98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB0732

 

Introduced 1/24/2013, 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

 

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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.)