§ 4.1-59-22 — Trust fund established - Trustee

North Dakota § 4.1-59-22

• Jurisdiction: North Dakota
• Title 4.1: Agriculture
• Ch. 4.1-59: Grain Buyers

Text

1. Upon the insolvency of a licensee, a trust fund must be established for the benefit of
noncredit-sale receiptholders and to pay the costs incurred by the commissioner in the
administration of the insolvency. The trust fund consists of the following:
a. Nonwarehouse receipt grain of the insolvent licensee held in storage or the
proceeds obtained from the conversion 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 must be remitted to the commissioner and included in the trust
fund.
c. The proceeds of insurance policies on destroyed grain.

d. The claims for relief, and proceeds from the claims for relief, for damages upon
bond given by the licensee to ensure faithful performance of the duties of a
licensee.
e. The claim for relief, and proceeds from the claim 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.
h. Unencumbered grain product assets.
2. Upon the insolvency of a grain buyer, the commissioner shall act as trustee of the trust
fund.
3. All funds received by the commissioner as trustee must be deposited in the Bank of
North Dakota.