126.15(2)(b)8.
8. Add the amount determined under
subd. 4. to the amount determined under
subd. 7.
126.15(2)(c)
(c) If the grain dealer has filed an annual financial statement under
s. 126.13 and that financial statement shows a current ratio of less than or equal to 1.0 to 1.0, the grain dealer's current ratio assessment rate equals the current ratio assessment factor in
sub. (3) (b) multiplied by 120.81376.
126.15(2)(d)
(d) Except as provided in
par. (e), if the grain dealer has not filed an annual financial statement under
s. 126.13, the grain dealer's current ratio assessment rate equals the current ratio assessment factor in
sub. (3) (b) multiplied by 5.71235.
126.15(2)(e)
(e) If the grain dealer has not filed an annual financial statement under
s. 126.13 and the grain dealer procures grain in this state solely as a producer agent, the grain dealer's current ratio assessment rate is 0.00025, except that, for the grain dealer's 5th or higher consecutive full license year of participation in the fund, the grain dealer's current ratio assessment rate is 0.000175.
126.15(3)
(3) Current ratio assessment factor. 126.15(3)(a)(a) A grain dealer's current ratio assessment factor under
sub. (2) (a) is 0.00003 except that, for the grain dealer's 5th or higher consecutive full license year as a contributing grain dealer, the grain dealer's current ratio assessment factor is zero.
126.15(3)(b)
(b) A grain dealer's current ratio assessment factor under
sub. (2) (b) to
(d) is 0.000045 except that, for the grain dealer's 5th or higher consecutive full license year as a contributing grain dealer, the grain dealer's current ratio assessment factor is 0.000036.
126.15(4)
(4) Debt to equity assessment rate. A grain dealer's debt to equity ratio assessment rate is calculated, at the beginning of the license year, as follows:
126.15(4)(a)
(a) If the grain dealer has filed an annual financial statement under
s. 126.13 and that financial statement shows positive equity and a debt to equity ratio of not more than 4.0 to 1.0, the grain dealer's debt to equity ratio assessment rate equals the greater of zero or the debt to equity ratio assessment factor in
sub. (5) (a) multiplied by the following amount:
126.15(4)(a)7.
7. Add the amount determined under
subd. 3. to the amount determined under
subd. 6.
126.15(4)(b)
(b) If the grain dealer has filed an annual financial statement under
s. 126.13 and that financial statement shows a debt to equity ratio of greater than 4.0 to 1.0, but less than 5.0 to 1.0, the grain dealer's debt to equity ratio assessment rate equals the debt to equity ratio assessment factor in
sub. (5) (b) multiplied by the following amount:
126.15(4)(b)7.
7. Add the amount determined under
subd. 3. to the amount determined under
subd. 6.
126.15(4)(c)
(c) If the grain dealer has filed an annual financial statement under
s. 126.13 and that financial statement shows negative equity or a debt to equity ratio of at least 5.0 to 1.0, the grain dealer's debt to equity ratio assessment rate equals the debt to equity ratio assessment factor in
sub. (5) (b) multiplied by 86.8244.
126.15(4)(d)
(d) Except as provided in
par. (e), if the grain dealer has not filed an annual financial statement under
s. 126.13, the grain dealer's debt to equity ratio assessment rate equals the debt to equity ratio assessment factor in
sub. (5) (b) multiplied by 8.77374.
126.15(4)(e)
(e) If the grain dealer has not filed an annual financial statement under
s. 126.13 and the grain dealer procures grain in this state solely as a producer agent, the grain dealer's debt to equity ratio assessment rate is 0.00025, except that it is 0.000175 for the grain dealer's 5th or higher consecutive full license year of participation in the fund.
126.15(5)
(5) Debt to equity ratio assessment factor. 126.15(5)(a)(a) A grain dealer's debt to equity ratio assessment factor under
sub. (4) (a) is 0.0000125, except that it is zero for the grain dealer's 5th or higher consecutive full license year as a contributing grain dealer.
126.15(5)(b)
(b) A grain dealer's debt to equity ratio assessment factor under
sub. (4) (b) to
(d) is 0.00001875, except that it is 0.000015 for the grain dealer's 5th or higher consecutive full license year as a contributing grain dealer.
126.15(6)
(6) Deferred payment assessment rate. A grain dealer's deferred payment assessment rate is 0.0035, unless the department specifies a different rate by rule.
126.15(6m)
(6m) Reduced assessment for certain grain dealers filing security. If a grain dealer files security under
s. 126.16 (1) (c), the grain dealer's assessment is the amount determined under
sub. (1) reduced by an amount determined as follows:
126.15(6m)(a)
(a) Divide the amount of security that the grain dealer is required to file as determined under
s. 126.16 (3) (b) by the amount of the grain dealer's estimated default exposure, as defined in
s. 126.16 (1) (c) 1.
126.15(6m)(b)
(b) Multiply the amount of the assessment determined under
sub. (1) by the amount determined under
par. (a).
126.15(7)(a)(a) A contributing grain dealer shall pay the grain dealer's annual fund assessment in equal quarterly installments that are due as follows:
126.15(7)(a)1.
1. The first installment is due on October 1 of the license year.
126.15(7)(a)2.
2. The 2nd installment is due on January 1 of the license year.
126.15(7)(a)3.
3. The 3rd installment is due on April 1 of the license year.
126.15(7)(a)4.
4. The 4th installment is due on July 1 of the license year.
126.15(7)(b)
(b) A contributing grain dealer may prepay any of the quarterly installments under
par. (a).
126.15(7)(c)
(c) A contributing grain dealer who applies for an annual license after the beginning of a license year shall pay the full annual fund assessment required under this section. The grain dealer shall pay, with the first quarterly installment that becomes due after the day on which the department issues the license, all of that year's quarterly installments that became due before that day.
126.15(7)(d)
(d) A contributing grain dealer who fails to pay the full amount of any quarterly installment when due shall pay, in addition to that installment, a late payment penalty of $50 or 10 percent of the overdue installment amount, whichever is greater.
126.15(8)
(8) Notice of annual assessment and quarterly installments. When the department issues an annual license to a contributing grain dealer, the department shall notify the grain dealer of all of the following:
126.15(8)(a)
(a) The amount of the grain dealer's annual fund assessment under this section.
126.15(8)(b)
(b) The amount of each required quarterly installment under
sub. (7) and the date by which the grain dealer must pay each installment.
126.15(8)(c)
(c) The penalty that applies under
sub. (7) (d) if the grain dealer fails to pay any quarterly installment when due.
126.16
126.16
Grain dealers; security. 126.16(1)(a)(a) A grain dealer shall file security with the department, and maintain that security until the department releases it under
sub. (8) (a), if all of the following apply when the department first licenses the grain dealer under
s. 126.11:
126.16(1)(a)2.
2. The grain dealer files an annual financial statement under
s. 126.13 (1) (a) and that financial statement shows negative equity.
126.16(1)(b)
(b) A grain dealer who reports any deferred payment contract obligations under
s. 126.11 (9) (c) or
126.13 (1) (d), other than deferred payment contract obligations to a grain producer or producer agent who permanently waived eligibility to file a default claim under
s. 126.70 (1) (b) and
(c), shall file security with the department, and maintain that security until the department releases it under
sub. (8) (b), unless the grain dealer has positive equity and the grain dealer's annual financial statement under
s. 126.13 (1) shows a debt to equity ratio of not more than 4.0 to 1.0.
126.16(1)(c)1.1. In this paragraph, “
estimated default exposure" means the sum of the following:
126.16(1)(c)1.a.
a. Thirty-five percent of the grain dealer's average monthly payment for the 3 months, during the preceding 12 months, in which the grain dealer made the largest monthly payments for producer grain procured in this state.
126.16(1)(c)1.b.
b. The grain dealer's highest total, at any time during the preceding 12 months, of unpaid obligations for producer grain procured in this state under deferred payment contracts.
126.16(1)(c)2.
2. A grain dealer shall file security with the department, and maintain that security until the department releases it under
sub. (8) (bm), if the grain dealer files an annual financial statement under
s. 126.13 (1) that shows 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 and the grain dealer's estimated default exposure is greater than $20,000,000.
126.16(3)(a)(a) Except as provided in
par. (b), a grain dealer who is required to file or maintain security under this section shall at all times maintain security that is at least equal to the sum of the following:
126.16(3)(a)1.
1. Thirty-five percent of the grain dealer's average monthly payment for the 3 months, during the preceding 12 months, in which the grain dealer made the largest monthly payments for producer grain procured in this state, except that this amount is not required of a contributing grain dealer.
126.16(3)(a)2.
2. The grain dealer's highest total, at any time during the preceding 12 months, of unpaid obligations for producer grain procured in this state under deferred payment contracts.
126.16(3)(b)
(b) A grain dealer who is required to file or maintain security only under
sub. (1) (c) shall at all times maintain security equal to the grain dealer's estimated default exposure, as defined in
sub. (1) (c) 1., less $20,000,000.
126.16(4)
(4) Form of security. The department shall review, and determine whether to approve, security filed or maintained under this section. The department may approve only the following types of security:
126.16(4)(b)
(b) A commercial surety bond if all of the following apply:
126.16(4)(b)1.
1. The surety bond is made payable to the department for the benefit of grain producers and producer agents.
126.16(4)(b)2.
2. The surety bond is issued by a person authorized to operate a surety business in this state.
126.16(4)(b)3.
3. The surety bond is issued as a continuous term bond that may be canceled only with the department's written agreement or upon 90 days' prior written notice served on the department in person or by certified mail.
126.16(4)(b)4.
4. The surety bond is issued in a form, and subject to any terms and conditions, that the department considers appropriate.
126.16(4)(c)
(c) A certificate of deposit or money market certificate if all of the following apply:
126.16(4)(c)1.
1. The certificate is issued or endorsed to the department for the benefit of grain producers and producer agents who deliver grain to the grain dealer.
126.16(4)(c)2.
2. The certificate may not be canceled or redeemed without the department's written authorization.
126.16(4)(c)3.
3. No person may transfer or withdraw funds represented by the certificate without the department's written permission.
126.16(4)(c)4.
4. The certificate renews automatically without any action by the department.
126.16(4)(c)5.
5. The certificate is issued in a form, and subject to any terms and conditions, that the department considers appropriate.
126.16(4)(d)
(d) An irrevocable bank letter of credit if all of the following apply:
126.16(4)(d)1.
1. The letter of credit is payable to the department for the benefit of grain producers and producer agents.
126.16(4)(d)3.
3. The letter of credit is issued for an initial period of at least one year.
126.16(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.
126.16(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.
