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251.670 Payment of compensation.
(1)
(2)
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Within ninety (90) days of the board's approval of a valid claim, the board shall, in
accordance with the provisions of this section, compensate from the grain indemnity
trust fund any claimant who has incurred a financial loss due to a failure of a grain
dealer or warehouseman.
Any claimant who has incurred a financial loss due to a failure of a licensed grain
dealer shall be entitled to be compensated for eighty percent (80%) of a valid claim,
to a maximum of two hundred thousand dollars ($200,000), with moneys from the
Kentucky grain insurance fund, provided that the claim is brought within one (1)
year from the time the claimant receives actual notice of the grain dealer's failure.
To the maximum extent that funds are or may be made available for the purpose of
paying a claim, the remaining balance of the claim shall be paid by the board from
the assets and other security of the failed grain dealer, provided that any claimant
who has incurred a financial loss due to the failure of a grain dealer and who has
surrendered a warehouse receipt for payment shall be compensated for one hundred
percent (100%) of a valid claim.
Any claimant who has incurred a financial loss due to a failure of a licensed grain
warehouseman shall be entitled to be compensated for eighty-five percent (85%) of
a valid claim with moneys from the Kentucky grain insurance fund, provided that
the claim is brought within one (1) year from the time the claimant receives actual
notice of the warehouseman's failure. To the maximum extent that funds are or may
be made available for the purpose of paying a claim, the remaining balance of the
claim shall be paid by the board from the assets and other security of the failed grain
warehouse, provided that any claimant who has incurred a financial loss due to the
failure of a grain warehouse and who has surrendered a warehouse receipt for
payment shall be compensated for one hundred percent (100%) of a valid claim.
Effective: June 25, 2009
History: Amended 2009 Ky. Acts ch. 61, sec. 6, effective June 25, 2009. -- Amended
1990 Ky. Acts ch. 396, sec. 7, effective July 13, 1990. -- Created 1984 Ky. Acts ch.
389, sec. 8, effective July 13, 1984.
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