(1) The
application for the license shall include:
(a) Name of the owner of the public grain
warehouse;
(b) The name of the
operator of the warehouse;
(c) The
location of the warehouse;
(d) The
storage capacity of the warehouse;
(e) The annual volume of storage at the
warehouse over the past twelve (12) months;
(f) The types of grain stored in the
warehouse over the past twelve (12) months.
(2) The application shall be accompanied by a
surety bond or irrevocable letter of credit or certificate of deposit which
shall be in an amount equivalent to twenty cents ($.20) per bushel storage
capacity or equal to 10% of the aggregated dollar amount paid by the applicant
(to the nearest $1,000) to producers for grain purchased from them during the
applicant's last completed fiscal year, which ever is larger. In the case of an
applicant who has been engaged in business as a grain dealer or warehouseman
for less than one year or who has not heretofore engaged in such business, 10%
of the estimated aggregate dollar amount to be paid by the applicant to
producers for grain purchased from them during the next fiscal year. These
bonding requirements are subject to a twenty thousand dollar ($20,000) minimum
and a one hundred thousand ($100,000) dollar maximum limit.
(3) Any warehouseman who is of the opinion
that his net worth and assets are sufficient to guarantee payment to producers
for grain stored or purchased by him may request the department relieve it from
the obligation of filing a bond in excess of the minimum bond of $20,000. Such
request shall be accompanied by a reviewed financial statement prepared by a
certified public accountant or a licensed public accountant and shall include a
balance sheet and an income statement of retained earnings, cash flow
statements and notes to financial statements.
(4) The department may waive that portion of
the required bond in excess of $20,000; if the department is otherwise
satisfied as to the financial ability and resources of the applicant; if the
financial statements submitted disclose a net worth of an amount equal to at
least 3 times the amount of bond required; and if the applicant or licensee has
met the following requirements:
(a) The
applicant or licensee's financial statement and balance sheet show a current
ratio of total adjusted current assets to the total adjusted current
liabilities of at least one to one. Adjusted current assets shall be calculated
by deducting from the stated current assets shown on the balance sheet
submitted by the applicant or licensee, any non-liquid current assets
including, but not limited to, notes receivable from officers and stock
holders, stock subscriptions receivable, intra company receivables or
receivables from an affiliate or any related party receivables. Any disallowed
asset shall be netted against any related liability and the net result , if an
asset, shall be subtracted from the current assets, or if a liability, it shall
remain an adjusted current liability.
(b) The financial statement and balance sheet
show an adjusted debt to adjusted equity ratio of not more than 3 to one when
calculated as follows:
1. Adjusted debt shall
be obtained by totaling current and long term liabilities and reducing the
amount of current liabilities, up to the amount of current liabilities, by the
liquid assets appearing in the current assets section of the balance sheet
submitted by the applicant or licensee. Liquid assets shall include but not be
limited to cash, marketable securities, accounts receivable from the sale of
grain, grain in transit, drying and storage receivables on stored grain, grain
inventory, margin accounts and tax funds.
2. Adjusted equity shall be calculated by
deducting from the stated net worth shown on the balance sheet submitted by the
applicant after disallowing any non-liquid current assets including, but not
limited to, notes receivable from officers or stockholders, accounts receivable
from officers or stockholders, stock subscriptions receivable, intra-company
receivables or receivables from an affiliate or any other related party
receivables. Any disallowed asset shall be netted against any related liability
and the net result, if an asset, shall be subtracted from the financial
statement, or if a liability, it shall remain a liability.
(c) Such person's financial statement and
balance sheet show an adjusted equity of at least $50,000 as determined
pursuant to the method specified in paragraph (2), subparagraph (b). However,
in the case of a grain dealer whose net worth is not equal to three times the
amount of the bond required, the. department may allow such grain dealers to
waive, in $1,000 increments, a portion of the bond required in excess of
$20,000. The percentage factor to be applied to the bond required in excess of
$20,000 shall be determined by dividing actual net worth by the net worth
required to waive all bond in excess of $20,000. If the result of this
computation provides a percentage factor of 80 percent or greater, then that
same percentage of the amount in excess of $20,000 may be waived. The grain
dealer shall then provide to the department a surety bond in the amount of
$20,000 plus any additional bond required in excess thereof.
(5) Having a license as a
warehouse in accordance with this chapter shall mean that warehouse is also
licensed as a dealer under chapter 0080-5-13.
