Providing for the indemnification of claims from the grain depositors and sellers indemnity fund, by persons selling grain by credit-sale contract, and providing for fees

This bill provides that a person who executes a credit-sale contract with a licensed grain dealer and who deposits such grain in a licensed warehouse is insured by the grain depositors and sellers indemnity fund. A grain dealer would be subject to a per bushel fee assessed on grain purchased by credit-sale contract for deposit in the fund. There are three principal Code chapters regulating grain transactions involving grain dealers and grain warehouse operators licensed by the department of agriculture and land stewardship (DALS) and the administration of the grain depositors and sellers indemnity fund by DALS and the Iowa grain indemnity fund board. Code chapter 203 regulates grain dealers, Code chapter 203C regulates warehouse operators, and Code chapter 203D provides for the fund. The purpose of the fund is to reimburse depositors or sellers of grain who may file claims for losses incurred by the failure of a grain dealer or warehouse operator to honor a contractual payment obligation. A credit-sale contract (also referred to as deferred-payment contract, deferred-pricing contract, or price-later contract) involves a transaction for the sale of grain in which the sales price is to be paid more than days after the delivery of the grain to the buyer.