2015 North Dakota Century Code Title 60 Warehousing and Deposits Chapter 60-02.1 Grain Buyers
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CHAPTER 60-02.1
GRAIN BUYERS
60-02.1-01. Definitions.
In this chapter, unless the context or subject matter otherwise requires:
1. "Commission" means the public service commission.
2. "Credit-sale contract" means a written contract for the sale of grain pursuant to which
the sale price is to be paid or may be paid more than thirty days after the delivery or
release of the grain for sale and which contains the notice provided in subsection 7 of
section 60-02.1-14. If a part of the sale price of a contract for the sale of grain is to be
paid or may be paid more than thirty days after the delivery or release of the grain for
sale, only such part of the contract is a credit-sale contract.
3. "Facility" means a structure in which grain purchased by a grain buyer is received or
held.
4. "Facility-based grain buyer" means a grain buyer who operates a facility licensed
under the United States Warehouse Act [7 U.S.C. 241-273] where grain is received.
5. "Grain" means wheat, durum, oats, rye, barley, buckwheat, flaxseed, speltz, safflower,
sunflower seeds, tame mustard, peas, beans, soybeans, corn, clover, millet, alfalfa,
and any other commercially grown grain or grass seed. "Grain" does not include grain
or grass seeds owned by or in the possession of the grain buyer which have been
cleaned, processed, and specifically identified for an intended use of planting for
reproduction and for which a warehouse receipt has not been issued.
6. "Grain buyer" means any person, other than a public warehouseman as defined in
chapter 60-02, who purchases or otherwise merchandises grain for compensation. The
term does not include:
a. A producer of grain who purchases grain from other producers to complete a
carload or truckload in which the greater portion of the load is grain grown by the
producer or on-farm feedlot operations in which at least fifty percent of the
livestock is owned by the owner of the farm.
b. A person who is permitted to sell seed under chapter 4.1-53, if that person buys
grain only for processing and subsequent resale as seed.
c. A person who is an authorized dealer or agent of a seed company holding a
permit in accordance with section 4.1-53-38.
7. "Noncredit-sale contract" means a contract for the sale of grain other than a credit-sale
contract.
8. "Receipts" means scale tickets, checks, or other memoranda given by a grain buyer
for, or as evidence of, the receipt or sale of grain except when such memoranda was
received as a result of a credit-sale contract.
9. "Roving grain buyer" means a grain buyer who does not operate a facility where grain
is received.
60-02.1-02. Commission - Powers and duties.
The duties imposed and the powers conferred by this chapter devolve upon the
commission.
60-02.1-03. Duties and powers of the commission.
The commission has the duty and power to:
1. Exercise general supervision of grain buyers of this state.
2. Investigate all complaints of fraud and injustice, unfair practices, and unfair
discrimination.
3. Examine and inspect, during ordinary business hours, any books, documents, and
records.
4. Make all proper rules for carrying out and enforcing any law in this state regarding
grain buyers.
Page No. 1
60-02.1-04. Federal licensed inspector - Appointed by commission.
The commission may employ a federal licensed inspector whose duties are hereinafter
prescribed, and such other employees as may be necessary to carry out the provisions of this
chapter.
60-02.1-05. Grain marketing - Procedure for resolving disputes.
1. If any dispute or disagreement arises between the person receiving and the person
delivering grain as to the proper grade, dockage, vomitoxin level, moisture content, or
protein content of any grain, an average sample of at least three pints [1.65 liters] of
the grain in dispute may be taken together by both interested parties. The sample must
be certified by each party as a true and representative sample of the grain in dispute
on the day the grain was transferred. The sample must be forwarded in a suitable
container by parcel post or express, prepaid with the name and address of both parties
for inspection by a federal licensed inspector, or a mutually agreed-upon third party,
who will examine the grain and adjudge what grade, dockage, vomitoxin level,
moisture content, or protein content the sample of grain is entitled to under the
inspection rules and grades adopted by the secretary of agriculture of the United
States. The person requesting the inspection service shall pay for the inspection. If the
grain in question is damp, otherwise out of condition, or if moisture content is in
dispute, the sample must be placed in an airtight container. Payment for the grain
involved in the dispute must be made and accepted on the basis of the determination
made by the federal licensed inspector or third party. However, all other quality factors
may also be considered in determining the price of the grain. An appeal of the
determination made by a third party other than a federal licensed inspector may be
made to a federal licensed inspector. An appeal of the determination made by a
federal licensed inspector may be made as provided under the United States Grain
Standards Act [Pub. L. 103-354; 108 Stat. 3237; 7 U.S.C. 79(c) and (d)] and under
7 CFR 800.125-800.140. A person not abiding by a final determination is liable for
damage resulting from not abiding by the determination.
2. If any dispute or disagreement arises between the person delivering grain and the
person receiving grain as to the determination of quality factors of grain purchased or
delivered in the state for which inspection rules and grades have not been adopted by
the secretary of agriculture of the United States, an average sample of at least three
pints [1.65 liters] of the grain in dispute may be taken together by the interested
parties. The sample must be certified by each party as a true and representative
sample of the grain in dispute on the day the grain was transferred. If the grain is
damp or otherwise out of condition, the sample must be placed in an airtight container.
The sample must be forwarded in a suitable container by parcel post or express,
prepaid with the name and address of both parties, for inspection by a federal licensed
inspector, or a mutually agreed-upon third party, who may examine the grain and
determine the quality factors in dispute. The person requesting the inspection service
shall pay for the inspection. The determination made by the inspector, or the third
party, must be used in the settlement of the dispute.
60-02.1-06. Notice of procedures for resolving disputes over grain.
A facility-based grain buyer shall post a notice containing the procedures specified in
section 60-02.1-05 for resolving disputes. The commission shall prescribe the form of the notice
and shall provide a copy of the notice to each facility-based grain buyer. The facility-based grain
buyer shall post the notice in the grain inspection room of the facility. The notice must
specifically mention that the procedure for resolving disputes applies to the grade, dockage,
moisture content, and protein content of grain and to the quality factors of grain for which
inspection rules and grades have not been adopted by the secretary of agriculture of the United
States.
Page No. 2
60-02.1-07. Grain buyer license - How obtained - Fee - Financial statement.
Grain buyers must obtain an annual license from the commission. Except as provided in this
section, each license expires on July thirty-first of each year. When a licensee's initial license is
issued effective after May thirty-first, that license expires on July thirty-first of the following year.
A facility-based grain buyer must obtain a license for each receiving location operated in the
state. If a grain buyer operates two or more facilities in the same city or siding, in conjunction
with each other and with the same working force, and where but one set of books and records is
kept for all such facilities, and scale tickets and checks of but one series are issued for the
grain, purchased, only one license is required for the operation of all such facilities. The annual
license fee for a facility-based grain buyer is three hundred dollars and a license renewal
application that is received after July fifteenth must be assessed an additional one hundred
dollar fee per receiving location.
If required to obtain United States department of agriculture approval of the commission's
grain buyer inspection program, the commission may require that grain buyers submit a current
financial statement prepared in accordance with generally accepted accounting principles. A
financial statement furnished under this section is a confidential trade secret and is not a public
record.
60-02.1-07.1. Roving grain buyer license - How obtained - Fee.
Roving grain buyers that purchase, solicit, merchandise, or take possession of grain in this
state must obtain an annual license from the commission. Except as provided in this section,
each license expires on July thirty-first of each year. When a licensee's initial license is issued
effective after May thirty-first, that license expires on July thirty-first of the following year. The
annual license fee for a roving grain buyer is two hundred dollars, and a license renewal
application that is received after July fifteenth must be assessed an additional one hundred
dollar fee.
60-02.1-08. Bond filed by grain buyer.
Before any license is issued to any grain buyer under this chapter, the applicant for such
license shall file a bond with the commission which must:
1. Be in a sum not less than five thousand dollars.
2. Be continuous, unless the corporate surety by certified mail notifies the licensee and
the commission that the surety bond will be canceled ninety days after receipt of the
notice of cancellation.
3. Run to the state of North Dakota for the benefit of all persons selling grain to or
through the grain buyer.
4. Be conditioned:
a. For the faithful performance of the licensee's duties as a grain buyer.
b. For compliance with the provisions of law and the rules of the commission
relating to the purchase of grain by such grain buyer.
5. For facility-based grain buyers, specify the location of each facility intended to be
covered by such bond.
6. Be for the specific purpose of:
a. Protecting the sellers of grain.
b. Covering the costs incurred by the commission in the administration of the
licensee's insolvency.
7. Not accrue to the benefit of any person entering into a credit-sale contract with a grain
buyer.
8. In no event shall the aggregate liability of the surety under a bond accumulate for each
successive annual license renewal period during which such bond is in force but, for
losses during any annual license renewal period, shall be limited in the aggregate to
the bond amount stated or changed by appropriate endorsement or rider.
The commission may require an increase in the amount of any bond, from time to time, as it
deems necessary to accomplish the purposes of this section. The surety on such a bond must
be a corporate surety company, approved by the commission, and authorized to do business
within the state. The commission may accept cash, a negotiable instrument, or a bond executed
Page No. 3
by personal sureties in lieu of a surety bond when, in its judgment, such cash, negotiable
instrument, or personal surety bond properly will protect the holders of outstanding receipts.
Only one bond may be required for any series of facilities operated by a facility-based grain
buyer, and such bond must be construed to cover such facilities as a whole and not a specific
amount for each.
60-02.1-09. Bond cancellation - Release of surety.
The surety on a bond is released from all future liability accruing on the bond after the
expiration of ninety days from the date of receipt by the commission of notice of cancellation by
the surety or on a later date specified by the surety. This provision does not operate to relieve,
release, or discharge the surety from any liability already accrued or which accrues before the
expiration of the ninety-day period. Unless the grain buyer files a new bond at least thirty days
before liability ceases, the commission, without hearing, shall immediately suspend the grain
buyer's license and the suspension may not be removed until a new bond has been filed and
approved by the commission.
60-02.1-10. Grain buyer license to be posted or carried - Penalty.
The license obtained by a facility-based grain buyer shall be posted in a conspicuous place
in the buyer's facility. A roving grain buyer shall have the buyer's license in possession at all
times. A grain buyer who transacts business without first procuring a license and giving a bond
is guilty of a class B misdemeanor.
60-02.1-11. Revocation and suspension.
The commission may suspend or revoke the license of any grain buyer for cause upon
notice and hearing. Notwithstanding any other provisions of this chapter, the license of a grain
buyer must automatically be suspended for failure at any time to have or to maintain either a
bond or insurance policy in the amount and type required. During a suspension of a license a
facility-based grain buyer, upon the commission's approval, may operate its facility and
purchase or redeliver grain previously received, but may not receive additional grain for
purchase, shipping, or processing. Grain may be sold only with the prior approval of the
commission.
60-02.1-12. Scale ticket - Contents.
Every grain buyer, upon receiving grain, shall issue a uniform scale ticket or comparable
receipt for each load of grain received. Receipts must be numbered consecutively and one copy
of each receipt must be retained and remain as a permanent record. The original receipt must
be delivered to the person from whom the grain is received, upon receipt of each load of grain.
60-02.1-13. Penalty.
Any person who violates any provision of this chapter or any rule adopted pursuant to this
chapter, if punishment is not specifically provided for, is guilty of an infraction.
60-02.1-14. Credit-sale contracts.
A grain buyer may not purchase grain by a credit-sale contract except as provided in this
section. All credit-sale contracts must be in writing and must be consecutively numbered at the
time of printing the contract. The grain buyer shall maintain an accurate record of all credit-sale
contract numbers, including the disposition of each numbered form, whether by execution,
destruction, or otherwise. Each credit-sale contract must contain or provide for all of the
following:
1. The seller's name and address.
2. The conditions of delivery.
3. The amount and kind of grain delivered.
4. The price per unit or basis of value.
5. The date payment is to be made.
6. The duration of the credit-sale contract.
Page No. 4
7.
Notice in a clear and prominent manner that the sale is not protected by the bond
coverage provided for in section 60-02.1-08. However, if the grain buyer has obtained
bond coverage in addition to that required by section 60-02.1-08 and the coverage
extends to the benefit of credit-sale contracts, the grain buyer may state that fact in the
credit-sale contract along with the extent of such coverage.
The contract must be signed by both parties and executed in duplicate. One copy must be
retained by the grain buyer and one copy must be delivered to the seller. Upon revocation,
termination, or cancellation of a grain buyer's license, the payment date for all credit-sale
contracts, at the seller's option, must be advanced to a date not later than thirty days after the
effective date of the revocation, termination, or cancellation, and the purchase price for all
unpriced grain must be determined as of the effective date of revocation, termination, or
cancellation in accordance with all other provisions of the contract. When a facility is transferred
under this chapter, credit-sale contracts may be assigned to another licensed facility-based
grain buyer or public warehouseman.
60-02.1-15. Discrimination by grain buyer prohibited.
A grain buyer may not discriminate:
1. In the buying, selling, receiving, and handling of grain or in the charges made or the
service rendered to owners of purchased grain;
2. In the receiving of grain offered for sale, but this chapter may not be construed to
require a processor to receive or purchase any lot or kinds of grain;
3. In regard to the persons offering such grain for sale; or
4. Between points or stations except as the marketing factors or transportation costs or
grain quality premiums may warrant.
A grain buyer is not required to receive any grain that is heating or otherwise out of condition. A
facility-based grain buyer shall post grain prices paid in a conspicuous place in the office or
driveway of the buyer's place of business.
60-02.1-16. Records required to be kept by grain buyers.
Each grain buyer shall keep such accounts, records, and memoranda concerning the
buyer's dealing as such grain buyer as from time to time may be required by the commission
and shall make such reports of purchases of grain as may be required by the rules made by the
commission. The commission at all times shall have access to such accounts, records, and
memoranda.
60-02.1-17. Reports to be made by grain buyers - Penalty for failure.
Each licensed and bonded grain buyer shall:
1. Prepare for each month a report giving facts and information called for on the form of
report prepared by the commission. The report must contain or be verified by a written
declaration that it is made under the penalties of perjury. The report may be called for
more frequently if the commission deems it necessary. Information pertaining to the
volume of grain handled is a confidential trade secret and is not a public record. The
commission may make this information available for use by other governmental
entities, but the information may not be released by those entities in a manner that
jeopardizes the confidentiality of individual licensees.
2. File the report with the commission not later than the last day of the following month.
Failure to file this report promptly will be considered cause for revoking the grain buyer
license after due notice and hearing.
3. Keep a separate account of the grain business, if the grain buyer is engaged in
handling or selling any other commodity, and under no circumstances may the grain
account and other accounts be mixed.
The commission may refuse to renew a license to any grain buyer who fails to make a required
report.
Page No. 5
60-02.1-18. Standard weights to be used - Exception.
A person purchasing grain may not use any measure for such grain other than the standard
bushel, and a number of pounds may not be used or called a bushel other than the number of
pounds provided by law as the standard weight of the kind of grain in question, except that
during the months of October and November, not exceeding eighty-two pounds
[37.19 kilograms], and during the months of December and January, not exceeding seventy-six
pounds [34.47 kilograms], may be used as the standard weight per bushel of new ear corn.
60-02.1-19. Federal grades to control - Grades to be posted.
All grain buyers shall purchase grain, except dry edible beans, in accordance with the
official grades established from time to time by the secretary of agriculture of the United States,
except as otherwise provided in rules and regulations applicable thereto adopted by federal
officials pursuant to law. A facility-based grain buyer shall post in a conspicuous place in the
buyer's facility the official grades so established and also any change that may be made from
time to time. A grain buyer of dry edible beans shall purchase and deliver beans in accordance
with the buyer's policy, which must be filed with the commission and, if applicable, posted in a
conspicuous place in the buyer's facility. Other grading standards may be used if mutually
agreed to in writing by the grain buyer and the owner of the grain. However, the owner may
demand the use of federal grading standards. After hearing, the commission may prohibit the
use of nonfederal grades.
60-02.1-20. Grading of grain - Penalty.
All grain buyers before testing for grade any grain handled by them shall remove therefrom
and make due allowance for any dockage of such grain made by reason of the presence of
straw, weed seeds, dirt, or any other foreign matter. Any grain buyer within this state who
violates this provision is guilty of a class B misdemeanor.
60-02.1-21. Grain to be kept insured for benefit of owner by grain buyer.
A license may not be issued to a facility-based grain buyer unless all company-owned and
unconverted scale ticket grain is kept fully insured at the expense of the grain buyer for the
benefit of the owner at the current market value of the grain against loss by fire, lightning,
internal explosion, windstorm, cyclone, tornado, and such other risks of direct physical loss as
provided by the insurer in a policy approved by the insurance commissioner. An insurance policy
may not be transferred or assigned to any person for any purpose.
60-02.1-22. Insurance - Cancellation - Suspension of license.
An insurance company shall give at least sixty days' notice to the commission and the
insured by registered mail return receipt requested before cancellation of an insurance policy
required in section 60-02.1-21. Unless the grain buyer files proof of new or renewed insurance
at least thirty days before the existing policy ceases, the commission, without hearing, shall
immediately suspend the grain buyer's license and the suspension may not be removed until a
new policy has been filed and approved by the commission.
60-02.1-23. Destruction of grain - First lien by holder of outstanding receipt.
The holder of an unconverted scale ticket or other comparable receipt issued by any
facility-based grain buyer shall have a first lien, to the extent of the value of the grain at the time
of loss at the place where held, on all insurance of the grain buyer for any loss sustained by the
receiptholder, on account of the loss of such grain by fire, tornado, or any other cause covered
by such insurance policy.
60-02.1-24. Destruction of facility - Duty to notify commission.
Repealed by S.L. 2005, ch. 588, ยง 4.
Page No. 6
60-02.1-25. Facility not to be closed without permission from commission - Penalty.
Every facility operated by a facility-based grain buyer shall be kept open for business in
order to serve the public. Upon application and sufficient cause shown, the commission may
allow any such facility to be closed for such length of time as may be stated in the order issued
therein. An application to close shall make provision for the redemption of outstanding receipts
satisfactory to the commission. Any such grain buyer who shall close a facility without first
having received permission from the commission to close shall be guilty of a class A
misdemeanor and the license issued may be revoked by the commission.
60-02.1-26. Transfer of facility - Redemption of receipts.
Whenever a facility-based grain buyer desires to transfer a facility, either by sale or lease to
any other individual, firm, or corporation, the grain buyer shall:
1. Notify the commission first of its intention to transfer the facility, giving the name and
address of the proposed lessee or purchaser.
2. Provide related information as may be required by the commission.
3. Surrender to the commission its license for cancellation and at such time the proposed
lessee or purchaser shall apply in due form for a new license and tender a new bond
for approval by the commission, whereupon, it first being duly satisfied that all the
outstanding receipts have been redeemed, or that the redemption thereof has been
provided for, the commission may issue a new license to the lessee or purchaser.
No sale, lease, or transfer of any facility will be recognized or permitted by the commission
except when made in accordance with the provisions of this section.
60-02.1-27. Going out of business - Redemption of receipts.
When a facility-based grain buyer ceases business through closure, the destruction of a
facility by fire or other cause, or through insolvency, such grain buyer shall redeem all
outstanding receipts at the price prevailing on the date the facility was closed, destroyed, or
became insolvent. The holder of such receipts, upon due notice, must accept this price and
surrender the receipts. Any facility-based grain buyer who voluntarily ceases business or fails to
renew an existing grain buyer license or whose grain buyer license is revoked shall notify the
commission and all receiptholders of such closing and redeem all such receipts at the price
prevailing on the date the business closed or at the option of the owner of the receipt redeliver
the kind, grade, and quantity of grain called for by the receipt. On commingled grain the value of
over and under deliveries in quantity, grade, and protein shall be settled in cash and priced on
the market on the day of closing.
60-02.1-28. Insolvency of grain buyer.
A licensee is insolvent when the licensee refuses, neglects, or is unable upon proper
demand to make payment for grain purchased or marketed by the licensee or is unable to make
redelivery upon proper demand. The licensee may not assess receiving or redelivery fees on
grain that is redelivered during a suspension, following a revocation, or when the owner of the
grain is taking redelivery because the licensee is unable to pay for the grain.
60-02.1-29. Appointment of commission.
Upon the insolvency of any roving grain buyer, the commission shall apply to the district
court of Burleigh County for authority to take all action necessary to act as trustee of the trust
fund described in section 60-02.1-30. If the insolvency involves a facility-based grain buyer,
application must be to the district court of a county in which the licensee operates a licensed
facility. Upon notice to the licensee as the court prescribes, but not exceeding twenty days, or
upon waiver of notice in writing by the licensee, the court shall hear and determine the
application in a summary manner. If the court determines that the licensee is insolvent within the
meaning of this chapter and that it would be in the best interests of the receiptholders that the
commission secure and execute the trust, the court shall issue an order granting the application,
without bond, and the commission shall proceed to exercise its authority without further direction
from the court.
Page No. 7
Upon the filing of the commission's application, the court may issue ex parte a temporary
order to preserve or protect the assets of the trust fund until the court issues its order granting or
denying the application.
60-02.1-30. Trust fund established.
Upon the insolvency of any licensee, a trust fund must be established for the benefit of
noncredit-sale receiptholders and to pay the costs incurred by the commission in the
administration of the insolvency. The trust fund must consist of the following:
1. Nonwarehouse receipt grain of the insolvent licensee held in storage or the proceeds
obtained from the conversion of such grain.
2. The proceeds, including accounts receivable, from any grain sold from the time of the
filing of the claim that precipitated an insolvency until the commission is appointed
trustee must be remitted to the commission and included in the trust fund.
3. The proceeds of insurance policies on destroyed grain.
4. The claims for relief, and proceeds therefrom, for damages upon bond given by the
licensee to ensure faithful performance of the duties of a licensee.
5. The claim for relief, and proceeds therefrom, for the conversion of any grain stored in
the warehouse.
6. Unencumbered accounts receivable for grain sold prior to the filing of the claim that
precipitated an insolvency.
7. Unencumbered equity in grain hedging accounts.
8. Unencumbered grain product assets.
60-02.1-31. Joinder of surety - Deposit of proceeds.
Each surety on the insolvent licensee's bonds must be joined as a party to the insolvency
proceeding. If it is in the best interests of the receiptholders, the court may order a surety to
deposit some or all of the penal sum of the bond into the trustee's trust account pending
determination of the surety's liability under the bond.
60-02.1-32. Notice to receiptholders.
Upon its appointment, the commission may take possession of relevant books and records
of the licensee. If the insolvency involves a roving grain buyer, the commission shall publish a
notice of its appointment once each week for two consecutive weeks in all daily newspapers in
the state and may notify, by ordinary mail, the holders of record of outstanding receipts
disclosed by the licensee's records. If the insolvency involves a facility-based grain buyer, the
notice must be published once each week for two consecutive weeks in a newspaper in the
county in which the warehouse is located. The notice must require outstanding receiptholders to
file their claims with the commission along with the receipts or other evidence of the claims
required by the commission. If an outstanding receiptholder fails to submit a claim within
forty-five days after the last publication of the notice or a longer time set by the commission, the
commission is relieved of further duty in the administration of the insolvency on behalf of the
receiptholder and the receiptholder may be barred from participation in the trust fund.
Outstanding receiptholders are not parties to the insolvency action unless admitted by the court
upon a motion for intervention.
60-02.1-33. Remedy of receiptholders.
No receiptholder has a separate claim for relief upon any insolvent licensee's bond, nor for
insurance, nor against any person converting grain, nor against any other receiptholder, except
through the trustee, unless, upon demand of five or more receiptholders, the commission fails or
refuses to apply for its own appointment or unless the district court denies the application. This
chapter does not prohibit any receiptholder, either individually or in conjunction with other
receiptholders, from pursuing concurrently any other remedy against the person or property of
the licensee.
Page No. 8
60-02.1-34. Commission to marshall trust assets.
Upon its appointment, the commission shall marshall all of the trust fund assets. The
commission may maintain suits in the name of the state of North Dakota for the benefit of all
receiptholders against the licensee's bonds, insurers of grain, any person who may have
converted any grain, and any person who may have received preferential treatment by being
paid by the insolvent licensee after the first default.
60-02.1-35. Power of commission to prosecute or compromise claims.
The commission may:
1. Prosecute any action provided in sections 60-02.1-28 through 60-02.1-38 in any court
in this state or in any other state.
2. Appeal from any adverse judgment to the courts of last resort.
3. Settle and compromise any action when it will be in the best interests of the
receiptholders.
4. Upon payment of the amount of any settlement or of the full amount of any bond,
exonerate the person so paying from further liability growing out of the action.
60-02.1-36. Money received by trustee - Deposited in Bank of North Dakota.
All funds received by the commission as trustee must be deposited in the Bank of North
Dakota.
60-02.1-37. Report of trustee to court - Approval - Distribution.
1. Upon the receipt and evaluation of claims, the commission shall file with the court a
report showing the amount and validity of each claim after recognizing:
a. Relevant liens or pledges.
b. Relevant assignments.
c. Relevant deductions due to advances or offsets accrued in favor of the licensee.
d. In case of relevant cash claims or checks, the amount of the claim, with interest
from the date of default at the weighted average prime rate charged by the Bank
of North Dakota.
2. The report must also contain the proposed distribution of the trust fund assets, less
expenses incurred by the commission in the administration of the insolvency. If the
trust fund is insufficient to redeem all claims in full, the report should list the funds as
prorated.
3. The court shall set a hearing and the appropriate notice for interested persons to show
cause why the commission's report should not be approved and distribution of the fund
be made as proposed. Copies of the report and notice of hearing must be served by
the commission by certified mail upon the licensee and the surety and by ordinary mail
upon all persons having claims filed with the commission.
4. Any aggrieved person having an objection to the commission's report shall file the
objection with the court and serve copies on the commission, the licensee, and the
surety at least ten days before the hearing. Failure to file and serve objections in the
time set is a waiver of the objection.
5. Following the hearing, the court shall approve or modify the report and issue an order
directing payment of the necessary bond proceeds, distribution of the trust fund, and
discharge of the commission from its trust.
60-02.1-38. Filing fees and court costs - Expenses.
The commission may not be required to pay any filing fee or other court costs or
disbursements. The attorney general may appoint outside legal counsel to assist the
commission in the prosecution of the action and the cost of employing outside counsel may be
paid from the trust fund. All other necessary expenses incurred by the commission in carrying
out the provisions of this chapter, including adequate insurance to protect the commission, its
employees, and others engaged in carrying out the provisions of sections 60-02.1-28 through
60-02.1-38, may be paid from the trust fund.
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60-02.1-39. Cease and desist.
Whenever an entity engages in an activity or practice that is contrary to the provisions of
this chapter or related rules, the commission, upon its own motion without complaint, with or
without hearing, may order the entity to cease and desist from the activity until further order of
the commission. Such orders may include any corrective action up to and including license
suspensions. Cease and desist orders must be accompanied by a notice of opportunity to be
heard on the order within fifteen days of the issuance of the order.
60-02.1-40. Agricultural contracts - Mediation and arbitration.
If a written contract for the sale of grain does not contain provisions to settle disagreements
concerning factors not governed by section 60-02.1-05, the parties shall attempt to resolve the
disagreements through mediation or arbitration.
60-02.1-41. Roving grain buyers - Exception - Applicability of provisions.
Notwithstanding any other law, this chapter does not apply to any person that purchases,
solicits, or merchandises grain, which has been cleaned, processed, and made ready for
consumption, from a public warehouseman licensed and bonded under chapter 60-02 or from a
facility-based grain buyer licensed and bonded under this chapter. If the person engages in any
activity other than those described in this section, the person is subject to the law governing
those other activities.
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