1999 Minnesota Statutes

     236.02 Grain bank licensing; bonding of applicants. 

    Subdivision 1.    Licensing requirement.  A person who 
 (1) operates an establishment that processes grain into feed and 
 (2) is licensed to buy grain as a private local grain warehouse 
 operator under section 223.17 may obtain a license to operate a 
 grain bank.  A person licensed under section 232.22 to operate a 
 public grain warehouse is not required to obtain a separate 
 grain bank license.  No person may conduct a grain bank without 
 a grain bank license or a public grain warehouse operator's 
 license. 

    Subd. 2.    Issuance.  A grain bank license must be 
 obtained from the department.  The department may issue a grain 
 bank license when the applicant has complied with the bond 
 requirements of sections 236.01 to 236.09.  A grain bank license 
 is required in addition to a license to buy grain as a private 
 local grain warehouse operator and permits the licensee to 
 conduct a grain bank in accordance with sections 236.01 to 
 236.09. 

    Subd. 3.    Expiration; posting; revocation.  Grain bank 
 licenses expire at midnight on June 30 each year.  A license is 
 required for each location where a grain bank is operated.  
 Licenses are revocable by the department for cause upon notice 
 and hearing.  Licenses and rules regulating the operation of the 
 grain bank must be posted in a prominent and easily accessible 
 place in the grain bank.  

    Subd. 4.    Fees.  The license fee must be set by the 
 commissioner in an amount sufficient to cover the costs of 
 administering and enforcing this chapter.  Fees collected under 
 this chapter must be paid into the grain buyers and storage 
 account established in section 232.22. 

    Subd. 5.    Bond.  A license may not be issued for the 
 operation of a grain bank until the applicant has filed with the 
 department a bond in a sum set by the department.  The bond may 
 not be less than $1,500 for each license and must at all times 
 be large enough to protect the holders of outstanding grain bank 
 receipts.  Bonds must be filed annually and cover the period of 
 the grain bank license.  Bonds must run to the state of 
 Minnesota and be for the benefit of all persons storing grain in 
 a grain bank.  They must be conditioned upon the faithful 
 performance by the grain bank operator of the law relating to 
 the operation of grain banks by the grain bank operator and 
 related rules of the department.  The department may require 
 increases in the amounts of bonds as it considers necessary for 
 the protection of grain bank receipt holders.  The surety of 
 grain bank bonds must be a corporate surety company authorized 
 to transact business in Minnesota.  

    Subd. 6.    Action on bond.  A person for whose benefit 
 the bond is given may commence an action in district court.  

    Subd. 7.    Single bond.  A person who is granted a 
 grain bank license at more than one location may, with the 
 department's approval, file one bond covering all locations in a 
 total amount the department requires under sections 236.01 to 
 236.09 and rules made under sections 236.01 to 236.09.  A 
 person, firm, or corporation licensed as a public grain 
 warehouse operator and bonded under section 232.22 may include 
 liability for outstanding nonnegotiable grain bank receipts 
 under the coverage of that bond in lieu of securing a separate 
 grain bank bond under this section. 

    HIST: 1961 c 232 s 2; 1967 c 318 s 14; 1969 c 399 s 1; 1969 c 
 856 s 3; 1971 c 25 s 67; 1982 c 508 s 9; 1985 c 248 s 70; 1986 c 
 444; 1987 c 384 art 2 s 1; 1989 c 197 art 6 s 1; 1990 c 426 art 
 2 s 5; 1997 c 131 s 6,7; 1999 c 231 s 173