Opinion ID: 1640458
Heading Depth: 3
Heading Rank: 5

Heading: Banks' claim to black turtle beans

Text: The Banks contend that because VFBA's inventory included almost 8,500 hundred weight of black turtle beans, and because all of the producer claims filed with the PSC were for pinto beans, the Banks have a valid claim to the black turtle bean inventory. We disagree. Section 60-04-02(1), N.D.C.C., states that the trust fund shall consist of [a]ll the grain in said warehouse. In R.F. Gunkelman & Sons, Inc., supra, grain had been processed by the warehouseman prior to the insolvency. This court ruled that in order to effectuate the purpose of Chapter 60-04, N.D.C.C., those assets were properly considered grain and includable in the trust fund for the benefit of receipt holders. The same rationale applies in the present case. We conclude that the trust fund consists of not only the type and quality of grain represented by claims filed by producers, but all of the grain remaining in the warehouse at the time of insolvency. Therefore, the black turtle beans were properly included in the trust fund assets.