North Dakota Code 4.1-59-22 – Trust fund established – Trustee
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:
Terms Used In North Dakota Code 4.1-59-22
- 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. 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.