N.D. Cent. Code § 4.1-58-45

Current through 2023 Legislative Sessions

Section 4.1-58-45 - Trust fund established - Trustee

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.

N.D.C.C. § 4.1-58-45

Added by S.L. 2023 , ch. 89( HB 1393 ), § 1, eff. 7/1/2023.