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| Public Act 094-0054 |
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AN ACT concerning warehouses.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Grain Code is amended by changing Sections | ||||
20-20, 25-20, 30-5, 30-15, and 35-5 as follows:
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(240 ILCS 40/20-20)
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Sec. 20-20. Liquidation expenses; Asset Preservation | ||||
Account.
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(a) The Trustee shall pay from the Trust Account all
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reasonable expenses incurred by the trustee on or after the | ||||
date of failure in
reference to seizing, preserving, and | ||||
liquidating the grain assets,
equity assets, collateral, and | ||||
guarantees of or relating to a failed
licensee,
including, but | ||||
not limited to, the hiring of temporary field
personnel, | ||||
equipment rental, auction expenses, mandatory commodity | ||||
check-offs,
and clerical
expenses.
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(b) Except as to claimants holding valid claims, any
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outstanding indebtedness of a failed licensee that has accrued
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before the date of failure shall not be paid by the Trustee and
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shall represent a separate cause of action of the creditor | ||||
against
the failed licensee.
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(c) The Trustee shall report all expenditures paid from the
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Trust Account to the Corporation at least annually.
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(d) To the extent assets are available under subsection (g) | ||||
of Section
25-20 and upon presentation of documentation | ||||
satisfactory to the Trustee, the
Trustee shall transfer from | ||||
the Trust Account to the Regulatory Fund an amount
not to | ||||
exceed the expenses incurred by the Department in performance | ||||
of its
duties under Article 20 of this Code, in reference to | ||||
the failed licensee. | ||||
(e) The Department shall establish and maintain an Asset | ||||
Preservation Account as provided in Section 205-410 of the | ||||
Department of Agriculture Law of the Civil Administrative Code | ||
of Illinois that shall contain a maximum of $50,000. The funds | ||
in the Asset Preservation Account are to be used solely by the | ||
Trustee for the reasonable expenses incurred by the Department | ||
on or after the date of failure for preserving and liquidating | ||
grain assets, equity assets, collateral, and guarantees of or | ||
relating to a failed licensee, provided that the Department has | ||
made a determination that the benefit of preserving and | ||
liquidating the grain assets, equity assets, collateral, and | ||
guarantees exceeds the anticipated costs of the preservation | ||
and liquidation, and only to the extent that all liquid and | ||
available moneys in the Grain Indemnity Trust Account relating | ||
to the particular failure have been exhausted. The Asset | ||
Preservation Account shall be funded by the income earned on | ||
the assets in the Fund. The income must be transferred to the | ||
Asset Preservation Account on a monthly basis, within 10 | ||
business days after the end of each calendar month, and to the | ||
extent necessary to maintain the $50,000 balance. The Trustee, | ||
or his or her designee, must file a report of all receipts by | ||
and disbursements from the Asset Preservation Account with the | ||
Board prior to each meeting of the Board.
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(Source: P.A. 93-225, eff. 7-21-03.)
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(240 ILCS 40/25-20)
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Sec. 25-20. Priorities and repayments.
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(a) All valid claims shall be paid from the Trust Account, | ||
as
provided in Section 25-10, first from the proceeds
realized | ||
from
liquidation of and collection upon the grain assets | ||
relating to the failed
licensee, as to warehouse
claimants, and | ||
the equity assets as to a secured party or lien holder who has
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consented to the Department liquidating and collecting upon the | ||
equity asset as
set forth in subsection (f) of Section 20-15, | ||
and the remaining equity assets,
collateral, and guarantees
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relating to the failed licensee, as to grain dealer claimants.
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(b) If the proceeds realized from liquidation of and | ||
collection upon the
grain assets, equity assets, collateral, | ||
and guarantees relating to the failed
licensee are insufficient | ||
to pay all valid claims as provided in
Section 25-10
and | ||
subsection (a) of this Section as payment on those claims | ||
becomes due, the
Director shall request from the Board | ||
sufficient funds to be transferred from
the Fund to the Trust | ||
Account to pay the balance owed to claimants as
determined | ||
under Section 25-10. If a request is made by the Director for a
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transfer of funds to the Trust Account from the Fund, the Board | ||
shall act on
that request within 25 days after the date of that | ||
request. Once moneys are
transferred from the Fund to the Trust | ||
Account, the Director shall pay the
balance owed to claimants | ||
in accordance with Section 25-10.
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(c) Net proceeds from liquidation of grain assets as set | ||
forth in subsection
(a) of Section 25-10 received by the | ||
Department, to the extent not already paid
to warehouse | ||
claimants, shall be prorated among the fund and all
warehouse | ||
claimants who have not had their valid claims paid in full.
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(1) The pro rata distribution to the Fund shall be | ||
based upon the total
amount of valid claims of all | ||
warehouse claimants who have had
their valid
claims paid in | ||
full. The pro rata distribution to each warehouse
claimant | ||
who
has not had his or her valid claims paid in full shall | ||
be based upon the total
amount of that claimant's original | ||
valid claims.
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(2) If the net proceeds from the liquidation of grain | ||
assets as set forth
in subsection (a) of Section 25-10 | ||
exceed all amounts needed to satisfy all
valid claims filed | ||
by warehouse claimants, the balance remaining
shall be paid
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into the Trust Account or as set forth in subsection (h).
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(d) Subject to subsections (c) and (h):
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(1) The proceeds realized from liquidation of and
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collection upon the grain assets, equity assets, | ||
collateral,
and guarantees relating to the failed licensee | ||
or any other
assets relating to the failed licensee that | ||
are received by
the Department, to the extent not already | ||
paid to claimants,
shall be first used to repay the Fund | ||
for moneys transferred
to the Trust Account.
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(2) After the Fund is repaid in full for the moneys
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transferred from it to pay the valid claims in reference to | ||
a
failed licensee, any remaining proceeds realized from
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liquidation of and collection upon the grain assets, equity
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assets, collateral, and guarantees relating to the failed
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licensee thereafter received by the Department shall be
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prorated to the claimants holding valid claims who have not
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received 100% of the amount of their valid claims based | ||
upon the
unpaid amount of their valid claims.
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(e) After all claimants have received 100% of the amount of | ||
their
valid
claims, to the extent moneys are available interest | ||
at the rate of 6% per annum
shall be assessed and paid to the | ||
Fund on all moneys transferred from the Fund
to the Trust | ||
Account.
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(f) After the Fund is paid the interest as provided in | ||
subsection (e) of
this Section, then those claims barred and | ||
disallowed under items (1) and (2) of subsection (g) of
Section | ||
25-10 shall be paid on a pro rata basis only to the extent that | ||
moneys
are available.
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(g) Once all claims become valid claims and have been paid | ||
in
full and all interest as provided in subsection (e) of this | ||
Section is paid in
full, and all claims are paid in full under | ||
subsection (f), and all payments are made as required under | ||
Section 20-20(d),
any remaining grain assets, equity assets, | ||
collateral, and
guarantees, and the proceeds realized from | ||
liquidation of and
collection upon the grain assets, equity | ||
assets, collateral, and
guarantees relating to the failed | ||
licensee,
shall be returned to the
failed licensee or its | ||
assignee, or as otherwise directed by a
court of competent | ||
jurisdiction.
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(h) If amounts in the Fund are insufficient to
pay all | ||
valid claims,
the Corporation shall transfer from the Reserve | ||
Fund to the Fund amounts
sufficient to satisfy the valid | ||
claims, and to the extent the amounts thus
transferred are | ||
insufficient to pay all valid claims,
the General Assembly | ||
shall appropriate to the
Corporation amounts sufficient to | ||
satisfy the valid claims. If
for any reason the General | ||
Assembly fails to make an
appropriation to satisfy outstanding | ||
valid claims, this Code
constitutes an irrevocable and | ||
continuing appropriation of all
amounts necessary for that | ||
purpose and the irrevocable and
continuing authority for and | ||
direction to the State Comptroller and
to the State Treasurer | ||
to make the necessary transfers and
disbursements from the | ||
revenues and funds of the State for that
purpose. Subject to | ||
payments to warehouse claimants as set forth in
subsection (c) | ||
of Section 25-20, the State shall be first reimbursed, and
the | ||
Reserve Fund shall thereafter be reimbursed to the extent | ||
needed to
restore the Reserve Fund to a level of $2,000,000 of | ||
principal (not including
income on the assets in the Reserve | ||
Fund)
as soon as funds become available for any amounts paid | ||
under subsection (g) of
this
Section upon replenishment of the | ||
Fund from assessments under subsections
(d), (f), and (g) of | ||
Section 5-30 and collection upon grain assets, equity
assets,
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collateral, and guarantees relating to the failed licensee.
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(i) The Department shall have those rights of equitable | ||
subrogation which
may result from a claimant receiving from the | ||
Fund payment in full of the
obligations of the failed licensee | ||
to the claimant.
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(Source: P.A. 93-225, eff. 7-21-03.)
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(240 ILCS 40/30-5)
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Sec. 30-5. Illinois Grain Insurance Corporation.
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(a) The Corporation is a political subdivision, body | ||
politic,
and public corporation. The governing powers of the | ||
Corporation
are vested in the Board of Directors composed of | ||
the Director,
who shall personally serve as president; the | ||
Attorney General or
his or her designee, who shall serve as | ||
secretary; the State Treasurer or
his or her designee, who | ||
shall serve as treasurer; the Director of the
Department of | ||
Insurance or his or her designee; and the chief fiscal officer
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of the Department.
Three members of the Board
constitute a
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quorum at any meeting of the Board, and the affirmative vote of
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3 members is necessary for any action taken by the
Board at a | ||
meeting, except that a lesser number may adjourn a
meeting from | ||
time to time. A vacancy in the membership of the
Board does not | ||
impair the right of a quorum to exercise all the rights
and | ||
perform all the duties of the Board and Corporation.
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(b) The Corporation has the following powers, together
with | ||
all powers incidental or necessary to the discharge of those | ||
powers in
corporate form:
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(1) To have perpetual succession by its corporate name
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as a corporate body.
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(2) To adopt, alter, and repeal bylaws, not
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inconsistent with the provisions of this Code, for the | ||
regulation and conduct
of its affairs and business.
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(3) To adopt and make use of a corporate seal and to
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alter the seal at pleasure.
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(4) To avail itself of the use of information, | ||
services,
facilities, and employees of the State of | ||
Illinois in carrying
out the provisions of this Code.
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(5) To receive funds, printer registration fees, and | ||
penalties
assessed by the Department under
this Code.
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(6) To administer the Fund by investing funds of the
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Corporation that the Board may determine are not presently
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needed for its corporate purposes.
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(7) To receive funds from the Trust Account for deposit
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into the Fund.
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(8) Upon the request of the Director, to make payment | ||
from the Fund and
the Reserve Fund to the
Trust Account | ||
when payment is necessary to compensate claimants in | ||
accordance
with the provisions of Section 25-20 or for | ||
payment of refunds to licensees in
accordance with the | ||
provisions of this Code.
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(9) To authorize, receive, and disburse funds by | ||
electronic means.
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(10) To
make any inquiry and investigation deemed | ||
appropriate with regard to the
failure of any
licensee, | ||
including but not limited to analyzing the causes of and | ||
reasons for
the failure; determining the adequacy and | ||
accuracy of Department examinations
and other regulatory | ||
measures with regard to the failed licensee; and analyzing
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whether the handling of the liquidation and payment process | ||
by the Department
was done in a manner that served the | ||
interests of those persons whose interests
this Code was | ||
designed to protect.
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(11) To have those powers that are necessary or
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appropriate for the exercise of the powers specifically
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conferred upon the Corporation and all incidental powers
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that are customary in corporations. | ||
(12) To make payments from the Fund to the Asset | ||
Preservation Account in accordance with Section 20-20(e) | ||
of this Code.
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(c) A committee of advisors shall be created to provide | ||
technical
assistance
and advice and make recommendations to the | ||
Board. The advisory committee shall
assist the board in | ||
understanding pertinent developments in grain production
and | ||
marketing and the grain industry. The advisory committee shall | ||
be composed
of one grain producer designated by the Illinois | ||
Farm Bureau; one grain
producer designated by the Illinois | ||
Farmers Union; one grain producer
designated by the Illinois | ||
Corn Growers Association; one grain producer
designated by the | ||
Illinois Soybean Association;
2 representatives of the grain | ||
industry, designated by the Grain and Feed
Association of
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Illinois; and 2 representatives of the lending industry, one | ||
each designated by
the Illinois
Bankers Association and the | ||
Community Bankers of Illinois.
Members of the advisory | ||
committee shall serve terms of 2 years from the date of
their | ||
designation. Members of the advisory committee shall have the | ||
right to
attend all meetings of the Board and participate in | ||
Board discussions, but
shall not have a vote.
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(Source: P.A. 93-225, eff. 7-21-03.)
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(240 ILCS 40/30-15)
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Sec. 30-15. Investments of the Fund.
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(a) All assessments by the Department under Section
5-30 | ||
shall be held by the Corporation in the Fund.
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(b) Subject to applicable law, the assets of the Fund may | ||
be
invested and reinvested at the discretion of the | ||
Corporation, and
the income from these investments shall be | ||
deposited to the credit
of the Fund and shall be available for | ||
the same purposes as all
other assets of the Fund.
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(c) Except as provided in Section 20-20(e), the
The assets | ||
of the Fund shall not be available for any
purpose other than | ||
the payment of valid claims under this
Code and the payment of | ||
refunds of amounts that the Board
determines have been | ||
inappropriately paid into the Fund, and may
not be transferred | ||
to any other fund, other than the Trust Account
when necessary | ||
to pay valid claims under this Code or to pay
refunds | ||
authorized by the Board.
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(Source: P.A. 89-287, eff. 1-1-96.)
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(240 ILCS 40/35-5)
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Sec. 35-5. Regulatory Fund.
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(a) The Regulatory Fund is created as a trust fund in the | ||
State Treasury.
The Regulatory Fund shall receive license, | ||
certificate, and extension fees
under Sections 5-10, 5-15, and | ||
5-20 and funds under subsection (g) of Section
25-20 and shall | ||
pay expenses as set forth in this Article 35.
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(b) Any funds received by the Director under Sections 5-10, | ||
5-15, and 5-20
and funds disbursed for deposit to the | ||
Regulatory Fund under subsection (g) of
Section 25-20 shall be | ||
deposited with the Treasurer as ex officio custodian and
held | ||
separate and apart from any public money of this State, with | ||
interest
accruing on moneys in the Regulatory
Fund deposited | ||
into the Regulatory Fund. Disbursement from the Fund for
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expenses as set forth in this Article 35 shall be by voucher | ||
ordered by the
Director, accompanied by documentation | ||
satisfactory to the Treasurer and the
Comptroller supporting | ||
the payment warrant drawn by the Comptroller and
countersigned | ||
by the Treasurer. Moneys in the Regulatory Fund shall not be
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subject to
appropriation by the General Assembly but shall be | ||
subject to audit by the
Auditor General. Interest earned on | ||
moneys deposited into the Regulatory Fund
shall be deposited | ||
into the Regulatory Fund.
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(c) Fees deposited into the Regulatory Fund under Sections | ||
5-10, 5-15, and
5-20
shall be expended only for the following | ||
program expenses of the Department;
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(1) Implementation and monitoring of programs of the | ||
Department solely
under this Code, including an electronic | ||
warehouse receipt program.
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(2) Employment or engagement of certified public | ||
accountants to assist in
oversight and regulation of | ||
licensees in the course of an intermediate or
advanced | ||
examination under Section 1-15.
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(3) Training and education of examiners and other | ||
Department employees
in reference to Department programs | ||
established to implement the Department's
duties solely | ||
under the Code.
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(d) Any expenses incurred by the Department in performance | ||
of its duties
under Article 20 of the Code shall be reimbursed | ||
to the Department out of the
net assets of a liquidation to the | ||
extent available under subsection (g)
(q) of
Section 25-20 and | ||
shall be
deposited into the Regulatory Fund and shall be | ||
expended solely for program
expenses under the Code.
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(Source: P.A. 93-225, eff. 7-21-03.)
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