Michigan Laws 285.62 – Definitions
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As used in this act:
(a) “Acknowledgment form” means a scale weight ticket, a load slip, or any other evidence of deposit issued by a grain dealer or his or her authorized representative to a depositor that identifies the farm produce being transferred from the possession of the depositor to the possession of the grain dealer.
Terms Used In Michigan Laws 285.62
- Acknowledgment form: means a scale weight ticket, a load slip, or any other evidence of deposit issued by a grain dealer or his or her authorized representative to a depositor that identifies the farm produce being transferred from the possession of the depositor to the possession of the grain dealer. See Michigan Laws 285.62
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Cash sale: means a sale in which the title to farm produce is transferred only after a price is decided upon before or at the time of delivery and payment for the farm produce meets 1 of the following:
(i) Payment of the price is made to the depositor in cash or by check, money order, wire transfer, or draft within 10 days of delivery. See Michigan Laws 285.62Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name. Department: means the department of agriculture. See Michigan Laws 285.62 Depositor: means either of the following:
(i) A person who delivers farm produce to a licensed grain dealer for storage, processing, shipment, or sale and has title to the farm produce at the time of delivery. See Michigan Laws 285.62Director: means the director of the department or his or her designee. See Michigan Laws 285.62 Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other. Facility: means an edifice, silo, tank, bin, crib, interstice, or protected enclosed structure, or more than 1 edifice, silo, tank, bin, crib, interstice, or protected enclosed structure located contiguous to each other, used to receive, deposit, or store farm produce in bulk. See Michigan Laws 285.62 Farm produce: means 1 or more of dry edible beans, soybeans, small grains, cereal grains, or corn. See Michigan Laws 285.62 Farm produce trucker: means a person engaged in the business of hauling farm produce that issues price later agreements or acknowledgment forms, transfers warehouse receipts, or is responsible for payment to a depositor, but that does not own a facility. See Michigan Laws 285.62 Financial institution: means a state or nationally chartered bank or a state or federally chartered savings and loan association, savings bank, or credit union whose deposits are insured by an agency of the United States government and that maintains a principal office or branch office located in this state, or a national bank for cooperatives subject to the farm credit act of 1971, Public Law 92-181, 85 Stat. See Michigan Laws 285.62 Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006. Grain dealer: means a person engaged in the business of receiving, buying, exchanging, selling, or storing farm produce in this state. See Michigan Laws 285.62 Grain merchandiser: means a person engaged in the business of receiving, buying, exchanging, selling, or taking title to farm produce and who is responsible for payment to a depositor but does not operate a truck or a facility. See Michigan Laws 285.62 License: means a license issued by the department to a grain dealer in the manner provided under this act. See Michigan Laws 285.62 Licensee: means a grain dealer licensed under this act. See Michigan Laws 285.62 National Bank: A bank that is subject to the supervision of the Comptroller of the Currency. The Office of the Comptroller of the Currency is a bureau of the U.S. Treasury Department. A national bank can be recognized because it must have "national" or "national association" in its name. Source: OCC Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period. Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses. Person: means an individual, corporation, limited liability company, partnership, association, cooperative organization, or other legal entity. See Michigan Laws 285.62 Price later agreement: means a written or electronically transmitted agreement between a depositor and a grain dealer where the grain dealer receives title to farm produce and the depositor retains the option to price the farm produce after delivery based on conditions in the agreement. See Michigan Laws 285.62 Processing: means drying, cleaning, packaging, or otherwise changing the physical characteristics of farm produce. See Michigan Laws 285.62 Processor: means a person engaged in processing farm produce and storing the farm produce for a period of 24 hours or more. See Michigan Laws 285.62 Public law: A public bill or joint resolution that has passed both chambers and been enacted into law. Public laws have general applicability nationwide. Receiving point: means a facility where farm produce is received, weighed, and stored and an acknowledgment form is issued. See Michigan Laws 285.62 state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o Storage: means the deposit of farm produce in trust with a grain dealer by a depositor. See Michigan Laws 285.62 United States: shall be construed to include the district and territories. See Michigan Laws 8.3o Warehouse receipt: means a written or electronically transmitted receipt issued by a grain dealer to a depositor at the time the grain dealer accepts farm produce for storage. See Michigan Laws 285.62
(b) “Allowable net assets” does not include intangible assets or assets that the department or a certified public accountant determines have no monetary value.
(c) “Cash sale” means a sale in which the title to farm produce is transferred only after a price is decided upon before or at the time of delivery and payment for the farm produce meets 1 of the following:
(i) Payment of the price is made to the depositor in cash or by check, money order, wire transfer, or draft within 10 days of delivery.
(ii) Payment of the price is made by placing the amount of the price in the depositor’s account and a credit statement is sent to the depositor within 10 days of delivery.
(d) “Claimant” means a person to whom a grain dealer owes a financial obligation for farm produce or who is entitled to the farm produce delivered to the grain dealer or the proceeds of the farm produce.
(e) “Collateral warehouse receipt” means a warehouse receipt issued to a financial institution by a grain dealer for unencumbered grain owned by that grain dealer.
(f) “Department” means the department of agriculture.
(g) “Depositor” means either of the following:
(i) A person who delivers farm produce to a licensed grain dealer for storage, processing, shipment, or sale and has title to the farm produce at the time of delivery.
(ii) A person who owns or who is legal holder of an acknowledgment form or warehouse receipt issued by a licensed grain dealer for farm produce.
(h) “Director” means the director of the department or his or her designee.
(i) In a farm produce transaction, “disposition” means a cash sale or other transfer of farm produce or placement of farm produce on a warehouse receipt or price later agreement.
(j) “Facility” means an edifice, silo, tank, bin, crib, interstice, or protected enclosed structure, or more than 1 edifice, silo, tank, bin, crib, interstice, or protected enclosed structure located contiguous to each other, used to receive, deposit, or store farm produce in bulk.
(k) “Failure” of a licensee or grain dealer means any of the following:
(i) Inability of a licensee or grain dealer to financially satisfy claimants.
(ii) A public declaration of insolvency by a licensee or grain dealer.
(l) “Farm produce” means 1 or more of dry edible beans, soybeans, small grains, cereal grains, or corn.
(m) “Farm produce handled” means the number of bushels or hundredweight of farm produce that a licensee receives or is otherwise obligated for in a fiscal period.
(n) “Farm produce handling” means any of the following:
(i) Engaging or participating in the business of purchasing farm produce.
(ii) Operating a grain elevator for the receiving, storing, shipping, or processing of farm produce.
(iii) Receiving farm produce into a facility under a price later agreement.
(o) “Farm produce trucker” means a person engaged in the business of hauling farm produce that issues price later agreements or acknowledgment forms, transfers warehouse receipts, or is responsible for payment to a depositor, but that does not own a facility.
(p) “Financial institution” means a state or nationally chartered bank or a state or federally chartered savings and loan association, savings bank, or credit union whose deposits are insured by an agency of the United States government and that maintains a principal office or branch office located in this state, or a national bank for cooperatives subject to the farm credit act of 1971, Public Law 92-181, 85 Stat. 583.
(q) “Grain bank” or “feed bank” means farm produce stored on a nonnegotiable warehouse receipt that the owner intends to periodically, partially withdraw.
(r) “Grain dealer” means a person engaged in the business of receiving, buying, exchanging, selling, or storing farm produce in this state. The term includes a farm produce trucker, grain merchandiser, or processor. The term does not include a person solely engaged in 1 of the following:
(i) Selling farm produce produced by the person.
(ii) Buying farm produce in a cash sale to feed the person’s livestock or poultry.
(iii) If the person handled less than 30,000 bushels of farm produce in the person’s preceding fiscal year and in the person’s current fiscal year, buying farm produce in a cash sale.
(iv) Purchasing farm produce from a person other than the grower or producer of the farm produce in a cash sale.
(v) Contracting for land or services to produce seed for sowing or propagation.
(s) “Grain merchandiser” means a person engaged in the business of receiving, buying, exchanging, selling, or taking title to farm produce and who is responsible for payment to a depositor but does not operate a truck or a facility.
(t) “License” means a license issued by the department to a grain dealer in the manner provided under this act. The term includes a permit issued under section 6.
(u) “Licensee” means a grain dealer licensed under this act.
(v) “Open storage” means the storage of farm produce for 30 days or less under an acknowledgment form that does not contain a designation of a specific transaction type.
(w) “Operating within this state” includes the transfer of physical possession or title of farm produce from an owner to a person within the boundaries of this state.
(x) “Person” means an individual, corporation, limited liability company, partnership, association, cooperative organization, or other legal entity.
(y) “Price later agreement” means a written or electronically transmitted agreement between a depositor and a grain dealer where the grain dealer receives title to farm produce and the depositor retains the option to price the farm produce after delivery based on conditions in the agreement.
(z) “Processing” means drying, cleaning, packaging, or otherwise changing the physical characteristics of farm produce.
(aa) “Processor” means a person engaged in processing farm produce and storing the farm produce for a period of 24 hours or more.
(bb) “Receiving point” means a facility where farm produce is received, weighed, and stored and an acknowledgment form is issued.
(cc) With respect to a financial statement, “reviewed” means performing inquiry and analytical procedures that provide an accountant with a reasonable basis for expressing limited assurance that there are no material modifications that should be made to the statement for it to conform with generally accepted accounting principles.
(dd) “Revocation” means the removal of a grain dealer’s license under this act in accordance with the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. The term does not include a suspension of a grain dealer’s license under this act.
(ee) “Shortage” means that a grain dealer does not have a sufficient amount of farm produce by class and quality to cover the grain dealer’s outstanding warehouse receipt obligations for that farm produce.
(ff) “Storage” means the deposit of farm produce in trust with a grain dealer by a depositor.
(gg) “Temporary facility” means a facility that does not have a receiving point and is used by a licensee to store farm produce.
(hh) “Warehouse receipt” means a written or electronically transmitted receipt issued by a grain dealer to a depositor at the time the grain dealer accepts farm produce for storage. A warehouse receipt is 1 of the following:
(i) A negotiable warehouse receipt if it states that the grain dealer will deliver the farm produce to the bearer of the receipt or to the order of a person named in the receipt.
(ii) A nonnegotiable warehouse receipt if it does not satisfy subparagraph (i).