House
File
2198
-
Introduced
HOUSE
FILE
2198
BY
LANDON
A
BILL
FOR
An
Act
providing
for
the
indemnification
of
claims
from
the
1
grain
depositors
and
sellers
indemnity
fund,
by
persons
2
selling
grain
by
credit-sale
contract,
and
providing
for
3
fees.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
TLSB
6018YH
(3)
88
da/ns
H.F.
2198
Section
1.
Section
203.15,
subsection
6,
Code
2020,
is
1
amended
by
striking
the
subsection.
2
Sec.
2.
Section
203D.1,
subsection
2,
Code
2020,
is
amended
3
by
striking
the
subsection.
4
Sec.
3.
Section
203D.1,
subsection
14,
paragraph
b,
5
subparagraph
(3),
Code
2020,
is
amended
by
striking
the
6
subparagraph.
7
Sec.
4.
Section
203D.1,
subsection
15,
unnumbered
paragraph
8
1,
Code
2020,
is
amended
to
read
as
follows:
9
“Seller”
means
a
person
who
sells
grain
which
the
person
has
10
produced
or
caused
to
be
produced
to
a
licensed
grain
dealer
,
11
but
excludes
a
person
who
executes
a
credit-sale
contract
as
a
12
seller
as
provided
in
section
203.15
.
However,
“seller”
does
13
not
include
any
of
the
following:
14
Sec.
5.
Section
203D.6,
subsection
4,
paragraph
d,
Code
15
2020,
is
amended
to
read
as
follows:
16
d.
That
the
claim
derives
from
a
covered
transaction.
For
17
purposes
of
this
paragraph,
a
claim
derives
from
a
covered
18
transaction
if
the
claimant
is
a
seller
who
transferred
19
title
to
the
grain
to
a
licensed
grain
dealer
other
than
by
20
credit-sale
contract
within
six
months
of
the
incurrence
date
21
for
a
claim
period
as
provided
in
subsection
2
,
or
if
the
22
claimant
is
a
depositor
who
delivered
the
grain
to
a
licensed
23
warehouse
operator.
24
EXPLANATION
25
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
26
the
explanation’s
substance
by
the
members
of
the
general
assembly.
27
This
bill
provides
that
a
person
who
executes
a
credit-sale
28
contract
with
a
licensed
grain
dealer
and
who
deposits
29
such
grain
in
a
licensed
warehouse
is
insured
by
the
grain
30
depositors
and
sellers
indemnity
fund.
A
grain
dealer
would
31
be
subject
to
a
per
bushel
fee
assessed
on
grain
purchased
32
by
credit-sale
contract
for
deposit
in
the
fund.
There
are
33
three
principal
Code
chapters
regulating
grain
transactions
34
involving
grain
dealers
and
grain
warehouse
operators
licensed
35
-1-
LSB
6018YH
(3)
88
da/ns
1/
2
H.F.
2198
by
the
department
of
agriculture
and
land
stewardship
(DALS)
1
and
the
administration
of
the
grain
depositors
and
sellers
2
indemnity
fund
by
DALS
and
the
Iowa
grain
indemnity
fund
3
board.
Code
chapter
203
regulates
grain
dealers,
Code
chapter
4
203C
regulates
warehouse
operators,
and
Code
chapter
203D
5
provides
for
the
fund.
The
purpose
of
the
fund
is
to
reimburse
6
depositors
or
sellers
of
grain
who
may
file
claims
for
losses
7
incurred
by
the
failure
of
a
grain
dealer
or
warehouse
operator
8
to
honor
a
contractual
payment
obligation.
A
credit-sale
9
contract
(also
referred
to
as
deferred-payment
contract,
10
deferred-pricing
contract,
or
price-later
contract)
involves
a
11
transaction
for
the
sale
of
grain
in
which
the
sales
price
is
12
to
be
paid
more
than
30
days
after
the
delivery
of
the
grain
to
13
the
buyer.
14
-2-
LSB
6018YH
(3)
88
da/ns
2/
2