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Indiana Code Title 26. Commercial Law § 26-3-7-14.4

Current as of January 02, 2024 | Updated by Findlaw Staff

Sec. 14.4. (a) As demonstrated by the licensee's financial statement submitted to the agency, a licensee under this chapter shall maintain a minimum positive tangible net worth, as required under this section.

(b) A licensee shall maintain a minimum positive tangible net worth as follows:

(1) For a grain bank license, at least one hundred thousand dollars ($100,000).

(2) For a warehouse license, an amount at least equal to the sum of:

(A) one hundred thousand dollars ($100,000);  and

(B) ten cents ($0.10) multiplied by the total bushel storage capacity of the facility or facilities covered by the warehouse license.

(3) For a grain buyer license, an amount at least equal to the greater of:

(A) one hundred thousand dollars ($100,000);  or

(B) five cents ($0.05) multiplied by the total number of bushels of grain purchased under the grain buyer license during the grain buyer's most recent fiscal year.

(4) For a buyer-warehouse license, where the buyer-warehouse license has one (1) or more facilities with a total bushel storage capacity of less than one million (1,000,000) bushels or at which the buyer-warehouse's total annual purchases are less than one million (1,000,000) bushels of grain, an amount at least equal to the greater of:

(A) the sum of:

(i) one hundred fifty thousand dollars ($150,000);  and

(ii) ten cents ($0.10) multiplied by the total bushel storage capacity of the facility or facilities covered by the buyer-warehouse license;  or

(B) five cents ($0.05) multiplied by the total number of bushels of grain purchased under the buyer-warehouse license during the buyer-warehouse's most recent fiscal year.

(5) For a buyer-warehouse license, where the buyer-warehouse license has one (1) or more facilities with a total bushel storage capacity of at least one million (1,000,000) bushels or at which the buyer-warehouse's annual purchases are at least one million (1,000,000) bushels of grain, an amount at least equal to the greater of:

(A) the sum of:

(i) two hundred thousand dollars ($200,000);  and

(ii) ten cents ($0.10) multiplied by the total bushel storage capacity of the facility or facilities covered by the buyer-warehouse license;  or

(B) five cents ($0.05) multiplied by the total number of bushels of grain purchased under the buyer-warehouse license during the buyer-warehouse's most recent fiscal year.

(c) If a licensee has more than one (1) license, the licensee shall maintain a minimum positive tangible net worth that is at least equal to the sum of the minimum positive net worth amounts required under subsection (b) for each individual license held by the licensee.

(d) A licensee that fails to be above eighty-five percent (85%) of the minimum positive tangible net worth required under this section, as demonstrated by the licensee's financial statement submitted to the agency, may cure the minimum positive tangible net worth deficiency by adding to the amount of the deposit, bond, or other security required under this chapter an amount equal to the difference between the required minimum positive tangible net worth and the licensee's demonstrated net worth.

(e) A licensee may cure the minimum positive tangible net worth deficiency by submitting to the agency:

(1) a financial statement, in compliance with the requirements of this chapter, and current as of a date within the time specified to cure the deficiency under this section, demonstrating that the licensee meets the required minimum positive tangible net worth;  or

(2) a new financial statement, in compliance with the requirements of this chapter, and current as of a date within the time specified to cure the deficiency under this section, demonstrating that the licensee's demonstrated net worth is at least equal to the amount or amounts specified in subsection (b), and by adding to the amount of the deposit, bond, or other security required under this chapter an amount equal to the difference between the required minimum positive tangible net worth and the licensee's demonstrated net worth.

(f) The director may, in accordance with this section, require a licensee that has failed to meet the minimum positive tangible net worth requirement to add to the amount of the deposit, bond, or other security required under this section an amount the director deems necessary and appropriate to respond to the minimum positive tangible net worth deficiency.  The addition by the licensee of an amount required under this subsection does not itself constitute or effect a cure of a minimum positive tangible net worth deficiency.

(g) If the licensee's demonstrated current net worth is less than the required amount but greater than eighty-five percent (85%) of the required amount, 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 current net worth deficiency within ninety (90) days from the receipt of the deficiency notice.

(h) If the licensee's demonstrated current net worth is less than or equal to eighty-five percent (85%) of the required amount or has not cured the ratio deficiency as required in subsection (d), 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 net worth deficiency, as the director deems necessary and appropriate;  or

(2) an order that revokes the license or licenses of the licensee.

(i) If a licensee, after an informal meeting in subsection (h):

(1) does not meet the requirements in subsection (h)(1), the director shall revoke;  or

(2) has a net worth that has continued to decline, the director may revoke;

the license or licenses of the licensee.

(j) 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 net worth requirement under subsection (b).

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Cite this article: FindLaw.com - Indiana Code Title 26. Commercial Law § 26-3-7-14.4 - last updated January 02, 2024 | https://codes.findlaw.com/in/title-26-commercial-law/in-code-sect-26-3-7-14-4/

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