1999 Minnesota Statutes

CHAPTER 234. Storage of grain on farms

     234.01 Purpose. 

    The purpose of this chapter is to provide the owner of 
 grain in this state with means of warehousing the grain on the 
 farm, under proper restrictions and safeguards, as a basis for 
 credit and to aid in the orderly marketing of the grain. 

    HIST: (5077-15) 1935 c 65 s 1; 1989 c 197 art 4 s 1 

  234.02 Repealed, 1981 c 261 s 22 

     234.03 Duties of department. 

    The department shall carry out this chapter and may: 

    (1) make rules that are necessary or desirable to carry out 
 this chapter and consistent with it; 

    (2) make reasonable and necessary rules about the 
 construction and maintenance of granaries, cribs, bins, or other 
 receptacles to protect the grain stored in them under this 
 chapter; and 

    (3) prepare and have printed under the same conditions as 
 other state printing necessary blanks, forms, and other printed 
 matter, charging a fee for the printed matter that will meet the 
 cost of production.  

    HIST: (5077-17) 1935 c 65 s 3; 1971 c 25 s 67; 1985 c 248 s 
 70; 1989 c 197 art 4 s 1 

     234.04 Supervisory boards. 

    The department may appoint local supervisory boards for a 
 county or counties when the department considers them necessary 
 to supervise, under the direction of the department, grain in 
 storage, issuance of certificates against the grain, and 
 carrying out and enforcing this chapter.  

    Local supervisory boards shall consist of not less than 
 three nor more than seven members, each of whom is a producer of 
 grain in the state and a Minnesota resident.  Each member, upon 
 appointment, shall qualify by taking oath similar to that 
 required of public officials and continue in office until a 
 successor is appointed by the department.  The department may 
 fill vacancies arising by reason of the resignation, death, or 
 removal by it of a member.  

    The members of a local supervisory board shall select 
 officers, keep records, and perform duties the department 
 requires. 

    HIST: (5077-18) 1935 c 65 s 4; 1971 c 25 s 67; 1986 c 444; 
 1989 c 197 art 4 s 1 

     234.05 Privileges open to all. 

    This chapter covers all owners equally.  An owner desiring 
 to place grain in storage and have certificates issued against 
 the grain under this chapter shall apply to the department in 
 the manner and upon the forms provided by it for that purpose. 

    HIST: (5077-19) 1935 c 65 s 5; 1971 c 25 s 67; 1989 c 197 art 
 4 s 1 

     234.06 May appoint local sealer. 

    The department may, upon the recommendation of a local 
 supervisory board or upon the request in writing of ten or more 
 producers of grain, appoint a local sealer for all or part of a 
 county or counties.  A sealer must take an oath similar to that 
 required of public officials.  A sealer appointed under this 
 section has the same authority as a peace officer with respect 
 to this chapter, rules adopted under it, and its enforcement.  

    HIST: (5077-20) 1935 c 65 s 6; 1971 c 25 s 67; 1985 c 248 s 
 70; 1989 c 197 art 4 s 1; 1991 c 326 s 8 

  234.07 Repealed, 1991 c 326 s 27 

     234.08 Duties of sealer. 

    Under the direction of the department, a sealer shall: 

    (1) supervise the storage of grain; 

    (2) ascertain the amount stored by each owner who wants to 
 come under this chapter; 

    (3) determine the exact grade and quantity of stored grain, 
 so far as possible under rules made under this chapter; 

    (4) ascertain, before issuing a certificate, that the bin, 
 crib, granary, or other receptacle in which grain is stored is 
 satisfactory for the storage of that grain and that the 
 receptacle conforms to the applicable rules of the department.  

    A sealer shall, before delivering a certificate to an 
 owner, ascertain that there are no other certificates 
 outstanding upon the grain and seal the receptacle in which the 
 grain is stored as provided in this chapter.  The sealer shall 
 then make periodic inspections of the sealed receptacles at 
 times and in the manner the department requires, but at least 
 once every 90 days.  The sealer shall send to the department, 
 and to the owner when requested, a report or affidavit 
 concerning each periodic inspection in the form required by the 
 department.  The report must cover the amount and condition of 
 the grain under seal and the condition of the structure within 
 which it is stored.  

    HIST: (5077-22) 1935 c 65 s 8; 1971 c 25 s 67; 1985 c 248 s 
 70; 1986 c 444; 1989 c 197 art 4 s 1 

     234.09 Sealer may inspect grain. 

    The sealer shall have authority at all times to enter 
 premises to inspect grain in storage or in the granary, crib, 
 bin, or other receptacle in which it has been stored.  
 Acceptance of a certificate by an owner is consent for the 
 sealer or a person authorized by the department to enter and 
 inspect the sealed grain and the receptacle in which it is 
 stored.  

    HIST: (5077-23) 1935 c 65 s 9; 1971 c 25 s 67; 1989 c 197 art 
 4 s 1 

     234.10 Seals. 

    Seals under this chapter must be furnished by the 
 department and contain the following language: 

    "Sealed by authority state of Minnesota, department of 
 agriculture.  

    Any person tampering with this seal or removing any grain 
 herein shall be subject to a fine and imprisonment as provided 
 by law. 

    Consecutive No............." 

    HIST: (5077-24) 1935 c 65 s 10; 1971 c 25 s 67; 1979 c 332 art 
 1 s 76; 1989 c 197 art 4 s 1 

     234.11 Certificates. 

    Certificates must be upon forms prepared and furnished by 
 the department and contain: 

    (1) the date and consecutive number of the certificate; 

    (2) a particular description of the receptacle in which the 
 grain is stored and of the premises on which it is located; 

    (3) a description of the grain as required by rules made 
 under this chapter; 

    (4) the name of the owner or owners, whether ownership is 
 sole, joint, or in trust, and in case of tenants, the date of 
 the expiration of the lease; 

    (5) a statement that no other certificates are outstanding 
 on the grain represented by the certificate; 

    (6) a statement whether grain will be delivered to the 
 bearer, to a specified person, or to a specified person or the 
 person's order, and at what place it will be delivered; 

    (7) a facsimile signature of each of the members of the 
 department and the counter signature of the sealer; 

    (8) a statement of loans or other indebtedness that in any 
 manner constitutes a lien, whether statutory or contractual, 
 including a mortgage or landlord's lien upon the grain; and 

    (9) the form of waivers of liens.  

    HIST: (5077-25) 1935 c 65 s 11; 1971 c 25 s 67; 1985 c 248 s 
 70; 1986 c 444; 1989 c 197 art 4 s 1 

     234.12 Owner to exercise reasonable care. 

    No term or condition may be inserted in a certificate, 
 whether negotiable or otherwise, that purports to relieve the 
 owner from exercising that degree of care in the safekeeping of 
 the grain in storage a reasonably prudent person would exercise 
 with regard to similar property that person owns.  

    HIST: (5077-26) 1935 c 65 s 12; 1986 c 444; 1989 c 197 art 4 s 
 1 

     234.13 May issue more than one certificate. 

    The sealer may issue to the owner one or more certificates 
 under this chapter but each certificate must cover a separate 
 granary, crib, or bin.  

    HIST: (5077-27) 1935 c 65 s 13; 1989 c 197 art 4 s 1 

     234.14 Certificate to be in quadruplicate. 

    Certificates issued under this chapter must be issued in 
 quadruplicate, with three copies marked "Duplicate -- No 
 Value."  The original and one duplicate copy must be delivered 
 to the owner and the other duplicate copies must be filed with 
 the department or the local supervisory warehouse board for the 
 county in which the grain is stored if a board has been 
 established in the county under section 234.04.  

    HIST: (5077-28) 1935 c 65 s 14; 1971 c 25 s 67; 1989 c 197 art 
 4 s 1 

     234.15 Owner to deliver duplicate. 

    An owner who negotiates the original certificate shall at 
 the same time deliver to the assignee the duplicate or the 
 receipt of the county recorder for the certificate.  The 
 assignee may file the duplicate in the office of the county 
 recorder of the county in which the grain is located.  The 
 duplicate must remain in the custody of the county recorder, 
 subject to exceptions in this chapter. 

    HIST: (5077-29) 1935 c 65 s 15; 1976 c 181 s 2; 1986 c 444; 
 1989 c 197 art 4 s 1 

     234.16 Duplicate filed with county recorder. 

    If a duplicate is filed in the office of the county 
 recorder, the recorder shall index it in the chattel mortgage 
 index or other suitable index book showing the date of the 
 certificate, its number, to whom it was issued, and the kind, 
 quantity, and location of the grain.  The recorder shall collect 
 35 cents for each certificate indexed.  The filing and indexing 
 of a certificate gives the same notice as the filing and 
 indexing of a chattel mortgage. 

    HIST: (5077-30) 1935 c 65 s 16; 1976 c 181 s 2; 1986 c 444; 
 1989 c 197 art 4 s 1 

     234.17 Assignments may be filed. 

    If the owner or holder of a certificate assigns it in 
 writing, the county recorder shall on request of the assignee 
 enter a copy of the assignment on the duplicate in the 
 recorder's office and enter in the index book the date of the 
 assignment and the names of the assignor and the assignee.  The 
 recorder shall collect 25 cents for each assignment entered. 

    HIST: (5077-31) 1935 c 65 s 17; 1976 c 181 s 2; 1986 c 444; 
 1989 c 197 art 4 s 1 

     234.18 Cancellation of certificates. 

    The owner may have a certificate canceled by delivering the 
 original to the department or the board by which it was issued 
 with the request that it be canceled.  The department or board 
 shall stamp the original "canceled" with the date of the 
 cancellation and keep it.  Upon notice in writing from the 
 department or board issuing a certificate that it has been 
 canceled, the county recorder shall release the duplicate filed 
 of record without charge. 

    HIST: (5077-32) 1935 c 65 s 18; 1971 c 25 s 67; 1976 c 181 s 
 2; 1989 c 197 art 4 s 1 

     234.19 Owner to deliver grain. 

    In the absence of a lawful excuse provided by this chapter, 
 the owner shall deliver the grain stored upon demand by the 
 holder of the certificate of the grain, if the demand is 
 accompanied by an offer to surrender the certificate.  

    HIST: (5077-33) 1935 c 65 s 19; 1989 c 197 art 4 s 1 

     234.20 Excuse for refusal. 

    If the owner refuses or fails to deliver the goods in 
 compliance with a demand by the holder of a certificate that 
 complies with section 234.19, the burden is upon the owner to 
 establish the existence of a lawful excuse for the refusal.  

    HIST: (5077-34) 1935 c 65 s 20; 1989 c 197 art 4 s 1 

     234.21 Expense of supervision. 

    To defray the expenses of supervision, the owner shall pay 
 a fee at the time of sealing to the department or the local 
 supervisory board of the county in which the grain is stored.  
 The amount of the fee must be determined by the rules made under 
 this chapter, but may not exceed one cent per bushel for grain 
 inspected and sealed by the sealer.  Out of the funds thus 
 created, the compensation of the sealer as fixed by the 
 department must be paid by it or by the board of the county in 
 which the grain is stored, subject to its approval.  

    HIST: (5077-35) 1935 c 65 s 21; 1971 c 25 s 67; 1985 c 248 s 
 70; 1989 c 197 art 4 s 1 

     234.22 Fees for sealer. 

    In the exercise of the power and functions of a peace 
 officer in connection with this chapter, the sealer is entitled 
 to the same fees provided by law for the performance of similar 
 duties.  

    HIST: (5077-36) 1935 c 65 s 22; 1986 c 444; 1989 c 197 art 4 s 
 1 

     234.23 Violation; penalty. 

    A person unlawfully removing, breaking, or interfering or 
 tampering with a seal, lock, or other fastening placed upon a 
 granary, crib, bin, or other receptacle for grain under this 
 chapter, except when the removal is imperative to prevent the 
 damage, loss, or destruction of stored grain, is guilty of a 
 crime punishable by a fine of not less than $100 or more than 
 $700 or by imprisonment in the county jail for not more than six 
 months, or both.  

    HIST: (5077-37) 1935 c 65 s 23; 1984 c 628 art 3 s 11; 1989 c 
 197 art 4 s 1 

     234.24 Fraudulent certificates. 

    An owner, the agent or servant of an owner, a member of a 
 board, or a sealer, who fraudulently issues or aids in 
 fraudulently issuing a certificate for grain knowing that it 
 contains a false statement, is guilty of a crime.  Each offense 
 is punishable by imprisonment in the county jail for up to one 
 year or by a fine of up to $3,000, or both.  

    HIST: (5077-38) 1935 c 65 s 24; 1984 c 628 art 3 s 11; 1989 c 
 197 art 4 s 1 

     234.25 Violations; penalties. 

    Subdivision 1.    Unlawful delivery.  An owner or an 
 officer, agent, or servant of an owner, who delivers grain out 
 of the possession of the owner knowing that a negotiable 
 certificate, the negotiating of which would transfer the right 
 to the possession of the grain, is outstanding and uncanceled 
 without obtaining the possession of the certificate at or before 
 the time of the delivery, is guilty of a crime.  Each offense is 
 punishable by imprisonment in the county jail for up to one year 
 or by a fine of up to $3,000, or both. 

    Subd. 2.    Other unlawful acts.  After the issuance and 
 negotiation of a certificate for grain in storage, an owner who 
 takes, sells, mortgages, pledges, hypothecates, or otherwise 
 encumbers, or attempts to take, sell, mortgage, pledge, or 
 otherwise encumber the grain, or who removes it from its 
 receptacle is guilty of a crime.  Each offense is punishable by 
 a fine of not less than $100 nor more than $3,000 or by 
 imprisonment in the county jail for not more than one year, or 
 both.  

    HIST: (5077-39, 5077-40) 1935 c 65 s 25,26; 1984 c 628 art 3 s 
 11; 1989 c 197 art 4 s 1 

     234.27 Uniform Commercial Code to apply. 

    The provisions of article 7 of the Uniform Commercial Code 
 relative to the negotiation, transfer, sale, or endorsement of 
 warehouse receipts, apply, to the extent possible, to the 
 negotiation, transfer, sale, or endorsement of certificates 
 under this chapter.  

    For the purpose of application of the Uniform Commercial 
 Code:  

    (a) A certificate authorized by the department which 
 evidences the storing of grain under this chapter is a document 
 of title as defined in section 336.1-201, clause (15).  

    (b) A person who has title to and possession of grain 
 stored under this chapter is a warehouse operator as defined in 
 section 336.7-102, clause (1)(h). 

    HIST: (5077-41) 1935 c 65 s 27; 1965 c 812 s 8; 1981 c 261 s 
 17; 1986 c 444; 1989 c 197 art 4 s 1