(240 ILCS 40/Art. 10 heading)
(240 ILCS 40/10-5)
Sec. 10-5.
Duties and requirements of licensees.
(a) Each licensee shall have adequate property insurance covering
grain in its possession or custody and adequate liability,
property, theft, hazard, and workers' compensation insurance.
(b) A licensee shall immediately notify the Department when
there is a change of management or cessation of operations or
change in fiscal year end.
(c) All grain trades, grain merchandising transactions, grain origination
plans
and
programs, and transactions or arrangements that represent or reflect rights and
obligations in grain must be clearly identified and disclosed in the books and
records of the licensee, for audit and examination purposes.
(Source: P.A. 93-225, eff. 7-21-03.)
(240 ILCS 40/10-10)
Sec. 10-10.
Duties and requirements of grain dealers.
(a) Long and short market position.
(b) The license issued by the Department to a grain dealer
shall be posted in the principal office of the licensee in this
State. A certificate shall be posted in each location where the
licensee engages in business as a grain dealer. In the case of a
licensee operating a truck or tractor trailer unit for the purpose
of purchasing grain, the licensee shall have a certificate
carried in each truck or tractor trailer unit used in connection
with the licensee's grain dealer business.
(c) The licensee must have at all times sufficient financial
resources to pay producers on demand for grain purchased from them.
(d) A licensee that is solely a grain dealer shall on a daily basis
maintain an accurate and current daily grain transaction
report.
(e) A licensee that is both a grain dealer and a
warehouseman shall at all times maintain an accurate and current
daily position record.
(f) In the case of a change of ownership of a grain dealer, the obligations
of a grain dealer do not cease until the grain dealer has surrendered all
unused price later contracts to the
Department and the successor has executed a successor's agreement that is
acceptable to the Department, or the
successor has
otherwise provided for the grain obligations of its predecessor in a manner
that is acceptable to the Department.
(g) If a grain dealer proposes to cease doing business as a grain dealer and
there is no successor, it is the duty of the grain dealer to surrender all
unused price later contracts to the Department, together with an affidavit
accounting for all grain dealer obligations setting forth the arrangements made
with producers for final disposition of the grain dealer obligations and
indicating the procedure for payment in full of all outstanding grain
obligations.
It is the duty of the Department to give notice by publication that a grain
dealer has ceased doing business without a successor. After payment in full
of all outstanding grain obligations, it is the duty of the
grain dealer to surrender its license.
(Source: P.A. 93-225, eff. 7-21-03.)
(240 ILCS 40/10-15)
Sec. 10-15. Price later contracts.
(a) Price later contracts shall contain provisions
prescribed or authorized by the Department and shall be in either written or electronic form. If in written form, price later contract forms
shall be
printed by a person authorized to print those contracts by the
Department after that person has agreed to comply with each of the following:
Price later contracts that are in electronic form shall be numbered consecutively.
(b) A grain dealer purchasing grain by price later contract
shall at all times own grain, rights in grain, proceeds from the
sale of grain, and other assets acceptable to the Department as set
forth in this Code totaling 90% of the unpaid balance of
the grain dealer's obligations for grain purchased by price later
contract. That amount shall at all times remain unencumbered and
shall be represented by the aggregate of the following:
(c) For the purpose of computing the dollar value of grain
and the balance due on price later contract obligations, the value
of grain shall be figured at the current market price.
(d) Title to grain sold by price later contract shall
transfer to a grain dealer at the time of delivery of the
grain.
Therefore, no storage charges shall be made with respect to grain
purchased by price later contract. A service charge for
handling the contract, however, may be made.
(e) Subject to subsection (f) of this Section,
if a price later contract is not signed by all parties
within 30 days of the last date of delivery of grain
intended to be sold by price later contract, then
the grain intended to be sold by price later contract shall
be priced on the next business day after 30 days from
the last date of delivery of grain intended to be sold
by price later contract at the market price of the grain
at the close of the next business day after the 29th day.
When the grain is priced under this subsection, the grain dealer shall send
notice to the seller of the grain within 10 days. The notice shall contain the
number of bushels sold, the price per bushel, all applicable discounts, the net
proceeds, and a notice that states that the Grain Insurance Fund shall provide
protection for a period of only 160 days from the date of pricing of the grain.
In the event of a failure, if a price later contract is not signed by all
the parties to the transaction, the Department may consider the grain to be
sold by price later contract if a preponderance of the evidence indicates the
grain was to be sold by price later contract.
(f) If grain is in storage with a
warehouseman and is intended to be sold by price later contract, that grain
shall be considered as remaining in storage and not be deemed sold by price
later contract until the date the price later contract is signed by all
parties.
(g) Scale tickets or other approved documents with
respect to grain purchased by a grain dealer by price later
contract shall contain the following: "Sold Grain; Price Later".
(h) Price later contracts shall be issued consecutively and recorded by
the grain
dealer as established by rule.
(i) A licensee shall not issue a collateral warehouse
receipt on grain purchased by a price later contract to the extent
the purchase price has not been paid by the licensee.
(j) Failure to comply with the requirements of this Section
may result in suspension
of the privilege to purchase grain by price later contract for up
to one year.
(k) When a producer with a price later contract selects a price for all or
any part of the grain represented by that contract, then within 5 business days
after that price selection, the licensee shall mail to that producer a
confirmation of the price selection, clearly and succinctly indicating the
price selected. If the price later contract is in electronic form, the licensee shall, within 5 business days after that price selection, e-mail to that producer a confirmation of the price selection, clearly and succinctly indicating the price selected, in full satisfaction of the mailing requirement in the previous sentence.
(l) The issuance and use of price later contracts in electronic form pursuant to the rules promulgated by the Department are specifically authorized by this Code, and any such price later contracts shall have the same validity and enforceability, for all purposes, as those in non-electronic form. For purposes of this Code, the word "written", and derivatives thereof, when used in relation to price later contracts, shall include price later contracts created or displayed electronically.
(Source: P.A. 96-464, eff. 8-14-09.)
(240 ILCS 40/10-20)
Sec. 10-20.
Duties and requirements of warehouseman.
(a) It is the duty of every warehouseman to receive for
storage any grain that may be tendered to it in the ordinary course
of business so far as the licensed storage capacity of the
warehouse permits and if the grain is of a kind customarily stored
by the warehouseman and is in suitable condition
for storage.
(b) For the purposes of the Department's examinations, a
warehouseman shall provide and maintain safe and adequate means of
ingress and egress to the various and surrounding areas of the
facilities, storage bins, and compartments of the warehouse.
(c) Except as provided in this item (c), a warehouseman shall at all
times have a sufficient quantity of grain of like kind and quality to meet its
outstanding storage obligations.
For purposes of this Section, "like kind and quality" means the type of
commodity and a combination of grade, specialty traits, if any, and class or
sub-class as applicable.
(d) A warehouseman shall not store grain in excess of the
capacity for which it is licensed.
(e) A warehouseman may redeposit grain from its warehouse
with another warehouseman or a federal warehouseman in an additional quantity
not to exceed the licensed storage capacity of its own warehouse.
(f) Schedule of rates and licenses.
(g) A warehouseman may refuse to accept grain if the
identity of the grain is to be preserved. If a warehouseman accepts
grain and the identity of the grain is to be preserved, the evidence of
storage shall state on its face that the grain is stored with its
identity preserved and the location of that grain.
(h) A warehouseman shall at all times maintain an accurate
and current daily position record on a daily basis.
(i) In the case of a change of ownership of a warehouse, the
obligations of a warehouseman do not cease until its successor is
properly licensed under this Code
or the United States Warehouse Act,
it has surrendered all unused
warehouse receipts to the Department and has executed a successor's
agreement, or the successor has otherwise provided for the
obligations of its predecessor.
(j) If a warehouseman proposes to cease doing business as a
warehouseman and there is no successor, it is the duty of the
warehouseman to surrender all unused warehouse receipts to the
Department, together with an affidavit accounting for all warehouse
receipts setting forth the arrangements made with depositors for
final disposition of the grain in storage and indicating the
procedure for payment in full of all outstanding obligations. After payment in
full of all outstanding obligations, it is the duty of the warehouseman to
surrender its license.
(k) Requests by a warehouseman for special examinations,
grain inventory computation, or verification of grain quantity or
quality shall be accompanied by a fee of $200.
(l) Nothing in this Section is deemed to prohibit a warehouseman from
entering into agreements with depositors of grain relating to allocation or
reservation of storage space.
(Source: P.A. 93-225, eff. 7-21-03.)
(240 ILCS 40/10-25)
Sec. 10-25. Warehouse receipts and storage of grain.
(a) When grain is delivered to a warehouseman at a location
where grain is also purchased, the licensee shall give written
evidence of delivery of grain and that written evidence shall be
marked to indicate whether the grain is delivered for storage or
for sale. In the absence of adequate evidence of sale, the grain
shall be construed to be in storage.
(b) Upon demand by a depositor, a warehouseman shall
issue warehouse receipts for grain delivered into storage.
(c) There shall be no charge for the first warehouse
receipt issued to a depositor for a given lot of grain.
Charges for any additional warehouse receipts for grain
previously covered by a warehouse receipt must be commensurate
with the cost of issuance of the additional warehouse receipt.
(d) A warehouseman shall issue warehouse receipts only in
accordance with the following requirements:
(e) Upon delivery of grain covered by a negotiable warehouse
receipt, the holder of the negotiable warehouse receipt must
surrender the warehouse receipt for cancellation, and a warehouseman must
cancel
and issue a new negotiable warehouse receipt for the balance of
grain in storage.
(f) When all grain, the storage of which is evidenced by a
warehouse receipt, is delivered from storage, the warehouse receipt
shall be plainly marked across its face with the word "cancelled"
and shall have written on it the date of cancellation, the name
of the person canceling the warehouse receipt, and such other information as
required by rule, and is thereafter void.
(g) When a warehouseman delivers grain out of storage but
fails to collect and cancel the negotiable warehouse receipt, the warehouseman
shall be liable to any purchaser of the negotiable warehouse receipt for value
in good
faith
for failure to deliver the grain to the
purchaser, whether the purchaser acquired the negotiable warehouse receipt
before or after the delivery of the grain by the warehouseman.
If, however, grain has been lawfully sold by a warehouseman to
satisfy its warehouseman's lien, the warehouseman shall not be
liable for failure to deliver the grain pursuant to the demands of
a holder of a negotiable warehouse receipt to the extent of the amount of
grain sold.
(h) Except as otherwise provided by this Code or other
applicable law, a warehouseman shall deliver the grain upon demand
made by the holder of a warehouse receipt pertaining to that grain if the
demand is
accompanied by:
(i) If no warehouse receipt is issued to a
depositor, a warehouseman shall deliver grain upon the demand of a
depositor if the demand is accompanied by satisfaction of the
warehouseman's lien and written evidence that the grain was
delivered to the warehouseman and the depositor is entitled to
it.
(j) If a warehouseman refuses or fails to deliver grain in
compliance with a demand by a holder of a warehouse receipt or a
depositor, the burden is on the warehouseman to establish
the existence of a lawful excuse for the refusal.
(k) If a warehouse receipt has been lost or destroyed, a
warehouseman may issue a substitute warehouse receipt, as provided
for in this Section, upon delivery to the warehouseman of an
affidavit under oath stating that the applicant for the substitute
warehouse receipt is entitled to the original warehouse receipt and
setting forth the circumstances that resulted in the loss or
destruction of the original warehouse receipt. The warehouseman
may request from the depositor a bond in double the value of the
grain represented by the original warehouse receipt at the time of
issuance of the substitute warehouse receipt so as to protect the
warehouseman from any liability or expense that it, or any person
injured by the delivery, may incur by reason of the original
warehouse receipt remaining outstanding.
(l) A warehouse receipt that is to be used for collateral
purposes by a warehouseman must be first issued by the warehouseman
to itself.
(m) The Department shall approve temporary storage space in
an amount to be determined by the Department if all the following conditions
are met:
(n) The Department may approve emergency storage space at the request of the
licensee according to rule.
(o) The issuance and transfer of the warehouse receipts in electronic form pursuant to rules promulgated by the Department are specifically authorized by this Code, and any such warehouse receipts shall have the same validity and enforceability, for all purposes, as those in non-electronic form. For purposes of this Code, the words "written" and "printed", and derivatives thereof, when used in relation to warehouse receipts, shall include warehouse receipts created or displayed electronically.
(Source: P.A. 96-464, eff. 8-14-09.)