Sec. 16. (a) A licensee shall have and maintain a current asset to current liability ratio of one to one (1:1) and shall maintain, as evidenced by the financial statement required by section 6 of this chapter, the following minimum positive net worth:
(1) For a grain bank, minimum positive net worth is at least one hundred thousand dollars ($100,000).
(2) For a warehouse, minimum positive net worth is at least equal to the sum of:
(A) one hundred thousand dollars ($100,000); and
(B) ten cents ($0.10) multiplied by the bushel storage capacity of the warehouse.
(3) For a grain buyer, minimum positive net worth is:
(A) one hundred thousand dollars ($100,000); or
(B) five cents ($0.05) multiplied by the total number of bushels of grain purchased by the grain buyer during the grain buyer's most recent fiscal year;
whichever is greater.
(4) For a buyer-warehouse that has a bushel storage capacity of less than one million (1,000,000) bushels or purchases less than one million (1,000,000) bushels of grain per year, minimum positive net worth is:
(A) the sum of:
(i) one hundred fifty thousand dollars ($150,000); and
(ii) ten cents ($0.10) multiplied by the bushel storage capacity of the buyer-warehouse; or
(B) five cents ($0.05) multiplied by the total number of bushels of grain purchased by the buyer-warehouse during the buyer-warehouse's most recent fiscal year;
whichever is greater.
(5) For a buyer-warehouse that has a bushel storage capacity of at least one million (1,000,000) bushels or purchases at least one million (1,000,000) bushels of grain per year, minimum positive net worth is:
(A) the sum of:
(i) two hundred thousand dollars ($200,000); and
(ii) ten cents ($0.10) multiplied by the bushel storage capacity of the buyer-warehouse; or
(B) five cents ($0.05) multiplied by the total number of bushels of grain purchased by the buyer-warehouse during the buyer-warehouse's most recent fiscal year;
whichever is greater.
(b) Except as provided in section 10 of this chapter, if a licensee is required to show additional net worth to comply with this section, the licensee may satisfy the requirement by adding to the amount of the bond, letter of credit, or cash deposit required under section 10 of this chapter an amount equal to the additional net worth required or provide another form of surety as permitted under the rules of the agency.
(c) The director may adopt rules under IC 4-22-2 to provide that a narrative market appraisal that demonstrates assets sufficient to comply with this section may satisfy the minimum positive net worth requirement.
Formerly: Acts 1973, P.L.268, SEC.1. As amended by Acts 1979, P.L.249, SEC.10; P.L.125-1997, SEC.34; P.L.253-1997(ss), SEC.26; P.L.173-1999, SEC.7; P.L.64-2009, SEC.8; P.L.60-2015, SEC.11.