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91_HB0691
LRB9101397MWks
1 AN ACT to amend the Grain Code by changing Section 10-25.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Grain Code is amended by changing Section
5 10-25 as follows:
6 (240 ILCS 40/10-25)
7 Sec. 10-25. Warehouse receipts and storage of grain.
8 (a) When grain is delivered to a warehouseman at a
9 location where grain is also purchased, the licensee shall
10 give written evidence of delivery of grain and that written
11 evidence shall be marked to indicate whether the grain is
12 delivered for storage or for sale. In the absence of
13 adequate evidence of sale, the grain shall be construed to be
14 in storage.
15 (b) Upon demand by a depositor, a warehouseman shall
16 issue warehouse receipts for grain delivered into storage.
17 (c) There shall be no charge for the first warehouse
18 receipt issued to a depositor for a given lot of grain.
19 Charges for any additional warehouse receipts for grain
20 previously covered by a warehouse receipt must be
21 commensurate with the cost of issuance of the additional
22 warehouse receipt.
23 (d) A warehouseman shall issue warehouse receipts only
24 in accordance with the following requirements:
25 (1) Warehouse receipts shall be in a form
26 prescribed by the Department and when issued from the
27 same warehouse shall be consecutively numbered.
28 (2) In the case of a lost or destroyed warehouse
29 receipt, the new warehouse receipt shall bear the same
30 date as the original and shall be plainly marked on its
31 face "duplicate in lieu of lost or destroyed warehouse
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1 receipt number .......", and the warehouseman shall duly
2 fill in the blank with the appropriate warehouse receipt
3 number.
4 (3) Warehouse receipts shall be printed by a
5 printer approved by the Department.
6 (4) Negotiable warehouse receipts shall be issued
7 only for grain actually in storage with the warehouseman
8 from which it is issued or redeposited by that
9 warehouseman as provided in subsection (e) of Section
10 10-20.
11 (5) A warehouseman shall not insert in any
12 negotiable warehouse receipt issued by it any language
13 that in any way limits or modifies its liability or
14 responsibility.
15 (e) Upon delivery of grain covered by a negotiable
16 warehouse receipt, the holder of the negotiable warehouse
17 receipt must surrender the warehouse receipt for
18 cancellation, and a warehouseman must cancel and issue a new
19 negotiable warehouse receipt for the balance of grain in
20 storage.
21 (f) When all grain, the storage of which is evidenced by
22 a warehouse receipt, is delivered from storage, the warehouse
23 receipt shall be plainly marked across its face with the word
24 "cancelled" and shall have written on it the date of
25 cancellation, the name of the person canceling the warehouse
26 receipt, and any such other information that as required by
27 rule, and is thereafter void.
28 (g) When a warehouseman delivers grain out of storage
29 but fails to collect and cancel the negotiable warehouse
30 receipt, the warehouseman shall be liable to any purchaser of
31 the negotiable warehouse receipt for value in good faith for
32 failure to deliver the grain to the purchaser, whether the
33 purchaser acquired the negotiable warehouse receipt before or
34 after the delivery of the grain by the warehouseman. If,
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1 however, grain has been lawfully sold by a warehouseman to
2 satisfy its warehouseman's lien, the warehouseman shall not
3 be liable for failure to deliver the grain pursuant to the
4 demands of a holder of a negotiable warehouse receipt to the
5 extent of the amount of grain sold.
6 (h) Except as otherwise provided by this Code or other
7 applicable law, a warehouseman shall deliver the grain upon
8 demand made by the holder of a warehouse receipt pertaining
9 to that grain if the demand is accompanied by:
10 (1) satisfaction of the warehouseman's lien;
11 (2) in the case of a negotiable warehouse receipt,
12 a properly endorsed negotiable warehouse receipt; or
13 (3) in the case of a non-negotiable warehouse
14 receipt, written evidence that the grain was delivered to
15 the warehouseman and that the depositor is entitled to
16 it.
17 (i) If no warehouse receipt is issued to a depositor, a
18 warehouseman shall deliver grain upon the demand of a
19 depositor if the demand is accompanied by satisfaction of the
20 warehouseman's lien and written evidence that the grain was
21 delivered to the warehouseman and the depositor is entitled
22 to it.
23 (j) If a warehouseman refuses or fails to deliver grain
24 in compliance with a demand by a holder of a warehouse
25 receipt or a depositor, the burden is on the warehouseman to
26 establish the existence of a lawful excuse for the refusal.
27 (k) If a warehouse receipt has been lost or destroyed, a
28 warehouseman may issue a substitute warehouse receipt, as
29 provided for in this Section, upon delivery to the
30 warehouseman of an affidavit under oath stating that the
31 applicant for the substitute warehouse receipt is entitled to
32 the original warehouse receipt and setting forth the
33 circumstances that resulted in the loss or destruction of the
34 original warehouse receipt. The warehouseman may request
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1 from the depositor a bond in double the value of the grain
2 represented by the original warehouse receipt at the time of
3 issuance of the substitute warehouse receipt so as to protect
4 the warehouseman from any liability or expense that it, or
5 any person injured by the delivery, may incur by reason of
6 the original warehouse receipt remaining outstanding.
7 (l) A warehouse receipt that is to be used for
8 collateral purposes by a warehouseman must be first issued by
9 the warehouseman to itself.
10 (m) The Department shall approve temporary storage space
11 in an amount to be determined by the Department if all the
12 following conditions are met:
13 (1) The warehouseman pays all fees and assessments
14 associated with the temporary storage space.
15 (2) The warehouseman demonstrates that there is a
16 need for additional storage on a temporary basis due to a
17 bumper crop or otherwise.
18 (3) The structure for the storage of grain meets
19 all of the following requirements:
20 (A) The grain storage area has a permanent
21 base made of concrete, asphalt, or a material having
22 similar structural qualities.
23 (B) Hot spot detectors, aeration fans, and
24 ducts are provided to assure that the quality of
25 grain in storage is maintained.
26 (C) The grain storage structure has rigid
27 sidewalls made of concrete, wood, metal, or a
28 material having similar structural qualities.
29 (D) The grain storage structure is equipped
30 with a waterproof covering of sufficient strength to
31 support a person's weight and with inlets to allow
32 airflow.
33 (E) Access to the grain is provided for the
34 purpose of sampling and making examinations.
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1 (4) Temporary storage space shall be considered an
2 increase in the licensed storage capacity of the licensee
3 and shall be subject to Section 5-30.
4 (5) The authorization to use temporary storage
5 space for the storage of grain shall expire at the end of
6 6 months after the date of approval by the Department or
7 May 15th, whichever comes first.
8 (n) The Department may approve emergency storage space
9 at the request of the licensee according to rule.
10 (Source: P.A. 89-287, eff. 1-1-96.)