
11 | licensing agency for
use by a warehouseman.
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12 | "Licensee" means a grain dealer or warehouseman who is | ||||||
13 | licensed by
the Department and a federal warehouseman that is a | ||||||
14 | participant
in the Fund, under subsection (c) of Section 30-10.
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15 | "Official grain standards" means the official grade | ||||||
16 | designations as
adopted by the United States Department of | ||||||
17 | Agriculture under
the United States Grain Standards Act and | ||||||
18 | regulations adopted under that Act (7
U.S.C. 71 et seq. and 7 | ||||||
19 | CFR 810.201 et seq.).
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20 | "Permanent storage capacity" means the capacity of | ||||||
21 | permanent structures
available for storage of grain on a | ||||||
22 | regular and continuous basis,
measured in bushels.
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23 | "Person" means any individual or entity, including, but not
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24 | limited to, a sole proprietorship, a partnership, a | ||||||
25 | corporation,
a cooperative, an association, a limited | ||||||
26 | liability company, an estate,
a trust, or a governmental |
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1 | agency.
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2 | "Price later contract" means a written contract , in written | ||||||
3 | or electronic form, for the sale of
grain whereby any part of | ||||||
4 | the purchase price may be established by
the seller after | ||||||
5 | delivery of the grain to a grain dealer
according to a pricing | ||||||
6 | formula contained in the contract. Title to
the grain passes to | ||||||
7 | the grain dealer at the time of delivery. The
precise form
and | ||||||
8 | the general terms and conditions
of the contract
shall be | ||||||
9 | established by rule.
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10 | "Producer" means the owner, tenant, or operator of land who | ||||||
11 | has an
interest in and receives all or part of the proceeds | ||||||
12 | from the
sale of the grain produced on the land.
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13 | "Producer protection holding corporation" means a holding
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14 | corporation to receive, hold title to, and liquidate assets of | ||||||
15 | or
relating to a failed licensee, including assets in reference | ||||||
16 | to
collateral or guarantees relating to a failed licensee.
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17 | "Regulatory Fund" means the fund created under Article 35.
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18 | "Related persons" means affiliates of a licensee, key | ||||||
19 | persons
of a licensee, owners of a licensee, and persons who | ||||||
20 | have
control over a licensee. For the purposes of this | ||||||
21 | definition:
| ||||||
22 | (a) "Affiliate" means a person who has direct or | ||||||
23 | indirect control
of a licensee, is controlled by a | ||||||
24 | licensee, or is under common
control with a licensee.
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25 | (b) "Key person" means an officer, a director, a | ||||||
26 | trustee, a partner,
a proprietor, a manager, a managing |
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1 | agent, or the spouse of a licensee. An
officer or a | ||||||
2 | director of an entity organized or operating as a | ||||||
3 | cooperative,
however, shall not be considered to be a "key | ||||||
4 | person".
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5 | (c) "Owner" means the holder of: over 10% of the total
| ||||||
6 | combined voting power of a corporation or over 10% of
the | ||||||
7 | total value of shares of all classes of stock of a | ||||||
8 | corporation;
over a 10% interest in a partnership; over
10% | ||||||
9 | of the value of a trust computed actuarially; or over
10% | ||||||
10 | of the legal or beneficial interest in any other
business, | ||||||
11 | association, endeavor, or entity that is a licensee. For
| ||||||
12 | purposes of computing these percentages, a holder is
deemed | ||||||
13 | to own stock or other interests in a business entity
| ||||||
14 | whether the ownership is direct or indirect.
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15 | (d) "Control" means the power to exercise authority | ||||||
16 | over or direct
the management or policies of a business | ||||||
17 | entity.
| ||||||
18 | (e) "Indirect" means an interest in a business held by | ||||||
19 | the holder
not through the holder's actual holdings in the | ||||||
20 | business, but
through the holder's holdings in another | ||||||
21 | business or other businesses.
| ||||||
22 | (f) Notwithstanding any other provision of this Act, | ||||||
23 | the term "related
person" does not include a lender, | ||||||
24 | secured party, or other lien holder solely
by reason of the | ||||||
25 | existence of the loan, security interest, or lien, or | ||||||
26 | solely
by reason of the lender, secured party, or other |
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| |||||||
1 | lien holder having or
exercising any right or remedy | ||||||
2 | provided by law or by agreement with a licensee
or a failed | ||||||
3 | licensee.
| ||||||
4 | "Reserve Fund" means a separate and discrete fund of up to | ||||||
5 | $2,000,000 held
by the Corporation as set forth in Section | ||||||
6 | 30-25.
| ||||||
7 | "Successor agreement" means an agreement by which a | ||||||
8 | licensee succeeds to
the grain obligations of a former | ||||||
9 | licensee.
| ||||||
10 | "Temporary storage space" means space measured in bushels | ||||||
11 | and used
for 6 months or less for storage of grain
on a | ||||||
12 | temporary basis due to a need for additional storage in excess
| ||||||
13 | of permanent storage capacity.
| ||||||
14 | "Trust account" means the Grain Indemnity Trust Account.
| ||||||
15 | "Valid claim" means a request for payment under the | ||||||
16 | provisions of this
Code, submitted by a claimant, the amount
| ||||||
17 | and category of which have been determined by the Department, | ||||||
18 | to the extent
that determination is not subject to further | ||||||
19 | administrative review
or appeal.
Each grain sale transaction | ||||||
20 | and each storage obligation shall be considered a
separate and | ||||||
21 | discrete request for payment even though one or more requests | ||||||
22 | are
contained on one claim form or are filed with the | ||||||
23 | Department in one document.
| ||||||
24 | "Warehouse" means a building, structure, or enclosure in | ||||||
25 | which grain
is stored for the public for compensation, whether | ||||||
26 | grain of
different owners is commingled or whether identity of
|
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| |||||||
1 | different lots of grain is preserved.
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2 | "Warehouse receipt" means a receipt for the storage of | ||||||
3 | grain issued
by a warehouseman.
| ||||||
4 | "Warehouseman" means a person who is licensed:
| ||||||
5 | (a) by the Department to engage in the
business of | ||||||
6 | storing grain for compensation; or
| ||||||
7 | (b) under the United States Warehouse Act but | ||||||
8 | participates in
the Fund
under
subsection (c) of Section | ||||||
9 | 30-10.
| ||||||
10 | (Source: P.A. 92-16, eff.
6-28-01; 93-225, eff. 7-21-03.)
| ||||||
11 | (240 ILCS 40/1-25)
| ||||||
12 | Sec. 1-25. Rules. The Department may
promulgate rules that | ||||||
13 | are necessary
for the implementation and administration of this | ||||||
14 | Code.
| ||||||
15 | (a) The Department shall adopt rules governing electronic | ||||||
16 | systems under which
electronic warehouse receipts are may be | ||||||
17 | issued and transferred. Licensees shall
not be required, | ||||||
18 | however, to issue or use electronic warehouse receipts. These
| ||||||
19 | rules shall be adopted after the United States Department of | ||||||
20 | Agriculture adopts
regulations concerning an electronic | ||||||
21 | receipt transfer system pursuant to 7
U.S.C. 242, 250. | ||||||
22 | (b) The Department shall adopt rules governing electronic | ||||||
23 | price later contracts. Licensees and producers shall not be | ||||||
24 | required, however, to issue or use electronic price later | ||||||
25 | contracts.
|
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| |||||||
1 | (Source: P.A. 93-225, eff. 7-21-03.)
| ||||||
2 | (240 ILCS 40/10-15)
| ||||||
3 | Sec. 10-15. Price later contracts.
| ||||||
4 | (a) Price later contracts shall contain provisions be | ||||||
5 | written on forms
prescribed or authorized by the Department and | ||||||
6 | shall be in either written or electronic form. If in written | ||||||
7 | form, price . Price later contract forms
shall be
printed by a | ||||||
8 | person authorized to print those contracts by the
Department | ||||||
9 | after that person has agreed to comply with each of the | ||||||
10 | following:
| ||||||
11 | (1) That all price later contracts shall be printed as
| ||||||
12 | prescribed by the Department and shall be printed only for | ||||||
13 | a
licensed grain dealer.
| ||||||
14 | (2) That all price later contracts shall be numbered
| ||||||
15 | consecutively and a complete record of these contracts | ||||||
16 | shall
be retained showing for whom printed and the | ||||||
17 | consecutive
numbers printed on the contracts.
| ||||||
18 | (3) That a duplicate copy of all invoices rendered for
| ||||||
19 | printing price later contracts that will show the | ||||||
20 | consecutive
numbers printed on the contracts, and the | ||||||
21 | number of contracts printed,
shall be promptly forwarded to | ||||||
22 | the Department.
| ||||||
23 | (4) that the person shall register with the Department | ||||||
24 | and pay an annual
registration fee of $100 to print price | ||||||
25 | later contracts. |
| |||||||
| |||||||
1 | Price later contracts that are in electronic form shall be | ||||||
2 | numbered consecutively.
| ||||||
3 | (b) A grain dealer purchasing grain by price later contract
| ||||||
4 | shall at all times own grain, rights in grain, proceeds from | ||||||
5 | the
sale of grain, and other assets acceptable to the | ||||||
6 | Department as set
forth in this Code totaling 90% of the unpaid | ||||||
7 | balance of
the grain dealer's obligations for grain purchased | ||||||
8 | by price later
contract. That amount shall at all times remain | ||||||
9 | unencumbered and
shall be represented by the aggregate of the | ||||||
10 | following:
| ||||||
11 | (1) Grain owned by the grain dealer
valued by means of | ||||||
12 | the hedging procedures method that
includes marking open | ||||||
13 | contracts to market.
| ||||||
14 | (2) Cash on hand.
| ||||||
15 | (3) Cash held on account in federally or State licensed
| ||||||
16 | financial institutions.
| ||||||
17 | (4) Investments held in time accounts with federally or
| ||||||
18 | State licensed financial institutions.
| ||||||
19 | (5) Direct obligations of the U.S. government.
| ||||||
20 | (6) Funds on deposit in grain margin accounts.
| ||||||
21 | (7) Balances due or to become due to the licensee on
| ||||||
22 | price later contracts.
| ||||||
23 | (8) Marketable securities, including mutual funds.
| ||||||
24 | (9) Irrevocable letters of credit in favor of the
| ||||||
25 | Department and acceptable to the Department.
| ||||||
26 | (10) Price later contract service charges due or to
|
| |||||||
| |||||||
1 | become due to the licensee.
| ||||||
2 | (11) Other evidence of proceeds from or of grain that | ||||||
3 | is
acceptable to the Department.
| ||||||
4 | (c) For the purpose of computing the dollar value of grain
| ||||||
5 | and the balance due on price later contract obligations, the | ||||||
6 | value
of grain shall be figured at the current market price.
| ||||||
7 | (d) Title to grain sold by price later contract shall
| ||||||
8 | transfer to a grain dealer at the time of delivery of the
| ||||||
9 | grain.
Therefore, no storage charges shall be made with respect | ||||||
10 | to grain
purchased by price later contract. A service charge | ||||||
11 | for
handling the contract, however, may be made.
| ||||||
12 | (e) Subject to subsection (f) of this Section,
if a price | ||||||
13 | later contract is not signed by all parties
within 30 days of | ||||||
14 | the last date of delivery of grain
intended to be sold by price | ||||||
15 | later contract, then
the grain intended to be sold by price | ||||||
16 | later contract shall
be priced on the next business day after | ||||||
17 | 30 days from
the last date of delivery of grain intended to be | ||||||
18 | sold
by price later contract at the market price of the grain
| ||||||
19 | at the close of the next business day after the 29th day.
When | ||||||
20 | the grain is priced under this subsection, the grain dealer | ||||||
21 | shall send
notice to the seller of the grain within 10 days. | ||||||
22 | The notice shall contain the
number of bushels sold, the price | ||||||
23 | per bushel, all applicable discounts, the net
proceeds, and a | ||||||
24 | notice that states that the Grain Insurance Fund shall provide
| ||||||
25 | protection for a period of only 160 days from the date of | ||||||
26 | pricing of the grain.
|
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| |||||||
1 | In the event of a failure, if a price later contract is not | ||||||
2 | signed by all
the parties to the transaction, the Department | ||||||
3 | may consider the grain to be
sold by price later contract if a | ||||||
4 | preponderance of the evidence indicates the
grain was to be | ||||||
5 | sold by price later contract.
| ||||||
6 | (f) If grain is in storage with a
warehouseman and is | ||||||
7 | intended to be sold by price later contract, that grain
shall | ||||||
8 | be considered as remaining in storage and not be deemed sold by | ||||||
9 | price
later contract until the date the price later contract is | ||||||
10 | signed by all
parties.
| ||||||
11 | (g) Scale tickets or other approved documents with
respect | ||||||
12 | to grain purchased by a grain dealer by price later
contract | ||||||
13 | shall contain the following: "Sold Grain; Price Later".
| ||||||
14 | (h) Price later contracts shall be issued consecutively and | ||||||
15 | recorded by
the grain
dealer as established by rule.
| ||||||
16 | (i) A licensee shall not issue a collateral warehouse
| ||||||
17 | receipt on grain purchased by a price later contract to the | ||||||
18 | extent
the purchase price has not been paid by the licensee.
| ||||||
19 | (j) Failure to comply with the requirements of this Section
| ||||||
20 | may result in suspension
of the privilege to purchase grain by | ||||||
21 | price later contract for up
to one year.
| ||||||
22 | (k) When a producer with a price later contract selects a | ||||||
23 | price for all or
any part of the grain represented by that | ||||||
24 | contract, then within 5 business days
after that price | ||||||
25 | selection, the licensee shall mail to that producer a
| ||||||
26 | confirmation of the price selection, clearly and succinctly |
| |||||||
| |||||||
1 | indicating the
price selected. If the price later contract is | ||||||
2 | in electronic form, the licensee shall, within 5 business days | ||||||
3 | after that price selection, e-mail to that producer a | ||||||
4 | confirmation of the price selection, clearly and succinctly | ||||||
5 | indicating the price selected, in full satisfaction of the | ||||||
6 | mailing requirement in the previous sentence. | ||||||
7 | (l) The issuance and use of price later contracts in | ||||||
8 | electronic form pursuant to the rules promulgated by the | ||||||
9 | Department are specifically authorized by this Code, and any | ||||||
10 | such price later contracts shall have the same validity and | ||||||
11 | enforceability, for all purposes, as those in non-electronic | ||||||
12 | form. For purposes of this Code, the word "written", and | ||||||
13 | derivatives thereof, when used in relation to price later | ||||||
14 | contracts, shall include price later contracts created or | ||||||
15 | displayed electronically.
| ||||||
16 | (Source: P.A. 93-225, eff. 7-21-03.)
| ||||||
17 | (240 ILCS 40/10-25)
| ||||||
18 | Sec. 10-25. Warehouse receipts and storage of grain.
| ||||||
19 | (a) When grain is delivered to a warehouseman at a location
| ||||||
20 | where grain is also purchased, the licensee shall give written
| ||||||
21 | evidence of delivery of grain and that written evidence shall | ||||||
22 | be
marked to indicate whether the grain is delivered for | ||||||
23 | storage or
for sale. In the absence of adequate evidence of | ||||||
24 | sale, the grain
shall be construed to be in storage.
| ||||||
25 | (b) Upon demand by a depositor, a warehouseman shall
issue |
| |||||||
| |||||||
1 | warehouse receipts for grain delivered into storage.
| ||||||
2 | (c) There shall be no charge for the first warehouse
| ||||||
3 | receipt issued to a depositor for a given lot of grain.
Charges | ||||||
4 | for any additional warehouse receipts for grain
previously | ||||||
5 | covered by a warehouse receipt must be commensurate
with the | ||||||
6 | cost of issuance of the additional warehouse receipt.
| ||||||
7 | (d) A warehouseman shall issue warehouse receipts only in
| ||||||
8 | accordance with the following requirements:
| ||||||
9 | (1) Warehouse receipts shall be consecutively numbered | ||||||
10 | in a form
prescribed
by the Department and issued | ||||||
11 | consecutively by the warehouseman.
| ||||||
12 | (2) In the case of a lost or destroyed warehouse
| ||||||
13 | receipt, the new warehouse receipt shall bear the same date | ||||||
14 | as
the original and shall be plainly marked on its face
| ||||||
15 | "duplicate in lieu of lost or destroyed warehouse receipt
| ||||||
16 | number .......", and the warehouseman shall duly fill in
| ||||||
17 | the blank with the appropriate warehouse receipt number.
| ||||||
18 | (3) Warehouse receipts shall be printed by a person | ||||||
19 | authorized by the Department.
The person shall register | ||||||
20 | with the Department and pay an annual registration
fee of | ||||||
21 | $100 to print warehouse receipts.
| ||||||
22 | (4) Negotiable warehouse receipts shall be issued only
| ||||||
23 | for grain actually in storage with the warehouseman from | ||||||
24 | which
it is issued or redeposited by that warehouseman as | ||||||
25 | provided in subsection (e)
of Section 10-20.
| ||||||
26 | (5) A warehouseman shall not insert in any negotiable
|
| |||||||
| |||||||
1 | warehouse receipt issued by it any language that in any way
| ||||||
2 | limits or modifies its liability or responsibility.
| ||||||
3 | (e) Upon delivery of grain covered by a negotiable | ||||||
4 | warehouse
receipt, the holder of the negotiable warehouse | ||||||
5 | receipt must
surrender the warehouse receipt for cancellation, | ||||||
6 | and a warehouseman must
cancel
and issue a new negotiable | ||||||
7 | warehouse receipt for the balance of
grain in storage.
| ||||||
8 | (f) When all grain, the storage of which is evidenced by a
| ||||||
9 | warehouse receipt, is delivered from storage, the warehouse | ||||||
10 | receipt
shall be plainly marked across its face with the word | ||||||
11 | "cancelled"
and shall have written on it the date of | ||||||
12 | cancellation, the name
of the person canceling the warehouse | ||||||
13 | receipt, and such other information as
required by rule, and is | ||||||
14 | thereafter void.
| ||||||
15 | (g) When a warehouseman delivers grain out of storage but
| ||||||
16 | fails to collect and cancel the negotiable warehouse receipt, | ||||||
17 | the warehouseman
shall be liable to any purchaser of the | ||||||
18 | negotiable warehouse receipt for value
in good
faith
for | ||||||
19 | failure to deliver the grain to the
purchaser, whether the | ||||||
20 | purchaser acquired the negotiable warehouse receipt
before or | ||||||
21 | after the delivery of the grain by the warehouseman.
If, | ||||||
22 | however, grain has been lawfully sold by a warehouseman to
| ||||||
23 | satisfy its warehouseman's lien, the warehouseman shall not be
| ||||||
24 | liable for failure to deliver the grain pursuant to the demands | ||||||
25 | of
a holder of a negotiable warehouse receipt to the extent of | ||||||
26 | the amount of
grain sold.
|
| |||||||
| |||||||
1 | (h) Except as otherwise provided by this Code or other
| ||||||
2 | applicable law, a warehouseman shall deliver the grain upon | ||||||
3 | demand
made by the holder of a warehouse receipt pertaining to | ||||||
4 | that grain if the
demand is
accompanied by:
| ||||||
5 | (1) satisfaction of the warehouseman's lien;
| ||||||
6 | (2) in the case of a negotiable warehouse receipt, a
| ||||||
7 | properly endorsed negotiable warehouse receipt; or
| ||||||
8 | (3) in the case of a non-negotiable warehouse receipt,
| ||||||
9 | written evidence that the grain was delivered to the
| ||||||
10 | warehouseman and that the depositor is entitled to it.
| ||||||
11 | (i) If no warehouse receipt is issued to a
depositor, a | ||||||
12 | warehouseman shall deliver grain upon the demand of a
depositor | ||||||
13 | if the demand is accompanied by satisfaction of the
| ||||||
14 | warehouseman's lien and written evidence that the grain was
| ||||||
15 | delivered to the warehouseman and the depositor is entitled to
| ||||||
16 | it.
| ||||||
17 | (j) If a warehouseman refuses or fails to deliver grain in
| ||||||
18 | compliance with a demand by a holder of a warehouse receipt or | ||||||
19 | a
depositor, the burden is on the warehouseman to establish
the | ||||||
20 | existence of a lawful excuse for the refusal.
| ||||||
21 | (k) If a warehouse receipt has been lost or destroyed, a
| ||||||
22 | warehouseman may issue a substitute warehouse receipt, as | ||||||
23 | provided
for in this Section, upon delivery to the warehouseman | ||||||
24 | of an
affidavit under oath stating that the applicant for the | ||||||
25 | substitute
warehouse receipt is entitled to the original | ||||||
26 | warehouse receipt and
setting forth the circumstances that |
| |||||||
| |||||||
1 | resulted in the loss or
destruction of the original warehouse | ||||||
2 | receipt. The warehouseman
may request from the depositor a bond | ||||||
3 | in double the value of the
grain represented by the original | ||||||
4 | warehouse receipt at the time of
issuance of the substitute | ||||||
5 | warehouse receipt so as to protect the
warehouseman from any | ||||||
6 | liability or expense that it, or any person
injured by the | ||||||
7 | delivery, may incur by reason of the original
warehouse receipt | ||||||
8 | remaining outstanding.
| ||||||
9 | (l) A warehouse receipt that is to be used for collateral
| ||||||
10 | purposes by a warehouseman must be first issued by the | ||||||
11 | warehouseman
to itself.
| ||||||
12 | (m) The Department shall approve temporary storage space in
| ||||||
13 | an amount to be determined by the Department if all the | ||||||
14 | following conditions
are met:
| ||||||
15 | (1) The warehouseman pays all fees and assessments
| ||||||
16 | associated with the temporary storage space.
| ||||||
17 | (2) The warehouseman demonstrates that there is a need
| ||||||
18 | for additional storage on a temporary basis due to a bumper
| ||||||
19 | crop or otherwise.
| ||||||
20 | (3) The structure for the storage of grain meets all of
| ||||||
21 | the following requirements:
| ||||||
22 | (A) The grain storage area has a permanent base
| ||||||
23 | made of concrete, asphalt, or a material having similar
| ||||||
24 | structural qualities.
| ||||||
25 | (B) Hot spot detectors, aeration fans, and ducts
| ||||||
26 | are provided to assure that the quality of grain in
|
| |||||||
| |||||||
1 | storage is maintained.
| ||||||
2 | (C) The grain storage structure has rigid
| ||||||
3 | sidewalls made of concrete, wood, metal, or a material
| ||||||
4 | having similar structural qualities.
| ||||||
5 | (D) The grain storage structure is equipped with
a | ||||||
6 | waterproof covering of sufficient strength to support
| ||||||
7 | a person's weight and with inlets to allow airflow.
| ||||||
8 | (E) Access to the grain is provided for the
purpose | ||||||
9 | of sampling and making examinations.
| ||||||
10 | (4) Temporary storage space shall be considered an | ||||||
11 | increase
in the licensed storage capacity of the licensee | ||||||
12 | and shall be
subject to Section 5-30.
| ||||||
13 | (5) The authorization to use temporary storage space | ||||||
14 | for the
storage of grain shall expire at the end of 6 | ||||||
15 | months after the
date of approval by the Department or May | ||||||
16 | 15th, whichever comes
first.
| ||||||
17 | (n) The Department may approve emergency storage space at | ||||||
18 | the request of the
licensee according to rule. | ||||||
19 | (o) The issuance and transfer of the warehouse receipts in | ||||||
20 | electronic form pursuant to rules promulgated by the Department | ||||||
21 | are specifically authorized by this Code, and any such | ||||||
22 | warehouse receipts shall have the same validity and | ||||||
23 | enforceability, for all purposes, as those in non-electronic | ||||||
24 | non- electrical form. For purposes of this Code, the words | ||||||
25 | "written" and "printed", and derivatives thereof, when used in | ||||||
26 | relation to warehouse receipts, shall include warehouse |
| |||||||
| |||||||
1 | receipts created or displayed electronically.
| ||||||
2 | (Source: P.A. 94-211, eff. 7-14-05.)
| ||||||
3 | (240 ILCS 40/25-5)
| ||||||
4 | Sec. 25-5. Adjudication of claims. When a licensee has
| ||||||
5 | experienced a failure, the Department shall process the claims | ||||||
6 | in
the following manner:
| ||||||
7 | (a) The Department shall publish once each week for 3
| ||||||
8 | successive weeks in at least 3 newspapers of general | ||||||
9 | circulation within the
county of
the licensee, and shall mail | ||||||
10 | or deliver to each claimant whose
name and post office address | ||||||
11 | are known or are reasonably
ascertainable by the Department, a | ||||||
12 | notice stating:
| ||||||
13 | (1) That the licensee has experienced a failure and the
| ||||||
14 | date of that failure.
| ||||||
15 | (2) The place and post office address where claims may
| ||||||
16 | be filed.
| ||||||
17 | (3) The procedure for filing claims, as determined by
| ||||||
18 | rule.
| ||||||
19 | (4) That a claimant's claims shall be barred if not
| ||||||
20 | filed with the Department on or before the later of:
| ||||||
21 | (A) the claim date, which shall be 90
days after | ||||||
22 | the date of failure of the licensee; or
| ||||||
23 | (B) 7 days from the date notice was mailed
to a | ||||||
24 | claimant if the date notice was mailed to
that claimant | ||||||
25 | is on or before the claim date.
|
| |||||||
| |||||||
1 | (b) Time of notice.
| ||||||
2 | (1) The first date of publication of the notice as
| ||||||
3 | provided for in subsection (a) of this Section shall be | ||||||
4 | within 30
days after the date of failure.
| ||||||
5 | (2) The published notice as provided for in subsection | ||||||
6 | (a) of this Section
shall be published in at least 3 | ||||||
7 | newspapers of
general circulation in the area formerly | ||||||
8 | served by the failed
licensee.
| ||||||
9 | (3) The notice as provided for in subsection (a) of | ||||||
10 | this Section shall
be mailed by certified mail, return | ||||||
11 | receipt requested, within
60 days after the date of failure | ||||||
12 | to each claimant whose
name and post office address are | ||||||
13 | known by the Department
within 60 days after the date of | ||||||
14 | failure.
| ||||||
15 | (c) Every claim filed must be in writing, verified, and | ||||||
16 | signed
by a person who has the legal authority to file a claim | ||||||
17 | on
behalf of the claimant
and must state information sufficient | ||||||
18 | to notify the Department of the
nature of the claim and the | ||||||
19 | amount sought.
| ||||||
20 | (d) A claim shall be barred and disallowed in
its entirety | ||||||
21 | if:
| ||||||
22 | (1) notice is published and given to the claimant as | ||||||
23 | provided for in
subsections (a) and (b) of this Section and | ||||||
24 | the claimant does not file a
claim with the Department on | ||||||
25 | or before the claim date; or
| ||||||
26 | (2) the claimant's name or post office address is not
|
| |||||||
| |||||||
1 | known by the Department or cannot, within 60 days after
the | ||||||
2 | date of failure, be reasonably ascertained by the
| ||||||
3 | Department and the claimant does not file a claim with the
| ||||||
4 | Department on or before the later of the claim date or
7 | ||||||
5 | days after the date notice was mailed to that claimant if
| ||||||
6 | the date notice was mailed to that claimant is on or before
| ||||||
7 | the claim date.
| ||||||
8 | (e) Subsequent notice.
| ||||||
9 | (1) If, more than 60 days after the date of failure but
| ||||||
10 | before the claim date, the Department learns of the name | ||||||
11 | and
post office address of a claimant who was previously | ||||||
12 | not
notified by the Department by mail, the Department | ||||||
13 | shall mail
by certified mail, return receipt requested, the | ||||||
14 | notice to the
claimant as provided for in subsection (a) of | ||||||
15 | this Section.
| ||||||
16 | (2) The notice mailed as provided for in item (e)(1) of | ||||||
17 | this Section
shall not extend the period of time in which a
| ||||||
18 | claimant may file its claim beyond the claim date.
A | ||||||
19 | claimant to whom notice is mailed under
item (e)(1) of this | ||||||
20 | Section, however, shall have the later of the claim date or
| ||||||
21 | 7 days after the date notice was mailed to file
a claim | ||||||
22 | with the Department.
| ||||||
23 | (f) The Department shall determine the validity, category,
| ||||||
24 | and amount of each claim within 120 days after the date of | ||||||
25 | failure of
the licensee and shall give written notice within | ||||||
26 | that time period
to each
claimant and to the failed licensee
of |
| |||||||
| |||||||
1 | the Department's determination as to the validity, category, | ||||||
2 | and
amount of each claim.
| ||||||
3 | (g) A claimant or the
failed licensee may request a hearing | ||||||
4 | on the Department's
determination within 30 days after receipt | ||||||
5 | of the written
notice and the hearing shall be held
in the | ||||||
6 | county of the location of the principal office or place of | ||||||
7 | business, in Illinois, residence of the failed licensee | ||||||
8 | claimant and
in accordance with rules.
Under no circumstances | ||||||
9 | shall payment to claimants who have not requested a
hearing be
| ||||||
10 | delayed by reason of the request for a hearing by any unrelated | ||||||
11 | claimant.
| ||||||
12 | (h) Within 30 days after a failure of a licensee, the | ||||||
13 | Director shall
appoint an Administrative Law Judge for the | ||||||
14 | hearings. The Director shall
appoint a person licensed to | ||||||
15 | practice law in this State; who is believed to be
knowledgeable | ||||||
16 | with regard to agriculture and the grain industry in Illinois;
| ||||||
17 | who has no conflict of interest; and who at the time of his or | ||||||
18 | her appointment
is not working for or employed by the | ||||||
19 | Department in any capacity whatsoever.
| ||||||
20 | (i) For the purposes of this Article, the "reasonably
| ||||||
21 | ascertainable" standard shall be satisfied when the Department
| ||||||
22 | conducts a review of the failed licensee's books and records | ||||||
23 | and an
interview of office and clerical personnel of the failed | ||||||
24 | licensee.
| ||||||
25 | (j) It is the intent of this Act that the time periods and | ||||||
26 | deadlines in
this Section 25-5 are absolute, and
are not to be |
| |||||||
| |||||||
1 | tolled, or their operation halted or delayed.
In the event of a | ||||||
2 | bankruptcy by a licensee,
the Director shall seek to have | ||||||
3 | commenced any
proceedings that are necessary and
appropriate to | ||||||
4 | lift the automatic stay or make it otherwise inapplicable to | ||||||
5 | the
actions
of the Department with regard to the claims | ||||||
6 | determination process. In all other
cases, the Department shall | ||||||
7 | seek to have commenced the proceedings necessary to
| ||||||
8 | expeditiously remove or lift any order of any court
or | ||||||
9 | administrative agency that might attempt to delay the time | ||||||
10 | periods and
deadlines contained in this Section 25-5.
| ||||||
11 | (Source: P.A. 93-225, eff. 7-21-03.)
| ||||||
12 | Section 99. Effective date. This Act takes effect upon | ||||||
13 | becoming law.
|