This text of Indiana § 26-3-7-27.5 (Notice of deficiency; informal meeting; revocation of license; penalty) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
5.
(a)For purposes of this section, the
following apply:
(1)"Unencumbered assets" means a licensee's unencumbered
assets as demonstrated by the agency's inspection of the licensee's
books and records.
(2)"Unpaid balance of grain payables" means a licensee's unpaid
balance of grain payables demonstrated by the agency's inspection
of the licensee's books and records.
(b)If an on-premises inspection of a licensee's books and records
demonstrates that the licensee, as of the time of the inspection, did not
have unencumbered assets with a value at least equal to eighty-five
percent (85%) of the unpaid balance of grain payables covered by each
license held by the licensee, then:
(1)the director or the director's designated representative shall
issue a notice of deficiency to the licensee; a
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5. (a) For purposes of this section, the
following apply:
(1) "Unencumbered assets" means a licensee's unencumbered
assets as demonstrated by the agency's inspection of the licensee's
books and records.
(2) "Unpaid balance of grain payables" means a licensee's unpaid
balance of grain payables demonstrated by the agency's inspection
of the licensee's books and records.
(b) If an on-premises inspection of a licensee's books and records
demonstrates that the licensee, as of the time of the inspection, did not
have unencumbered assets with a value at least equal to eighty-five
percent (85%) of the unpaid balance of grain payables covered by each
license held by the licensee, then:
(1) the director or the director's designated representative shall
issue a notice of deficiency to the licensee; and
(2) the licensee shall cure the unencumbered asset deficiency
within ninety (90) days from the receipt of the notice.
(c) Unencumbered assets may consist of the aggregate of any of the
following:
(1) Company owned grain.
(2) Cash on hand.
(3) Cash held on account in federally or state licensed financial
institutions or in lending institutions of the Federal Farm Credit
Administration.
(4) Investments held in time accounts with federally or state
licensed financial institutions.
(5) Direct obligations of the United States government.
(6) Balances in grain margin accounts determined by marking to
market.
(7) Balances due or to become due to the licensee on deferred
pricing contracts.
(8) Marketable securities, including mutual funds.
(9) Irrevocable letters of credit that:
(A) comply with the requirements of this chapter; and
(B) are in addition to any letter of credit filed with the director
to satisfy the deposit, bond, or other security requirements of
this chapter.
(10) Deferred pricing contract service charges due or to become
due to the licensee.
(11) Other evidence of proceeds from or of grain that is
acceptable to the agency.
(12) Seed inventory.
(13) Other assets that the agency may include in rules adopted
under section 38 of this chapter.
(d) If a licensee has more than one (1) license, the unencumbered
assets at the time of the inspections under subsection (b) must have a
value at least equal to the sum of the amounts required under
subsection (b) for each individual license held by the licensee.
(e) If the licensee's demonstrated current unencumbered assets is
less than or equal to eighty-five percent (85%) of the required amount
or the licensee has not cured the unencumbered assets deficiency as
required in subsection (b)(2), then the director shall hold an informal
meeting in accordance with this chapter and, within thirty (30) days of
the conclusion of the informal meeting, issue either:
(1) a consent agreement that requires the licensee to take certain
actions within a set period, not to exceed twelve (12) months, to
remedy the current unencumbered assets deficiency, as the
director deems necessary and appropriate; or
(2) an order that revokes the license or licenses of the licensee.
(f) If a licensee, after an informal meeting in subsection (e):
(1) does not meet the requirements in subsection (e)(1), the
director shall revoke; or
(2) has an unencumbered asset deficiency that has continued to
decline, the director may revoke;
the license or licenses of the licensee.
(g) Subject to section 31.8 of this chapter, the director shall assess
a fine of one thousand dollars ($1,000) on a licensee that does not
maintain the unencumbered asset requirement under subsection (b).
(h) Nothing in this section precludes the agency from conducting an
on-premises inspection of a licensee at any time the director may
consider an inspection to be necessary or appropriate.