1 / 9

Sue Richter, Licensing Division Director Public Service Commission

Grain Contracting Legalities & PSC Warehouse Examinations Insolvency & Court Decisions North Dakota Grain Dealers Convention January 20, 2014. Sue Richter, Licensing Division Director Public Service Commission . When Is Licensee Insolvent. When the process begins. Insolvency Process.

keanu
Download Presentation

Sue Richter, Licensing Division Director Public Service Commission

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Grain Contracting Legalities & PSC Warehouse ExaminationsInsolvency & Court DecisionsNorth Dakota Grain Dealers ConventionJanuary 20, 2014 Sue Richter, Licensing Division Director Public Service Commission

  2. When Is Licensee Insolvent • When the process begins

  3. Insolvency Process • Court appoints Commission trustee • Publish notice to file claims • 45 days to file claims • Trust fund – 8 components • Grain proceeds • Accounts receivable • Bond proceeds

  4. Claims • Review claims • Valid • Invalid • Trust fund - cash • Indemnity fund – credit-sale contract

  5. Court Decisions • United States v. Wimbledon Grain Company et al., Civil No, A3-02-46, p. 2 (D.N.D. 2002), Chief Judge Rodney S. Webb held “. . . for priority purposes sellers with unsigned contracts. . . should be treated in the same manner as those . . . with storage receipts.” • “. . . The statute provides that, “the contract must be signed by both parties. . .” ID. From the language of NDCC 60-02-19.1, the absence of a signature by both of the parties to the contract precludes it from otherwise constituting a credit-sale contract. The statutory language requires that a credit-sale contract be manifested by not only written form but by the signature of both parties. To conclude otherwise requires this Court to disregard what the legislature set out as the requirements to create an enforceable credit-sale contract. So, any claim manifested by a document not signed by both parties can never constitute a credit-sale contract regardless of the language in the unsigned document.” (Judge Geiger’s 8/31/12, Findings of Fact, Conclusion of Law, and Order, at pg. 6, at 3-11, Civil No. 50-2011-CV-29, PSC v. Grabanski Grain LLC (2012))

  6. Report of Trustee • Recommendation regarding claims • Court hearing • Appeal

  7. Call Before you Dig

  8. Call Before You Sell! • Call Commission • Sue Richter – 701-328-4097 • Commission website www.psc.nd.gov • Verify licensees (bonds) • Educational information

  9. In Closing • Sign credit-sale contracts • Know who you’re doing business with • Cash checks - don’t hold onto them

More Related