Grain Contracting Legalities & PSC Warehouse Examinations
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Transcript Grain Contracting Legalities & PSC Warehouse Examinations
Sue Richter, Licensing Division Director
Public Service Commission
When the process begins
Court appoints Commission trustee
Publish notice to file claims
45 days to file claims
Trust fund – 8 components
Grain proceeds
Accounts receivable
Bond proceeds
Review claims
Valid
Invalid
Trust fund - cash
Indemnity fund – credit-sale contract
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))
Recommendation regarding claims
Court hearing
Appeal
Call Before you Dig
Call Commission
Sue Richter – 701-328-4097
Commission website www.psc.nd.gov
Verify licensees (bonds)
Educational information
Sign credit-sale contracts
Know who you’re doing
business with
Cash checks - don’t hold
onto them