Bill > SF608

This bill modifies Iowa's grain marketing regulations, focusing on clarifying and expanding provisions related to credit-sale contracts, grain dealer financial reporting, and the grain depositors and sellers indemnity fund. The bill introduces new definitions for "deferred-payment contract" and "deferred-pricing contract", which are types of credit-sale contracts where payment or pricing is delayed. It modifies financial reporting requirements for grain dealers and warehouse operators, requiring unqualified financial audit opinions and removing some previous audit flexibility. The bill also changes the indemnification process for sellers who experience losses from grain transactions, establishing a new process for "repayment losses" when sellers must return money to a grain dealer's bankruptcy estate. The indemnification rates are now differentiated based on the type of contract: 90% for standard transactions, 75% for deferred-pricing contracts, and 0% for deferred-payment contracts, with a maximum limit of $400,000 per claim. The bill creates a separate claims process for repayment losses and provides detailed procedures for filing, evaluating, and processing these claims. The changes are set to take effect on July 1, 2025, with some provisions applying to bankruptcy proceedings on or after October 24, 2022.

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https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=SF608