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