203C.17 - RECEIVING BULK GRAIN AT LICENSED AND UNLICENSED WAREHOUSES.

        203C.17  RECEIVING BULK GRAIN AT LICENSED AND
      UNLICENSED WAREHOUSES.
         1.  Any grain which has been received at any licensed warehouse
      for which the actual sale price is not fixed and proper documentation
      made or payment made shall be construed to be grain held for storage
      within the meaning of this chapter.  Grain may be held in open
      storage or placed on warehouse receipt.  A warehouse receipt shall be
      issued for all grain held in open storage within one year from the
      date of delivery to the warehouse, unless the depositor has signed a
      statement that the depositor does not desire a warehouse receipt.  A
      warehouse receipt shall be issued upon request by the depositor.  The
      warehouse operator's tariff shall apply for any grain that is
      retained in open storage or under warehouse receipt.
         2.  Bulk grain deposited with a licensed warehouse operator for
      processing, cleaning, drying, shipping for the account of the
      depositor or any other purpose shall be removed within thirty days or
      such grain shall be determined as stored grain and the warehouse
      operator's tariff charges shall apply.
         3.  Grain received on a scale ticket which fails to have the price
      fixed and properly documented on the records of the warehouse
      operator shall be construed to be in open storage.
         4.  All bulk grain whether open storage or having been placed on
      warehouse receipt is covered by the grain depositors and sellers
      indemnity fund created in chapter 203D.
         5.  Any grain which has been received at any unlicensed warehouse
      and for which the actual sale price has not been fixed and payment
      made within thirty days from receipt of the grain, unless covered by
      a credit-sale contract, shall be construed to be unlawful storage
      within the meaning of this chapter.  Bulk grain received at any
      unlicensed warehouse for any other purpose must either be returned to
      the depositor or disposed of by order of the depositor within thirty
      days from date of actual deposit of the bulk grain.
         6.  If the depositor of bulk grain in an unlicensed warehouse
      fails to sell the grain or orders other disposition of the grain, the
      warehouse operator may purchase the grain, if otherwise allowed by
      law, on the thirtieth day after deposit at not less than the local
      market price at the close of business on the thirtieth day or return
      the grain to the depositor by the thirtieth day.
         7.  A licensed warehouse operator who does not have a sufficient
      quantity or quality of grain to satisfy the warehouse operator's
      obligations based on an examination by the department shall not
      purchase grain on credit-sale contract to correct the shortage of
      grain.  A licensed warehouse operator shall not issue a warehouse
      receipt for purposes of providing collateral, if the grain which is
      the subject of the warehouse receipt was purchased by credit-sale
      contract and is unpaid for by the warehouse operator.
         8. a.  Every licensed warehouse operator shall, on or before
      July 1 of each year, send a statement for each holder of a warehouse
      receipt covering grain held for more than one year at that warehouse
      to the holder's last known address.  The statement shall show the
      amount of all grain held pursuant to warehouse receipt for such
      warehouse receipt holder and the amount of any storage charges held
      by the licensed warehouse operator against that grain.  However, a
      licensed warehouse operator need not prepare this annual statement
      for a holder of a warehouse receipt, if the licensed warehouse
      operator prepares such statements monthly, quarterly or for any other
      period more frequent than annually.
         b.  The failure to prepare a statement required by this
      subsection is a simple misdemeanor.
         c.  Violation of this section shall not constitute grounds for
      suspension, revocation, or modification of the license of anyone
      licensed under this chapter.  
         Section History: Early Form
         [C24, 27, 31, § 9730; C35, § 9751-g12; C39, § 9751.12; C46,
      50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, § 543.17; 81 Acts, ch
      180, § 24] 
         Section History: Recent Form
         86 Acts, ch 1152, § 27; 92 Acts, ch 1239, §72, 73
         C93, § 203C.17
         99 Acts, ch 106, §12; 2007 Acts, ch 30, §45, 46, 80; 2009 Acts, ch
      41, §218
         See § 203.15 
         Footnotes
         2007 amendment to subsection 1 applies to a document of title
      issued or a bailment that arises on or after July 1, 2007; for law
      governing a document of title issued or a bailment that arose prior
      to July 1, 2007, see Code 2007; 2007 Acts, ch 30, §45, 46