Section 824IAC2-14-11. Expiration date on warehouse receipts; sale of grain

   (a) When the expiration blank on a warehouse receipt has been filled in with a date (month, day, and year) and the depositor or owner fails to reclaim, re-store, accept redelivery, sell it, or otherwise dispose of or provide for the grain, the grain may be sold by the licensee at the current market price and the warehouse receipt deemed to be cancelled. The sale proceeds, less outstanding charges due to the licensee for the storage and handling of the grain and the costs of the sale, if any, shall be held in an escrow account to be established by the licensee in accordance with this section for the account of the depositor or owner.

  (b) Every licensee who sells grain due to a depositor or owner's failure to otherwise provide for the grain upon the expiration of rights to it under a receipt shall keep and maintain a trust or escrow account to be named as such and in which the licensee shall deposit the net sales proceeds received from the sale of the grain. All moneys shall be held by the licensee for the account of the depositor and shall be held and invested in accounts with federally or state licensed financial institutions. The licensee shall have no obligation to seek the highest rate of interest, dividend, or other income from the escrowed account. Any income actually paid to the escrowed account shall be added to the escrow and become the property of the depositor or owner of the grain.

  (c) The licensee shall keep detailed books and records of the moneys held subject to his escrow or trust account with the following information:

(1) Name of each depositor or owner.

(2) Amount of moneys held on account of each depositor.

(3) The manner in which the moneys are being held and invested.

  (d) The licensee shall not use any escrow or trust accounts for any other use including the licensee's personal or business funds.

  (e) The licensee shall pay over the net sales proceeds held on account of a depositor or owner together with interest, dividend, or other income actually paid only upon the presentment of the receipt issued with respect to the grain sold. The receipt shall then be cancelled and retained as provided in this rule. (Indiana Grain Buyers and Warehouse Licensing Agency; 824 IAC 2-14-11; filed Jan 19, 2001, 3:04 p.m.: 24 IR 1666; readopted filed Nov 16, 2007, 2:00 p.m.: 20071212-IR-824070667RFA; readopted filed Nov 27, 2013, 1:30 p.m.: 20131225-IR-824130492RFA)