Michigan Laws 285.75 – Daily position report
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(1) A grain dealer shall keep a complete and accurate daily position report. The grain dealer shall submit the daily position report for the last business day of the preceding fiscal month to the department during the first 10 business days of the grain dealer’s fiscal month.
(2) A daily position report shall include all of the following information about the grain dealer’s operations, as of the last business day of the preceding fiscal month, on a form approved by the director:
Terms Used In Michigan Laws 285.75
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Department: means the department of agriculture. See Michigan Laws 285.62
- Director: means the director of the department or his or her designee. See Michigan Laws 285.62
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Farm produce: means 1 or more of dry edible beans, soybeans, small grains, cereal grains, or corn. See Michigan Laws 285.62
- 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
- License: means a license issued by the department to a grain dealer in the manner provided under this act. See Michigan Laws 285.62
- month: means a calendar month; the word "year" a calendar year; and the word "year" alone shall be equivalent to the words "year of our Lord". See Michigan Laws 8.3j
- 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. See Michigan Laws 285.62
- 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. See Michigan Laws 285.62
- 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. See Michigan Laws 285.62
- 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
(a) The quantity of each type of farm produce in inventory.
(b) The quantity of farm produce covered by outstanding warehouse receipts, open storage, and price later agreements, including price later agreements and warehouse receipts for farm produce in other grain dealers’ facilities.
(c) The quantity of farm produce covered by collateral warehouse receipts.
(d) The total dollar amounts of loans against grain inventory.
(e) A description and quantity of any other farm produce obligations resulting in the grain dealer’s balance position of farm produce.
(f) If a deficiency concerning price later agreements exists, the quantity of offsetting purchase commitments.
(3) If the department determines that there is a deficiency in any warehouse receipt position, the department shall notify the grain dealer and require that the grain dealer cover the shortage or furnish bond or security in an amount and on terms required by the department. If the grain dealer fails to comply, the department may seize grain assets for the benefit of claimants.
(4) If a net deficiency concerning price later agreements exists, based upon daily bid prices, the grain dealer shall cover the deficiency by placing in an escrow account cash, cash equivalents, or marketable securities equal to 80% of the deficiency and offsetting purchase commitments equal to at least 20% of the deficiency. The grain dealer shall file a copy of the escrow agreement with the department. The escrow agreement shall require that the escrow institution submit a monthly statement for the escrow account to the department.
(5) A violation of this section by a grain dealer may result in a fine or suspension or revocation of the grain dealer’s license under section 22. If the violation is the intentional filing of a false daily position report, in addition to license revocation, the grain dealer is subject to the penalty described in section 23 for each violation.