§ 26-3-7-6.1 — Financial statement

Indiana § 26-3-7-6.1

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 3: WAREHOUSES
• Ch. 7: Indiana Grain Buyers and Warehouse Licensing and

Text

1. (a) A financial statement submitted under
this chapter must comply with the following:
(1) Be prepared by an independent accountant certified under IC 25-2.1.
(2) Comply with generally accepted United States accounting
principles.
(3) Be at a review level or audit level.
(4) Contain:
(A) an income statement;
(B) a balance sheet;
(C) a statement of cash flow;
(D) a statement of retained earnings;
(E) the preparer's notes; and
(F) other information the agency requires.
(5) An aged accounts receivable listing detailing accounts that are
ninety (90) days due, one hundred twenty (120) days due, and
more than one hundred twenty (120) days due.
(6) A copy of the daily position record for the end of the licensee's
fiscal year.
(b) If a person, an applicant, or a licensee is the subsidiary of a
parent entity, and financial statements are not prepared by or for the
person, applicant, or licensee in the ordinary course of business, the
director may consider the following to be the equivalent of a review
level or audit level financial statement, for purposes of this section:
(1) Either:
(A) a compilation level financial statement prepared in
accordance with generally accepted United States accounting
principles by an independent accountant certified under IC 25-2.1; or
(B) an audited or review level financial statement of the parent
entity, current as of its most recent fiscal year end, that is in full
compliance with the requirements of this section.
(2) An unconditional guaranty of the parent entity in the form
required by the agency, with a term of at least one (1) year, under
which the parent entity agrees without condition to satisfy in full
any and all existing and future monetary obligations of the person,
applicant, or licensee covered by all applicable licenses covered
under this chapter.
(c) Except as provided in subsection (e), for any particular person,
applicant, or licensee, the director may consider the following
documents and materials, taken together, to be the equivalent of a
compilation level, review level, or audit level financial statement for
purposes of this section after making the determination required under
subsection (b):
(1) Copies of state and federal tax returns for the person,
applicant, or licensee, for the two (2) years before the most recent
fiscal year of the person, applicant, or licensee.
(2) Copies of state and federal tax returns for the principals,
members, shareholders, or other owners of or stakeholders in the
person, applicant, or licensee.
(3) Current reports or similar accounting documents showing all
outstanding payables and receivables, with each due date and
party, including contact information.
(4) A business plan covering the next five (5) fiscal years of the
person, applicant, or licensee and signed by a principal, member,
shareholder, owner, or executive or other officer of the person,
applicant, or licensee.
(5) A proposed agreement between the person, applicant, or
licensee and the agency, in the form required by the agency,
where the person, applicant, or licensee agrees to use certain risk
management practices, which the director determines are
necessary or appropriate under the circumstances, to mitigate the
risk of loss by the person, applicant, or licensee in the futures or
options market.
(6) Other documents or materials as the director may by rule
identify.
(d) If a financial statement is required under this chapter, a person,
applicant, or licensee may submit the equivalent of a review level or
audit level financial statement under subsection (b) or (c) if the person,
applicant, or licensee obtains preapproval from the director before the
financial statement is or would be required to be submitted under this
chapter and complies with the following:
(1) At least forty-five (45) days before the financial statement is
or would be required to be submitted under this chapter, the
person, applicant, or licensee submits to the director a letter
regarding the financial statement requirement that includes the
following:
(A) Identifies the person, applicant, or licensee submitting the
letter and each section of this chapter that the person, applicant,
or licensee is or will be required to submit a financial
statement.
(B) Encloses all the documents and materials required under
subsection (b) or (c).
(C) A detailed explanation regarding why, under the particular
circumstances, the director should consider all the documents
and materials required under subsection (b) or (c), as submitted,
to be the equivalent of a review level or audit level financial
statement.
(D) States whether the person, applicant, or licensee is seeking
to submit the documents and materials required under
subsection (b) or (c) only once, in perpetuity, or for some other
set period.
(E) Sets forth contact information for the person, applicant, or
licensee.
(2) Upon receipt by the director of a letter under subdivision (1),
the director shall do the following:
(A) Conduct a review of the letter and its enclosures, including
contacting the person, applicant, or licensee if necessary and
reviewing any other documents, information, or other materials
already available to the director.
(B) Determine whether the enclosures should be considered to
be the equivalent of a review level or audit level financial
statement under the circumstances and for the reasons set forth
in the letter.
(C) Issue a notice of financial statement determination to the
person, applicant, or licensee that sets forth the director's
determination under clause (B), that includes the reasons under
subdivision (3), and whether the determination will apply only
once, in perpetuity, or for another set period, as determined by
the director.
(3) In reviewing the letter and its enclosures to make the
determination under subdivision (2)(A) and (2)(B), the director
shall consider the following:
(A) Whether the documents and materials required under
subsection (b) or (c), as submitted by the particular person,
applicant, or licensee, adequately supply the director and the
agency with sufficient information regarding the person,
applicant, or licensee for the agency to perform its statutory
functions under this chapter with respect to the person,
applicant, or licensee.
(B) Whether it would be reasonable and appropriate for the
director to continue to accept the documents and materials
required under subsection (b) or (c) from the person, applicant,
or licensee, in perpetuity or for some other set period,
including, the length of the guaranty required under subsection
(b)(2).
(4) Any letter under subdivision (1) and any response under
subdivisions (2) and (3), including the director's determination
under subdivisions (2)(B) and (3), applies only to the person,
applicant, or licensee that submitted the letter under subdivision
(1).
(e) The director may not accept documents and materials listed in
subsection (c) to be the equivalent of a review level or audit level
financial statement from a person, an applicant, or a licensee if the
person, applicant, or licensee offers:
(1) deferred pricing;
(2) delayed payments; or
(3) contracts linked to the commodity futures or commodity
options market in connection with grain purchases.

Legislative History

As added by P.L.64-2009, SEC.5. Amended by P.L.60-2015, SEC.8; P.L.134-2015, SEC.2; P.L.114-2025, SEC.11.