§ 75-906 — Violation of security; commission; powers

In the event the commission determines that the conditions of a grain dealer's security have been violated, the commission may demand that such dealer's security be forfeited and may place the proceeds of the security in an interest-bearing trust until it fully determines each claim on the security. The commission shall disburse the security according to each claim determined. If the amount of the security is less than the claims against it, the security shall be distributed pro rata among the claimants. If the security is a bond or letter of credit, the surety or the issuer of such letter shall pay over the security on demand by the commission. If such issuer of a letter of credit or surety for a grain dealer fails or refuses to pay the security to the commission within ten days, the commission may file a lawsuit in an appropriate court and recover the amount of the security plus interest at the highest legal rate from the date of its demand on the issuer of a letter of credit or surety if the court finds that any claim determined by the commission against the grain dealer's security was valid.

Legislative History

Source: Laws 1985, LB 389, § 8. Annotations: The Public Service Commission has limited jurisdiction to determine the claims that exist under the Grain Dealer Act on the date of a warehouse closure. In re Claims Against Pierce Elevator, 291 Neb. 798, 868 N.W.2d 781 (2015). A buyer's failure to give the seller a proper receipt as required by section 75-904 does not render null and void the time requirements of section 75-905 to preserve a claim against the buyer's security pursuant to this section. Fecht v. The Bunnell Co., 243 Neb. 1, 497 N.W.2d 50 (1993).