TITLE 69

WAREHOUSES

CHAPTER 2

BONDED WAREHOUSE LAW

69-256.  Creation of indemnity fund — Uses. (1) There is hereby established within the dedicated fund a fund to be known as the commodity indemnity fund. The commodity indemnity fund shall consist of assessments remitted by producers pursuant to the provisions of this chapter and any interest or earnings on the fund balance.

(2)  All assessments shall be paid to the department and shall be deposited in the commodity indemnity fund. Assessments shall be paid solely by producers who deposit or deliver a commodity with a warehouse or sell to a dealer or warehouse. A delivery of commodity between producers, none of which are commodity dealers or warehousemen, is exempt from the collection and payment of assessment. The state treasurer shall be the custodian of the commodity indemnity fund. Disbursements shall be on authorization of the director. No appropriation is required for disbursements from this fund.

(3)  The commodity indemnity fund and accruing interest shall be used exclusively for purposes of paying claimants pursuant to this chapter and chapter 5, title 69, Idaho Code, and paying necessary expenses and costs of administering the commodity indemnity fund. Provided however, that each year, accrued interest for that year shall be applied to pay necessary expenses and costs of administering the fund, regardless of the amount, to the extent of available accrued interest. In the event the accrued interest is insufficient to pay the necessary expenses and costs of administering the fund in any particular year, then accrued interest shall first be applied to those costs and expenses. The remaining costs and expenses will be paid with principal from the commodity indemnity fund. In no event, however, shall payments from principal in any given year exceed the sum of two hundred fifty thousand dollars ($250,000). The interest accumulated by the fund may be paid to the department and to the state treasurer to defray costs of administering the warehouse and dealer program and the commodity indemnity fund. The interest accumulated by the fund and, if necessary, a portion of the fund, may be used to defray the cost of reinsuring the fund at the discretion of the director. The state of Idaho shall not be liable for any claims presented against the fund.

History:

[69-256, added 1988, ch. 350, sec. 2, p. 1036; am. 1990, ch. 183, sec. 6, p. 404; am. 2001, ch. 304, sec. 10, p. 1108; am. 2002, ch. 259, sec. 37, p. 775.]