§ 203C.13 — Form and amount of evidence of financial responsibility

Iowa § 203C.13

• Jurisdiction: Iowa
• Title V: AGRICULTURE
• Ch. 203C: WAREHOUSES FOR AGRICULTURAL PRODUCTS

Text

1. A warehouse operator who stores only agricultural products other than bulk grain shall
have and maintain a net worth of at least ten percent of the value of the warehouse capacity,
or maintain a deficiency bond or an irrevocable letter of credit in the amount of two thousand
dollars for each one thousand dollars or fraction thereof of net worth deficiency. However, a
person shall not be eligible for a license to store only agricultural products other than bulk
grain if the person has a net worth of less than ten thousand dollars.
2. If the agricultural product or products intended to be stored by the warehouse operator,
as specified in the application for a license or amended license, are other than bulk grain, the
quantity of such product intended to be stored shall be valued at the fair market price on
the date of filing the application, and the minimum amount of bond shall be determined with
reference to such value as follows:
a. For intended storage of such products of a value less than twenty thousand dollars the
§203C.13, WAREHOUSES FOR AGRICULTURAL PRODUCTS 12
minimum amount of the bond shall be three thousand dollars, plus one thousand dollars for
each two thousand dollars, or fraction thereof, of value in excess of six thousand dollars up
to twenty thousand dollars.
b. For intended storage of such products of a value not less than twenty thousand dollars
and not more than fifty thousand dollars the minimum amount of the bond shall be ten
thousand dollars plus one thousand dollars for each three thousand dollars, or fraction
thereof, of value in excess of twenty thousand dollars up to fifty thousand dollars.
c. For intended storage of such products of a value not less than fifty thousand dollars the
minimum amount of the bond shall be twenty thousand dollars plus one thousand dollars for
each five thousand dollars, or fraction thereof, of value in excess of fifty thousand dollars.
3. A bond, deficiency bond, or irrevocable letter of credit on agricultural products
other than bulk grain shall not be canceled by the issuer on less than one hundred twenty
days’ notice by certified mail to the department and the principal. When the department
receives notice from an issuer that it has canceled the bond, deficiency bond, or irrevocable
letter of credit on agricultural products other than bulk grain of a warehouse operator,
the department shall suspend the warehouse operator’s authorization to store or accept
for storage agricultural products other than bulk grain if a new bond, deficiency bond, or
irrevocable letter of credit is not received by the department within sixty days of the issuance
of the notice of cancellation. The department shall conduct an inspection of the licensee’s
warehouse immediately at the end of the sixty-day period. If a new bond, deficiency bond,
or irrevocable letter of credit is not provided within ninety days of the issuance of the notice
of cancellation, the department shall revoke the warehouse operator’s authorization to store
or accept for storage agricultural products other than bulk grain. The department shall
conduct a further inspection of the licensee’s warehouse after the ninety-day period. When
an authorization to store or accept for storage agricultural products other than bulk grain
is revoked, the department shall give notice of the revocation to all known persons who
have agricultural products other than bulk grain in storage, and shall notify them that the
agricultural products other than bulk grain must be removed from the warehouse not later
than one hundred twenty days after the issuance of the notice of cancellation. The revocation
notice shall be sent by ordinary mail to the last known address of each person having
agricultural products other than bulk grain in storage. The department shall cause a final
inspection of the licensee’s warehouse after the end of the one hundred twenty-day period.

Legislative History

[C24, 27, 31, §9725; C35, §9751-g6; C39, §9751.06; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §543.13]