ND Grain Dealers AssociationJanuary 20, 2014

License TypesState Grain Warehouse

- 176 firms with 285 locationsFederal Warehouse (facility based grain buyer)

- 20 firms with 113 locationsRoving Grain Buyer

- 77 licensees

Grain Warehouse Exam Procedure

Grain Inventory - Must cover storage obligations

Licensed Space - Has capacity changed?

- Does bond need to be changed?

Grain Warehouse Exam Procedure

◦Warehouse Documents◦ - contracts◦ - payables◦ - storage lists◦ - document check

FAIL FAIL

Grain Warehouse Exam Procedures

◦General Observations

Required Items to Post

Warehouse Condition

Memorandum of Adjustment

◦Conditions to correct

Most common are:

Unsigned credit-sale contracts

Failure to convert scale tickets

Out of Compliance

◦What’s the Big Deal?

Duties and Powers of Commission

◦Exercise general supervision◦Investigate all complaints◦Examine & inspect licensed warehouses◦Requires filing of reports pertaining to

warehouse operations◦Make all proper rules for carrying out &

enforcing all public warehouse laws

In Summary

The purpose of the Licensing Division of the PSC is to ensure licensees obey the rules, treat everyone fairly, & disperse equity in case of insolvency

A PSC exam does not guarantee that a warehouse is solvent

No one can or should protect your $$$ like you can