203C.3 - APPOINTMENT OF DEPARTMENT AS RECEIVER.
203C.3 APPOINTMENT OF DEPARTMENT AS RECEIVER.
1. The department in its discretion may, following summary
suspension of a license under section 203C.10, or following a
suspension or revocation of a license as otherwise provided in
section 203C.10 or 203C.11, file a verified petition in the district
court requesting that the department be appointed as a receiver to
take custody of commodities stored in the licensee's warehouse and to
provide for the disposition of those assets in the manner provided in
this chapter and under the supervision of the court. The petition
shall be filed in the county in which the warehouse is located. The
district court shall appoint the department as receiver. Upon the
filing of the petition the court shall issue ex parte such temporary
orders as may be necessary to preserve or protect the assets in
receivership, or the value thereof, and the rights of depositors,
until a plan of disposition is approved.
2. A petition filed by the department under subsection 1 shall be
accompanied by the department's plan for disposition of stored
commodities. The plan may provide for the pro rata delivery of part
or all of the stored commodities to depositors holding warehouse
receipts or unpriced scale weight tickets, or may provide for the
sale under the supervision of the department of part or all of the
stored commodities for the benefit of those depositors, or may
provide for any combination thereof, as the department in its
discretion determines to be necessary to minimize losses.
3. When a petition is filed by the department under subsection 1
the clerk of court shall set a date for hearing on the department's
proposed plan of disposition at a time not less than ten nor more
than fifteen days after the date the petition is filed. Copies of
the petition, the notice of hearing, and the department's plan of
disposition shall be served upon the licensee and upon the issuer of
a deficiency bond or of an irrevocable letter of credit pursuant to
section 203C.6 in the manner required for service of an original
notice. A delay in effecting service upon the licensee or issuer is
not cause for denying the appointment of a receiver and is not
grounds for invalidating any action or proceeding in connection with
the appointment.
4. The department shall cause a copy of each of the documents
served upon the licensee under subsection 3 to be mailed by ordinary
mail to every person holding a warehouse receipt or unpriced scale
weight ticket issued by the licensee, as determined by the records of
the licensee or the records of the department. The failure of any
person referred to in this subsection to receive the required
notification shall not invalidate the proceedings on the petition for
the appointment of a receiver or any portion thereof. Persons
referred to in this subsection are not parties to the action unless
admitted by the court upon application therefor.
5. When appointed as a receiver under this chapter, the
department shall cause notification of the appointment to be
published once each week for two consecutive weeks in a newspaper of
general circulation in each of the counties in which the licensee
maintains a business location, and in a newspaper of general
circulation in this state.
6. The department may designate an employee of the department to
appear on behalf of the department in any proceedings before the
court with respect to the receivership, and to exercise the functions
of the department as receiver under this section and section 203C.4,
except that the department shall determine whether or not to petition
for appointment as receiver, shall approve the proposed plan for
disposition of stored commodities, shall approve the proposed plan
for distribution of any cash proceeds, and shall approve the proposed
final report.
7. The actions of the department in connection with petitioning
for appointment as a receiver, and all actions pursuant to such
appointment shall not be subject to the provisions of the
administrative procedure Act.
8. A person employed or appointed by the department and carrying
out the duties of the department acting as receiver under this
chapter shall be deemed to be an employee of the state as defined in
section 669.2. Chapter 669 is applicable to any claim as defined in
section 669.2 against the person carrying out the duties of the
department acting as receiver. Section History: Early Form
[C79, 81, § 543.3] Section History: Recent Form
86 Acts, ch 1152, § 15; 89 Acts, ch 143, §501
C93, § 203C.3
Referred to in § 203.12A, 203.12B, 203C.12A, 602.8102(76)