North Dakota Code 4.1-58-45 – Trust fund established – Trustee
1. Upon the insolvency of a warehouseman, a trust fund must be established:
Terms Used In North Dakota Code 4.1-58-45
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Commissioner: means the agriculture commissioner or the designee or authorized representative of the commissioner. See North Dakota Code 4.1-01-01
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- following: when used by way of reference to a chapter or other part of a statute means the next preceding or next following chapter or other part. See North Dakota Code 1-01-49
- Trustee: A person or institution holding and administering property in trust.
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.