Oklahoma Administrative Code › Title 35 - Oklahoma Department of Agriculture, Food, and Forestry › Chapter 10 - Agricultural Products › Subchapter 7 - Public Warehouses › Section 35:10-7-9 - Certificate of deposit requirements

Current through Vol. 41, No. 20, July 1, 2024
(a)
				A certificate of deposit issued by a bank or savings and loan association that
				is a member of good standing with the Federal Deposit Insurance Corporation
				(FDIC) or Federal Savings and Loan Insurance Corporation (FSLIC) respectively,
				may be submitted to the Board in lieu of the Oklahoma public warehouse surety
				or deficiency bond required by the Public Warehouse and Commodity Indemnity
				Act. The certificate of deposit shall be in an amount equal to the required
				surety. Certificates of deposit shall not be accepted from any institution in
				excess of FDIC or FSLIC insurance coverage.
(b) A certificate of deposit shall have a
				term of no longer than one (1) year and shall be automatically
				renewable.
(c) A certificate of
				deposit submitted in lieu of a Oklahoma public warehouse surety shall be held
				in trust by the Board who shall act as trustee for the benefit of all persons
				storing commodities with the warehouseman as set forth in the Oklahoma Public
				Warehouse and Commodity Indemnity Act.
(d) All certificates of deposit shall be made
				payable to the Board as follows: "Pay to the order of the Oklahoma Board of
				Agriculture". The Board may make the necessary inquiries to determine that the
				certificate is negotiable.
(e) A
				certificate of deposit purchased by a principle, shareholder, officer,
				employee, or any other individual for or on behalf of a charter shall disclose
				on its face the name of the charter in whose favor the certificate of deposit
				is deposited. The balance of any proceeds remaining after liquidation and
				disbursement shall be paid to the purchaser.
(f) In the event that a plurality of
				certificates of deposit from any number of sources are deposited in
				satisfaction of a charter's surety obligation, the Board may satisfy claims
				arising under the Oklahoma Public Warehouse and Commodity Indemnity Act by
				liquidating any one (1) or more of the certificates of deposit without regard
				to proration.
(g) In the event that
				a charter desires to substitute a surety of bond for a certificate of deposit
				then on deposit with the Board, the certificate of deposit shall be retained by
				the Board for a period of not less than ninety (90) days following receipt of
				the surety or bond, or for any time required to fully ascertain the existence
				of any claims. If the maturity date is interposed during this transition
				period, the Board, at the option of the charter and upon its timely request
				shall cause the certificate of deposit to be liquidated and the proceeds
				deposited in a passbook savings account for the duration of the transition
				period, when the funds shall be forwarded to the purchaser or assignor of the
				certificate of deposit.
(h) A
				charter shall be required to augment certificates of deposit in any situation
				where it would be required to increase its coverage under a surety. This
				augmentation shall be commensurate to the increased surety value
				required.
(i) All certificates of
				deposit liquidated by the Board shall be redeemed by collection proceedings
				through a local bank or savings and loan association selected by the
				Board.
(j) A certificate of deposit
				may only be liquidated for disbursement upon the same reasons that surety
				proceeds may be demanded for disbursement and shall apply to all claims
				whenever arising.
(k) All interest
				earned on the certificate of deposit shall be assigned by the Board to be
				accredited or paid directly to the purchaser of the certificate of deposit,
				except in the event of liquidation for the purpose of paying claims, in which
				event interest shall attributed to the claims.
(l) If a charter holder desires to surrender
				its charter and request the return of a certificate of deposit to the
				purchaser, the charter holder shall return the charter and make written request
				by registered or certified mail, with return receipt, for return of the
				certificate of deposit. Upon receipt of the written request and submission of
				the public warehouse charter, the Board shall hold the certificate of deposit
				for a period of ninety (90) days or for a longer period if the Board is of the
				opinion that claims against the charter may exist and then forward the
				certificate of deposit to the purchaser.
(m) If a public warehouse charter is revoked,
				the certificate of deposit shall be held by the Board for a period of not less
				than one hundred twenty (120) days or until the Board is satisfied that no
				claims against that charter exist.
(n) If an unsecured or unbonded public
				warehouseman desires to remain chartered and requests the return of a
				certificate of deposit that is on file with the Board, the warehouseman shall
				file with the Board a replacement certificate of deposit, bond, or state surety
				in the amount required by the Board in accordance with the Oklahoma Public
				Warehouse and Commodity Indemnity Act. The replacement surety shall be
				received, become effective, and be in full force and effect before the date
				that the warehouseman's existing certificate of deposit is to be
				returned.
(o) Substitution shall be
				made only at the maturity of the certificate of deposit in possession of the
				Board.
Amended at 14 Ok Reg
				  3699, eff 8-7-97 (emergency); Amended at 15 Ok Reg 2490, eff 6-25-98; Amended
				  at 18 Ok Reg 1439, eff 5-25-01