§ 4.1-58-45 — Trust fund established - Trustee

North Dakota § 4.1-58-45

• Jurisdiction: North Dakota
• Title 4.1: Agriculture
• Ch. 4.1-58: Grain and Seed Warehouses

Text

1. Upon the insolvency of a warehouseman, a trust fund must be established:
a. For the benefit of noncredit-sale receiptholders of the insolvent warehouseman,
other than those that have waived their rights as beneficiaries of the trust fund in
accordance with section 4.1-58-15; and
b. To pay the costs incurred by the commissioner in the administration of this
chapter.
2. The trust fund consists of the following:
a. The grain in the warehouse of the insolvent warehouseman or the proceeds as
obtained through the sale of the grain;
b. The proceeds, including accounts receivable, from any grain sold from the time of
the filing of the claim that precipitated an insolvency until the commissioner is
appointed trustee;
c. The proceeds of insurance policies upon grain destroyed in the elevator;
d. The claims for relief, and proceeds from the claims for relief, for damages upon
any bond given by the warehouseman to ensure faithful performance of the
duties of a warehouseman;
e. The claims for relief, and proceeds from the claims for relief, for the conversion of
any grain stored in the warehouse;
f. Unencumbered accounts receivable for grain sold before the filing of the claim
that precipitated an insolvency;
g. Unencumbered equity in grain hedging accounts; and
h. Unencumbered grain product assets.
3. Upon the insolvency of a warehouseman, the commissioner shall act as trustee of the
trust fund.