As used in this chapter:
1.“Agricultural product” shall mean any product of agricultural activity suitable for
storage in quantity, including refined or unrefined sugar and canned agricultural products
and shall also mean any product intended for consumption in the production of other
agricultural products, such as stock salt, binding twine, bran, cracked corn, soybean meal,
commercial feeds, and cottonseed meal.
2.“Bond” means a bond issued by a surety company or an irrevocable letter of credit
issued by a financial institution.
3.“Bulk grain” shall mean grain which is not contained in sacks.
4.“Check” means the same as defined in section 203.1.
5.“Credit-sale contract” means the same as defined in section 203.1.
6.“Department” means the department of agriculture and land stewardshi
Free access — add to your briefcase to read the full text and ask questions with AI
As used in this chapter:
1. “Agricultural product” shall mean any product of agricultural activity suitable for
storage in quantity, including refined or unrefined sugar and canned agricultural products
and shall also mean any product intended for consumption in the production of other
agricultural products, such as stock salt, binding twine, bran, cracked corn, soybean meal,
commercial feeds, and cottonseed meal.
2. “Bond” means a bond issued by a surety company or an irrevocable letter of credit
issued by a financial institution.
3. “Bulk grain” shall mean grain which is not contained in sacks.
4. “Check” means the same as defined in section 203.1.
5. “Credit-sale contract” means the same as defined in section 203.1.
6. “Department” means the department of agriculture and land stewardship.
7. “Depositor” means any person who deposits an agricultural product in a warehouse
for storage, handling, or shipment, or who is the owner or legal holder of an outstanding
warehouse receipt, or who is lawfully entitled to possession of the agricultural product.
8. “Electronic funds transfer” means the same as defined in section 203.1.
9. “Financial institution” means the same as defined in section 203.1.
10. “Good cause” means that the department has cause to believe that the net worth or
§203C.1, WAREHOUSES FOR AGRICULTURAL PRODUCTS 2
currentassettocurrentliabilityratioofawarehouseoperatorpresentsadangertodepositors
with whom the warehouse operator 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 funds in the warehouse operator’s
account.
b. A violation of recordkeeping requirements provided in this chapter or rules adopted
pursuant to this chapter by the department.
c. A quality or quantity shortage in the warehouse facility.
d. A high risk of loss to the grain depositors and sellers indemnity fund caused by the
possibleinsolvencyofthewarehouseoperatorbasedonastatisticalmodelprovidedinsection
203C.40.
11. “Grain” means the same as defined in section 203.1.
12. “Grain bank” means grain owned by a depositor and held temporarily by the
warehouse operator for use in the formulation of feed or to be processed and returned to
the depositor on demand.
13. “Grain Standards Act” means the United States Grain Standards Act, 7 U.S.C. ch. 3.
14. “Incidental warehouse operator” means a person regulated under chapter 198
whose grain storage capacity does not exceed twenty-five thousand bushels which is used
exclusively for grain owned or grain which will be returned to the depositor for use in a
feeding operation or as an ingredient in a feed.
15. “Incidental warehouse operator’s obligation” means a sufficient quantity and quality
of grain to cover company owned grain and deposits of grain for which actual payment has
not been made.
16. “License” means a license issued under this chapter.
17. “Licensed warehouse” shall mean a warehouse for the operation of which the
department has issued a license in accordance with the provisions of section 203C.6.
18. “Licensed warehouse operator” shall mean a warehouse operator who has obtained a
license for the operation of a warehouse under the provisions of section 203C.6.
19. “Official grain standards” means the standards of quality and condition of grain which
establishes the grade, fixed and established by the secretary of agriculture under the Grain
Standards Act.
20. “Open storage” means grain or agricultural products which are received by a
warehouse operator from a depositor for which warehouse receipts have not been issued or
a purchase made and the records documented accordingly.
21. “Person” means the same as defined in section 4.1 and includes a business association
as defined in section 202B.102 or a joint or common venture regardless of whether it is
organized under a chapter of the Code.
22. “Receiving and loadout charge” shall mean the charge made by the warehouse
operator for receiving grain into and loading grain from the warehouse, exclusive of the
warehouse operator’s other charges.
23. “Scale weight ticket” means a load slip or other evidence, other than a receipt, given
to a depositor by a warehouse operator licensed under this chapter upon initial delivery of
the agricultural product to the warehouse.
24. “Station” means a warehouse located more than three miles from the central office of
the warehouse.
25. “Storage” means any grain or other agricultural products that have been received and
have come under care, custody or control of a warehouse operator either for the depositor for
whichacontractofpurchasehasnotbeennegotiatedorforthewarehouseoperatoroperating
the facility.
26. “United States Warehouse Act” means the same as defined in section 203.1.
27. “Unlicensed warehouse operator” means a warehouse operator who retains grain in
the warehouse not to exceed thirty days and is not licensed under the provisions of this
chapter or the United States Warehouse Act.
28. “Warehouse” shall mean any building, structure, or other protected enclosure in this
state used or usable for the storage of agricultural products. Buildings used in connection
with the operation of the warehouse shall be deemed to be a part of the warehouse.
3 WAREHOUSES FOR AGRICULTURAL PRODUCTS, §203C.2
29. “Warehouse operator” means a person engaged in the business of operating or
controlling a warehouse for the storing, shipping, handling or processing of agricultural
products, but does not include an incidental warehouse operator.
30. “Warehouse operator’s obligation” means a sufficient quantity and quality of grain or
other products for which a warehouse operator is licensed including company owned grain
and grain of depositors as the warehouse operator’s records indicate. For an unlicensed
warehouse operator it means a sufficient quantity and quality of grain to cover company
owned grain and all deposits of grain for which actual payment has not been made.