97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB0768
 
Introduced 2/8/2011, by Sen. John J. Cullerton
 
SYNOPSIS AS INTRODUCED:
 


240 ILCS 40/30-10

    Amends the Grain Code.  Makes a technical change in a Section concerning participants in the
Illinois Grain Insurance Fund.



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A BILL FOR
 


SB0768LRB097 04489 ASK 44528 b



1    AN ACT concerning warehouses.

 
2    Be it enacted by the People of the State of Illinois, 
3represented in the General Assembly: 

 
4    Section 5. The Grain Code is amended by changing Section 
530-10 as follows:
 



6    (240 ILCS 40/30-10)



7    Sec. 30-10. Participants in the Fund. 

8    (a) A licensee under this Code is subject to this Article 
9and
and shall
collect and pay
assessments into the Fund as 
10provided in Section 5-30.
11    (b) Except as provided in subsection (c) of this Section, a 
12person
engaged in the business of a grain dealer or 
13warehouseman but not
licensed under this Code shall not 
14participate in or benefit
from the Fund and its claimants shall 
15not receive proceeds from the Fund.

16    (c) Participation of federal warehousemen.


17        (1) A federal warehouseman may participate in the
Fund.  
18    If a federal warehouseman chooses to participate in the

19    Fund, it shall to the extent permitted by federal law:


20            (A) pay assessments into the Fund;


21            (B) be deemed a licensee and a warehouseman under

22        this Code;


23            (C) be subject to this Code; and


 
 
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1            (D) execute a cooperative agreement between
itself 
2        and the Department.


3        (2) The cooperative agreement shall, at a minimum,

4    provide each of the following to the extent permitted by 
5    federal law:


6            (A) Authorization for the Department to obtain

7        information about the federal warehouseman including, 
8        but
not limited to, bushel capacity of storage space,

9        financial stability, and examinations performed by

10        employees of the United States Department of 
11        Agriculture.


12            (B) That the federal warehouseman submits itself 
13        to the jurisdiction of
the Department and that it 
14        agrees to be subject to and bound by this Code and

15        deemed a licensee under this Code.


16            (C) That in the event of a failure of the federal

17        warehouseman, the Department shall have authority to

18        seize, liquidate, and collect upon all grain assets,

19        collateral, and guarantees relating to the federal

20        warehouseman as in the case of any other licensee.


21            (D) Such other requirements as established by

22        rule.


23        (3) A federal warehouseman that participates in the

24    Fund shall at a minimum meet the licensing requirements of

25    this Code and shall comply with all requirements of a 
26    licensee
and a warehouseman under this Code to the extent 
 
 
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1    permitted by federal law.

2    (d) A federal warehouseman that participates in the Fund or

3a warehouseman that desires to or has become a federal

4warehouseman cannot withdraw from participation in the Fund for

5the benefit of existing depositors until the occurrence of all 
6of
the following:


7        (1) Payment in full by the federal warehouseman or

8    withdrawing warehouseman of all assessments under

9    subsection (a) of Section 5-30.


10        (2) Payment in full by the federal warehouseman or

11    withdrawing warehouseman of all assessments instituted 
12    under
subsection (d) of Section 5-30
on or after an 
13    assessment determination date that occurs before the 
14    federal warehouseman or withdrawing warehouseman notifies

15    the Department that it desires to withdraw from 
16    participation in the Fund and
before the issuance by the 
17    Department of a
certificate of withdrawal from the Fund.


18        (3) The expiration of 30 days following the later of:


19            (A) the date the federal warehouseman or

20        withdrawing warehouseman has ceased providing its

21        depositors with coverage under the Fund;


22            (B) the date the federal warehouseman or

23        withdrawing warehouseman has posted at each of its

24        locations a notice stating when it will cease providing 
25        its
depositors with coverage under the Fund;


26            (C) notification of all potential claimants by the

 
 
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1        federal warehouseman or withdrawing warehouseman of 
2        the
date on which it will cease providing its 
3        depositors with coverage
under the Fund; and


4            (D) Completion of an audit and examination 
5        satisfactory to the
Department as provided for in this 
6        Code and by rule, which is to be the
Department's final 
7        examination.


8        (4) Obtaining releases of liability from all existing 
9    depositors or
posting collateral with the Department for 
10    270 days after withdrawing from the
Fund in an amount equal 
11    to the liability to existing depositors who have not

12    executed releases before the completion of the 
13    Department's final examination.


14        (5) Compliance with all notification requirements as 
15    provided
for in this Code and by rule.


16        (6) Issuance by the Department of a certificate of 
17    withdrawal from the
Fund when the federal warehouseman or 
18    withdrawing warehouseman has met all
requirements for 
19    withdrawal from participation in the Fund.

20    (e) Before a federal warehouseman or a warehouseman that

21desires to or has become a federal warehouseman may withdraw 
22from
participation in the Fund, it must pay for an audit and 
23examination
and must provide to the Department all names and 
24addresses of
potential claimants for the purposes of 
25notification of withdrawal
of participation in the Fund.

26(Source: P.A. 93-225, eff. 7-21-03.)