240 ILCS 40/10-25
2021 Illinois Compiled Statutes|Chapter 240 - WAREHOUSES|240 ILCS 40/ - Grain Code.|Article 10 - Duties And Requirements Of Licensees

(240 ILCS 40/10-25)Sec. 10-25. Warehouse receipts and storage of grain.(a) When grain is delivered to a warehouseman at a location  where grain is also purchased, the licensee shall give written  evidence of delivery of grain and that written evidence shall be  marked to indicate whether the grain is delivered for storage or  for sale.  In the absence of adequate evidence of sale, the grain  shall be construed to be in storage.(b) Upon demand by a depositor, a warehouseman shall  issue warehouse receipts for grain delivered into storage.(c) There shall be no charge for the first warehouse  receipt issued to a depositor for a given lot of grain.  Charges for any additional warehouse receipts for grain  previously covered by a warehouse receipt must be commensurate  with the cost of issuance of the additional warehouse receipt.(d) A warehouseman shall issue warehouse receipts only in  accordance with the following requirements:(1) Warehouse receipts shall be consecutively     numbered in a form prescribed by the Department and issued consecutively by the warehouseman.(2) In the case of a lost or destroyed warehouse     receipt, the new warehouse receipt shall bear the same date as the original and shall be plainly marked on its face "duplicate in lieu of lost or destroyed warehouse receipt number .......", and the warehouseman shall duly fill in the blank with the appropriate warehouse receipt number.(3) Warehouse receipts shall be printed by a person     authorized by the Department. The person shall register with the Department and pay an annual registration fee of $100 to print warehouse receipts.(4) Negotiable warehouse receipts shall be issued     only for grain actually in storage with the warehouseman from which it is issued or redeposited by that warehouseman as provided in subsection (e) of Section 10-20.(5) A warehouseman shall not insert in any negotiable     warehouse receipt issued by it any language that in any way limits or modifies its liability or responsibility.(e) Upon delivery of grain covered by a negotiable warehouse  receipt, the holder of the negotiable warehouse receipt must  surrender the warehouse receipt for cancellation, and a warehouseman must  cancel  and issue a new negotiable warehouse receipt for the balance of  grain in storage.(f) When all grain, the storage of which is evidenced by a  warehouse receipt, is delivered from storage, the warehouse receipt  shall be plainly marked across its face with the word "cancelled"  and shall have written on it the date of cancellation, the name  of the person canceling the warehouse receipt, and such other information as  required by rule, and is thereafter void.(g) When a warehouseman delivers grain out of storage but  fails to collect and cancel the negotiable warehouse receipt, the warehouseman  shall be liable to any purchaser of the negotiable warehouse receipt for value  in good  faith  for failure to deliver the grain to the  purchaser, whether the purchaser acquired the negotiable warehouse receipt  before or after the delivery of the grain by the warehouseman.  If, however, grain has been lawfully sold by a warehouseman to  satisfy its warehouseman's lien, the warehouseman shall not be  liable for failure to deliver the grain pursuant to the demands of  a holder of a negotiable warehouse receipt to the extent of the amount of  grain sold.(h) Except as otherwise provided by this Code or other  applicable law, a warehouseman shall deliver the grain upon demand  made by the holder of a warehouse receipt pertaining to that grain if the  demand is  accompanied by:(1) satisfaction of the warehouseman's lien;(2) in the case of a negotiable warehouse receipt, a     properly endorsed negotiable warehouse receipt; or(3) in the case of a non-negotiable warehouse     receipt, written evidence that the grain was delivered to the warehouseman and that the depositor is entitled to it.(i) If no warehouse receipt is issued to a  depositor, a warehouseman shall deliver grain upon the demand of a  depositor if the demand is accompanied by satisfaction of the  warehouseman's lien and written evidence that the grain was  delivered to the warehouseman and the depositor is entitled to  it.(j) If a warehouseman refuses or fails to deliver grain in  compliance with a demand by a holder of a warehouse receipt or a  depositor, the burden is on the warehouseman to establish  the existence of a lawful excuse for the refusal.(k) If a warehouse receipt has been lost or destroyed, a  warehouseman may issue a substitute warehouse receipt, as provided  for in this Section, upon delivery to the warehouseman of an  affidavit under oath stating that the applicant for the substitute  warehouse receipt is entitled to the original warehouse receipt and  setting forth the circumstances that resulted in the loss or  destruction of the original warehouse receipt.  The warehouseman  may request from the depositor a bond in double the value of the  grain represented by the original warehouse receipt at the time of  issuance of the substitute warehouse receipt so as to protect the  warehouseman from any liability or expense that it, or any person  injured by the delivery, may incur by reason of the original  warehouse receipt remaining outstanding.(l) A warehouse receipt that is to be used for collateral  purposes by a warehouseman must be first issued by the warehouseman  to itself.(m) The Department shall approve temporary storage space in  an amount to be determined by the Department if all the following conditions  are met:(1) The warehouseman pays all fees and assessments     associated with the temporary storage space.(2) The warehouseman demonstrates that there is a     need for additional storage on a temporary basis due to a bumper crop or otherwise.(3) The structure for the storage of grain meets all     of the following requirements:(A) The grain storage area has a permanent base         made of concrete, asphalt, or a material having similar structural qualities.(B) Hot spot detectors, aeration fans, and ducts         are provided to assure that the quality of grain in storage is maintained.(C) The grain storage structure has rigid         sidewalls made of concrete, wood, metal, or a  material having similar structural qualities.(D) The grain storage structure is equipped with         a waterproof covering of sufficient strength to support a person's weight and with inlets to allow airflow.(E) Access to the grain is provided for the         purpose of sampling and making examinations.(4) Temporary storage space shall be considered an     increase in the licensed storage capacity of the licensee and shall be subject to Section 5-30.(5) The authorization to use temporary storage space     for the storage of grain shall expire at the end of 6 months after the date of approval by the Department or May 15th, whichever comes first.(n) The Department may approve emergency storage space at the request of the  licensee according to rule.(o) The issuance and transfer of the warehouse receipts in electronic form pursuant to rules promulgated by the Department are specifically authorized by this Code, and any such warehouse receipts shall have the same validity and enforceability, for all purposes, as those in non-electronic form. For purposes of this Code, the words "written" and "printed", and derivatives thereof, when used in relation to warehouse receipts, shall include warehouse receipts created or displayed electronically.    (Source: P.A. 96-464, eff. 8-14-09.)