Sue Richter, Licensing Division Director

Public Service Commission

Grain Contracting Legalities & PSC Warehouse Examinations

Insolvency & Court Decisions

North Dakota Grain Dealers ConventionJanuary 20, 2014

When the process begins

When Is Licensee Insolvent

Court appoints Commission trusteePublish notice to file claims

45 days to file claimsTrust fund – 8 components

Grain proceedsAccounts receivableBond proceeds

Insolvency Process

Review claims Valid Invalid

Trust fund - cashIndemnity fund – credit-sale contract

Claims

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))

Court Decisions

Recommendation regarding claimsCourt hearingAppeal

Report of Trustee

Call Before you Dig

Call CommissionSue Richter – 701-328-4097

Commission website www.psc.nd.govVerify licensees (bonds)Educational information

Call Before You Sell!

Sign credit-sale contractsKnow who you’re doing business with

Cash checks - don’t hold onto them

In Closing