Text: SF00242 Text: SF00244 Text: SF00200 - SF00299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 203.15A NOTICE TO PRODUCERS
1 2 SELLING GRAIN UNDER DELAYED DELIVERY AND PRICING CONTRACTS.
1 3 A grain dealer shall not execute a contract with a producer
1 4 for the purchase of undelivered grain in which a price for the
1 5 grain may be established and delivery of the grain may occur
1 6 more than twelve months from the date that the contract is
1 7 executed, unless the contract is in writing and a notice
1 8 appears immediately above the place on the contract where the
1 9 producer selling the grain must sign. The notice shall be in
1 10 at least ten point boldface type and shall be in substantially
1 11 the following form:
1 12 NOTICE
1 13 THE SELLER IS CAUTIONED THAT CONTRACTING FOR THE SALE AND
1 14 DELIVERY OF GRAIN UNDER THIS CONTRACT IS SPECULATIVE AND
1 15 INVOLVES RISKS WHICH MAY INCLUDE REQUIRING YOU TO MAKE FUTURE
1 16 PAYMENTS TO MAINTAIN THE CONTRACT OR PROVIDE YOU WITH A LOWER
1 17 SALE PRICE. THIS TRANSACTION IS NOT COVERED BY THE STATE'S
1 18 GRAIN DEPOSITORS AND SELLERS INDEMNITY FUND. BE SURE THAT YOU
1 19 UNDERSTAND THE NATURE OF THIS CONTRACT AND THE ASSOCIATED
1 20 RISKS.
1 21 Sec. 2. ATTORNEY GENERAL – DEVELOPMENT OF INDUSTRY
1 22 STANDARD GRAIN MARKETING CONTRACTS.
1 23 1. The environmental and agricultural law division of the
1 24 office of attorney general shall develop a model credit sale
1 25 contract and a model hedge-to-arrive contract intended for
1 26 parties to the contracts who are agricultural producers and
1 27 grain dealers as regulated by the department of agriculture
1 28 and land stewardship pursuant to chapter 203.
1 29 2. A model contract shall contain provisions stated in a
1 30 concise, easily visible form using a plain style which allows
1 31 the parties to understand and effectively negotiate important
1 32 terms and conditions of the contract, including financial
1 33 risks and liabilities associated with the use of that
1 34 contract.
1 35 3. The division shall develop a model contract after
2 1 consulting with interested persons, including the department
2 2 of agriculture and land stewardship, the insurance division of
2 3 the department of commerce, the Iowa cooperative extension
2 4 service in agriculture and home economics at Iowa state
2 5 university, and associations representing grain dealers and
2 6 agricultural producers.
2 7 4. A model contract is not required to be adopted as a
2 8 rule pursuant to chapter 17A.
2 9 5. The Iowa cooperative extension service in agriculture
2 10 and home economics shall make the model contracts available
2 11 for distribution on a statewide basis.
2 12 EXPLANATION
2 13 This bill relates to transactions involving contracts for
2 14 the sale of grain by producers of the grain to grain dealers
2 15 regulated by the department of agriculture and land
2 16 stewardship.
2 17 The bill requires that a contract executed between a
2 18 producer and a grain dealer contain a notice to the producer
2 19 if the contract allows for the delivery of grain and the
2 20 establishment of a price for the grain more than 12 months
2 21 from the date that the contract is executed. The notice must
2 22 warn the producer of the risks associated with the
2 23 transaction.
2 24 The bill requires that the office of attorney general
2 25 develop a model credit sale contract and a model hedge-to-
2 26 arrive contract intended for parties to such contracts who are
2 27 agricultural producers and grain dealers. The bill provides
2 28 that a model contract must be easily read and understood by
2 29 the parties, and contain terms and conditions which allow the
2 30 parties to effectively negotiate. The division is required to
2 31 consult with interested persons when drafting the model
2 32 contracts. The Iowa cooperative extension service in
2 33 agriculture and home economics at Iowa state university is
2 34 required to make the model contracts available for
2 35 distribution on a statewide basis.
3 1 LSB 2384SS 77
3 2 da/sc/14
Text: SF00242 Text: SF00244 Text: SF00200 - SF00299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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