203.1 - DEFINITIONS.
203.1 DEFINITIONS.
As used in this chapter, unless the context otherwise requires:
1. "Bond" means a bond issued by a surety company or an
irrevocable letter of credit issued by a financial institution
described in subsection 7.
2. "Check" means a paper instrument used for ordering,
instructing, or authorizing a financial institution to make payment
or credit a presenter's account and debit the issuer's account.
"Check" includes instruments commonly referred to as a check,
draft, share draft, or other negotiable instrument for the payment of
money. An instrument may be a check even though it is described on
its face by another term, such as "money order".
3. "Credit-sale contract" means a contract for the sale of
grain pursuant to which the sale price is to be paid more than thirty
days after the delivery of the grain to the buyer, or a contract
which is titled as a credit-sale contract, including but not limited
to those contracts commonly referred to as deferred-payment
contracts, deferred-pricing contracts, and price-later contracts.
4. "Custom livestock feeder" means a person who buys grain
for the sole purpose of feeding it to livestock owned by another
person in a feedlot as defined in section 172D.1, subsection 6, or a
confinement building owned or operated by the custom livestock feeder
and located in this state.
5. "Department" means the department of agriculture and land
stewardship.
6. "Electronic funds transfer" means a remote electronic
transmission used for ordering, instructing, or authorizing a
financial institution to pay money to or credit the account of the
payee and debit the account of the payer. The remote electronic
transmission may be initiated by telephone, terminal, computer, or
similar device.
7. "Financial institution" means any of the following:
a. A bank or savings and loan association authorized by the
laws of this state, any other state, or the United States, which is a
member of the federal deposit insurance corporation.
b. A bank or association chartered by the farm credit system
under the federal Farm Credit Act, as amended, 12 U.S.C. ch. 23.
8. "Good cause" means that the department has cause to
believe that the net worth or current asset to current liability
ratio of a grain dealer presents a danger to sellers with whom the
grain dealer does business, based on evidence of any of the
following:
a. The making of a payment by use of a check or electronic
funds transfer, and a financial institution refuses payment because
of insufficient moneys in a grain dealer's account.
b. A violation of recordkeeping requirements provided in this
chapter or rules adopted pursuant to this chapter by the department.
c. A substantial risk of loss to the grain depositors and
sellers indemnity fund caused by the possible insolvency of the grain
dealer based on a statistical model provided in section 203.22.
9. "Grain" means any grain for which the United States
department of agriculture has established standards including, but
not limited to, corn, wheat, oats, soybeans, rye, barley, grain
sorghum, flaxseeds, sunflower seed, spelt (emmer), and field peas.
10. "Grain dealer" means a person who cumulatively purchases
at least one thousand bushels of grain from producers during any
calendar month, if such grain is delivered within or into this state
for purposes of resale, milling, or processing in this state.
However, "grain dealer" does not include any of the following:
a. A producer of grain who is buying grain for the producer's
own use as seed or feed.
b. A person solely engaged in buying grain future contracts
on the board of trade.
c. A person who purchases grain only for sale in a feed
regulated under chapter 198.
d. A person who purchases grain only from grain dealers
licensed under this chapter.
e. A person engaged in the business of selling agricultural
seeds regulated by chapter 199.
f. A person buying grain only as a farm manager.
g. An executor, administrator, trustee, guardian, or
conservator of an estate.
h. A custom livestock feeder.
i. A cooperative organized under chapter 501 or 501A, if the
cooperative only purchases grain from its members who are producers
or from a licensed grain dealer, and the cooperative does not resell
that grain.
j. A limited liability company as defined in section 489.102
or 490A.102 that meets all of the following requirements:
(1) The majority of voting rights in the limited liability
company are held by its members who are producers.
(2) The purpose of the limited liability company is to produce
renewable fuel as defined in section 214A.1.
(3) The limited liability company only purchases grain from its
members who are producers or from a licensed grain dealer.
(4) The limited liability company does not resell grain that it
purchases.
11. "Person" means the same as defined in section 4.1 and
includes a business association as defined in section 202B.102 or
joint or common venture regardless of whether it is organized under a
chapter of the Code.
12. "Producer" means the owner, tenant, or operator of land
in this state who has an interest in and receives all or a part of
proceeds from the sale of grain produced on that land.
13. "Seller" means a person who sells grain which the person
has produced or caused to be produced to a licensed grain dealer, and
includes a person who executes a credit-sale contract as a seller.
14. "Warehouse operator" means the same as defined in section
203C.1. Section History: Early Form
[C75, 77, 79, 81, § 542.1; 81 Acts, ch 180, § 1--3] Section History: Recent Form
85 Acts, ch 80, § 1, 2; 86 Acts, ch 1006, § 1; 86 Acts, ch 1152, §
1, 2; 86 Acts, ch 1245, § 669; 87 Acts, ch 147, §1; 89 Acts, ch 143,
§1001; 92 Acts, ch 1239, §55
C93, § 203.1
95 Acts, ch 28, § 1; 96 Acts, ch 1010, § 2; 99 Acts, ch 106,
§1--3; 2001 Acts, ch 36, §1, 2; 2003 Acts, ch 69, §1, 2, 46; 2004
Acts, ch 1038, §1; 2005 Acts, ch 135, §106; 2007 Acts, ch 22, §47;
2008 Acts, ch 1083, §1, 2; 2008 Acts, ch 1162, §133, 155
Referred to in §10.1, 203C.1, 715A.2 Footnotes
For future amendment to subsection 10, paragraph j, effective
December 31, 2010, see 2008 Acts, ch 1162, § 154, 155