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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