126.31(4)(d)3.
3. The letter of credit is issued for an initial period of at least one year.
126.31(4)(d)4.
4. The letter of credit renews automatically unless at least 90 days before the scheduled renewal date the issuing bank gives the department written notice, in person or by certified mail, that the letter of credit will not be renewed.
126.31(4)(d)5.
5. The letter of credit is issued in a form, and subject to any terms and conditions, that the department considers appropriate.
126.31(5)
(5) Department custody of security. The department shall hold, in its custody, all security filed and maintained under this section. The department shall hold the security for the benefit of depositors.
126.31(6)(a)(a) The department may, at any time during a license year, demand additional security from a grain warehouse keeper if any of the following applies:
126.31(6)(a)1.
1. The grain warehouse keeper's existing security falls below the amount required under
sub. (3) for any reason, including depreciation in the value of the security, increased obligations to depositors, or the cancellation of any security filed with the department.
126.31(6)(a)2.
2. The grain warehouse keeper fails to provide required information that is relevant to a determination of security requirements.
126.31(6)(b)
(b) The department shall issue a demand under
par. (a) in writing. The department shall indicate why additional security is required, the amount of security required, and the deadline date for filing security. The department may not specify a deadline for filing security that is more than 30 days after the date on which the department issues its demand for security.
126.31(6)(c)
(c) A grain warehouse keeper may request a hearing, under
ch. 227, on a demand for security under
par. (b). A request for hearing does not automatically stay a security demand.
126.31(6)(d)
(d) If a grain warehouse keeper fails to comply with the department's demand for security under this subsection, the grain warehouse keeper shall give written notice of that fact to all depositors. If the grain warehouse keeper fails to give accurate notice under this paragraph within 5 days after the deadline for filing security under
par. (b) has passed, the department shall promptly notify depositors by publishing a class 3 notice under
ch. 985. The department may also give individual notice to depositors of whom the department is aware.
126.31(6)(e)
(e) If a grain warehouse keeper fails to comply with the department's demand for security under this subsection, the department may do any of the following:
126.31(6)(e)2.
2. Suspend or revoke the grain warehouse keeper's license.
126.31(7)
(7) Monthly reports. A grain warehouse keeper who is required to file or maintain security under this section shall file monthly reports with the department. The grain warehouse keeper shall file the report by the 10th day of each month, in a form specified by the department. In a monthly report, the grain warehouse keeper shall provide information reasonably required by the department, including the amount of each type of grain stored in each grain warehouse on the last day of the preceding month.
126.31(8)(a)(a) The department may release security filed under
sub. (1) (a) if any of the following applies:
126.31(8)(a)1.
1. The grain warehouse keeper reports grain warehouse capacity under
s. 126.26 (2) (e) of less than 300,000 bushels for at least 2 consecutive license years and the grain warehouse keeper pays the quarterly fund assessment that would have been required of the grain warehouse keeper if the grain warehouse keeper had been a contributing grain warehouse keeper on the most recent quarterly installment date under
s. 126.30 (6).
126.31(8)(a)2.
2. The grain warehouse keeper's annual financial statement under
s. 126.28 shows positive equity for at least 2 consecutive years and the grain warehouse keeper pays the quarterly fund assessment that would have been required of the grain warehouse keeper if the grain warehouse keeper had been a contributing grain warehouse keeper on the most recent quarterly installment date under
s. 126.30 (6).
126.31(8)(am)
(am) The department may release security filed under
sub. (1) (b), except for any amount of security that the grain warehouse keeper is required to file because
sub. (1) (a) applies to the grain warehouse keeper, if the grain warehouse keeper files 2 consecutive annual financial statements under
s. 126.28 showing that the grain warehouse keeper no longer has negative equity, a current ratio of less than 1.25 to 1.0, or a debt to equity ratio of more than 4.0 to 1.0.
126.31(8)(c)
(c) The department may release security to the extent that the security exceeds the amount required under
sub. (3).
126.31(8)(d)
(d) The department may release security if the grain warehouse keeper files alternative security, of equivalent value, that the department approves.
126.31(8)(e)
(e) The department shall release security if the grain warehouse keeper has gone out of business and has fulfilled all grain obligations to depositors.
126.32
126.32
Grain warehouse keepers; records. 126.32(1)(1)
Records and accounts; general. A grain warehouse keeper shall maintain current, complete, and accurate records and accounts of all grain received into and withdrawn from each grain warehouse, including records required under
subs. (2) and
(3).
126.32(2)
(2) Daily position records. A grain warehouse keeper shall keep daily position records for each type of grain, so that the grain warehouse keeper and the department can easily determine all of the following on a daily basis:
126.32(2)(a)
(a) The total amount of grain held by the warehouse keeper, including grain under
pars. (b) and
(c).
126.32(2)(b)
(b) The total amount of grain that the warehouse keeper holds for others.
126.32(2)(c)
(c) The total amount of grain held by the warehouse keeper of which the warehouse keeper claims ownership.
126.32(2)(d)
(d) The warehouse keeper's total grain obligations to depositors.
126.32(3)
(3) Depositor records. A grain warehouse keeper shall keep for each depositor, in a form that the grain warehouse keeper and the department can easily retrieve, records of all of the following:
126.32(3)(b)
(b) The kinds and amounts of grain that the grain warehouse keeper received from the depositor, the receipt dates, and the terms under which the grain warehouse keeper received the grain.
126.32(3)(c)
(c) The kinds and amounts of grain that the grain warehouse keeper has released to the depositor and the release dates.
126.32(3)(d)
(d) The kinds and amounts of grain that the grain warehouse keeper holds for the depositor. The grain warehouse keeper shall update this record on a daily basis.
126.32(4)(a)(a) Whenever a grain warehouse keeper alters a record entry under
sub. (2) or
(3), the grain warehouse keeper shall clearly identify and explain the alteration so that the reason for the alteration is clear to a person reviewing the records.
126.32(4)(b)
(b) Except as provided in
par. (c), a grain warehouse keeper may not alter a record entry under
sub. (2) or
(3) without the department's prior approval.
126.32(4)(c)
(c) A grain warehouse keeper may, without the department's prior approval, correct a record entry under
sub. (2) or
(3) for any of the following reasons:
126.32(4)(c)1.
1. To account for handling losses, if the warehouse keeper corrects for handling losses at least monthly.
126.32(4)(c)2.
2. To account for errors or omissions related to the receipt or withdrawal of grain, if the warehouse keeper has documentation to support the correction.
126.32(5)
(5) Records retention; availability. 126.32(5)(a)(a) A grain warehouse keeper shall retain all records required under this section and
s. 126.33 (3) for at least 6 years from the date of their creation.
126.32(5)(b)
(b) If a grain warehouse keeper keeps records under
subs. (2) and
(3) in computerized form, the grain warehouse keeper shall generate a hard copy printout for each business day unless the grain warehouse keeper retains the ability to retrieve and print that day's computerized record for at least 6 years.
126.32(5)(c)
(c) A grain warehouse keeper shall make records required under this section available to the department for inspection and copying upon request.
126.32(6)(a)(a) The department shall review the records that a grain warehouse keeper is required to keep under this section. The department shall review a grain warehouse keeper's records at least annually, except as provided in
par. (b).
126.32(6)(b)
(b) The department shall review a grain warehouse keeper's records at least once every 2 years if the grain warehouse keeper files an annual financial statement under
s. 126.28 and that annual financial statement shows a current ratio of at least 2.0 to 1.0, positive equity, and a debt to equity ratio of not more than 2.0 to 1.0.
126.32 History
History: 2001 a. 16;
2009 a. 296.
126.33
126.33
Receipts for grain. 126.33(1)(1)
Requirement. Immediately after a grain warehouse keeper receives grain from a depositor, the grain warehouse keeper shall give the depositor a warehouse receipt or other storage receipt that includes all of the following:
126.33(1)(a)
(a) The name and permanent address of the grain warehouse keeper, the location of the grain warehouse, and a statement indicating whether the grain warehouse keeper is a corporation.
126.33(1)(b)
(b) A statement identifying the document as a warehouse receipt or other storage receipt.
126.33(1)(c)
(c) The date on which the grain warehouse keeper received the grain.
126.33(1)(f)
(f) The grade and quality of grain received, if determined.
126.33(1)(g)
(g) The word "negotiable" or "nonnegotiable," conspicuously, if the document is issued as a warehouse receipt. If a grain warehouse keeper transfers depositor-owned grain to another warehouse keeper, the receiving grain warehouse keeper shall issue a receipt that conspicuously bears the word "nonnegotiable."
126.33(1)(h)
(h) A statement indicating that the depositor must remove the grain from storage by a specified date that is not more than 3 years after the date of deposit. This requirement does not apply to any of the following:
126.33(1)(h)2.
2. A receipt for grain owned by the federal commodity credit corporation.
126.33(1)(h)3.
3. A receipt for grain pledged as collateral for a loan from the federal department of agriculture.
126.33(2)
(2) Grain ownership. If a person delivers grain to a recipient who is both a grain warehouse keeper and a grain dealer, as defined in
s. 126.10 (9), the delivery is considered a deposit for storage unless it is clearly documented as a delivery of purchased grain. A receipt issued by such a recipient is considered a storage receipt unless it is clearly designated as a receipt for the delivery of purchased grain.
126.33(3)
(3) Warehouse keeper's copy. A grain warehouse keeper shall keep a copy of every warehouse receipt and other document that the grain warehouse keeper issues under
sub. (1). The grain warehouse keeper shall retain a copy of each document for at least 6 years after the grain warehouse keeper issues the document and shall make copies available to the department for inspection and copying upon request.
126.33 History
History: 2001 a. 16.
126.34
126.34
Grain warehouse keepers; business practices. 126.34(1)(1)
Grain weight, grade, and quality. A grain warehouse keeper shall do all of the following when determining the weight, grade, or quality of grain:
126.34(1)(a)
(a) Accurately determine the weight, grade, or quality using accurate weighing, testing, or grading equipment.
126.34(1)(b)
(b) Accurately record the determined weight, grade, or quality.
126.34(2)
(2) Care of grain; facilities. A grain warehouse keeper shall safeguard grain held for others and shall protect that grain from loss or abnormal deterioration. A grain warehouse keeper shall maintain adequate facilities and equipment for that purpose.
126.34(3)
(3) Sufficient inventory. A grain warehouse keeper shall at all times maintain grain inventories sufficient in quantity and quality to meet all outstanding obligations to depositors.
126.34(4)(a)(a) Except as provided in
par. (b), a grain warehouse keeper shall deliver to a depositor, upon demand, the same grade and amount of grain as was deposited.
126.34(4)(b)
(b) If a grain warehouse keeper does not have enough grain of the appropriate grade to satisfy a depositor's demand under
par. (a), the warehouse keeper may substitute any of the following with the agreement of the depositor:
126.34(4)(b)1.
1. A monetary payment sufficient to provide the depositor with equivalent value, based on current local grain prices.
126.34(4)(b)2.
2. A sufficient amount of a higher grade of grain to provide the depositor with equivalent value, based on current local grain prices.
126.34(4)(c)
(c) A grain warehouse keeper may not provide grain or payments under
par. (b) whose value exceeds the current value of the grain that was deposited.
126.34(5)
(5) Prohibited practices. No grain warehouse keeper, or officer, employee, or agent of a grain warehouse keeper, may do any of the following:
126.34(5)(a)
(a) Misrepresent the weight, grade, or quality of depositor grain received from or delivered to any person.
126.34(5)(b)
(b) Falsify any record or account, or conspire with any other person to falsify a record or account.
126.34(5)(c)
(c) Make any false or misleading representation to the department.
126.34(5)(d)
(d) If the grain warehouse keeper is licensed under
s. 126.26 (1), engage in any activity that is inconsistent with representations made in the grain warehouse keeper's annual license application.
126.34(5)(e)
(e) Make any false or misleading representation to a depositor related to matters regulated under this chapter.
126.34(5)(f)
(f) Fail to file the full amount of security required under
s. 126.31 (6) by the date that the department specifies.
126.34(5)(g)
(g) Assault, threaten, intimidate, or otherwise interfere with an officer, employee, or agent of the department in the performance of his or her duties.
126.34 History
History: 2001 a. 16;
2009 a. 296.
