2005 Idaho Code - 69-256 — CREATION OF INDEMNITY FUND -- USES

                                  TITLE  69
                                  WAREHOUSES
                                  CHAPTER 2
                             BONDED WAREHOUSE LAW
    69-256.  CREATION OF INDEMNITY FUND -- USES. (1) There is hereby
established within the dedicated fund a fund to be known as the commodity
indemnity fund. The commodity indemnity fund shall consist of assessments
remitted by producers pursuant to the provisions of this chapter and any
interest or earnings on the fund balance.
    (2)  All assessments shall be paid to the department and shall be
deposited in the commodity indemnity fund. Assessments shall be paid solely by
producers who deposit or deliver a commodity with a warehouse or sell to a
dealer or warehouse. A delivery of commodity between producers, none of which
are commodity dealers or warehousemen, is exempt from the collection and
payment of assessment. The state treasurer shall be the custodian of the
commodity indemnity fund. Disbursements shall be on authorization of the
director. No appropriation is required for disbursements from this fund.
    (3)  The commodity indemnity fund and accruing interest shall be used
exclusively for purposes of paying claimants pursuant to this chapter and
chapter 5, title 69, Idaho Code, and paying necessary expenses and costs of
administering the commodity indemnity fund. Provided however, that each year,
accrued interest for that year shall be applied to pay necessary expenses and
costs of administering the fund, regardless of the amount, to the extent of
available accrued interest. In the event the accrued interest is insufficient
to pay the necessary expenses and costs of administering the fund in any
particular year, then accrued interest shall first be applied to those costs
and expenses. The remaining costs and expenses will be paid with principal
from the commodity indemnity fund. In no event, however, shall payments from
principal in any given year exceed the sum of two hundred fifty thousand
dollars ($250,000). The interest accumulated by the fund may be paid to the
department and to the state treasurer to defray costs of administering the
warehouse and dealer program and the commodity indemnity fund. The interest
accumulated by the fund and, if necessary, a portion of the fund, may be used
to defray the cost of reinsuring the fund at the discretion of the director.
The state of Idaho shall not be liable for any claims presented against the
fund.