This bill amends various sections of the Iowa Code concerning the marketing of grain by licensed warehouse operators and grain dealers. It introduces new definitions for "deferred-payment contract" and "deferred-pricing contract," and modifies payment terms for grain dealers, requiring them to pay sellers upon delivery or upon demand instead of within a fixed thirty-day period. The bond amount that grain dealers must file with the department is increased from $100,000 to $250,000. Additionally, the bill establishes indemnity fees to protect grain depositors and sellers in the event of a dealer's bankruptcy, detailing the collection and remittance process for these fees, which will be used exclusively for indemnification purposes.

The bill also revises the claims process for the grain depositors and sellers indemnity fund, allowing claims to be filed by depositors who delivered grain to licensed warehouse operators or sellers who transferred title to grain to licensed grain dealers within a specified timeframe. It updates terminology from "value" to "dollar value" of loss and specifies conditions for determining this value. The payment structure for claims is outlined, with depositors eligible for up to 90% of their loss, capped at $300,000, while sellers have similar provisions unless they sold grain under specific credit-sale contracts. The bill further modifies the payment schedule for indemnity fees and raises thresholds for waiving or reinstating these fees, while also introducing special valuation rules for losses involving corn and soybeans.

Statutes affected:
Introduced: 203.1, 203.8, 203.3, 203.15, 203D.3, 203D.6, 203D.5, 203D.3A