North Dakota Grain Processor Resolution

HCR 3084 is a new resolution that was implemented in the State of North Dakota. The new resolution leads the Legislative Council to study the surety bond requirement for grain warehouses and buyers, as well as ethanol plants and grain processors. HCR 3084 also directs the Council to discover methods to lessen the financial risk of participants in the sale, purchase, management, and processing of grain, plus the sale of grain to ethanol plants/processors and the payment for grain by such organizations. The study must concentrate on whether there is a necessity for new or amplified bonding and indemnification requirements to decrease these financial risks. The resolution also states that “even if all bonding requirements are met, there is no guarantee that sufficient assets are available to satisfy all claims in the event of insolvency.”