Title 4.1, Agriculture

A warehouseman shall provide a warehouse receipt that must: 1. Be issued only upon the actual delivery of grain to the warehouse for storage. 2. Contain the following provisions: a. The place and date the grain was received; b. The name and address of the owner of the grain; c. T…

1. A warehouse receipt must contain, either on its face or reverse side, the following warehouse and storage contract: This grain is received, insured, and stored subject to the laws and rules of the state of North Dakota, the terms of this contract, and the charges and condition…

A public warehouseman also may insert in the warehouse receipt the following provision: If any of the grain embraced in this receipt proves to be covered by a chattel mortgage or other lien, or the partial or absolute title proves to be in someone other than the person to whom th…

1. A warehouseman may not purchase grain by a credit-sale contract except as provided in this section. All credit-sale contracts must be in writing and must be consecutively numbered when printing the contract. The warehouseman shall maintain an accurate record of all credit-sale…

1. A public warehouseman may not discriminate: a. In the buying, selling, receiving, and handling of grain or in the charges made or the service rendered to owners of stored grain; b. In the receiving of grain offered for sale or storage; c. In regard to the persons offering grai…

A warehouseman that fails to issue a receipt, as is provided in sections 4.1-58-16 and 4.1-58-17, or issues slips, memoranda, or any other form of receipt embracing a different warehouse or storage contract than is provided for specifically in this chapter, is guilty of a class A…

A public warehouseman is liable to the owner for the delivery of the kind, grade, quality, and quantity of grain called for by the warehouse receipt. Unless otherwise agreed, the value of any difference in kind, grade, quality, and quantity must be settled at the price on the loc…

1. A public warehouseman shall keep a record of all grain received, stored, and shipped, stating the: a. Weight. b. Grade. c. Dockage for dirt or other causes. d. Name of owner. e. Price paid. f. Storage charge collected. 2. A warehouseman with a principal office or headquarters …

1. Each licensed and bonded public warehouseman shall: a. Prepare for each month a report giving facts and information called for on the form of report prepared by the commissioner. The report must contain or be verified by a written declaration the report is made under the penal…

When grain is delivered to any public warehouse and an unconverted scale ticket or a warehouse receipt is issued, the delivery is a bailment and not a sale of the grain delivered. The grain delivered may not be liable to seizure upon process of a court in an action against the ba…

Grain contained in a warehouse, including grain owned by the warehouseman, is subject to a first priority lien for outstanding receiptholders storing, selling, or depositing grain in the warehouse. The lien created under this section is preferred to any lien or security interest …

A person purchasing, selling, or storing grain in a public warehouse in this state may not use any measure for the grain other than the standard bushel, and no number of pounds may be used or called a bushel other than the number of pounds provided by law as the standard weight o…

All public warehousemen shall purchase and store grain except dry edible beans in accordance with the official grades established by the secretary of agriculture of the United States, except as otherwise provided in rules and regulations applicable thereto adopted by federal offi…

1. A public warehouseman before testing for grade any grain handled by the warehouseman shall remove and make due allowance for any dockage of the grain made by reason of the presence of straw, weed seeds, dirt, or any other foreign matter. 2. A public warehouseman that violates …

1. A storage contract terminates on the date identified in the publication required by section 4.1-58-19. If a different termination date is not identified in the publication, a storage contract on grain in a public grain warehouse terminates on June thirtieth of each year, excep…

Upon payment of all legal accrued charges and the surrender to the warehouseman of a receipt, if the receiptholder and the warehouseman agree to continue the storage contract, the warehouseman may extend the storage contract or issue a new warehouse receipt to the owner and cance…

On the return and surrender of any receipt and the payment of all lawful charges, the grain represented on the receipt must be deliverable to the owner and is not subject to any further charge for storage after demand for delivery is made and proper facilities for receiving or sh…

A public warehouseman license is not effective unless all grain in storage or on deposit in the warehouse is kept fully insured at the expense of the warehouseman for the benefit of the owner at the current market value of the grain against loss by fire, lightning, internal explo…

An insurance company shall give at least ten days' notice to the commissioner and the insured by certified mail return receipt requested before cancellation of an insurance policy required under section 4.1-58-35. The warehouseman shall notify each receiptholder having grain stor…

The holder of an unconverted scale ticket or warehouse receipt issued by any public warehouseman has a first lien, to the extent of the value of the grain when lost at the place where held, on all insurance of the warehouse for any loss sustained by the receiptholder, on account …

If requested in writing, the commissioner shall refund the license fee of a public warehouse, or so much as in the commissioner's judgment is just and reasonable, if satisfactory proof is furnished the warehouse has been transferred to some other person, and the new owner has obt…

1. If a public warehouseman desires to transfer a warehouse, either by sale or lease to any other person, the warehouseman shall: a. Notify the commissioner of the warehouseman's intention to transfer the warehouse, giving the name and address of the proposed lessee or purchaser.…

1. If a public warehouseman ceases business through the destruction of a warehouse by fire or other cause, or through insolvency, the warehouseman shall redeem all outstanding unconverted scale tickets or warehouse receipts at the price prevailing on the date the warehouse was de…

If a warehouseman engages in an activity or practice contrary to this chapter or related rules, the commissioner, upon the commissioner's own motion without complaint, with or without hearing, may order the warehouseman to cease and desist from the activity until further order of…

If a written contract for the sale of grain does not contain provisions to settle disagreements concerning factors not governed by section 4.1-58-04, the parties shall attempt to resolve the disagreements through mediation or arbitration.

1. Unless an entire warehouse facility is used for nonpublic purposes, all physically connected portions of the facility must be licensed in accordance with this chapter. 2. The warehouseman shall issue receipt memoranda for all grain received. 3. Facilities that are physically c…

A licensee is insolvent when the licensee refuses, neglects, or is unable upon proper written demand, including electronic communication, to pay for grain purchased or marketed by the licensee or to make redelivery or payment for grain stored.

1. Upon the insolvency of a warehouseman, a trust fund must be established: a. For the benefit of noncredit-sale receiptholders of the insolvent warehouseman, other than those that have waived their rights as beneficiaries of the trust fund in accordance with section 4.1-58-15; a…

Upon the commissioner's appointment, the commissioner shall seek possession of the grain to be included in the trust fund. Upon the commissioner's possession of any grain in the warehouse, the commissioner shall sell the grain and apply the proceeds to the trust fund.

The surety on the warehouseman's bond must be joined as a party to the insolvency proceeding upon a motion by the commissioner if the commissioner believes proceeds from the warehouseman's bond may be needed to redeem outstanding receipts issued by the warehouseman. If it appears…

1. Upon the commissioner's appointment, the commissioner may take possession of relevant books and records of the warehouseman. 2. The commissioner shall cause a notice of the commissioner's appointment to be published once each week for two consecutive weeks in a newspaper in th…

A receiptholder does not have a separate claim for relief upon the warehouseman's bond, for insurance, against any person converting grain, nor against any other receiptholder, except through the trustee, unless, upon demand of five or more receiptholders, the commissioner fails …

Upon the commissioner's appointment, the commissioner may maintain suits at law or in equity, or any special proceeding, in the name of this state, upon the commissioner's own relation, but for the benefit of all receiptholders against: the insurers of grain; the warehouseman's b…

The commissioner may: 1. Prosecute an action provided in this chapter in any court in this state or in any other state. 2. Appeal from an adverse judgment to the courts of last resort. 3. Settle and compromise an action if it is in the best interests of the receiptholders. 4. Set…

Upon the commissioner's determination continued operation of a warehouseman is likely to result in probable loss of assets to receiptholders, the commissioner may immediately suspend, close, or take control of the assets held in a trust fund described in section 4.1-58-45, or tak…

All moneys collected and received by the commissioner as trustee under this chapter, pending the marshalling of the fund, must be deposited in the Bank of North Dakota.

1. Upon the receipt and evaluation of claims, the commissioner shall file a report showing the amount and validity of each claim after recognizing relevant: a. Liens or pledges; b. Assignments; c. Deductions due to advances or offsets accrued for the licensee; d. Cash claims or c…

1. In any action in a state court in this state, the commissioner may not be required to pay any filing fee or other court costs or disbursements if the fees accrue to the county or to the state. 2. The attorney general may employ outside legal services to assist the commissioner…

1. A person violating a provision of this chapter or a rule adopted pursuant to this chapter, if punishment is not specifically provided for, is: a. Guilty of an infraction; and b. Subject to a civil penalty in an amount not to exceed five thousand dollars for each violation. 2. …

In this chapter, unless the context or subject matter otherwise requires: 1. "Credit-sale contract" means a written contract for the sale of grain pursuant to which the sale price is to be paid or may be paid more than thirty days after the delivery or release of the grain for sa…

The commissioner shall: 1. Exercise general supervision of grain buyers of this state. 2. Investigate all complaints of fraud and injustice, unfair practices, and unfair discrimination. 3. Examine and inspect, during ordinary business hours, any books, documents, and records. 4. …

Upon the commissioner's determination continued operation of a grain buyer is likely to result in probable loss of assets to receiptholders, the commissioner may immediately suspend, close, or take control of the assets held in a trust fund described in section 4.1-59-22, or take…

The commissioner may employ a federal licensed inspector and other employees as necessary to carry out this chapter.

1. If a dispute or disagreement arises between the person receiving and the person delivering grain as to the proper grade, dockage, vomitoxin level, moisture content, or protein content of any grain, an average sample of at least three pints [1.65 liters] of the grain in dispute…

1. As a condition of licensure, an applicant shall agree to provide the commissioner, upon request, any financial record the commissioner deems relevant for purposes related to: a. The issuance or renewal of a grain buyer license; or b. An investigation after issuance or renewal …

1. To be eligible to receive an annual license, an applicant shall submit financial documentation to the commissioner verifying the applicant has satisfactory net worth and working capital, as determined by the commissioner. 2. A licensed grain buyer or an applicant for initial l…