Sec. 27.5. (a) For purposes of this section, the following apply: (1) "Unencumbered assets" means a licensee's unencumbered assets as demonstrated by the agency's inspection of the licensee's books and records. (2) "Unpaid balance of grain payables" means a licensee's unpaid balance of grain payables demonstrated by the agency's inspection of the licensee's books and records. (b) If an on-premises inspection of a licensee's books and records demonstrates that the licensee, as of the time of the inspection, did not have unencumbered assets with a value at least equal to eighty-five percent (85%) of the unpaid balance of grain payables covered by each license held by the licensee, then: (1) the director or the director's designated representative shall issue a notice of deficiency to the licensee; and (2) the licensee shall cure the unencumbered asset deficiency within ninety (90) days from the receipt of the notice. (c) Unencumbered assets may consist of the aggregate of any of the following: (1) Company owned grain. (2) Cash on hand. (3) Cash held on account in federally or state licensed financial institutions or in lending institutions of the Federal Farm Credit Administration. (4) Investments held in time accounts with federally or state licensed financial institutions. (5) Direct obligations of the United States government. (6) Balances in grain margin accounts determined by marking to market. (7) Balances due or to become due to the licensee on deferred pricing contracts. (8) Marketable securities, including mutual funds. (9) Irrevocable letters of credit that: (A) comply with the requirements of this chapter; and (B) are in addition to any letter of credit filed with the director to satisfy the deposit, bond, or other security requirements of this chapter. (10) Deferred pricing contract service charges due or to become due to the licensee. (11) Other evidence of proceeds from or of grain that is acceptable to the agency. (12) Seed inventory. (13) Other assets that the agency may include in rules adopted under section 38 of this chapter. (d) If a licensee has more than one (1) license, the unencumbered assets at the time of the inspections under subsection (b) must have a value at least equal to the sum of the amounts required under subsection (b) for each individual license held by the licensee. (e) If the licensee's demonstrated current unencumbered assets is less than or equal to eighty-five percent (85%) of the required amount or the licensee has not cured the unencumbered assets deficiency as required in subsection (b)(2), then the director shall hold an informal meeting in accordance with this chapter and, within thirty (30) days of the conclusion of the informal meeting, issue either: (1) a consent agreement that requires the licensee to take certain actions within a set period, not to exceed twelve (12) months, to remedy the current unencumbered assets deficiency, as the director deems necessary and appropriate; or (2) an order that revokes the license or licenses of the licensee. (f) If a licensee, after an informal meeting in subsection (e): (1) does not meet the requirements in subsection (e)(1), the director shall revoke; or (2) has an unencumbered asset deficiency that has continued to decline, the director may revoke; the license or licenses of the licensee. (g) Subject to section 31.8 of this chapter, the director shall assess a fine of one thousand dollars ($1,000) on a licensee that does not maintain the unencumbered asset requirement under subsection (b). (h) Nothing in this section precludes the agency from conducting an on-premises inspection of a licensee at any time the director may consider an inspection to be necessary or appropriate.
‹ Prev All Indiana sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.