Ind. Code ch. 26-3-7

Ind. Code ch. 26-3-7
in effect

Ind. Code § 26-3-7-1 Indiana grain buyers and warehouse licensing agency; employees

Sec. 1. (a) The Indiana grain buyers and warehouse licensing agency is established within the Indiana state department of agriculture to administer this chapter. The director of the Indiana state department of agriculture may appoint the director of the agency, who shall serve at the pleasure of the director of the Indiana state department of agriculture. The director shall administer this chapter and shall be the ultimate authority in the administration of this chapter. (b) The agency shall employ all necessary employees, counsel, and consultants to carry out the provisions of this chapter and is vested with the power necessary to fully and effectively carry out the provisions and objectives of this chapter. Formerly: Acts 1973, P.L.268, SEC.1; Acts 1975, P.L.277, SEC.1. As amended by Acts 1982, P.L.155, SEC.2; P.L.125-1997, SEC.18; P.L.1-2006, SEC.482; P.L.120-2008, SEC.91; P.L.60-2015, SEC.3.

Ind. Code § 26-3-7-1.5 Liberal construction

Sec. 1.5. This chapter shall be liberally construed to effect its purposes. As added by P.L.1-1989, SEC.54.

Ind. Code § 26-3-7-2 Definitions

Sec. 2. The following definitions apply throughout this chapter: (1) "Agency" refers to the Indiana grain buyers and warehouse licensing agency established under section 1 of this chapter. (2) "Anniversary date" means the date that is ninety (90) calendar days after the fiscal year end of a business licensed under this chapter. (3) "Basis contract" means an agreement that establishes the difference between the flat price contract and a specified futures price of the same or a related commodity. (4) "Bin" means a bin, tank, interstice, or other container in a warehouse in which bulk grain may be stored. (5) "Board" means the governing body of the Indiana grain indemnity corporation created by IC 26-4-3-2. (6) "Buyer-warehouse" means a person that operates both as a warehouse licensed under this chapter and as a grain buyer. (7) "Claimant" means a person to whom a licensee owes a storage or financial obligation under this chapter for grain that has been delivered to the licensee for sale or for storage under a bailment. (8) "Crop year" means the period from one (1) year's harvest to the next year for a specified field crop as follows: (A) Barley and barley seed from June 1 to May 31. (B) Canola and canola seed from July 1 to June 30. (C) Corn and corn seed from September 1 to August 31. (D) Lentils and lentil seed from July 1 to June 30. (E) Oats and oat seed from June 1 to May 31. (F) Popcorn and popcorn seed from September 1 to August 31. (G) Rye and rye seed from June 1 to May 31. (H) Sorghum and sorghum seed from September 1 to August 31. (I) Soybeans and soybean seed from September 1 to August 31. (J) Sunflower and sunflower seed from September 1 to August 31. (K) Wheat and wheat seed from June 1 to May 31. (L) All other field crops and other field crop seed from September 1 to August 31. (9) "Daily position record" means a written or electronic document that is maintained on a daily basis for each grain commodity, contains a record of the total amount of grain in inventory for that business day, and complies with any requirements established by the director. (10) "Deferred pricing" means a purchase by a buyer in which title to the grain passes to the buyer and the price to be paid to the seller is not determined: (A) at the time the grain is received by the buyer; or (B) less than twenty-one (21) days after delivery. (11) "Delayed payment" means: (A) a purchase by a buyer in which title to the grain passes to the buyer at a determined price; and (B) payment to the seller is not made in less than twenty-one (21) days after delivery. (12) "Depositor" means any of the following: (A) A person that delivers grain to a licensee under this chapter for storage or sale. (B) A person that: (i) owns or is the legal holder of a ticket or receipt issued by a licensee for grain received by the licensee; and (ii) is the creditor of the issuing licensee for the value of the grain received in return for the ticket or receipt. (C) A licensee that stores grain that the licensee owns solely, jointly, or in common with others in a warehouse owned or controlled by the licensee or another licensee. (13) "Designated representative" means the person or persons designated by the director to act instead of the director in assisting in the administration of this chapter. (14) "Director" means the director of the Indiana grain buyers and warehouse licensing agency appointed under section 1 of this chapter. (15) "Facility" means a permanent business location or one (1) of several permanent business locations in Indiana that are operated as a warehouse or by a grain buyer. (16) "Flat price contract" means a contract that sets a fixed price for a specific delivery requirement, where the price is determined by adding the basis to the futures price of the same commodity, which is set before the futures contract expires. (17) "Fund" means the Indiana grain indemnity fund established under IC 26-4-4-1. (18) "Grain" means corn for all uses, popcorn, wheat, oats, barley, rye, sorghum, soybeans, oil seeds, other agricultural commodities as approved by the agency, and seed as defined in this section. The term does not include canning crops for processing or sweet corn. (19) "Grain assets" means any of the following: (A) All grain and grain coproducts owned or stored by a licensee, including the following: (i) Grain that is in transit following shipment by a licensee. (ii) Grain that has not been paid for. (iii) Grain that is stored in unlicensed facilities that are leased, owned, or occupied by the licensee. (B) All proceeds, due or to become due, from the sale of a licensee's grain. (C) Equity, less any secured financing directly associated with the equity, in hedging or speculative margin accounts of a licensee held by a commodity or security exchange, or a dealer representing a commodity or security exchange, and any money due the licensee from transactions on the exchange, less any secured financing directly associated with the money due the licensee from the transactions on the exchange. (D) Any other unencumbered funds, property, or equity in funds or property, wherever located, that can be directly traced to the sale of grain by a licensee. However, funds, property, or equity in funds or property may not be considered encumbered unless: (i) the encumbrance results from valuable consideration paid to the licensee in good faith by a secured party; and (ii) the encumbrance did not result from the licensee posting the funds, property, or equity in funds or property as additional collateral for an antecedent debt. (E) Any other unencumbered funds, property, or equity in assets of the licensee. (20) "Grain bank grain" means grain owned by a depositor for use in the formulation of feed and stored by the warehouse to be returned to the depositor on demand. (21) "Grain buyer" means a person who is engaged in the business of buying grain from producers. (22) "Grain coproducts" means any milled or processed grain, including the grain byproduct of ethanol production. (23) "Grain standards act" means the United States Grain Standards Act, approved August 11, 1916 (39 Stat. 482; 7 U.S.C. 71-87 as amended). (24) "License" means a license issued under this chapter. (25) "Licensee" means a person who operates a facility that is licensed under this chapter. (26) "Official grain standards of the United States" means the standards of quality or condition for grain, fixed and established by the secretary of agriculture under the grain standards act. (27) "Parent entity" means an entity that owns at least twenty percent (20%) or the equivalent of another entity, including through shares, membership interests, or other securities, or as a partner in a general partnership or joint venture. (28) "Person" means an individual, partnership, corporation, association, or other form of business enterprise. (29) "Receipt" means a warehouse receipt issued by a warehouse licensed under this chapter. (30) "Revocation of a license" means any of the following: (A) The inability of a licensee to financially satisfy fully all obligations due to claimants. (B) Public declaration of a licensee's insolvency. (C) Revocation of a licensee's license, if the licensee has outstanding indebtedness owed to claimants. (D) Nonpayment of a licensee's debts in the ordinary course of business, if there is not a good faith dispute. (E) Involuntary or voluntary bankruptcy of a licensee. (31) "Seed", notwithstanding IC 15-15-1, means grain set apart to be used primarily for the purpose of producing new plants. (32) "Seed inventory" means seed for commercial sale. (33) "Storage" means a facility or system that is designed, structured, and equipped to receive, clean, dry, store, and dispense grains or seeds. The term includes a facility where the producer has maintained: (A) title to the grain until selling or moving the grain to a facility other than the facility where the grain was delivered; and (B) a record or proof of storage at the facility where the grain was delivered. (34) "Storage loss" means a loss to a storage depositor resulting from a warehouse operator: (A) whose license has been revoked; and (B) who has not fully satisfied the warehouse operator's storage obligation to the depositor, after any outstanding charges against the grain. (35) "Subsidiary" means an entity, including a general partnership or joint venture, that is owned in whole or part by one (1) or more other entities, including at least one (1) entity that constitutes a parent entity. (36) "Ticket" means a scale weight ticket, a load slip, or other evidence, other than a receipt, given to a depositor upon initial delivery of grain to a facility. (37) "Warehouse act" means the United States Warehouse Act, approved August 11, 1916 (39 Stat. 486; 7 U.S.C. 241-273 as amended). (38) "Warehouse" means any building or other protected enclosure in one (1) general location licensed or required to be licensed under this chapter, which building or other protected enclosure is operated under one (1) ownership and run from a single office, and in which grain is or may be: (A) stored for hire; (B) used for grain bank storage; or (C) used to store company owned grain. (39) "Warehouse operator" means a person that operates a facility or group of facilities in which grain is or may be stored for hire or which is used for grain bank storage and which is operated under one (1) ownership and run from a single office. Formerly: Acts 1973, P.L.268, SEC.1; Acts 1974, P.L.120, SEC.1; Acts 1975, P.L.277, SEC.2. As amended by Acts 1982, P.L.155, SEC.3; P.L.191-1991, SEC.1; P.L.1-1992, SEC.142; P.L.139-1996, SEC.6; P.L.125-1997, SEC.19; P.L.173-1999, SEC.1; P.L.1-2006, SEC.483; P.L.2-2008, SEC.66; P.L.64-2009, SEC.1; P.L.75-2010, SEC.10; P.L.60-2015, SEC.4; P.L.145-2017, SEC.1; P.L.208-2021, SEC.1; P.L.114-2025, SEC.2; P.L.23-2026, SEC.255.

Ind. Code § 26-3-7-2.2 Determination of a single warehouse

Sec. 2.2. For purposes of determining whether a building or other protected enclosure constitutes a single warehouse that requires a single license under this chapter, the director may consider the following: (1) The presence of a full weighing facility at geographically diverse warehouse facilities. (2) The traditional method of record keeping with respect to the separate facilities. (3) The hours, number of personnel, and activities of the separate facilities. (4) Any other factor considered relevant. In the absence of contradictory information, any warehouses owned and operated by the same person that are located within close proximity of each other are presumed to constitute a single warehouse. As added by P.L.64-2009, SEC.2.

Ind. Code § 26-3-7-3 Powers and duties of director

Sec. 3. (a) The director may do the following: (1) Require any reports that are necessary to administer this chapter. (2) Administer oaths, issue subpoenas, compel the attendance and testimony of witnesses, and compel the production of records in connection with any investigation, informal meeting, or hearing under this chapter. (3) Prescribe all forms within the provisions of this chapter. (4) Establish grain standards in accordance with the grain standards act and federal regulations promulgated under that act that must be used by warehouses. (5) Investigate the activities required by this chapter including the storage, shipping, marketing, and handling of grain and complaints with respect to the storage, shipping, marketing, and handling of grain. (6) Inspect a facility, the grain stored in a facility, and all property and records pertaining to a facility. All inspections of an applicant or licensee under this chapter must take into consideration the proprietary nature of an applicant's or licensee's commercial information. This chapter does not authorize the inspection of an applicant's or licensee's trade secret or intellectual property information. (7) Determine whether a facility for which a license has been applied for or has been issued is suitable for the proper storage, shipping, and handling of the grain that is stored, shipped, or handled, or is expected to be stored, shipped, or handled. (8) Require a licensee to terminate storage, shipping, marketing, and handling agreements upon revocation of a license. (9) Attend and preside over any investigation, informal meeting, or hearing allowed or required under this chapter. (10) Impose sanctions for violations of this article. (11) Require all contracts for the purchase of grain from producers, except a flat price contract or a contract for the production of seed, to include the following notice immediately above the place on the contract where the seller of the grain must sign: "NOTICE - SELLER IS CAUTIONED THAT CONTRACTING FOR THE SALE AND DELIVERY OF GRAIN INVOLVES RISKS. THESE RISKS MAY INCLUDE FUTURE PAYMENTS BY YOU TO MAINTAIN THIS CONTRACT, A LOWER SALES PRICE, AND OTHER RISKS NOT SPECIFIED. INDIANA STATE LAW REQUIRES THAT ALL DEFERRED PRICED GRAIN MUST BE PRICED WITHIN THE CROP YEAR AS DEFINED BY IC 26-3-7-2(8). THIS CONTRACT MUST BE PRICED BY _(Insert Date)_. COVERAGE UNDER THE INDIANA GRAIN INDEMNITY PROGRAM IS FOR GRAIN THAT HAS BEEN DELIVERED TO A FIRST PURCHASER LICENSEE WITHIN THE 15 MONTHS BEFORE THE DATE OF THE REVOCATION OF A LICENSE AND IS LIMITED TO 100% OF A LOSS FOR STORED GRAIN AND 80% OF A LOSS FOR OTHER COVERED CONTRACTS. BE SURE YOU UNDERSTAND THE NATURE OF THIS CONTRACT AND THE ASSOCIATED RISKS.". (12) Require all contracts executed for the production of seed to include the following notice, in conspicuous letters, immediately above the place on the contract or an addendum where the seller of the seed must sign: "NOTICE - IF THE TERMS OF THIS CONTRACT STATE THAT THE CONTRACTOR RETAINS OWNERSHIP OF THE SEED AND ITS PRODUCTS, YOU MAY NOT BE ELIGIBLE FOR PARTICIPATION IN THE INDIANA GRAIN INDEMNITY PROGRAM. TO BE ELIGIBLE TO PARTICIPATE IN THE INDIANA GRAIN INDEMNITY PROGRAM, FARMERS MUST OWN AND SELL GRAIN OR SEED. BE SURE YOU UNDERSTAND THE NATURE OF THIS CONTRACT AND THE ASSOCIATED RISKS.". (13) At any time, order an unannounced audit for compliance with this article. (14) Require all grain buyers offering deferred pricing, delayed payments, or contracts linked to the commodity futures or commodity options market in connection with a grain purchase to document the agreement in writing not more than twenty-one (21) days after delivery. (15) Receive and consider financial audits of a licensee conducted by an independent audit or accounting firm. (16) Share information with board members regarding the financial status of a licensee, while the board is in executive session and without disclosing the name or any other identifying information of the licensee, including the following: (A) Whether there is a risk that a licensee's license may be revoked. (B) The financial impact to the fund if a licensee identified in clause (A) were to have the licensee's license revoked. (C) The estimated number of potential claimants that could result from the revocation of a licensee identified in clause (A). (D) Any other information the director determines is necessary to solicit the advice of the board regarding the financial status of a licensee. However, the director may not share information under this subdivision with a board member who has not executed a confidentiality agreement. (b) The director shall do the following: (1) Establish standards to ensure that a grain buyer has a suitable financial position to conduct a business as a grain buyer. (2) Require a person who conducts business as a grain buyer to first be licensed by the agency. (c) The director may designate an employee to act for the director in the administration of this chapter. An employee designee may not: (1) adopt rules; or (2) act as the ultimate authority in the administration of this chapter. (d) The director may designate an administrative law judge to act for the director in the administration of this chapter. (e) The director may determine whether geographically separate facilities constitute a single warehouse or grain buyer and in making the determination may consider the following: (1) The number of facilities involved. (2) Whether full weighing equipment is present at the geographically separate facilities. (3) The method of bookkeeping employed by the separate facilities. (4) The hours of operation of the separate facilities. (5) The personnel employed at the separate facilities. (6) Other factors the director deems relevant. (f) For purposes of determining whether a building or other protected enclosure constitutes a single warehouse that requires a single license under this chapter, the director may consider the following: (1) The presence of a full weighing facility at geographically diverse warehouse facilities. (2) The traditional method of record keeping with respect to the separate facilities. (3) The hours, number of personnel, and activities of the separate facilities. (4) Any other factor considered relevant. In the absence of contradictory information, any warehouses owned and operated by the same person that are located within close proximity of each other are presumed to constitute a single warehouse. (g) The director and the director's designated representative shall become members of the national grain regulatory organization and shall: (1) work in partnership with other state grain regulatory officials; (2) participate in national grain regulatory meetings; and (3) provide expertise and education at national meetings. (h) The director shall engage an independent third party firm to conduct a performance review of the agency's auditing practices and procedures at least once every five (5) years. The agency shall make reasonable efforts to implement any corrective measures identified in the performance review to enhance and improve the agency's auditing practices and procedures. The agency shall make the findings of the performance review available to the board. (i) The director may subpoena or require that certain records located outside Indiana, if any, be brought to a specified location in Indiana for review by the agency. Formerly: Acts 1973, P.L.268, SEC.1; Acts 1974, P.L.120, SEC.2. As amended by P.L.191-1991, SEC.2; P.L.1-1992, SEC.143; P.L.249-1995, SEC.1; P.L.139-1996, SEC.7; P.L.125-1997, SEC.20; P.L.173-1999, SEC.2; P.L.75-2010, SEC.11; P.L.60-2015, SEC.5; P.L.145-2017, SEC.2; P.L.208-2021, SEC.2; P.L.114-2025, SEC.3; P.L.23-2026, SEC.256.

Ind. Code § 26-3-7-3.5 Computing time

Sec. 3.5. When computing any period of time under this chapter, including the time of service of a notice, the computation must comply with IC 4-21.5-3-2. As added by P.L.114-2025, SEC.4.

Ind. Code § 26-3-7-4 License; application; exemptions; prohibited operation

Sec. 4. (a) A person may not operate a warehouse or conduct business as a grain buyer or buyer-warehouse without first having obtained the appropriate license from the agency. (b) A person may not be licensed to operate a particular facility unless all facilities operated by the person in Indiana also qualify to be and are licensed under this chapter. A person that operates multiple facilities for the storage or handling of grain in Indiana must obtain a license that covers all facilities operated by the person. (c) A person may not represent that the person is licensed under this chapter, and may not use a name or description that conveys an impression that the person is licensed under this chapter, unless the person holds a valid license issued under this chapter that has not been terminated. (d) If a licensee acquires an additional grain storage or handling facility in Indiana, the licensee shall promptly submit to the agency an amended application for licensure. A licensee shall promptly notify the agency of a material change to the licensee's operations, such as expansion of the amount of storage being used in the licensee's existing facilities or change of ownership of a facility, and shall provide the director with additional information the director may require. A licensee shall obtain the approval of the director before making use of increased storage or handling capacity. (e) A licensee that acquires an additional grain storage or handling facility that is required to be licensed may not use the facility for the storage or handling of grain until it qualifies for and is issued a license and is licensed as provided in this chapter. If a licensed grain storage or handling facility that a licensee operates in Indiana becomes ineligible for a license at any time for any reason, the facility may not be used for the storage or handling of grain until the condition making it ineligible is removed. Formerly: Acts 1973, P.L.268, SEC.1; Acts 1974, P.L.120, SEC.3. As amended by Acts 1982, P.L.155, SEC.4; P.L.191-1991, SEC.3; P.L.139-1996, SEC.8; P.L.125-1997, SEC.21; P.L.173-1999, SEC.3; P.L.60-2015, SEC.6; P.L.114-2025, SEC.5.

Ind. Code § 26-3-7-4.1 Renewal application

Sec. 4.1. (a) The agency shall mail by first class mail or send electronically a renewal application, which must include a listing of all the licensee's facilities, to each licensee before the end of the licensee's fiscal year. The renewal application form must be completed and returned to the agency not later than ninety (90) days after the end of the licensee's fiscal year. The licensee must forward, with the renewal application, the following: (1) Current review level or audit level financial statement that: (A) is prepared by an independent accountant certified under IC 25-2.1; and (B) complies with generally accepted United States accounting principles. (2) Updated financial profile form supplied by the agency. (3) Appropriate license fee. (b) A renewal application must contain the information as required under rules adopted by the agency. The licensee shall receive an annual renewal license application form appropriate to the license issued to the licensee. The annual renewal license application forms are for a: (1) grain bank; (2) warehouse; (3) grain buyer; or (4) buyer-warehouse. As added by P.L.64-2009, SEC.3. Amended by P.L.145-2017, SEC.3; P.L.114-2025, SEC.6.

Ind. Code § 26-3-7-4.2 Registered agent

Sec. 4.2. (a) If an applicant for a license or a renewal of a license issued under this chapter does not regularly conduct business at a street address at which the applicant usually can be contacted in Indiana, the applicant shall include with the applicant's application a written appointment of a registered agent for service of process, notice, or demand. (b) The designation of a registered agent and requirements for a registered agent must comply with the requirements under IC 23-0.5-4. As added by P.L.145-2017, SEC.4. Amended by P.L.114-2025, SEC.7.

Ind. Code § 26-3-7-4.4 Licensure

Sec. 4.4. (a) The agency shall issue the following types of licenses: (1) A grain bank license may be issued to a person that: (A) stores only grain bank grain; (B) has a storage capacity of not more than fifty thousand (50,000) bushels of grain; and (C) purchases less than fifty thousand (50,000) bushels of grain per year. (2) A warehouse license may be issued to a person that: (A) stores grain for hire; and (B) purchases less than fifty thousand (50,000) bushels of grain per year. (3) A grain buyer license may be issued to a person that: (A) purchases annually at least fifty thousand (50,000) bushels of grain that are not for the sole purpose of feeding the person's own livestock or poultry; (B) chooses to obtain a grain buyer's license; or (C) offers deferred pricing, delayed payments, or contracts linked to the commodity futures or commodity options market in connection with grain purchases. (4) A buyer-warehouse license may be issued to a person that operates both as a warehouse and as a grain buyer. (b) An applicant shall file with the director a separate application for each license or amendment of a license at the times, on the forms, and containing the information that the director prescribes. (c) An initial application for a license must be accompanied by a license fee as follows: (1) For a grain bank or for a warehouse or buyer-warehouse with a storage capacity of less than two hundred fifty thousand (250,000) bushels, one thousand dollars ($1,000) for the first facility and two hundred fifty dollars ($250) for each additional facility. (2) For a warehouse or a buyer-warehouse with a storage capacity of at least two hundred fifty thousand (250,000) bushels but less than one million (1,000,000) bushels, one thousand five hundred dollars ($1,500) for the first facility and two hundred fifty dollars ($250) for each additional facility. (3) For a warehouse or a buyer-warehouse with a storage capacity of at least one million (1,000,000) bushels but less than ten million (10,000,000) bushels, two thousand dollars ($2,000) for the first facility and two hundred fifty dollars ($250) for each additional facility. (4) For a warehouse or buyer-warehouse with a storage capacity greater than ten million (10,000,000) bushels, two thousand five hundred dollars ($2,500) for the first facility and two hundred fifty dollars ($250) for each additional facility. (5) For a grain buyer, including a grain buyer that is also licensed as a warehouse under the warehouse act, one thousand five hundred dollars ($1,500) for the first facility and two hundred fifty dollars ($250) for each additional facility. The director may prorate the initial application fee for a license that is issued at least thirty (30) days after the anniversary date of the licensee's business. (d) Before the anniversary date of the license, the licensee shall pay an annual fee in an amount equal to the amount required under subsection (c). The director may prorate the annual application fee for a license that is modified at least thirty (30) days after the anniversary date of the licensee's license. (e) A licensee or an applicant for an initial license must have a minimum current asset to current liability ratio of one to one (1:1) or better. (f) An applicant for an initial license shall submit with the person's application a review level financial statement or better financial statement that reflects the applicant's financial situation on a date not more than fifteen (15) months before the date on which the application is submitted. A financial statement submitted under this section must: (1) be prepared by an independent accountant certified under IC 25-2.1; (2) comply with generally accepted United States accounting principles; and (3) contain: (A) an income statement; (B) a balance sheet; (C) a statement of cash flow; (D) a statement of retained earnings; (E) an aged accounts receivable listing detailing accounts that are ninety (90) days due, one hundred twenty (120) days due, and more than one hundred twenty (120) days due; (F) a copy of the daily position record for the end of the licensee's fiscal year; (G) the preparer's notes; and (H) other information the agency may require. (g) If a licensee's storage capacity changes between license renewals, the agency shall charge the licensee a fee of two hundred fifty dollars ($250). (h) An application for a license implies a consent to be inspected. (i) Fees collected under this section shall be deposited in the grain buyers and warehouse licensing agency license fee fund established by section 6.3 of this chapter. As added by P.L.114-2025, SEC.8.

Ind. Code § 26-3-7-4.5 Repealed

As added by Acts 1979, P.L.249, SEC.1. Amended by Acts 1982, P.L.155, SEC.5. Repealed by P.L.125-1997, SEC.57.

Ind. Code § 26-3-7-4.7 Relinquishment of license

Sec. 4.7. (a) If a licensee desires to relinquish its license issued under this chapter, the licensee shall submit a written request to the director to relinquish the license. The relinquishment request must include a certification from the licensee that the licensee: (1) has fully satisfied all payment obligations to all producers for any grain purchased by the licensee including any payment obligations under any contract, deferred pricing agreement, deferred payment agreement, or other similar legal instrument; (2) has no outstanding storage obligations to any licensee or person; (3) is not party to any contract, deferred pricing agreement, basis contract, hold-pay agreement, or other similar legal instrument under which grain will be delivered to the licensee; and (4) either does not have receipts in its possession or, if the licensee has receipts in its possession, the receipts are enclosed or will be provided to the director or the director's designated representative to facilitate the recovery of unused receipts under section 30 of this chapter. (b) The relinquishment request must include a list of all known customers of the licensee in the preceding eighteen (18) months and the last known telephone numbers and mailing addresses of each person identified. (c) The agency shall send a notice to each known customer of the licensee from the list provided in subsection (b) for the preceding eighteen (18) months. (d) Before the director may grant the licensee's relinquishment request the agency shall perform a closeout audit of the licensee. As added by P.L.114-2025, SEC.9.

Ind. Code § 26-3-7-5 Inspection and certification of scales

Sec. 5. All scales used to weigh grain for purchase or storage must be inspected and certified as to accuracy at least once each year. Formerly: Acts 1973, P.L.268, SEC.1. As amended by P.L.2-1992, SEC.781; P.L.125-1997, SEC.22.

Ind. Code § 26-3-7-6 Repealed

Formerly: Acts 1973, P.L.268, SEC.1; Acts 1974, P.L.120, SEC.4; Acts 1975, P.L.277, SEC.3. As amended by Acts 1979, P.L.249, SEC.2; Acts 1981, P.L.232, SEC.1; Acts 1982, P.L.155, SEC.6; P.L.191-1991, SEC.4; P.L.125-1997, SEC.23; P.L.173-1999, SEC.4; P.L.207-2007, SEC.28; P.L.64-2009, SEC.4; P.L.75-2010, SEC.12; P.L.60-2015, SEC.7. Repealed by P.L.114-2025, SEC.10.

Ind. Code § 26-3-7-6.1 Financial statement

Sec. 6.1. (a) A financial statement submitted under this chapter must comply with the following: (1) Be prepared by an independent accountant certified under IC 25-2.1. (2) Comply with generally accepted United States accounting principles. (3) Be at a review level or audit level. (4) Contain: (A) an income statement; (B) a balance sheet; (C) a statement of cash flow; (D) a statement of retained earnings; (E) the preparer's notes; and (F) other information the agency requires. (5) An aged accounts receivable listing detailing accounts that are ninety (90) days due, one hundred twenty (120) days due, and more than one hundred twenty (120) days due. (6) A copy of the daily position record for the end of the licensee's fiscal year. (b) If a person, an applicant, or a licensee is the subsidiary of a parent entity, and financial statements are not prepared by or for the person, applicant, or licensee in the ordinary course of business, the director may consider the following to be the equivalent of a review level or audit level financial statement, for purposes of this section: (1) Either: (A) a compilation level financial statement prepared in accordance with generally accepted United States accounting principles by an independent accountant certified under IC 25-2.1; or (B) an audited or review level financial statement of the parent entity, current as of its most recent fiscal year end, that is in full compliance with the requirements of this section. (2) An unconditional guaranty of the parent entity in the form required by the agency, with a term of at least one (1) year, under which the parent entity agrees without condition to satisfy in full any and all existing and future monetary obligations of the person, applicant, or licensee covered by all applicable licenses covered under this chapter. (c) Except as provided in subsection (e), for any particular person, applicant, or licensee, the director may consider the following documents and materials, taken together, to be the equivalent of a compilation level, review level, or audit level financial statement for purposes of this section after making the determination required under subsection (b): (1) Copies of state and federal tax returns for the person, applicant, or licensee, for the two (2) years before the most recent fiscal year of the person, applicant, or licensee. (2) Copies of state and federal tax returns for the principals, members, shareholders, or other owners of or stakeholders in the person, applicant, or licensee. (3) Current reports or similar accounting documents showing all outstanding payables and receivables, with each due date and party, including contact information. (4) A business plan covering the next five (5) fiscal years of the person, applicant, or licensee and signed by a principal, member, shareholder, owner, or executive or other officer of the person, applicant, or licensee. (5) A proposed agreement between the person, applicant, or licensee and the agency, in the form required by the agency, where the person, applicant, or licensee agrees to use certain risk management practices, which the director determines are necessary or appropriate under the circumstances, to mitigate the risk of loss by the person, applicant, or licensee in the futures or options market. (6) Other documents or materials as the director may by rule identify. (d) If a financial statement is required under this chapter, a person, applicant, or licensee may submit the equivalent of a review level or audit level financial statement under subsection (b) or (c) if the person, applicant, or licensee obtains preapproval from the director before the financial statement is or would be required to be submitted under this chapter and complies with the following: (1) At least forty-five (45) days before the financial statement is or would be required to be submitted under this chapter, the person, applicant, or licensee submits to the director a letter regarding the financial statement requirement that includes the following: (A) Identifies the person, applicant, or licensee submitting the letter and each section of this chapter that the person, applicant, or licensee is or will be required to submit a financial statement. (B) Encloses all the documents and materials required under subsection (b) or (c). (C) A detailed explanation regarding why, under the particular circumstances, the director should consider all the documents and materials required under subsection (b) or (c), as submitted, to be the equivalent of a review level or audit level financial statement. (D) States whether the person, applicant, or licensee is seeking to submit the documents and materials required under subsection (b) or (c) only once, in perpetuity, or for some other set period. (E) Sets forth contact information for the person, applicant, or licensee. (2) Upon receipt by the director of a letter under subdivision (1), the director shall do the following: (A) Conduct a review of the letter and its enclosures, including contacting the person, applicant, or licensee if necessary and reviewing any other documents, information, or other materials already available to the director. (B) Determine whether the enclosures should be considered to be the equivalent of a review level or audit level financial statement under the circumstances and for the reasons set forth in the letter. (C) Issue a notice of financial statement determination to the person, applicant, or licensee that sets forth the director's determination under clause (B), that includes the reasons under subdivision (3), and whether the determination will apply only once, in perpetuity, or for another set period, as determined by the director. (3) In reviewing the letter and its enclosures to make the determination under subdivision (2)(A) and (2)(B), the director shall consider the following: (A) Whether the documents and materials required under subsection (b) or (c), as submitted by the particular person, applicant, or licensee, adequately supply the director and the agency with sufficient information regarding the person, applicant, or licensee for the agency to perform its statutory functions under this chapter with respect to the person, applicant, or licensee. (B) Whether it would be reasonable and appropriate for the director to continue to accept the documents and materials required under subsection (b) or (c) from the person, applicant, or licensee, in perpetuity or for some other set period, including, the length of the guaranty required under subsection (b)(2). (4) Any letter under subdivision (1) and any response under subdivisions (2) and (3), including the director's determination under subdivisions (2)(B) and (3), applies only to the person, applicant, or licensee that submitted the letter under subdivision (1). (e) The director may not accept documents and materials listed in subsection (c) to be the equivalent of a review level or audit level financial statement from a person, an applicant, or a licensee if the person, applicant, or licensee offers: (1) deferred pricing; (2) delayed payments; or (3) contracts linked to the commodity futures or commodity options market in connection with grain purchases. As added by P.L.64-2009, SEC.5. Amended by P.L.60-2015, SEC.8; P.L.134-2015, SEC.2; P.L.114-2025, SEC.11.

Ind. Code § 26-3-7-6.3 Grain buyers and warehouse licensing agency license fee fund

Sec. 6.3. (a) The grain buyers and warehouse licensing agency license fee fund is established to provide funds for the administration of this chapter and IC 26-3-7.5. The fund shall be administered by the agency. The fund consists of: (1) the moisture testing device inspection fees collected under IC 26-3-7.5-6; (2) the licensing fees collected under section 4.4 of this chapter; (3) the fines collected under this chapter; (4) gifts and bequests; and (5) appropriations made by the general assembly. (b) Expenses of administering the fund shall be paid from money in the fund. (c) The treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as other public money may be invested. Interest that accrues from these investments shall be deposited in the fund. (d) Money in the fund at the end of a state fiscal year does not revert to the state general fund. As added by P.L.207-2007, SEC.29. Amended by P.L.2-2008, SEC.67; P.L.208-2021, SEC.3; P.L.114-2025, SEC.12.

Ind. Code § 26-3-7-6.5 Disclosure of information; investigations

Sec. 6.5. (a) The names, locations, respective counties, and license status of licensees may be disclosed. (b) Unless in accordance with a judicial order, the director, the agency, its counsel, auditors, or its other employees or agents shall not divulge any other information disclosed by the applications or reports filed or inspections performed under the provisions of this chapter. However, information may be divulged to agents and employees of the agency, the board, as required by subsection (d), the state board of accounts or another entity retained under subsection (f), or to any other legal representative of the state or federal government otherwise empowered to see or review the information. (c) Except as provided in subsection (d), the director may disclose the information described in subsection (b) only in the form of an information summary or profile, or statistical study based upon data provided with respect to more than one (1) warehouse, grain buyer, or buyer-warehouse that does not identify the warehouse, grain buyer, or buyer-warehouse to which the information applies. (d) The director shall disclose to the board, while the board is in executive session, the status and inspection results of any licensee that poses a significant risk of the director revoking the licensee's license or that has failed to meet the minimum requirements in section 14.4 of this chapter. The director may not include any identifying information regarding the licensee. The director may not disclose the information to a board member who has not executed a confidentiality agreement presented by the agency. (e) The director shall provide the board with records of previous license revocations to analyze the factors that have led to previous licenses being revoked. (f) The director may use the services of the state board of accounts or retain another entity to assist the agency in investigating any audit results or other factors which indicate the potential for the revocation of a licensee's license. The director may seek the advice and guidance of the board on selecting an entity or on any other matter. Formerly: Acts 1975, P.L.277, SEC.4. As amended by Acts 1979, P.L.249, SEC.3; P.L.12-1984, SEC.5; P.L.139-1996, SEC.9; P.L.125-1997, SEC.24; P.L.64-2009, SEC.6; P.L.60-2015, SEC.9; P.L.145-2017, SEC.5; P.L.208-2021, SEC.4; P.L.114-2025, SEC.13.

Ind. Code § 26-3-7-6.8 License application documents; approval timeline and procedures

Sec. 6.8. (a) A person that desires to conduct business as a grain buyer, warehouse operator, or buyer-warehouse in Indiana shall submit to the director the following: (1) A completed license application in the form required by the agency. (2) A financial statement that complies with the requirements of this chapter and that reflects the applicant's financial situation on a date not more than fifteen (15) months before the date the applicant first submits any of the license application materials required under this subsection. (3) A completed certificate of deposit, a bond, or other security, in the form required by the agency, and proof of the deposit, bond, or other security sufficient to demonstrate compliance with the requirements of this section, including, as applicable, complete and accurate copies of all instruments, documents, or materials related to the deposit, bond, or other security. (4) A completed certificate of insurance, in the form required by the agency, and proof of insurance sufficient to demonstrate compliance with the requirements of this section. (5) Proof of compliance with the scale certification requirements. (6) A certificate of good standing or other documentation sufficient to demonstrate that the applicant is licensed to do business in Indiana, including a current copy of the applicant's business information that is maintained by the secretary of state. (7) Examples of grain delivery tickets, settlement sheets, purchase agreements, storage agreements, and other similar agreements that comply with the requirements of this chapter, that are to be used by the applicant in conducting business as a licensee in Indiana. (8) Any other documentation that the director determines is necessary to demonstrate that the applicant is in compliance with the requirements for a license under this chapter. (b) Within ninety (90) days of the receipt of all license application materials required under subsection (a), the director or director's designated representative shall review the license application and determine whether the applicant has demonstrated compliance with the requirements for a license under this chapter. (c) An on-premises inspection of each applicable facility located within Indiana is required. (d) The application must be denied if the applicant is not in full compliance with this chapter. (e) If a license application is denied for any reason under this section, the notice of denial must set forth each reason for the denial, including any failure by the applicant to comply with the requirements of this chapter. (f) An applicant may appeal a decision of the director to deny a license under IC 4-21.5-3. As added by P.L.114-2025, SEC.14.

Ind. Code § 26-3-7-7 Applicant qualifications

Sec. 7. (a) An applicant for a license under this chapter must show that the applicant: (1) has the qualifications and background essential for the conduct of the business to be licensed; (2) has not been found guilty of a crime involving illegal activities that involve money, assets, or financial tools for personal gain; and (3) does not employ an officer, director, partner, or manager that has been found guilty of a crime involving illegal activities that involve money, assets, or financial tools for personal gain. (b) The agency may deny a license to an applicant that has been involved in improper business practices. Formerly: Acts 1973, P.L.268, SEC.1; Acts 1974, P.L.120, SEC.5. As amended by Acts 1979, P.L.249, SEC.4; Acts 1982, P.L.155, SEC.7; P.L.17-1985, SEC.21; P.L.191-1991, SEC.5; P.L.249-1995, SEC.2; P.L.125-1997, SEC.25; P.L.114-2025, SEC.15.

Ind. Code § 26-3-7-8 Repealed

Formerly: Acts 1973, P.L.268, SEC.1; Acts 1975, P.L.277, SEC.5. As amended by P.L.125-1997, SEC.26. Repealed by P.L.114-2025, SEC.16.

Ind. Code § 26-3-7-8.5 Licensing requirements of successor owner

Sec. 8.5. (a) If the ownership of a facility or business licensed under this chapter passes to a successor owner, the obligations under this chapter of the original licensee do not cease until the successor owner is properly licensed and has executed a successor's agreement with the agency. (b) A license issued under this chapter is not transferable or assignable to any person, including successors in interest to the licensee. As added by P.L.125-1997, SEC.27. Amended by P.L.114-2025, SEC.17.

Ind. Code § 26-3-7-9 Bond, cash deposit, or letter of credit

Sec. 9. (a) Each applicant for a license under this chapter shall, as a condition of licensure, file or have on file with the director: (1) a cash deposit; (2) an irrevocable letter of credit; (3) a bond; or (4) any combination of the above; as provided in section 10 of this chapter. (b) A bond filed under this chapter shall: (1) be conditioned upon the faithful performance of all obligations of the licensee under this chapter and the rules adopted under this chapter from the effective date of the bond until the earlier of the date the license is revoked or the bond is canceled as provided in this chapter; and (2) be further conditioned upon the faithful performance of all obligations from the effective date of the bond and thereafter, regardless of whether the licensee's facility or facilities exist on the effective date of the bond or are thereafter assumed prior to the date the licensee's license is revoked or the bond is canceled as provided in this chapter. (c) The bond must remain in effect during a violation or a period during which the licensee is subject to a cease and desist order. Formerly: Acts 1973, P.L.268, SEC.1; Acts 1974, P.L.120, SEC.6; Acts 1975, P.L.277, SEC.6. As amended by Acts 1979, P.L.249, SEC.5; Acts 1982, P.L.155, SEC.8; P.L.191-1991, SEC.6; P.L.125-1997, SEC.28; P.L.173-1999, SEC.5; P.L.114-2025, SEC.18.

Ind. Code § 26-3-7-10 Amount of bond, cash deposit, letter of credit, or other surety; deficiencies; penalties

Sec. 10. (a) The minimum amount of bond, letter of credit, or cash deposit required from a licensee is as follows: (1) For a grain bank license or a warehouse license: (A) fifty thousand dollars ($50,000); and (B) ten cents ($0.10) multiplied by the licensed bushel storage capacity of the grain bank or warehouse. (2) For a grain buyer, including a grain buyer that is also a licensee under the warehouse act: (A) fifty thousand dollars ($50,000); or (B) five-tenths percent (0.5%) of the total amount the grain buyer paid for grain purchased from producers during the grain buyer's most recent fiscal year; whichever is greater. (3) For a buyer-warehouse: (A) an amount equal to the sum of: (i) fifty thousand dollars ($50,000); and (ii) ten cents ($0.10) multiplied by the licensed bushel storage capacity of the buyer-warehouse's facility; or (B) five-tenths percent (0.5%) of the total amount the buyer-warehouse paid for grain purchased from producers during the buyer-warehouse's most recent fiscal year; whichever is greater. (b) Except as provided in subsections (g) and (h), the amount of bond, letter of credit, or cash deposit required by this chapter may not exceed three hundred twenty-five thousand dollars ($325,000) per license and may not exceed a total of one million two hundred fifty thousand dollars ($1,250,000) per person. (c) The licensed bushel storage capacity is the maximum number of bushels of grain that the licensee's facility could accommodate as determined by the director or the director's designated representative and shall be increased or reduced in accordance with the amount of space being used for storage from time to time. (d) Instead of a bond or cash deposit, an irrevocable letter of credit in the prescribed amount may be provided with the director as the beneficiary. The director may not release a party from the obligations of the letter of credit within fifteen (15) months of the termination of the licensee's license. (e) The director may not return a cash deposit to a licensee until the director has taken reasonable precautions to assure that the licensee's obligations and liabilities have been or will be met. (f) If a person is licensed or is applying for licenses to operate two (2) or more facilities in Indiana, the person may give a single bond, letter of credit, or cash deposit to satisfy the requirements of this chapter and the rules adopted under this chapter to cover all the person's facilities in Indiana. (g) If a licensee has a deficiency in the minimum positive tangible net worth required under section 14.4 of this chapter, the licensee shall add to the amount of bond, letter of credit, or cash deposit determined under subsection (a) an amount equal to the deficiency or provide another form of surety as permitted under the rules of the agency. (h) Except as provided in subsections (i) and (j), a licensee may not correct a deficiency in the minimum positive tangible net worth required by section 14.4 of this chapter by adding to the amount of bond, letter of credit, or cash deposit required by subsection (a). (i) A buyer-warehouse that has a bushel storage capacity of less than one million (1,000,000) bushels or purchases less than one million (1,000,000) bushels of grain per year may correct a deficiency in minimum positive tangible net worth by adding to the amount of bond, letter of credit, or cash deposit determined under subsection (a) if the buyer-warehouse has a minimum positive tangible net worth of at least fifty thousand dollars ($50,000), not including the amount added to the bond, letter of credit, or cash deposit. (j) A buyer-warehouse that has a bushel storage capacity of at least one million (1,000,000) bushels, or purchases at least one million (1,000,000) bushels of grain per year, may correct a deficiency in minimum positive tangible net worth by adding to the amount of bond, letter of credit, or cash deposit determined under subsection (a) if the buyer-warehouse has a minimum positive tangible net worth of at least one hundred thousand dollars ($100,000), not including the amount added to the bond, letter of credit, or cash deposit. (k) If the director or the director's designated representative finds that conditions exist that warrant requiring additional bond or cash deposit, there shall be added to the amount of bond or cash deposit as determined under the other provisions of this section, a further amount to meet the conditions. (l) If the director or the director's designated representative finds a deficiency in minimum positive tangible net worth before the licensee's next audit by the agency, the director shall issue a notice of deficiency to the licensee stating that the licensee has thirty (30) days to correct the deficiency. If a licensee fails to correct a deficiency in minimum positive tangible net worth within the thirty (30) day period, the director may issue a fine of not more than one thousand dollars ($1,000). (m) The director may accept, instead of a single cash deposit, letter of credit, or bond, a deposit consisting of any combination of cash deposits, letters of credit, or bonds in an amount equal to the licensee's obligation under this chapter. (n) The director may require additional bonding that the director considers necessary. Formerly: Acts 1973, P.L.268, SEC.1; Acts 1974, P.L.120, SEC.7; Acts 1975, P.L.277, SEC.7. As amended by Acts 1979, P.L.249, SEC.6; Acts 1982, P.L.155, SEC.9; P.L.191-1991, SEC.7; P.L.125-1997, SEC.29; P.L.173-1999, SEC.6; P.L.64-2009, SEC.7; P.L.60-2015, SEC.10; P.L.208-2021, SEC.5; P.L.114-2025, SEC.19.

Ind. Code § 26-3-7-12 Insurance; filing of certificate; settlement with depositor in case of destruction

Sec. 12. (a) Each applicant for a license under this chapter shall, as a condition to the granting of the license, file or have on file a certificate of insurance evidencing an effective policy of insurance issued by an insurance company authorized to do business in Indiana insuring in the name of the applicant all grain that is or may be in the licensee's facilities for its full market value against loss by fire, internal explosion, lightning, and windstorm. (b) In case fire, internal explosion, lightning, or wind-storm destroys or damages any grain in a licensed facility, the licensee shall, upon demand by the depositor and upon being presented with the receipt or other evidence of ownership, make settlement, after deducting the licensee's charges and advances, at the market value of the grain based on the value at the average price paid for grain of the same grade and quality on the date of the loss at the location of the facility. If a settlement is not made within sixty (60) days from the date of demand, the depositor is entitled to seek recovery from the insurance company. Formerly: Acts 1973, P.L.268, SEC.1; Acts 1975, P.L.277, SEC.8. As amended by P.L.125-1997, SEC.30.

Ind. Code § 26-3-7-13 Additional bond, cash deposit, letter of credit, or insurance

Sec. 13. Whenever the director determines that a previously approved bond, letter of credit, cash deposit, or previously approved insurance is insufficient, the director shall require an additional bond, letter of credit, cash deposit, or insurance to be given by the licensee in the form and upon the terms and conditions required by this chapter and rules adopted under this chapter. Formerly: Acts 1973, P.L.268, SEC.1; Acts 1974, P.L.120, SEC.8; Acts 1975, P.L.277, SEC.9. As amended by Acts 1979, P.L.249, SEC.7; P.L.125-1997, SEC.31.

Ind. Code § 26-3-7-14 Fines; revocation of license

Sec. 14. (a) A licensee may not cancel an approved bond or approved insurance unless the director has given prior written approval for the cancellation and has received a substitute cash deposit or has approved a substitute bond or insurance. The surety on a bond may cancel a bond required by this chapter only after the expiration of ninety (90) days from the date the surety mailed a notice of intent to cancel, by registered or certified mail, to the director. An insurance company may cancel insurance required by this chapter only after the expiration of a thirty (30) day period from the mailing, by certified mail, of notice of intent to cancel, to the director. The surety and the insurance company shall, at the time of giving notice to the director, send a copy of the notice to the licensee. (b) Notwithstanding any other provision of this chapter, a licensee shall automatically be fined one thousand dollars ($1,000) for failure to: (1) file a new bond, letter of credit, or cash deposit within the ninety (90) day period as provided in this section; (2) file new evidence of insurance within the thirty (30) day period as provided in this section; or (3) maintain at all times a bond or cash deposit and insurance as provided in this chapter. If a licensee fails to pay the fine and meet the requirements set forth in this subsection within ninety (90) days, the agency shall revoke the license of the licensee. Formerly: Acts 1973, P.L.268, SEC.1. As amended by Acts 1979, P.L.249, SEC.8; P.L.125-1997, SEC.32; P.L.114-2025, SEC.20.

Ind. Code § 26-3-7-14.2 Current liability ratio; informal meeting; revocation of license; fines

Sec. 14.2. (a) A licensee under this chapter shall maintain a minimum current ratio of one to one (1:1) or better. The current ratio is determined by dividing a licensee's current assets by the licensee's current liabilities, as demonstrated by the licensee's financial statement submitted to the agency, the quotient of which is rounded to the nearest ten-thousandth (0.0001) decimal place. (b) For purposes of subsection (a), a better ratio includes the absence of a current ratio where the value of a licensee's current liabilities, as demonstrated by the licensee's financial statement submitted to the agency, is zero (0). (c) The addition by the licensee of an amount required under this section does not itself constitute or effect a cure of a current ratio deficiency. (d) If the licensee's demonstrated current ratio is less than the required amount but greater than eighty-five percent (85%) of the required amount, then: (1) the director or the director's designated representative shall issue a notice of deficiency to the licensee; and (2) the licensee shall cure the current ratio deficiency within ninety (90) days from the receipt of the deficiency notice. (e) If the licensee's demonstrated current ratio is less than or equal to eighty-five percent (85%) of the required amount or has not cured the ratio deficiency as required in subsection (d)(2), then the director shall hold an informal meeting in accordance with this chapter and, within thirty (30) days of the conclusion of the informal meeting, issue either: (1) a consent agreement that requires the licensee to take certain actions within a set period, not to exceed twelve (12) months, to remedy the current ratio deficiency, as the director deems necessary and appropriate; or (2) an order that revokes the license or licenses of the licensee. (f) If a licensee, after an informal meeting in subsection (e): (1) does not meet the requirements in subsection (e)(1), the director shall revoke; or (2) has an asset to liability ratio that has continued to decline, the director may revoke; the license or licenses of the licensee. (g) Subject to section 31.8 of this chapter, the director shall assess a fine of one thousand dollars ($1,000) against a licensee that does not maintain the minimum ratio requirement under subsection (a). As added by P.L.114-2025, SEC.21.

Ind. Code § 26-3-7-14.4 Minimum positive tangible net worth, curing deficiencies; informal meeting, revocation of license; fines

Sec. 14.4. (a) As demonstrated by the licensee's financial statement submitted to the agency, a licensee under this chapter shall maintain a minimum positive tangible net worth, as required under this section. (b) A licensee shall maintain a minimum positive tangible net worth as follows: (1) For a grain bank license, at least one hundred thousand dollars ($100,000). (2) For a warehouse license, an amount at least equal to the sum of: (A) one hundred thousand dollars ($100,000); and (B) ten cents ($0.10) multiplied by the total bushel storage capacity of the facility or facilities covered by the warehouse license. (3) For a grain buyer license, an amount at least equal to the greater of: (A) one hundred thousand dollars ($100,000); or (B) five cents ($0.05) multiplied by the total number of bushels of grain purchased under the grain buyer license during the grain buyer's most recent fiscal year. (4) For a buyer-warehouse license, where the buyer-warehouse license has one (1) or more facilities with a total bushel storage capacity of less than one million (1,000,000) bushels or at which the buyer-warehouse's total annual purchases are less than one million (1,000,000) bushels of grain, an amount at least equal to the greater of: (A) the sum of: (i) one hundred fifty thousand dollars ($150,000); and (ii) ten cents ($0.10) multiplied by the total bushel storage capacity of the facility or facilities covered by the buyer-warehouse license; or (B) five cents ($0.05) multiplied by the total number of bushels of grain purchased under the buyer-warehouse license during the buyer-warehouse's most recent fiscal year. (5) For a buyer-warehouse license, where the buyer-warehouse license has one (1) or more facilities with a total bushel storage capacity of at least one million (1,000,000) bushels or at which the buyer-warehouse's annual purchases are at least one million (1,000,000) bushels of grain, an amount at least equal to the greater of: (A) the sum of: (i) two hundred thousand dollars ($200,000); and (ii) ten cents ($0.10) multiplied by the total bushel storage capacity of the facility or facilities covered by the buyer-warehouse license; or (B) five cents ($0.05) multiplied by the total number of bushels of grain purchased under the buyer-warehouse license during the buyer-warehouse's most recent fiscal year. (c) If a licensee has more than one (1) license, the licensee shall maintain a minimum positive tangible net worth that is at least equal to the sum of the minimum positive net worth amounts required under subsection (b) for each individual license held by the licensee. (d) A licensee that fails to be above eighty-five percent (85%) of the minimum positive tangible net worth required under this section, as demonstrated by the licensee's financial statement submitted to the agency, may cure the minimum positive tangible net worth deficiency by adding to the amount of the deposit, bond, or other security required under this chapter an amount equal to the difference between the required minimum positive tangible net worth and the licensee's demonstrated net worth. (e) A licensee may cure the minimum positive tangible net worth deficiency by submitting to the agency: (1) a financial statement, in compliance with the requirements of this chapter, and current as of a date within the time specified to cure the deficiency under this section, demonstrating that the licensee meets the required minimum positive tangible net worth; or (2) a new financial statement, in compliance with the requirements of this chapter, and current as of a date within the time specified to cure the deficiency under this section, demonstrating that the licensee's demonstrated net worth is at least equal to the amount or amounts specified in subsection (b), and by adding to the amount of the deposit, bond, or other security required under this chapter an amount equal to the difference between the required minimum positive tangible net worth and the licensee's demonstrated net worth. (f) The director may, in accordance with this section, require a licensee that has failed to meet the minimum positive tangible net worth requirement to add to the amount of the deposit, bond, or other security required under this section an amount the director deems necessary and appropriate to respond to the minimum positive tangible net worth deficiency. The addition by the licensee of an amount required under this subsection does not itself constitute or effect a cure of a minimum positive tangible net worth deficiency. (g) If the licensee's demonstrated current net worth is less than the required amount but greater than eighty-five percent (85%) of the required amount, then: (1) the director or the director's designated representative shall issue a notice of deficiency to the licensee; and (2) the licensee shall cure the current net worth deficiency within ninety (90) days from the receipt of the deficiency notice. (h) If the licensee's demonstrated current net worth is less than or equal to eighty-five percent (85%) of the required amount or has not cured the ratio deficiency as required in subsection (d), then the director shall hold an informal meeting in accordance with this chapter and, within thirty (30) days of the conclusion of the informal meeting, issue either: (1) a consent agreement that requires the licensee to take certain actions within a set period, not to exceed twelve (12) months, to remedy the current net worth deficiency, as the director deems necessary and appropriate; or (2) an order that revokes the license or licenses of the licensee. (i) If a licensee, after an informal meeting in subsection (h): (1) does not meet the requirements in subsection (h)(1), the director shall revoke; or (2) has a net worth that has continued to decline, the director may revoke; the license or licenses of the licensee. (j) Subject to section 31.8 of this chapter, the director shall assess a fine of one thousand dollars ($1,000) on a licensee that does not maintain the net worth requirement under subsection (b). As added by P.L.114-2025, SEC.22.

Ind. Code § 26-3-7-15 Grain inventories; sufficiency for outstanding warehouse receipts or other storage obligations

Sec. 15. (a) A licensee shall maintain inventories of sufficient quantity and grade of grain to meet the licensee's storage obligations. (b) Inventories representing grain evidenced by outstanding warehouse receipts shall be maintained in the warehouse shown on the warehouse receipt issued by the warehouse in which the grain was originally deposited. (c) Inventories representing storage obligations other than those evidenced by warehouse receipts may be represented by: (1) receipts for grain stored in a facility licensed under this chapter; (2) receipts in a warehouse licensed and bonded under the warehouse act; or (3) other warehouse receipts or tickets as approved by the director. Formerly: Acts 1973, P.L.268, SEC.1; Acts 1974, P.L.120, SEC.9. As amended by Acts 1979, P.L.249, SEC.9; P.L.125-1997, SEC.33.

Ind. Code § 26-3-7-16 Repealed

Formerly: Acts 1973, P.L.268, SEC.1. As amended by Acts 1979, P.L.249, SEC.10; P.L.125-1997, SEC.34; P.L.253-1997(ss), SEC.26; P.L.173-1999, SEC.7; P.L.64-2009, SEC.8; P.L.60-2015, SEC.11. Repealed by P.L.114-2025, SEC.23.

Ind. Code § 26-3-7-16.3 Annual reporting requirements; renewal fee

Sec. 16.3. (a) A licensee shall, as a condition of licensure, submit to the agency on an annual basis, and not later than one hundred twenty (120) days after the end of the licensee's fiscal year, the following: (1) A completed annual report in the form and as otherwise required in this chapter. (2) A financial statement for the licensee's most recent fiscal year that complies with the requirements of this chapter. (3) The applicable license fee, in a form and manner of payment acceptable to the agency. (b) Before the anniversary date of the license, the licensee shall pay an annual fee in an amount equal to the amount required under section 4.4 of this chapter. The director may prorate the annual application fee for a license that is modified at least thirty (30) days after the anniversary date of the licensee's license. (c) If a licensee's storage capacity changes between license renewals, the agency shall charge the licensee a fee of two hundred fifty dollars ($250). As added by P.L.114-2025, SEC.24.

Ind. Code § 26-3-7-16.5 Determination of shortages; payment of claims; hearings and procedures

Sec. 16.5. (a) Upon learning of the possibility that a shortage exists, either as a result of an inspection or a report or complaint from a depositor, the agency, based on an on-premises inspection, shall make a preliminary determination as to whether a shortage exists. If a shortage is not discovered, the agency shall treat the audit as it would any other audit. (b) If it is determined that a shortage may exist, the director or the director's designated representative shall hold a hearing as soon as possible to confirm the existence of a shortage as indicated by the licensee's books and records and the grain on hand. Only the licensee, the surety company named on the licensee's bond, the issuer of the irrevocable letter of credit, and any grain depositor who has made a claim or complaint to the agency in conjunction with the shortage shall be considered as interested parties for the purposes of that hearing, and each shall be given notice of the hearing. At the hearing, the director or the director's designated representative shall determine whether there appears to be a reasonable probability that a shortage exists. If it is determined that a reasonable probability exists and that the bond or letter of credit proceeds or the cash deposit should be distributed, a preliminary determination shall be entered to the effect that the licensee has failed to meet its obligations under this chapter or the rules adopted under this chapter. At the hearing, the director or the director's designated representative shall take possession of the bond or other security required under this chapter and all proceeds from grain sales are to be held in the form in which they are received and to be kept in a separate account from all other funds. The order shall also provide for informal conferences between agency representatives and persons who have or who appear to have grain deposited with the licensee. The surety company shall be permitted to participate in those conferences. (c) In the event that the director determines that the bond or letter of credit proceeds or cash deposit is to be distributed, the agency shall hold a hearing on claims. Notice shall be given to the surety company named on the licensee's bond, the issuer of the irrevocable letter of credit, and to all persons shown by the licensee's books and records to have interests in grain deposited with the licensee. If the agency has actual knowledge of any other depositor or person claiming rights in the grain deposited with the licensee, the bond, the irrevocable letter of credit, or the cash deposit, notice shall also be provided to that person. In addition, public notice shall be provided in newspapers of general circulation that serve the counties in which licensed facilities are located, and notices shall be posted on the licensed premises. At the hearing on claims, the director or the director's designated representative may accept as evidence of claims the report of agency representatives who in informal conferences with depositors have concluded that a claim is directly and precisely supported by the licensee's books and records. When there is disagreement between the claims of a depositor and the licensee's books and records, the director or the director's designated representative shall hear oral claims and receive written evidence of claims in order to determine the validity of the claim. (d) Any depositor who does not present a claim at the hearing may bring the claim to the agency within fifteen (15) days after the conclusion of the hearing. However, a depositor who has a claim that was involved in the probate of an estate at the time of the claims hearing has one (1) year from the conclusion of the claims hearing to present the claim to the agency. (e) Only grain that has been delivered to a first purchaser licensee for sale or storage under a bailment not more than fifteen (15) months before the date of revocation of the licensee's license may be considered by the director or the director's designated representative in determining the total proven storage and financial obligations due to depositors and the loss sustained by each depositor who has proven a claim. (f) Following the hearing on claims, the director or the director's designated representative shall make a determination as to the total proven storage and financial obligations due to depositors and the loss sustained by each depositor who has proven a claim. Depositors found to have proven their claims for storage or financial loss shall be proven claimants. In arriving at that loss, in accordance with section 19 of this chapter, the director shall apply all grain on hand or its identifiable proceeds to meet the licensee's obligations to grain depositors of grain of that type. Initial determinations of loss shall be made on the amount of grain on hand, or identifiable proceeds, and shall reduce the amount to which a depositor may have a proven claim. With respect to the remaining unfulfilled obligations, the director shall, for the sole purpose of establishing each depositor's claim under this chapter, establish a date upon which the loss is discovered, shall price the grain as of that date, shall treat all outstanding grain storage obligations not covered by grain on hand or identifiable proceeds as being sold as of that date, and shall determine the extent of each depositor's loss as being the actual loss sustained as of that date. Grain of a specific type on the premises of a licensee must first be applied to meet the licensee's storage obligations with respect to that type of grain. If there is insufficient grain of a specific type on hand to meet all storage obligations with respect to that type of grain, the grain that is present shall be prorated in accordance with the procedures described in this section and section 16.8 of this chapter. The agency shall refer the licensee to the county prosecuting attorney if the licensee does not have the amount of grain in storage, at the time of the revocation of the license, that the records indicate should be in storage. (g) Upon the failure of the agency to begin an audit, which would serve as the basis for a preliminary administrative determination, within forty-five (45) days of the agency's receipt of a written claim by a depositor, a depositor shall have a right of action upon the bond, letter of credit, or cash deposit. A depositor bringing a civil action need not join other depositors. If the agency has undertaken an audit within the forty-five (45) day period, the exclusive remedy for recovery against the bond, letter of credit, or cash deposit shall be through the recovery procedure prescribed by this section. (h) When the proven claims exceed the amount of the bond, letter of credit, or cash deposit, recoveries of proven claimants shall be prorated in the same manner as priorities are prorated under section 16.8 of this chapter. (i) The proceedings and hearings under this section may be undertaken without regard to, in combination with, or in addition to those undertaken in accordance with section 17.1 of this chapter. (j) The findings of the director shall be final, conclusive, and binding on all parties. (k) A claim of a licensee for stored grain may not be honored until the proven claims of all other claimants arising from the purchase, storage, and handling of the grain have been paid in full. (l) A claim is considered to be adjudicated if the claimant has: (1) agreed with the director's determination on the claim and not filed an appeal under IC 4-21.5-3; or (2) exhausted the claimant's administrative appeal and judicial review remedies. (m) Subject to the requirements under this chapter, if one (1) or more claimants are not paid in full for the claimants' proven claims, the director shall forward to the Indiana grain indemnity fund board of directors a list of the claimants who are owed money and the difference between the amount that the claimant was paid and the amount that the claimant claims to be due along with a copy of the final order. As added by Acts 1979, P.L.249, SEC.11. Amended by P.L.191-1991, SEC.8; P.L.125-1997, SEC.35; P.L.173-1999, SEC.8; P.L.75-2010, SEC.13; P.L.85-2017, SEC.101; P.L.145-2017, SEC.6; P.L.114-2025, SEC.25.

Ind. Code § 26-3-7-16.6 Procedures

Sec. 16.6. The procedures established by this chapter also apply when the director learns or has reason to believe that a person is doing business as a grain buyer, operating a warehouse, or acting as a buyer-warehouse without the license required by this chapter. As added by Acts 1982, P.L.155, SEC.11. Amended by P.L.191-1991, SEC.9; P.L.139-1996, SEC.10; P.L.125-1997, SEC.36; P.L.173-1999, SEC.9.

Ind. Code § 26-3-7-16.7 Petition for review and request for administrative adjudication

Sec. 16.7. (a) A licensee or claimant subject to the director's action may submit a petition for review and request for administrative adjudication under IC 4-21.5-3 from orders issued by the director under section 16.5 or 17.1 of this chapter. (b) A licensee or claimant may request an administrative adjudication under IC 4-21.5-3 not more than fifteen (15) days after being served with the director's findings. (c) If a licensee or claimant requests an administrative adjudication under IC 4-21.5-3, the office of administrative law proceedings shall designate an administrative law judge to preside over the petition for review. (d) The office of administrative law proceedings is the ultimate authority for administrative adjudications under IC 4-21.5. As added by P.L.145-2017, SEC.7. Amended by P.L.92-2025, SEC.74.

Ind. Code § 26-3-7-16.8 Liens on grain assets

Sec. 16.8. (a) A lien against all grain assets of a licensee or a person who is required to be licensed under this chapter attaches in favor of the following: (1) A lender or other claimant that has a receipt for grain owned or stored by the licensee. (2) A claimant that has a ticket or written evidence, other than a receipt, of a storage obligation of the licensee. (3) A claimant that surrendered a receipt as part of a grain sales transaction if: (A) the claimant was not fully paid for the grain sold; and (B) the licensee has had the licensee's license revoked less than twenty-one (21) days after the surrender of the receipt. (4) A claimant that has other written evidence of a sale to the licensee of grain for which the claimant has not been fully paid. (b) A lien under this section attaches and is effective at the earliest of the following: (1) the delivery of the grain for sale, storage, or under a bailment; (2) the commencement of the storage obligation; or (3) the advancement of funds by a lender. (c) A lien under this section terminates when the licensee discharges the claim. (d) If a licensee has had the licensee's license revoked, the lien that attaches under this section is assigned to the agency by operation of this section. If a licensee whose license has been revoked is liquidated, a lien under this section continues to attach as a claim against the assets or proceeds of the assets of the licensee that are received or liquidated by the agency. (e) Except as provided in subsection (h), if a licensee has had the licensee's license revoked, the power to enforce the lien on the licensee's grain assets transfers by operation of this section to the director and rests exclusively with the director who shall allocate and prorate the proceeds of the grain assets as provided in subsections (g) and (i). (f) The lien established under this section has priority over all competing lien claims asserted against the licensee's grain assets. (g) The priority of a lien that attaches under this section is not determined by the date on which the claim arose. If a licensee's license has been revoked, the director shall enforce lien claims and allocate grain assets and the proceeds of grain assets of the licensee in the following order of priority: (1) First priority is assigned to the following: (A) A lender or other claimant that has a receipt for grain owned or stored by the licensee. (B) A claimant that has a ticket or written evidence, other than a receipt, of a storage obligation of the licensee. (C) A claimant that surrendered a receipt as part of a grain sales transaction if: (i) the claimant was not fully paid for the grain sold; and (ii) the licensee has had the licensee's license revoked less than twenty-one (21) days after the surrender of the receipt. If there are insufficient grain assets to satisfy all first priority claims, first priority claimants shall share pro rata in the assets. (2) Second priority is assigned to all claimants who have written evidence of the sale of grain, such as a ticket, a deferred pricing agreement, or similar grain delivery contract, and who completed delivery less than thirty (30) days before the revocation of the licensee's license. Claimants under this subdivision share pro rata in the remaining assets if all claimants under subdivision (1) have been paid but insufficient assets remain to fully satisfy all claimants under this subdivision. (3) Third priority is assigned to all other claimants that have written evidence of the sale of grain to the revoked license of the licensee. Claimants under this subdivision share pro rata in the distribution of the remaining grain assets. (h) If a claimant under this section brings an action to recover grain assets that are subject to a lien under this section and the agency does not join the action, the director shall, upon request of the claimant, assign the lien to the claimant in order to allow the claimant to pursue the claim to the extent that the action does not delay the resolution of the matter by the agency, the prompt liquidation of the assets, or the ultimate distribution of assets to all claimants. (i) If: (1) a claimant engaged in farming operations granted to one (1) or more secured parties one (1) or more security interests in the grain related to the claimant's claim under this section; and (2) one (1) or more secured parties described in subdivision (1) have given to: (A) the licensee prior written notice of the security interest under IC 26-1-9.1-320(a)(1) or IC 26-1-9-307(1)(a) before its repeal; and (B) the director prior written notice of the security interest with respect to the grain described in subdivision (1) sufficient to give the director a reasonable opportunity to cause the issuance of a joint check under this subsection; the director shall pay the claimant described in subdivision (1) the portion of the proceeds of grain assets under subsection (e) to which the claimant is entitled under this section by issuance of a check payable jointly to the order of the claimant and any secured party described in subdivision (1) who has given the notices described in subdivision (2). If only one (1) secured party described in subdivision (1) is a payee, the rights of the secured party in the check shall be to the extent of the indebtedness of the claimant to the secured party. If two (2) or more secured parties described in subdivision (1) are payees, the nature, extent, and priority of their respective rights in the check are determined in the same manner as the nature, extent, and priority of their respective security interest under IC 26-1-9.1. As added by P.L.125-1997, SEC.37. Amended by P.L.115-1999, SEC.1; P.L.173-1999, SEC.10; P.L.1-2002, SEC.101; P.L.75-2010, SEC.14; P.L.145-2017, SEC.8; P.L.114-2025, SEC.26.

Ind. Code § 26-3-7-17 Repealed

Formerly: Acts 1973, P.L.268, SEC.1; Acts 1974, P.L.120, SEC.10. Repealed by Acts 1979, P.L.249, SEC.18.

Ind. Code § 26-3-7-17.1 Possible violations; powers of director; procedures

Sec. 17.1. (a) Whenever the director, as a result of an inspection or otherwise, has reasonable cause to believe that a person to which this chapter is or may be applicable: (1) is conducting business contrary to this chapter or in an unauthorized manner; or (2) has failed, neglected, or refused to observe or comply with any order, rule, or published policy statement of the agency; then the director may undertake any one (1) of the actions prescribed by this section. (b) Upon learning of the possibility that a licensee is acting as described in subsection (a), the director or the director's designated representative may seek an informal meeting with the licensee. At that meeting, which must be held at a time and place agreed to by the licensee and the director, the director or the director's designated representative shall discuss the possible violations and may enter into a consent agreement with the licensee under which the licensee agrees to undertake, or to cease, the activities that were the subject of the meeting. The consent agreement must: (1) provide for a time frame within which the licensee must be in compliance; and (2) state in detail the requirements that must be met to be in compliance, including the requirements under section 31.2(b) of this chapter. (c) Upon learning of the possibility that a person is acting as described in subsection (a), the director or the director's designated representative, except as otherwise provided in this subsection, shall hold a hearing to determine whether a cease and desist order should issue against a licensee or an unlicensed person undertaking activities covered by this chapter. If the director or the director's designated representative determines that the violation or the prohibited practice is likely to cause immediate insolvency or irreparable harm to depositors, the director or the director's designated representative, without notice, shall issue a cease and desist order requiring the person to cease and desist from that violation or practice. The order shall become effective upon service on the person and shall remain effective and enforceable pending the completion of all administrative proceedings. (d) Upon a determination, after a hearing held by the director or the director's designated representative, that a person is acting as described in subsection (a), the director shall revoke or deny a license. If the director revokes or denies a license, the director shall publish notice of the revocation or denial as provided in section 17.5 of this chapter. As added by Acts 1979, P.L.249, SEC.12. Amended by P.L.191-1991, SEC.10; P.L.125-1997, SEC.38; P.L.145-2017, SEC.9; P.L.114-2025, SEC.27.

Ind. Code § 26-3-7-17.5 Notice of revocation of license; notice of denial of application

Sec. 17.5. (a) Whenever the license of a licensee is revoked, the director shall: (1) for each facility operated by the licensee, publish a public notice in a newspaper of general circulation that serves the county in which the facility is located; and (2) cause notice of the revocation to be posted at the facilities covered by the license. (b) Whenever an application for licensure under this chapter is denied, the director may: (1) for each facility operated by the applicant, publish a public notice in a newspaper of general circulation that serves the county in which the facility is located; and (2) cause notice of the denial to be posted at the applicant's facilities. (c) A notice posted under this section may not be removed without the written permission of the director. As added by P.L.125-1997, SEC.39. Amended by P.L.60-2015, SEC.12; P.L.114-2025, SEC.28.

Ind. Code § 26-3-7-18 Revocation of license; effect upon operation

Sec. 18. When a license is revoked, the licensee shall terminate in the manner prescribed by the director all arrangements covering the grain in the facility covered by the license, but shall be permitted, under the direction and supervision of the director or the director's designated representative, to deliver grain previously received. Formerly: Acts 1973, P.L.268, SEC.1; Acts 1974, P.L.120, SEC.11. As amended by Acts 1979, P.L.249, SEC.13; Acts 1982, P.L.155, SEC.12; P.L.191-1991, SEC.11; P.L.125-1997, SEC.40; P.L.114-2025, SEC.29.

Ind. Code § 26-3-7-19 Receipt of grain; ownership of deposited grain

Sec. 19. (a) A licensee shall issue a receipt or ticket for grain received. Grain received by a licensee shall be credited to the depositor on the books of the licensee within seven (7) days from the date of its delivery. If a ticket is issued on delivery of the grain for storage, a receipt shall be issued on demand, but no receipt shall be issued on grain bank grain. (b) The licensee is a bailee with respect to all stored grain. The person whose name appears on a receipt or a ticket has title to the stored grain evidenced by the receipt or ticket. Formerly: Acts 1973, P.L.268, SEC.1. As amended by Acts 1979, P.L.249, SEC.14; Acts 1982, P.L.155, SEC.13; P.L.125-1997, SEC.41.

Ind. Code § 26-3-7-20 Grain owned by licensee; receipts; transfer

Sec. 20. A licensee may issue a receipt for grain owned by the licensee in whole or in part, located in the licensee's facility. The negotiation, transfer, sale, or pledge of the receipt shall not be defeated by reason of the licensee's ownership. Formerly: Acts 1973, P.L.268, SEC.1. As amended by P.L.3-1989, SEC.150; P.L.125-1997, SEC.42.

Ind. Code § 26-3-7-21 Uniform Warehouse Receipts Act; application to transactions

Sec. 21. Except as provided by this chapter, and regardless of whether the grain was received for storage, shipping, or handling, IC 26-3-2 applies to all transactions involving or incidental to the issuance, negotiation, transfer, sale, endorsement, or other dealings with receipts, to transactions involving delivery or other disposition of grain, and to the rights, duties, liabilities, and privileges of licensees or others dealing with licensees. Formerly: Acts 1973, P.L.268, SEC.1. As amended by Acts 1982, P.L.155, SEC.14; P.L.125-1997, SEC.43.

Ind. Code § 26-3-7-22 Commingling of grain

Sec. 22. Different lots of the same type of grain delivered to a licensee may be commingled by type of grain unless the receipt or ticket states that the identity of the lot of grain is to be preserved. Formerly: Acts 1973, P.L.268, SEC.1. As amended by P.L.125-1997, SEC.44.

Ind. Code § 26-3-7-23 Return of grain to depositor

Sec. 23. Upon demand, after payment of all applicable charges, grain shall be returned to the depositor at the licensed facility where the grain was received unless agreed otherwise in writing. Formerly: Acts 1973, P.L.268, SEC.1; Acts 1974, P.L.120, SEC.12. As amended by P.L.125-1997, SEC.45.

Ind. Code § 26-3-7-24 Duplicate receipts; restriction; requisites; bond

Sec. 24. While a receipt or ticket issued under this chapter is outstanding and uncancelled by the issuing licensee, no other receipt or ticket shall be issued for the grain or any part of the grain that is covered by the receipt or ticket. However, if a receipt or ticket is lost, stolen, or destroyed the owner of the receipt or ticket is entitled to a new receipt that is a duplicate of the missing receipt or a new ticket that is a substitute for the missing ticket. The duplicate receipt or substitute ticket entitles the owner to all rights appertaining to the document for which it was issued, and shall state that it is in lieu of the former receipt or ticket and give the number and date of the former receipt or ticket. If the missing document was a negotiable receipt, the issuing licensee shall require an indemnity bond of double the market value of the grain covered by the missing receipt in a form and with the surety that the director may prescribe to fully protect all rights under the missing receipt. Formerly: Acts 1973, P.L.268, SEC.1. As amended by P.L.125-1997, SEC.46.

Ind. Code § 26-3-7-25 Terms of receipts

Sec. 25. Every warehouse receipt issued, whether paper or electronic, shall embody within its terms the following: (1) The type, grade, and quantity of the grain stored as established by the official grain standards of the United States, unless: (A) the identity of the grain is preserved in a special pile or special bin or otherwise; and (B) a mark identifying the preserved grain appears on the face of the receipt. (2) A statement that the receipt is issued subject to the Indiana Grain Buyers and Warehouse Licensing and Bonding Law, IC 26-3-7, and rules adopted under the Indiana Grain Buyers and Warehouse Licensing and Bonding Law. (3) A clause that reserves to the licensee the right to terminate storage and collect outstanding charges against any lot of grain that remains in storage after June 30 following the date of the receipt. (4) A clause that reserves to the licensee the right to terminate storage, shipping, and handling arrangements and collect outstanding charges upon the revocation of the licensee's license. (5) Other terms and conditions as provided in the Uniform Warehouse Receipts Acts. However, nothing contained in the Uniform Warehouse Receipts Act shall require a receipt issued for grain to specifically state the variety of the grain by name. (6) A clause that terminates storage on the date the license held by the licensee when the receipt was issued expires and reserves to the licensee the right to collect outstanding charges against any lot of grain. (7) Other provisions prescribed by the director. Formerly: Acts 1973, P.L.268, SEC.1; Acts 1974, P.L.120, SEC.13. As amended by P.L.125-1997, SEC.47; P.L.173-1999, SEC.11.

Ind. Code § 26-3-7-26 Terms of tickets

Sec. 26. Every ticket issued shall embody within its terms: (1) the name of the licensee to whom the grain was delivered; (2) the date the grain was delivered; (3) exact information concerning the type, net weight, and grade factors of the grain received; (4) a statement that the grain described in the ticket is to be taken into storage, is being delivered on contract, or is to be sold under other arrangements; (5) the name of the owner of the grain; and (6) other provisions prescribed by the director. Formerly: Acts 1973, P.L.268, SEC.1; Acts 1975, P.L.277, SEC.10. As amended by Acts 1982, P.L.155, SEC.15; P.L.125-1997, SEC.48; P.L.173-1999, SEC.12; P.L.114-2025, SEC.30.

Ind. Code § 26-3-7-26.5 Deferred pricing agreement; conditions

Sec. 26.5. A licensee may not: (1) enter into a deferred pricing agreement in connection with grain purchases that extends beyond the crop year for the delivered grain; or (2) transfer the deferred pricing agreement to a new deferred pricing agreement beyond the crop year for the delivered grain. As added by P.L.208-2021, SEC.6. Amended by P.L.114-2025, SEC.31.

Ind. Code § 26-3-7-27 Repealed

Formerly: Acts 1973, P.L.268, SEC.1. As amended by Acts 1982, P.L.155, SEC.16. Repealed by P.L.125-1997, SEC.57.

Ind. Code § 26-3-7-27.5 Notice of deficiency; informal meeting; revocation of license; penalty

Sec. 27.5. (a) For purposes of this section, the following apply: (1) "Unencumbered assets" means a licensee's unencumbered assets as demonstrated by the agency's inspection of the licensee's books and records. (2) "Unpaid balance of grain payables" means a licensee's unpaid balance of grain payables demonstrated by the agency's inspection of the licensee's books and records. (b) If an on-premises inspection of a licensee's books and records demonstrates that the licensee, as of the time of the inspection, did not have unencumbered assets with a value at least equal to eighty-five percent (85%) of the unpaid balance of grain payables covered by each license held by the licensee, then: (1) the director or the director's designated representative shall issue a notice of deficiency to the licensee; and (2) the licensee shall cure the unencumbered asset deficiency within ninety (90) days from the receipt of the notice. (c) Unencumbered assets may consist of the aggregate of any of the following: (1) Company owned grain. (2) Cash on hand. (3) Cash held on account in federally or state licensed financial institutions or in lending institutions of the Federal Farm Credit Administration. (4) Investments held in time accounts with federally or state licensed financial institutions. (5) Direct obligations of the United States government. (6) Balances in grain margin accounts determined by marking to market. (7) Balances due or to become due to the licensee on deferred pricing contracts. (8) Marketable securities, including mutual funds. (9) Irrevocable letters of credit that: (A) comply with the requirements of this chapter; and (B) are in addition to any letter of credit filed with the director to satisfy the deposit, bond, or other security requirements of this chapter. (10) Deferred pricing contract service charges due or to become due to the licensee. (11) Other evidence of proceeds from or of grain that is acceptable to the agency. (12) Seed inventory. (13) Other assets that the agency may include in rules adopted under section 38 of this chapter. (d) If a licensee has more than one (1) license, the unencumbered assets at the time of the inspections under subsection (b) must have a value at least equal to the sum of the amounts required under subsection (b) for each individual license held by the licensee. (e) If the licensee's demonstrated current unencumbered assets are less than or equal to eighty-five percent (85%) of the required amount or the licensee has not cured the unencumbered assets deficiency as required in subsection (b)(2), then the director shall hold an informal meeting in accordance with this chapter and, within thirty (30) days of the conclusion of the informal meeting, issue either: (1) a consent agreement that requires the licensee to take certain actions within a set period, not to exceed twelve (12) months, to remedy the current unencumbered assets deficiency, as the director deems necessary and appropriate; or (2) an order that revokes the license or licenses of the licensee. (f) If a licensee, after an informal meeting in subsection (e): (1) does not meet the requirements in subsection (e)(1), the director shall revoke; or (2) has an unencumbered asset deficiency that has continued to decline, the director may revoke; the license or licenses of the licensee. (g) Subject to section 31.8 of this chapter, the director shall assess a fine of one thousand dollars ($1,000) on a licensee that does not maintain the unencumbered asset requirement under subsection (b). (h) Nothing in this section precludes the agency from conducting an on-premises inspection of a licensee at any time the director may consider an inspection to be necessary or appropriate. As added by P.L.114-2025, SEC.32. Amended by P.L.23-2026, SEC.257.

Ind. Code § 26-3-7-28 Records and accounts; retention

Sec. 28. A licensee shall keep in a place of safety complete and correct records and accounts pertaining to the licensee's grain business. The licensee shall retain records and accounts for not less than five (5) years from the date of the final settlement of the transaction. Formerly: Acts 1973, P.L.268, SEC.1; Acts 1974, P.L.120, SEC.14. As amended by P.L.125-1997, SEC.49; P.L.114-2025, SEC.33.

Ind. Code § 26-3-7-29 Display of license or permit; schedule of charges; sign

Sec. 29. A licensee shall: (1) conspicuously display the licensee's license in the licensee's main office and at each facility included under the license; (2) conspicuously display in each operational office the approved schedule of charges for services; and (3) conspicuously display at each facility all charts and diagrams provided to the facility by the agency. Formerly: Acts 1973, P.L.268, SEC.1; Acts 1974, P.L.120, SEC.15. As amended by Acts 1982, P.L.155, SEC.17; P.L.125-1997, SEC.50.

Ind. Code § 26-3-7-30 Receipt forms; requests; cost; requisites for accountability

Sec. 30. All receipt forms shall be supplied by the director except where the director, in writing, approves the form and gives permission to a warehouse operator to have receipts printed. Requests for receipts shall be on forms furnished by the director and shall be accompanied by payment to cover the estimated cost of printing, packaging, and shipping, as determined by the director. Where privately printed, the printer shall furnish the director an affidavit showing the amount of the receipts printed, and the serial numbers thereof. All receipts remaining unused shall be recovered by the director or the director's designated representative if the license required by this chapter is revoked. Formerly: Acts 1973, P.L.268, SEC.1; Acts 1974, P.L.120, SEC.16. As amended by P.L.173-1999, SEC.13; P.L.64-2009, SEC.9; P.L.114-2025, SEC.34.

Ind. Code § 26-3-7-31 Grain shortages; appointment of receiver; notice of actions and orders

Sec. 31. (a) Whenever it appears to the satisfaction of the director that a licensee cannot meet the licensee's outstanding grain obligations owed to depositors, or when a licensee refuses to submit the licensee's records or property to lawful inspection, the director shall give notice to the licensee to do one (1) or more of the following: (1) Cover the shortage with grain that is fully paid for. (2) Give additional bond, letter of credit, or cash deposit as required by the director. (3) Submit to inspection as the director may deem necessary. (b) If the licensee fails to comply with the terms of the notice within five (5) business days from the date of its issuance, or within an extension of time that the director may allow, the director may petition the circuit court, superior court, or probate court of the Indiana county where the licensee's principal place of business is located seeking the appointment of a receiver. If the court determines in accordance with IC 32-30-5 that a receiver should be appointed, upon the request of the licensee the court may appoint the agency or its representative to act as receiver. The agency or its representative may not be appointed as receiver except upon the request of the licensee. If the agency or its representative is appointed, any person interested in an action as described in IC 32-30-5-2 may after twenty (20) days request that the agency or its representative be removed as receiver. If the agency or its representative is not serving as receiver, the receiver appointed shall meet and confer with representatives of the agency regarding the licensee's grain related obligations and, before taking any actions regarding those obligations, the receiver and the court shall consider the agency's views and comments. (c) The director shall inform the corporation of any: (1) notice or order issued; or (2) action taken; under this section. Formerly: Acts 1973, P.L.268, SEC.1; Acts 1974, P.L.120, SEC.17. As amended by Acts 1979, P.L.249, SEC.15; P.L.125-1997, SEC.51; P.L.1-1998, SEC.139; P.L.173-1999, SEC.14; P.L.2-2002, SEC.80; P.L.84-2016, SEC.115; P.L.145-2017, SEC.10; P.L.114-2025, SEC.35.

Ind. Code § 26-3-7-31.2 Procedures for informal meetings; consent agreements

Sec. 31.2. (a) If the director determines that an informal meeting under this chapter is necessary or appropriate, the following procedures apply: (1) The director shall send a notice of an informal meeting to the licensee. The notice shall set forth the following: (A) Each reason underlying the director's determination that an informal meeting is necessary. (B) The subject matter to be discussed at the informal meeting. (C) A place and time mutually agreed upon, within thirty (30) days of the date of the notice. (D) If appropriate, any documents, information, or other materials to be produced in a manner and at a time and place designated in the notice. (2) The director and the recipient may, at any time before an informal meeting, hold a telephone conference or other informal discussion as necessary to determine the location, date, and time of the informal meeting. (3) An informal meeting under this section must be conducted in person or via a virtual conference with audio, video, and the ability to share, review, and edit documents or other materials in real time. (4) Minutes summarizing the topics and points discussed, including proposed agreements or remedial actions raised or discussed by the informal meeting participants, must be taken by the agency. A copy of the minutes and any other materials from the informal meeting must be distributed to all participants within five (5) days of the informal meeting. (b) A consent agreement may be entered into by the agency and the licensee in which the licensee agrees to take or refrain from certain actions in relation to the subject matter of the informal meeting. Any consent agreement at a minimum must contain the following: (1) Specific description of the underlying facts giving rise to the consent agreement. (2) Specific steps to be taken by the licensee to rectify or address the subject matter of the informal meeting. (3) Specific deadlines or periods by or within which the licensee is to act, refrain from acting, or perform under the consent agreement. (4) Specific deadlines by which the licensee is to notify the agency that the licensee has performed, in whole or in part, under the consent agreement and, as applicable, that the licensee believes it has addressed the subject matter of the informal meeting. (5) Specific acts or omissions that will constitute a breach of the agreement and specific remedies available to the agency and the licensee to address a breach of the agreement. (c) The existence and content of an informal meeting under subsection (a), along with the minutes of the meeting and any other related documents, information, or material, and a consent agreement under subsection (b) is confidential. (d) Any offers or discussions from an informal hearing under subsection (a) are protected under the Indiana Trial Rules of Evidence Trial Rule 408. As added by P.L.114-2025, SEC.36.

Ind. Code § 26-3-7-31.6 Revocation of license; revocation procedures

Sec. 31.6. (a) The director may revoke a license by issuing a revocation order upon notice. (b) If a license is revoked under this chapter, the licensee shall do the following: (1) Immediately cease all activities covered by the revoked license. (2) Immediately remove all public indications regarding the existence or effectiveness of the revoked license, including the copy of the license physically on display at a facility. (3) Promptly turn over and deliver to the director or the director's designated representative all books, records, and other property related to or containing information on the activities and any obligations covered by the revoked license. (4) Comply with any additional terms and conditions determined by the director that the revocation order imposes on the licensee. (5) Comply with the orders from the director respecting the revoked license, any obligations or activities covered by the revoked license, or the claims administration process. (c) Notwithstanding anything to the contrary in this chapter, a license shall be revoked automatically if the licensee has done any of, and as of the respective dates or times of, the following: (1) Has filed a voluntary bankruptcy petition under Chapter 7 of the federal Bankruptcy Code, as of the date the licensee filed the petition. (2) Has filed: (A) a voluntary bankruptcy petition under Chapter 11, 12, or 13 of the federal Bankruptcy Code; and (B) within seven (7) days of the filing of the petition, either: (i) a liquidating plan not predicated or premised on a prior sale process under Chapter 3 of the federal Bankruptcy Code; or (ii) an affidavit of an owner, member, director, officer, or executive of the licensee stating that the licensee intends to propose a liquidating plan without first conducting a sale process under Chapter 3 of the federal Bankruptcy Code; as of the date the licensee filed the liquidating plan or affidavit. (3) Is the subject of an involuntary bankruptcy petition if the bankruptcy court has entered an order for relief against the licensee, as of the date and time of the order for relief. (4) Is the subject of a receivership order in any state court, as of the date and time of the receivership order. (5) Is the assignor in an assignment for the benefit of creditors in any state court, as of the date and time of the filing of pleading initiating the proceeding. (6) Is declared by any court of competent jurisdiction to be insolvent, as of the date and time of the order so declaring. (7) Has entered into an agreement obligating the licensee to discontinue and liquidate its business, or the portion of its business covered by the license, without legal or equitable proceedings, as of the effective date of the agreement. (8) Has stated publicly and in writing that it is in the process of discontinuing its business, or the portion of its business covered by the license, or will be liquidating immediately, as of the date and time the writing is published or made widely available. As added by P.L.114-2025, SEC.37. Amended by P.L.23-2026, SEC.258.

Ind. Code § 26-3-7-31.8 Notice of fines

Sec. 31.8. (a) If a fine is assessed under this chapter, the director shall issue a notice to the person or licensee containing the following: (1) The reasons the director assessed the fine, including citations to the applicable provisions of this chapter under which the fine has been assessed. (2) The amount of the assessed fine. (3) The requirement that the assessed fine must be fully paid within thirty (30) days of the notice being sent. (4) The manners of payment acceptable to the agency and any other necessary payment instructions. (5) A full copy of this section. (b) If a person or licensee fails to pay the assessed fine under this section, the director may apply any penalty authorized in this chapter, including revocation of a license. As added by P.L.114-2025, SEC.38.

Ind. Code § 26-3-7-32 Injunctions; unlawful removal of grain; temporary restraining orders

Sec. 32. (a) The director may apply for, and the courts of this state are vested with jurisdiction to issue, a temporary or permanent injunction against the business operation of a licensee, or the issuance of receipts or tickets without a license and against interference by any person with the director, the director's designated representative, or a receiver appointed under section 31 of this chapter, in the performance of their duties and powers under this chapter. (b) Upon a determination by the director that there is reasonable cause to believe that a licensee is unable to meet the licensee's storage or other grain obligations, and that the licensee is removing, or the director has reasonable cause to believe that the licensee may remove, grain from the licensed premises, the director may, under the conditions provided in, and in accordance with, the Indiana Rules of Trial Procedure, seek from the circuit court, superior court, or probate court of the Indiana county in which the licensee has the licensee's principal place of business a temporary restraining order preventing the further sale or movement of any grain and requiring that proceeds from grain sales received after the issuance of the temporary restraining order should be held in the form in which they are received by the licensee and kept separate from all other funds held by the licensee. Formerly: Acts 1973, P.L.268, SEC.1; Acts 1974, P.L.120, SEC.18. As amended by Acts 1979, P.L.249, SEC.16; Acts 1982, P.L.155, SEC.18; P.L.191-1991, SEC.12; P.L.125-1997, SEC.52; P.L.84-2016, SEC.116.

Ind. Code § 26-3-7-32.5 Notice requirements

Sec. 32.5. If the director or the director's designated representative is required or permitted to give notice under this chapter, the notice must contain, in addition to information or content required to be included in the notice under this chapter, the following: (1) The date on which the notice is issued. (2) The full name and contact information, including telephone number and electronic mail address, for the director, the director's designated representative, or the other employee or agent of the agency responsible for the notice. (3) The full name and contact information, as available to the agency, for the recipient of the notice. (4) The reasons for the notice, including the applicable sections of this chapter under which the fine has been assessed. (5) Any deadlines or other times within which the recipient of the notice may or must act under this chapter. (6) A list of each person to whom the notice is being sent. (7) A list of any enclosures included with the notice. (8) The signature of the director, the director's designated representative, or the other employee or agent of the agency responsible for the notice. As added by P.L.114-2025, SEC.39. Amended by P.L.23-2026, SEC.259.

Ind. Code § 26-3-7-33 Examination of warehouse; fee; expenses

Sec. 33. In addition to all other inspections and investigations authorized by this chapter, the director or the director's designated representative may, upon request of any person having an interest in grain in a licensed warehouse, cause the warehouse to be examined. The director or the director's representative may check the outstanding receipts and tickets against the grain on hand and advise each depositor of any shortage with respect to any grain in which the person has an interest. If the cost of the examination is more than twenty-five dollars ($25.00), the person requesting the examination shall pay the additional cost to the director unless a shortage is found to exist. Formerly: Acts 1973, P.L.268, SEC.1; Acts 1974, P.L.120, SEC.19. As amended by P.L.125-1997, SEC.53.

Ind. Code § 26-3-7-34 Violations

Sec. 34. (a) A person who knowingly or intentionally violates or fails to comply with this chapter commits a Class A misdemeanor. Each day a person violates this chapter constitutes a separate violation. (b) A person who knowingly or intentionally issues a receipt or ticket, knowing that the grain for which the receipt or ticket is issued has not been actually received at the licensed warehouse, commits a Class A misdemeanor. A person who issues a duplicate, or additional negotiable receipt for grain, knowing that a former negotiable receipt for the same grain or any part of the grain is outstanding and uncancelled, except in the case of a lost, stolen, or destroyed receipt, as provided in section 24 of this chapter, commits a Class A misdemeanor. A person who fraudulently represents, alters, or counterfeits any license provided for in this chapter commits a Level 6 felony. (c) Except in case of sale or other disposition of the grain in lawful enforcement of the lien on grain that attaches under this chapter or on a licensee's lawful termination of storage, shipping, or handling agreements, or except as permitted by the rules adopted by the director under section 38 of this chapter to effectuate the purposes of this chapter: (1) a person who knowingly or intentionally delivers grain out of a licensed facility, knowing that a negotiable receipt, the negotiation of which would transfer the right of possession of the grain is outstanding and uncancelled, without obtaining the possession of the receipt at or before the time of delivery, commits a Level 6 felony; and (2) a person who knowingly or intentionally delivers grain out of a licensed facility, knowing that a non-negotiable receipt or ticket is outstanding and uncancelled, without the prior written approval of the person lawfully entitled to delivery under the non-negotiable receipt or ticket and without delivery being shown on the appropriate records of the licensee, commits a Level 6 felony. (d) A person who fraudulently issues a receipt, a ticket, or a weight or grade certificate, knowing that it contains a false statement, or who issues a receipt for grain owned solely or jointly by the person and does not state the fact of the person's ownership in the receipt, commits a Class A misdemeanor. (e) A person who recklessly changes a receipt or ticket subsequent to issuance, except for notation by the licensee of partial delivery, commits a Class B misdemeanor. (f) A person who knowingly or intentionally deposits grain to which the person does not have title or upon which there is a lien or mortgage and who accepts for the grain a receipt or ticket, without disclosing the lack of title or the existence of the lien or mortgage, commits a Level 6 felony. (g) A person commits a Class A misdemeanor who knowingly or intentionally: (1) engages in the business of being a grain buyer or operates a warehouse without a valid license issued by the director; (2) engages in the business of being a grain buyer or operates a warehouse without a sufficient cash deposit, letter of credit, or surety bond on file with and in a form approved by the director; or (3) engages in the business of being a grain buyer or operates a warehouse while in violation of the rules adopted by the director. (h) A person commits a Class A misdemeanor who willfully makes or causes to be made a false entry or statement of fact in an application or report filed with the director. (i) The director may revoke the license of a licensee that uses an unlicensed facility to store or handle grain or commits another violation of this chapter. (j) The agency shall report a licensee that is suspected of a criminal violation under this chapter to the county prosecuting attorney or the attorney general. Formerly: Acts 1973, P.L.268, SEC.1. As amended by Acts 1978, P.L.2, SEC.2608; Acts 1979, P.L.249, SEC.17; Acts 1981, P.L.232, SEC.2; Acts 1982, P.L.155, SEC.19; P.L.139-1996, SEC.11; P.L.125-1997, SEC.54; P.L.158-2013, SEC.295; P.L.114-2025, SEC.40.

Ind. Code § 26-3-7-35 Grain buyer license required

Sec. 35. A person licensed under the warehouse act must also have a valid grain buyer license to do business in Indiana as a grain buyer. Formerly: Acts 1973, P.L.268, SEC.1. As amended by P.L.191-1991, SEC.13; P.L.125-1997, SEC.55.

Ind. Code § 26-3-7-36 Deposit of fees

Sec. 36. All fees received by the director under this chapter shall be deposited within thirty (30) days of receipt. Formerly: Acts 1973, P.L.268, SEC.1. As amended by Acts 1979, P.L.17, SEC.53; P.L.139-1996, SEC.12.

Ind. Code § 26-3-7-38 Rulemaking authority

Sec. 38. The director or agency may adopt rules under IC 4-22-2 to carry out the purposes and intent of this chapter, including the following: (1) Inspections permitted under this chapter. (2) The receipt and retention of cash deposits. (3) The distribution of interest that may accrue from funds held by the agency for the payment of claims. (4) Acceptable terms for letters of credit. (5) Fines for violations of this chapter. As added by P.L.114-2025, SEC.41.

Ind. Code § 26-3-7-39 Attorney general

Sec. 39. The office of the attorney general shall provide legal assistance to the division as requested by the director, including representation for petition for reviews filed under IC 4-21.5. As added by P.L.114-2025, SEC.42.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/26Fetched: 10/17/2026

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