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Text: SF00242                           Text: SF00244
Text: SF00200 - SF00299                 Text: SF Index
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Senate File 243

Partial Bill History

Bill Text

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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