Title 26, COMMERCIAL LAW

Sec. 508. A collecting bank or other intermediary known to be entrusted with documents of title on behalf of another or with collection of a draft or other claim against delivery of documents warrants by delivery of the documents only its own good faith and authority even if the …

Sec. 509. Whether a document of title is adequate to fulfill the obligations of a contract for sale, a contract for lease, or the conditions of a letter of credit is determined by IC 26-1-2, IC 26-1-2.1, or IC 26-1-5.1. Formerly: Acts 1963, c.317, s.7-509. As amended by P.L.152-1…

Sec. 601. (a) If a document of title is lost, stolen, or destroyed, a court may order delivery of the goods or issuance of a substitute document and the bailee may without liability to any person comply with the order. If the document was negotiable, a court may not order deliver…

Sec. 602. Unless a document of title was originally issued upon delivery of the goods by a person that did not have power to dispose of them, a lien does not attach by virtue of any judicial process to goods in the possession of a bailee for which a negotiable document of title i…

Sec. 603. If more than one (1) person claims title to or possession of the goods, the bailee is excused from delivery until the bailee has a reasonable time to ascertain the validity of the adverse claims or to commence an action for interpleader. The bailee may assert an interpl…

Sec. 1. As used in this chapter, "check" includes a draft. As added by P.L.42-1993, SEC.18.

Sec. 2. (a) As used in this chapter, "financial institution" refers to a financial institution (as defined in IC 28-1-1-3). (b) The term does not include a person licensed under IC 37-2 or IC 37-3. As added by P.L.42-1993, SEC.18. Amended by P.L.10-2006, SEC.24 and P.L.57-2006, S…

Sec. 3. For purposes of this chapter, notice that a check has not been paid by a financial institution is considered as having been given at the time that the notice was deposited in the regular United States mail, if the notice was addressed to either of the following: (1) The a…

Sec. 4. Subject to section 8 of this chapter, a person found liable under other applicable law is liable under this chapter to the holder of a check if the person executed and delivered the check to another person drawn on or payable at a financial institution and the person does…

Sec. 5. A person liable under section 4 of this chapter is also liable for all of the following: (1) Interest at the rate of eighteen percent (18%) per annum on the face amount of the check from the date of the check's execution until payment is made in full. (2) Court costs incu…

Sec. 6. (a) This section does not apply to a person who has allowed a check to be dishonored because of lack of funds if both of the following apply: (1) The person reasonably believed that there were sufficient funds in the account to cover the check. (2) The insufficiency of fu…

Sec. 7. A person must elect whether to pursue a claim either under this chapter or under IC 34-24-3-1 (or IC 34-4-30-1 before its repeal). As added by P.L.42-1993, SEC.18. Amended by P.L.1-1998, SEC.138.

Sec. 8. (a) A person who has allowed a check to be dishonored is not liable under this chapter if, not more than ten (10) days after the holder has given notice that the check has not been paid by the financial institution, the person pays to the holder the full amount of the che…

Sec. 1. (a) The Indiana grain buyers and warehouse licensing agency is established within the Indiana state department of agriculture to administer this chapter. The director of the Indiana state department of agriculture may appoint the director of the agency, who shall serve at…

Sec. 1.5. This chapter shall be liberally construed to effect its purposes. As added by P.L.1-1989, SEC.54.

Sec. 10. (a) The minimum amount of bond, letter of credit, or cash deposit required from a licensee is as follows: (1) For a grain bank license or a warehouse license: (A) fifty thousand dollars ($50,000); and (B) ten cents ($0.10) multiplied by the licensed bushel storage capaci…

Sec. 12. (a) Each applicant for a license under this chapter shall, as a condition to the granting of the license, file or have on file a certificate of insurance evidencing an effective policy of insurance issued by an insurance company authorized to do business in Indiana insur…

Sec. 13. Whenever the director determines that a previously approved bond, letter of credit, cash deposit, or previously approved insurance is insufficient, the director shall require an additional bond, letter of credit, cash deposit, or insurance to be given by the licensee in …

Sec. 14. (a) A licensee may not cancel an approved bond or approved insurance unless the director has given prior written approval for the cancellation and has received a substitute cash deposit or has approved a substitute bond or insurance. The surety on a bond may cancel a bon…

Sec. 14.2. (a) A licensee under this chapter shall maintain a minimum current ratio of one to one (1:1) or better. The current ratio is determined by dividing a licensee's current assets by the licensee's current liabilities, as demonstrated by the licensee's financial statement …

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…

Sec. 15. (a) A licensee shall maintain inventories of sufficient quantity and grade of grain to meet the licensee's storage obligations. (b) Inventories representing grain evidenced by outstanding warehouse receipts shall be maintained in the warehouse shown on the warehouse rece…

Sec. 16.3. (a) A licensee shall, as a condition of licensure, submit to the agency on an annual basis, and not later than one hundred twenty (120) days after the end of the licensee's fiscal year, the following: (1) A completed annual report in the form and as otherwise required …

Sec. 16.5. (a) Upon learning of the possibility that a shortage exists, either as a result of an inspection or a report or complaint from a depositor, the agency, based on an on-premises inspection, shall make a preliminary determination as to whether a shortage exists. If a shor…

Sec. 16.6. The procedures established by this chapter also apply when the director learns or has reason to believe that a person is doing business as a grain buyer, operating a warehouse, or acting as a buyer-warehouse without the license required by this chapter. As added by Act…

Sec. 16.7. (a) A licensee or claimant subject to the director's action may submit a petition for review and request for administrative adjudication under IC 4-21.5-3 from orders issued by the director under section 16.5 or 17.1 of this chapter. (b) A licensee or claimant may requ…

Sec. 16.8. (a) A lien against all grain assets of a licensee or a person who is required to be licensed under this chapter attaches in favor of the following: (1) A lender or other claimant that has a receipt for grain owned or stored by the licensee. (2) A claimant that has a ti…

Sec. 17.1. (a) Whenever the director, as a result of an inspection or otherwise, has reasonable cause to believe that a person to which this chapter is or may be applicable: (1) is conducting business contrary to this chapter or in an unauthorized manner; or (2) has failed, negle…

Sec. 17.5. (a) Whenever the license of a licensee is revoked, the director shall: (1) for each facility operated by the licensee, publish a public notice in a newspaper of general circulation that serves the county in which the facility is located; and (2) cause notice of the rev…

Sec. 18. When a license is revoked, the licensee shall terminate in the manner prescribed by the director all arrangements covering the grain in the facility covered by the license, but shall be permitted, under the direction and supervision of the director or the director's desi…

Sec. 19. (a) A licensee shall issue a receipt or ticket for grain received. Grain received by a licensee shall be credited to the depositor on the books of the licensee within seven (7) days from the date of its delivery. If a ticket is issued on delivery of the grain for storage…

Sec. 2. The following definitions apply throughout this chapter: (1) "Agency" refers to the Indiana grain buyers and warehouse licensing agency established under section 1 of this chapter. (2) "Anniversary date" means the date that is ninety (90) calendar days after the fiscal ye…

Sec. 2.2. For purposes of determining whether a building or other protected enclosure constitutes a single warehouse that requires a single license under this chapter, the director may consider the following: (1) The presence of a full weighing facility at geographically diverse …

Sec. 20. A licensee may issue a receipt for grain owned by the licensee in whole or in part, located in the licensee's facility. The negotiation, transfer, sale, or pledge of the receipt shall not be defeated by reason of the licensee's ownership. Formerly: Acts 1973, P.L.268, SE…

Sec. 21. Except as provided by this chapter, and regardless of whether the grain was received for storage, shipping, or handling, IC 26-3-2 applies to all transactions involving or incidental to the issuance, negotiation, transfer, sale, endorsement, or other dealings with receip…

Sec. 22. Different lots of the same type of grain delivered to a licensee may be commingled by type of grain unless the receipt or ticket states that the identity of the lot of grain is to be preserved. Formerly: Acts 1973, P.L.268, SEC.1. As amended by P.L.125-1997, SEC.44.

Sec. 23. Upon demand, after payment of all applicable charges, grain shall be returned to the depositor at the licensed facility where the grain was received unless agreed otherwise in writing. Formerly: Acts 1973, P.L.268, SEC.1; Acts 1974, P.L.120, SEC.12. As amended by P.L.125…

Sec. 24. While a receipt or ticket issued under this chapter is outstanding and uncancelled by the issuing licensee, no other receipt or ticket shall be issued for the grain or any part of the grain that is covered by the receipt or ticket. However, if a receipt or ticket is lost…

Sec. 25. Every warehouse receipt issued, whether paper or electronic, shall embody within its terms the following: (1) The type, grade, and quantity of the grain stored as established by the official grain standards of the United States, unless: (A) the identity of the grain is p…

Sec. 26. Every ticket issued shall embody within its terms: (1) the name of the licensee to whom the grain was delivered; (2) the date the grain was delivered; (3) exact information concerning the type, net weight, and grade factors of the grain received; (4) a statement that the…

Sec. 26.5. A licensee may not: (1) enter into a deferred pricing agreement in connection with grain purchases that extends beyond the crop year for the delivered grain; or (2) transfer the deferred pricing agreement to a new deferred pricing agreement beyond the crop year for the…

Sec. 27.5. (a) For purposes of this section, the following apply: (1) "Unencumbered assets" means a licensee's unencumbered assets as demonstrated by the agency's inspection of the licensee's books and records. (2) "Unpaid balance of grain payables" means a licensee's unpaid bala…

Sec. 28. A licensee shall keep in a place of safety complete and correct records and accounts pertaining to the licensee's grain business. The licensee shall retain records and accounts for not less than five (5) years from the date of the final settlement of the transaction. For…

Sec. 29. A licensee shall: (1) conspicuously display the licensee's license in the licensee's main office and at each facility included under the license; (2) conspicuously display in each operational office the approved schedule of charges for services; and (3) conspicuously dis…

Sec. 3. (a) The director may do the following: (1) Require any reports that are necessary to administer this chapter. (2) Administer oaths, issue subpoenas, compel the attendance and testimony of witnesses, and compel the production of records in connection with any investigation…

Sec. 3.5. When computing any period of time under this chapter, including the time of service of a notice, the computation must comply with IC 4-21.5-3-2. As added by P.L.114-2025, SEC.4.