Senate File 2465 H-8469 Amend Senate File 2465, as amended, passed, and reprinted by 1 the Senate, as follows: 2 1. Page 13, after line 29 by inserting: 3 < Sec. ___. Section 203.1, subsection 3, Code 2026, is 4 amended by striking the subsection and inserting in lieu 5 thereof the following: 6 3. “Credit-sale contract” means a contract for the sale of 7 grain pursuant to which the sale price is to be paid more than 8 thirty days after the delivery of the grain to the buyer, or a 9 contract which is titled as a credit-sale contract, including 10 but not limited to those contracts commonly referred to as 11 deferred-payment contracts, deferred-pricing contracts, and 12 price-later contracts. 13 Sec. ___. Section 203.1, subsections 5 and 6, Code 2026, are 14 amended by striking the subsections. > 15 2. Page 15, by striking lines 17 through 32 and inserting: 16 < Sec. ___. Section 203.8, subsection 1, Code 2026, is 17 amended by striking the subsection and inserting in lieu 18 thereof the following: 19 1. a. A grain dealer licensed or required to be licensed 20 pursuant to section 203.3 shall pay the purchase price to the 21 seller for grain upon delivery or demand by the seller, but 22 not later than thirty days after delivery by the seller unless 23 in accordance with the terms of a credit-sale contract that 24 satisfies the requirements of this chapter. The department 25 shall adopt rules for payment by check and electronic funds 26 transfer. 27 b. A grain dealer licensed or required to be licensed 28 pursuant to section 203.3 shall not hold a check for the 29 purchase of grain more than five days after the grain dealer 30 issues a check to the seller. After that date, the grain 31 dealer shall deliver the check in person or by mail to the 32 seller’s last known address. > 33 3. By striking page 16, line 23, through page 18, line 7, 34 and inserting: 35 -1- SF 2465.4375 (3) 91 da/js 1/ 9 #1. #2. #3.

< Sec. ___. Section 203.15, subsections 1, 3, 4, and 6, Code 1 2026, are amended by striking the subsections and inserting in 2 lieu thereof the following: 3 1. The grain dealer shall be licensed pursuant to section 4 203.3. All of the following shall apply to a grain dealer 5 required to be licensed under that section who purchases grain 6 by credit-sale contract: 7 a. The grain dealer shall give written notice to the 8 department prior to engaging in the purchase of grain by 9 credit-sale contract. The notice shall contain information 10 required by the department. 11 b. All credit-sale contract forms in the possession of the 12 grain dealer shall have been permanently and consecutively 13 numbered at the time of printing of the forms. The grain 14 dealer shall maintain an accurate record of all credit-sale 15 contract forms and numbers obtained by that dealer. The record 16 shall include the disposition of each numbered form, whether by 17 execution, destruction, or otherwise. 18 c. The grain dealer who purchases grain by credit-sale 19 contract shall maintain records as required by the department 20 in compliance with this section. 21 3. Title to all grain sold by a credit-sale contract is 22 in the purchasing grain dealer as of the time the contract is 23 executed, unless the contract provides otherwise. The contract 24 must be signed and dated by both parties and executed in 25 duplicate. One copy shall be retained by the grain dealer and 26 one copy shall be delivered to the seller. Upon the cessation 27 of the grain dealer’s license by revocation, cancellation, or 28 expiration, the payment date for all credit-sale contracts 29 shall be advanced to a date not later than thirty days after 30 the effective date of the cessation, and the purchase price for 31 all unpriced grain shall be determined as of the effective date 32 of the cessation in accordance with all other provisions of the 33 contract. However, if the business of the grain dealer is sold 34 to another licensed grain dealer, credit-sale contracts may be 35 -2- SF 2465.4375 (3) 91 da/js 2/ 9

assigned to the purchaser of the business. 1 4. a. A grain dealer shall not purchase grain on 2 credit-sale contract during any time period in which the grain 3 dealer fails to maintain fifty cents of net worth for each 4 outstanding bushel of grain purchased under credit. The grain 5 dealer may maintain a deficiency bond or an irrevocable letter 6 of credit in the amount of two thousand dollars for each one 7 thousand dollars or fraction thereof of deficiency in net 8 worth. 9 b. A grain dealer who is also a warehouse operator licensed 10 by the department under chapter 203C or the United States 11 department of agriculture under the United States Warehouse 12 Act, and who does not have a sufficient quantity or quality 13 of grain to satisfy the warehouse operator’s obligations 14 based on an examination by the department or the United 15 States department of agriculture shall not purchase grain on 16 credit-sale contract to correct the shortage of grain. 17 c. (1) A grain dealer must meet at least either of the 18 following conditions: 19 (a) The grain dealer’s last financial statement required 20 to be submitted to the department pursuant to section 203.3 21 is accompanied by an unqualified opinion based upon an audit 22 performed by a certified public accountant licensed in this 23 state. 24 (b) The grain dealer files a bond with the department in 25 the amount of one hundred thousand dollars payable to the 26 department. 27 (2) (a) The bond filed with the department under this 28 paragraph shall be used to indemnify sellers for losses 29 resulting from a breach of a credit-sale contract as provided 30 by rules adopted by the department. The rules shall include 31 but are not limited to procedures and criteria for providing 32 notice, filing claims, valuing losses, and paying claims. The 33 bond provided in this paragraph shall be in addition to any 34 other bond required in this chapter. 35 -3- SF 2465.4375 (3) 91 da/js 3/ 9

(b) The bond shall not be canceled by the issuer on less 1 than ninety days’ notice by certified mail to the department 2 and the principal. However, if an adequate replacement bond 3 is filed with the department, the department may authorize 4 the cancellation of the original bond before the end of the 5 ninety-day period. 6 (c) If an adequate replacement bond is not received by the 7 department within sixty days of the issuance of the notice of 8 cancellation, the department shall suspend the grain dealer’s 9 license. The department shall cause an inspection of the 10 licensed grain dealer immediately at the end of the sixty-day 11 period. If a replacement bond is not filed within another 12 thirty days following the suspension, the department shall 13 revoke the grain dealer’s license. 14 (3) When a license is revoked, the department shall provide 15 notice of the revocation by ordinary mail to the last known 16 address of each holder of an outstanding credit-sale contract 17 and all known sellers. 18 6. A grain dealer who purchases grain by credit-sale 19 contract shall obtain from the seller a signed acknowledgment 20 stating that the seller has received notice that grain 21 purchased by credit-sale contract is not protected by the 22 grain depositors and sellers indemnity fund. The form for the 23 acknowledgment shall be prescribed by the department, and the 24 licensed grain dealer and the seller shall each be provided a 25 copy. > 26 4. By striking page 19, line 33, through page 20, line 16, 27 and inserting: 28 < Sec. ___. Section 203D.1, subsections 3 and 4, Code 2026, 29 are amended by striking the subsections. 30 Sec. ___. Section 203D.1, subsections 17 and 20, Code 2026, 31 are amended by striking the subsections and inserting in lieu 32 thereof the following: 33 17. a. “Purchased grain” means grain entered in the 34 company-owned paid position as evidenced on the grain dealer’s 35 -4- SF 2465.4375 (3) 91 da/js 4/ 9 #4.

daily position record. 1 b. “Purchased grain” does not include grain that is subject 2 to an exempt transaction based on documentation satisfactory 3 to the department showing that the grain dealer did any of the 4 following: 5 (1) Purchased the grain from the United States government or 6 any of its subdivisions or agencies. 7 (2) Purchased the grain from a person licensed as a grain 8 dealer in any jurisdiction. 9 (3) Purchased the grain under a credit-sale contract. 10 (4) Entered the grain in the company-owned paid position as 11 a cancellation of a collateral warehouse receipt. 12 (5) Entered the grain in the company-owned paid position as 13 an intra-company location transfer. 14 20. “Seller” means a person who sells grain which the 15 person has produced or caused to be produced to a licensed 16 grain dealer, but excludes a person who executes a credit-sale 17 contract as a seller as provided in section 203.15. However, 18 “seller” does not include any of the following: 19 a. A person licensed as a grain dealer in any jurisdiction 20 who sells grain to a licensed grain dealer. 21 b. A person who sells grain that is not produced in this 22 state unless such grain is delivered to a licensed grain dealer 23 at a location in this state as the first point of sale. 24 Sec. ___. Section 203D.5, subsection 4, unnumbered 25 paragraph 1, Code 2026, is amended to read as follows: 26 If on the last date of the fund’s assessment year as provided 27 in section 203D.3 the assets of the fund exceed sixteen eight 28 million dollars, less any encumbered balances or pending or 29 unsettled claims, all of the following apply: 30 Sec. ___. Section 203D.5, subsection 5, Code 2026, is 31 amended to read as follows: 32 5. The board shall reinstate the indemnity fees as 33 provided in this section if the assets of the fund, less any 34 unencumbered balances or pending or unsettled claims, are eight 35 -5- SF 2465.4375 (3) 91 da/js 5/ 9

three million dollars or less. 1 Sec. ___. Section 203D.6, subsection 4, paragraph d, Code 2 2026, is amended to read as follows: 3 d. (1) That the claim derives from a covered transaction. 4 For purposes of this paragraph, a claim derives from a covered 5 transaction if the claimant incurred a dollar value loss as any 6 of the following: 7 (a) (1) A depositor who delivered the grain to a licensed 8 warehouse operator. 9 (b) (i) (2) A seller who transferred title to the grain to 10 a licensed grain dealer , other than by credit-sale contract, 11 within six months of the incurrence date for a claim period as 12 provided in subsection 2 . 13 (ii) (3) A seller described in subparagraph subdivision 14 (i) who incurred a repayment loss against a grain dealer as 15 provided in section 203D.6A . 16 (2) The dollar value losses incurred by a depositor 17 or seller described in subparagraph (1) for all eligible 18 claims are subject to the indemnification limit described in 19 subsection 8 . 20 (a) The department shall segregate that part of a claim 21 that includes a dollar value loss incurred by a seller 22 who sold grain to a licensed grain dealer pursuant to a 23 credit-sale contract, including by deferred-pricing contract 24 and deferred-payment contract. 25 (b) The part of the segregated claim that includes a 26 dollar value loss incurred by a seller who sold grain to a 27 licensed grain dealer pursuant to a deferred-payment contract 28 is ineligible for indemnification. 29 Sec. ___. Section 203D.6, subsection 8, paragraphs a, b, c, 30 and d, Code 2026, are amended to read as follows: 31 a. Upon a determination by the board that an eligible 32 claim satisfies the requirements in subsection 4 , the board 33 shall indemnify the claimant as a depositor under subsection 34 5 , and a seller under subsection 6 . Upon a determination by 35 -6- SF 2465.4375 (3) 91 da/js 6/ 9

the board that an eligible repayment claim was filed by that 1 seller under section 203D.6A , derives from the same covered 2 transaction during the claim period, and the repayment loss 3 incurred for that claim, the board shall indemnify the claimant 4 as a seller subject to the requirements of this section and 5 section 203D.6A . 6 b. Subject to the indemnification limit described in 7 paragraph “c” , the board shall indemnify a claimant ninety 8 percent of the combined dollar value losses, including any 9 repayment loss, incurred by the claimant as described in 10 paragraph “a” , except for a segregated dollar value loss 11 incurred from the sale of grain by credit-sale contract . The 12 board shall indemnify the seller seventy-five percent of the 13 dollar value loss, including any repayment loss, incurred from 14 the sale of grain by deferred-pricing contract and zero percent 15 of the dollar value loss for the sale of grain, including 16 any repayment loss, by deferred-payment contract. The full 17 indemnity amount paid to a claimant shall be calculated as the 18 sum of the following: 19 (1) Ninety cents for each dollar value loss, including any 20 repayment loss, incurred by the claimant other than a dollar 21 value loss for the sale of grain by credit-sale contract. 22 (2) For the sale of grain by credit-sale contract, all of 23 the following: 24 (a) Seventy-five cents for each dollar value loss, 25 including any repayment loss, incurred by the claimant 26 other than a dollar value loss for the sale of grain by 27 deferred-pricing contract. 28 (b) Zero cents for each dollar value loss incurred by the 29 claimant by deferred-payment contract. 30 c. The board shall not indemnify any claimant for more than 31 four three hundred thousand dollars for an eligible claim for 32 all dollar value losses described in paragraphs “a” and “b” , 33 including any repayment loss. 34 d. (1) If at any time the board determines that there 35 -7- SF 2465.4375 (3) 91 da/js 7/ 9

are insufficient moneys in the fund to fully indemnify all 1 eligible claims, the board shall order that the eligible claims 2 be indemnified according to the following order: may order 3 that payment be deferred on specified claims. The department, 4 upon the board’s instruction, shall hold those claims for 5 payment until the board determines that the fund again contains 6 sufficient assets. 7 (a) First, by indemnifying all claims for dollar value 8 losses other than segregated dollar value losses arising from 9 the sale of grain by credit-sale contract as provided in 10 subsection 4 . 11 (b) Second, by indemnifying all claims for segregated 12 dollar value losses arising from the sale of grain by 13 deferred-pricing contract as provided in subsection 4 . 14 (2) The board may establish one or more eligible claim 15 indemnification periods required to fully indemnify all 16 eligible claims. The department shall hold those claims that 17 have not been fully indemnified until a later period or periods 18 for the full indemnification of those claims as moneys in the 19 fund are available. > 20 5. Page 20, after line 28 by inserting: 21 < Sec. ___. Section 203D.6A, subsection 4, paragraph c, Code 22 2026, is amended to read as follows: 23 c. The repayment claim derives from a covered transaction. 24 For purposes of this paragraph, a repayment claim derives 25 from a covered transaction if the claimant is a seller who 26 transferred title to the grain , other than by credit-sale 27 contract, to a licensed grain dealer within six months of the 28 incurrence date as provided in section 203D.6, subsection 2 . > 29 6. Page 20, line 30, by striking < EFFECTIVE DATE > and 30 inserting < MISCELLANEOUS PROVISIONS > 31 7. Page 20, after line 30 by inserting: 32 < Sec. ___. REPEAL. 2025 Iowa Acts, chapter 105, section 24, 33 is repealed. 34 Sec. ___. EMERGENCY RULES. The department of agriculture 35 -8- SF 2465.4375 (3) 91 da/js 8/ 9 #5. #6. #7.

and land stewardship shall adopt emergency rules under section 1 17A.4, subsection 3, and section 17A.5, subsection 2, paragraph 2 “b”, to implement the provisions of this division of this 3 Act within thirty business days of the effective date of 4 this division of this Act and shall submit such rules to the 5 administrative rules coordinator and the administrative code 6 editor pursuant to section 17A.5, subsection 1, within the same 7 period. The rules shall be effective immediately upon filing 8 unless a later date is specified in the rules. Any rules 9 adopted in accordance with this section shall also be published 10 as a notice of intended action as provided in section 17A.4. > 11 8. Page 20, after line 32 by inserting: 12 < Sec. ___. APPLICABILITY. A claim for the indemnification 13 of a loss filed with the department of agriculture and land 14 stewardship under chapter 203D prior to the effective date of 15 this division of this Act, shall be governed by the provisions 16 of chapters 203, 203C, and 203D Code 2026. > 17 9. By renumbering as necessary. 18 ______________________________ MOMMSEN of Clinton -9- SF 2465.4375 (3) 91 da/js 9/ 9 #8. #9.