Ind. Code ch. 26-4-6

Ind. Code ch. 26-4-6
in effect

Ind. Code § 26-4-6-1 Restrictions on use of fund; nonseverability of provision

Sec. 1. (a) The money in the fund: (1) is not available for any purpose other than the payment of claims approved by the board or refunds to producers who do not want to participate in the fund; and (2) may not be transferred to any other fund. (b) The limiting and nontransferability provision of subsection (a) is declared to be nonseverable from the whole of this article. If subsection (a) is held to be invalid, repealed, or substantially amended, this article shall immediately become invalid and the money remaining in the fund shall be distributed to participants in the fund in a manner that is proportional to the amount of producer premiums each producer paid to the fund. As added by P.L.250-1995, SEC.1. Amended by P.L.75-2010, SEC.27; P.L.60-2015, SEC.19.

Ind. Code § 26-4-6-3 Compensation from fund; extension

Sec. 3. (a) Except as provided in subsection (b), within ninety (90) days of the board's approval of a claim, the board shall compensate from the fund, in an amount described in section 4 of this chapter and in the manner described in subsection (c), a claimant who has incurred a financial loss or storage loss due to the revocation of a license of a grain buyer or warehouse operator licensed under IC 26-3-7. (b) The time for payment may be extended if the board and claimant mutually agree and put the terms of the payment in writing. (c) 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 board prior written notice of the security interest with respect to the grain described in subdivision (1) sufficient to give the board a reasonable opportunity to cause the issuance of a joint check under this subsection; the board may compensate the claimant described in subdivision (1) in the amount to which the claimant is entitled under section 4 of this chapter by causing the 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.250-1995, SEC.1. Amended by P.L.115-1999, SEC.5; P.L.1-2002, SEC.102; P.L.75-2010, SEC.28; P.L.114-2025, SEC.73.

Ind. Code § 26-4-6-4 Percentage of compensation; partial payments; storage loss

Sec. 4. (a) A claimant who has incurred a storage loss due to the revocation of a warehouse operator license under IC 26-3-7 is entitled to be compensated by the board from the fund for one hundred percent (100%) of the storage loss incurred less all credits and offsets and any producer premium that would have been due on the sale of the grain. The gross amount of the storage loss shall be as determined by the agency for warehouses licensed under IC 26-3-7 or by the United States Department of Agriculture for warehouses licensed under the United States Warehouse Act. The warehouse operator, agency, and claimants may submit to the board evidence related to outstanding charges against stored grain. If the evidence is submitted, the agency shall determine the storage loss payable by the board. However, the outstanding charges may not include uncollected storage charges. (b) Before a storage loss may be paid, the producer must provide to the board evidence that storage fees were paid to the facility for the time during which the grain was stored. The board shall use the following minimum storage fees to determine the storage loss: (1) Barley and barley seed: Five cents ($0.05) per month, per bushel. (2) Canola and canola seed: Five cents ($0.05) per month, per bushel. (3) Corn and corn seed: Five cents ($0.05) per month, per bushel. (4) Lentils and lentil seed: Five cents ($0.05) per month, per bushel. (5) Oats and oat seed: Five cents ($0.05) per month, per bushel. (6) Popcorn and popcorn seed: Ten cents ($0.10) per month, per bushel. (7) Rye and rye seed: Five cents ($0.05) per month, per bushel. (8) Sorghum and sorghum seed: Five cents ($0.05) per month, per bushel. (9) Soybeans and soybean seed: Fifteen cents ($0.15) per month, per bushel. (10) Sunflower and sunflower seed: Five cents ($0.05) per month, per bushel. (11) Wheat and wheat seed: Five cents ($0.05) per month, per bushel. (12) All other field crops and other field crop seed: Five cents ($0.05) per month, per bushel. (c) A claimant who has incurred a financial loss due to the revocation of a license of a grain buyer is entitled to be compensated by the board from the fund for eighty percent (80%) of the loss incurred less all credits and offsets and any producer premium that should have been due on the sale of the grain. The board shall determine the loss incurred in the following manner: (1) For grain that has been priced, the loss shall be the value of the priced grain less any outstanding charges against the grain. (2) For grain sold to a grain buyer, where the title to the grain has passed to the grain buyer, who is also a warehouse operator and that has not been priced, the loss shall be established using the price determined for the storage obligations. (3) For grain sold to a grain buyer who is not a warehouse operator and that has not been priced, the loss shall be established using a price determined by the agency using the same procedures used by the agency to determine the price at the warehouse. (d) If a producer appeals under IC 4-21.5-3 an order issued by the director under IC 26-3-7-16.5 that postpones the agency from notifying the board of the amount of loss for proven claimants under IC 26-3-7-16.5(m), the board may issue partial payments to any claimants who have not appealed their claims. As added by P.L.250-1995, SEC.1. Amended by P.L.75-2010, SEC.29; P.L.145-2017, SEC.21; P.L.114-2025, SEC.74.

Ind. Code § 26-4-6-6 Subrogation of claim

Sec. 6. A claimant compensated under this chapter is required to subrogate to the board or corporation all the claimant's rights to collect on a bond issued under IC 26-3-7 or the United States Warehouse Act and all the claimant's rights to any other compensation arising from the revocation of a license of the grain buyer or warehouse operator. The claimant shall assign all the claimant's rights, title, and interest in any judgment concerning the revocation of a license to the board or corporation. As added by P.L.250-1995, SEC.1. Amended by P.L.173-1999, SEC.20; P.L.75-2010, SEC.30; P.L.145-2017, SEC.22; P.L.114-2025, SEC.75.

Ind. Code § 26-4-6-7 Denial of claim

Sec. 7. The board shall deny the payment of compensation under this chapter to a claimant who has incurred a financial loss or storage loss due to the revocation of a license of a warehouse or grain buyer when the board determines the existence of any of the following: (1) The claimant as payee has failed to present for payment a negotiable instrument issued as payment for grain within ninety (90) days from the date the negotiable instrument is tendered to the claimant in satisfaction of obligations for grain purchased by the licensed grain establishment. (2) The claimant has engaged in conduct or practices that differ from generally accepted marketing practices within the grain industry, as determined by a majority of the board, to an extent that the claimant's actions have substantially contributed to the claimant's loss. The Indiana grain indemnity board may consider whether contracts not excluded under IC 26-3-7 are to be generally accepted marketing practices within the grain industry. As added by P.L.250-1995, SEC.1. Amended by P.L.139-1996, SEC.13; P.L.114-2025, SEC.76.

Ind. Code § 26-4-6-8 Duties of board following failure to pay by warehouse or grain buyer

Sec. 8. After the agency has determined that a grain buyer or warehouse has defaulted payment or had its license revoked, the board shall have the following duties: (1) Determine the valid claims and the amount of such claims to be paid to claimants for financial losses that were incurred due to the revocation of a license of a grain buyer or warehouse operator. (2) Investigate and question claimants as to their marketing methods and the losses claimed by the claimants. (3) Obtain credible documentation of any and all losses claimed by the claimants. (4) Document, in writing, each claim by having the following information presented and approved by the board: (A) Name of the claimant. (B) How long the grain had been stored or sold. (C) If title passed, at what price the financial loss was determined. (D) If stored, at what price the financial loss was determined. (E) Whether the financial loss was a result of normal marketing practices. Any information submitted under this subdivision by the claimant must be signed and affirmed under the penalties for perjury. (5) Authorize payment of money from the fund when necessary for the purpose of compensating claimants in accordance with the provisions of this chapter. (6) Collect money through subrogated claims against bonds filed under IC 26-3-7 in the place of claimants who collected for a loss incurred due to the revocation of a license of a warehouse or grain buyer. (7) Borrow money as authorized under IC 26-4-3-9 if the fund has insufficient money to cover approved claims. (8) Deposit into the fund any remaining grain assets of a grain buyer or warehouse operator whose license has been revoked for the purpose of repayment to the fund the money used to pay claimants, subject to any priority lien right a holder of a mortgage, security interest, or other encumbrance may possess under any other applicable law. Any repayment into the fund may not exceed the principal amount paid to claimants plus interest at the rate paid on ninety (90) day United States Treasury bills. (9) If the amount in the fund is insufficient to pay all approved claims in accordance with this chapter and the board is unable to borrow funds for whatever reason, authorize payment of all the approved claims on a pro rata basis. As added by P.L.250-1995, SEC.1. Amended by P.L.173-1999, SEC.21; P.L.75-2010, SEC.31; P.L.114-2025, SEC.77.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/26Fetched: 10/17/2026