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House File 2198 - IntroducedA Bill ForAn Act 1providing for the indemnification of claims from the
2grain depositors and sellers indemnity fund, by persons
3selling grain by credit-sale contract, and providing for
4fees.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 203.15, subsection 6, Code 2020, is
2amended by striking the subsection.
3 Sec. 2. Section 203D.1, subsection 2, Code 2020, is amended
4by striking the subsection.
5 Sec. 3. Section 203D.1, subsection 14, paragraph b,
6subparagraph (3), Code 2020, is amended by striking the
7subparagraph.
8 Sec. 4. Section 203D.1, subsection 15, unnumbered paragraph
91, Code 2020, is amended to read as follows:
10“Seller” means a person who sells grain which the person has
11produced or caused to be produced to a licensed grain dealer,
12but excludes a person who executes a credit-sale contract as a
13seller as provided in section 203.15. However, “seller” does
14not include any of the following:
15 Sec. 5. Section 203D.6, subsection 4, paragraph d, Code
162020, is amended to read as follows:
17d. That the claim derives from a covered transaction. For
18purposes of this paragraph, a claim derives from a covered
19transaction if the claimant is a seller who transferred
20title to the grain to a licensed grain dealer other than by
21credit-sale contract within six months of the incurrence date
22for a claim period as provided in subsection 2, or if the
23claimant is a depositor who delivered the grain to a licensed
24warehouse operator.
25EXPLANATION
26The inclusion of this explanation does not constitute agreement with
27the explanation’s substance by the members of the general assembly.
28This bill provides that a person who executes a credit-sale
29contract with a licensed grain dealer and who deposits
30such grain in a licensed warehouse is insured by the grain
31depositors and sellers indemnity fund. A grain dealer would
32be subject to a per bushel fee assessed on grain purchased
33by credit-sale contract for deposit in the fund. There are
34three principal Code chapters regulating grain transactions
35involving grain dealers and grain warehouse operators licensed
-1-1by the department of agriculture and land stewardship (DALS)
2and the administration of the grain depositors and sellers
3indemnity fund by DALS and the Iowa grain indemnity fund
4board. Code chapter 203 regulates grain dealers, Code chapter
5203C regulates warehouse operators, and Code chapter 203D
6provides for the fund. The purpose of the fund is to reimburse
7depositors or sellers of grain who may file claims for losses
8incurred by the failure of a grain dealer or warehouse operator
9to honor a contractual payment obligation. A credit-sale
10contract (also referred to as deferred-payment contract,
11deferred-pricing contract, or price-later contract) involves a
12transaction for the sale of grain in which the sales price is
13to be paid more than 30 days after the delivery of the grain to
14the buyer.
-2-da/ns
2grain depositors and sellers indemnity fund, by persons
3selling grain by credit-sale contract, and providing for
4fees.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 203.15, subsection 6, Code 2020, is
2amended by striking the subsection.
3 Sec. 2. Section 203D.1, subsection 2, Code 2020, is amended
4by striking the subsection.
5 Sec. 3. Section 203D.1, subsection 14, paragraph b,
6subparagraph (3), Code 2020, is amended by striking the
7subparagraph.
8 Sec. 4. Section 203D.1, subsection 15, unnumbered paragraph
91, Code 2020, is amended to read as follows:
10“Seller” means a person who sells grain which the person has
11produced or caused to be produced to a licensed grain dealer,
12but excludes a person who executes a credit-sale contract as a
13seller as provided in section 203.15. However, “seller” does
14not include any of the following:
15 Sec. 5. Section 203D.6, subsection 4, paragraph d, Code
162020, is amended to read as follows:
17d. That the claim derives from a covered transaction. For
18purposes of this paragraph, a claim derives from a covered
19transaction if the claimant is a seller who transferred
20title to the grain to a licensed grain dealer other than by
21credit-sale contract within six months of the incurrence date
22for a claim period as provided in subsection 2, or if the
23claimant is a depositor who delivered the grain to a licensed
24warehouse operator.
25EXPLANATION
26The inclusion of this explanation does not constitute agreement with
27the explanation’s substance by the members of the general assembly.
28This bill provides that a person who executes a credit-sale
29contract with a licensed grain dealer and who deposits
30such grain in a licensed warehouse is insured by the grain
31depositors and sellers indemnity fund. A grain dealer would
32be subject to a per bushel fee assessed on grain purchased
33by credit-sale contract for deposit in the fund. There are
34three principal Code chapters regulating grain transactions
35involving grain dealers and grain warehouse operators licensed
-1-1by the department of agriculture and land stewardship (DALS)
2and the administration of the grain depositors and sellers
3indemnity fund by DALS and the Iowa grain indemnity fund
4board. Code chapter 203 regulates grain dealers, Code chapter
5203C regulates warehouse operators, and Code chapter 203D
6provides for the fund. The purpose of the fund is to reimburse
7depositors or sellers of grain who may file claims for losses
8incurred by the failure of a grain dealer or warehouse operator
9to honor a contractual payment obligation. A credit-sale
10contract (also referred to as deferred-payment contract,
11deferred-pricing contract, or price-later contract) involves a
12transaction for the sale of grain in which the sales price is
13to be paid more than 30 days after the delivery of the grain to
14the buyer.
-2-da/ns