240 ILCS 40/25-10
2021 Illinois Compiled Statutes|Chapter 240 - WAREHOUSES|240 ILCS 40/ - Grain Code.|Article 25 - Claims Procedures

Sec. 25-10.     Claimant compensation.     Within 30 days after the day on which a  claim becomes a valid claim, a claimant shall be  compensated to the extent of its valid claim as provided in this Section.It is the express intent of this legislation that each undisputed portion  of  a claim shall be paid in accordance with the deadlines of this Code, even if  there are disputed portions of the claim. For example, the amount of a valid  claim calculated  for an "unpriced obligation" shall be paid to the claimant despite the fact  that claimant additionally seeks the amount for a "priced obligation".Each claimant shall be compensated in accordance with the following  provisions:(a) Valid claims filed by warehouse claimants shall be paid  100% of the amount determined by the  Department out of the net proceeds of the liquidation of grain assets as set  forth in this subsection (a).  To the extent the net proceeds are insufficient,  warehouse claimants shall be paid their pro rata share of the net proceeds of  the liquidation of grain assets and, subject to subsection (j) of this Section,  an additional amount per claimant  not to exceed the balance of their respective claims out of the Fund.(b) Subject to subsection (j) of this Section, if the net  proceeds as set  forth in subsection (a) of this Section  are insufficient to pay in full all valid claims filed by warehouse claimants  as  payment becomes due, the balance shall be paid out of the Fund  in accordance with subsection (b) of Section  25-20.(c) Valid claims filed by producers who:(1) have delivered grain within 21 days before the     date of failure, or the date of suspension if the suspension results in a failure, for which pricing of that grain has been completed before date of failure; or(2) gave written notice to the Department within 21     days of the date of delivery of grain, if the pricing of that grain has been completed, that payment in full for that grain has not been made;    shall be paid, subject to subsection (j) of this Section, 100% of  the amount of  the valid  claim determined by the Department.  Valid claims that are included in  subsection (c) of this Section  shall receive no payment under subsection (d) of this Section, and  any claimant  having a valid claim under this subsection (c) determined by the  Department to  be in excess of the limits, if any, imposed under subsection (j) of  this  Section shall be paid only sums in excess of those limits to the  extent additional money is available under subsection (d)(2) of Section 25-20.(d) Valid  claims that are not included in subsection (c) of this Section that  are filed  by producers where the later date of completion of  delivery or pricing of  the grain is  within  160 days before the date of failure shall be paid  85% of the amount of the valid claim determined by the  Department or $250,000, whichever is less, per claimant.  In computing the 160-day period, the phrase "date of completion of delivery"  means the date  of the last delivery of grain to be applied to the quantity requirement of the  contract, and the phrase "the later date" means the  date closest to the date of failure.  In addition,  for claims filed by producers for grain sold on a  contract, the later of the date of execution of the  contract or the date of delivery of the grain  covered by the price later contract must not be more than 365 days  before the date of failure in order for the claimant to receive  any compensation.  In computing the 365-day period, the phrase "the later of the date" means the  date closest to the date of failure,  and the phrase "date of delivery" means the date of the last delivery of  grain to be applied to the quantity requirement of the price later contract.(e) Valid claims filed by producers for grain sold on a price  later contract, for which the final price has not been established,  shall be paid 85% of the amount of  the valid  claims determined by the Department or $250,000, whichever is  less,  per claimant, if the later of the date of execution of the  contract or the date of delivery of the grain  covered by the price later contract occurred not more than 365 days  before the date of failure.  In computing the 365-day period, the phrase "the later of the date" means the  date closest to the date of failure, and the phrase "date of delivery" means  the date of the last delivery of grain to be applied to the quantity  requirement of the price later contract.The execution of subsequent price  later contracts by the producer and the licensee for grain  previously covered by a price later contract shall not extend the  coverage of a claim beyond the original 365 days.(f) The maximum payment to producers under  subsections (d) and (e) of this  Section, combined, shall be $250,000 per claimant.(g) The following claims shall be barred and disallowed in  their entirety and shall not be entitled to any recovery from the  Fund or the Trust Account:(1) Claims filed by producers where both the date of     completion of delivery and the date of pricing of the grain are in excess of 160 days before the date of failure.(2) Claims filed by producers for grain sold on a     price later contract if the later of the date of execution of the contract or the date of delivery of grain in reference to the grain covered by the price later contract occurred more than 365 days before the date of failure. In computing the 365-day period, the phrase "the later of the date" means the date closest to the date of failure, and the phrase "date of delivery" means the date of the last delivery of grain to be applied to the quantity requirement of the price later contract.(3) Claims filed by any claimant that are based upon     or acquired by fraudulent or illegal acts of the claimant.(h) To the extent moneys are available, additional pro rata  payments may be made to claimants under subsection (d) of Section  25-20.(i) For purposes of this Section, a claim filed in connection  with  warehouse receipts that are possessed under a collateral pledge of a producer,  or that are subject to a perfected security interest, or that were acquired by  a secured party or lien holder under an obligation of a producer,  shall be  deemed to be a claim filed by the producer and not a claim filed by the secured  party or the lien holder, regardless of whether the producer is in default  under that collateral pledge, security agreement, or other obligation.(j) The  maximum payment out of the Fund for claimants under subsection (a), (b) of  this Section shall be $1,000,000 per claimant and the maximum payment out of  the Fund for claimants under subsections (c), (d), and (e)  of this Section, combined, shall be $1,000,000 per claimant.(k) The amounts to be paid to warehouse valid claimants and grain dealer  valid claimants shall be calculated according to the following:(1) Valid claimants who have warehouse claims, or who     have grain dealer claims for grain sold, delivered but unpriced as of the date of failure, shall have "unpriced obligations", and to determine the per bushel value of these valid claims the Department shall use an average of the cash bid prices on the date of failure from grain dealers located within the market area of the failed licensee, and the cash bid price offered by the failed licensee on the date of failure, less transportation, handling costs, and discounts applicable as of that date.(2) Valid claimants who have grain dealer claims for     grain sold, delivered, and priced as of the date of failure shall have "priced obligations", and the price per bushel to be used in calculating the compensation due these valid claimants shall be that which has been agreed upon by the failed licensee and the claimant, less applicable discounts. For purposes of this item (2), a person has "priced" his or her grain if he or she has done those things necessary under the agreement to set, choose, or select a price for any portion of the grain under the agreement, without regard to whether he or she has received a check in payment for the grain, or could have received a check in payment for the grain, prior to the failure.(l) Arrangements whereby a producer agrees with a licensee to defer  receipt of payment of amounts due from the sale of grain are covered by this  Code and are not to be considered loans by the producer to the licensee,  despite payments to the producer as an inducement for the leaving of moneys  with the licensee, unless the licensee has executed and delivered to the  producer a promissory note covering those amounts.    (Source: P.A. 93-225, eff. 7-21-03.)