North Dakota § 4.1-25-14 Department to become trustee upon default in required security

North Dakota Statutes

§ 4.1-25-14 — Department to become trustee upon default in required security

North Dakota·Title 4.1 Agriculture·Ch. 4.1-25 Dairy Product Regulation

If a licensee defaults on any of the required security provisions, the licensee is deemed to
be insolvent for purposes of this chapter. The claim for relief for damages and the amount
recovered in any action for the conversion of milk or milk products, purchased by the licensee
while the license is in effect, and the assets of the licensee not subjected to any claim in federal
bankruptcy court by a secured or general creditor within four months of the appointment of the
department as trustee under this chapter, constitute a trust fund in the hands of the department
for all persons having a claim for relief against the licensee on the required security.

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If a licensee defaults on any of the required security provisions, the licensee is deemed to
be insolvent for purposes of this chapter. The claim for relief for damages and the amount
recovered in any action for the conversion of milk or milk products, purchased by the licensee
while the license is in effect, and the assets of the licensee not subjected to any claim in federal
bankruptcy court by a secured or general creditor within four months of the appointment of the
department as trustee under this chapter, constitute a trust fund in the hands of the department
for all persons having a claim for relief against the licensee on the required security.

North Dakota § 4.1-25-14 (Department to become trustee upon default in required security) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.