A licensed warehouse operator may store grain in an alternative warehouse located in Iowa or another state as provided in this section.
1. a. The alternative warehouse located in Iowa must be another licensed warehouse or a warehouse licensed pursuant to the United States Warehouse Act.
b. The alternative warehouse located in another state must be licensed pursuant to the applicable laws of the state in which the alternative warehouse is located or the United States Warehouse Act. A warehouse operator shall not store grain in an alternative warehouse located in another state, unless approved in writing by the department in a manner required by the department.
Terms Used In Iowa Code 203C.39
- Bond: means a bond issued by a surety company or an irrevocable letter of credit issued by a financial institution. See Iowa Code 203C.1
- Department: means the department of agriculture and land stewardship. See Iowa Code 203C.1
- following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
- Grain: means the same as defined in section 203. See Iowa Code 203C.1
- 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. See Iowa Code 203C.1
- 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. See Iowa Code 203C.1
- state: when applied to the different parts of the United States, includes the District of Columbia and the territories, and the words "United States" may include the said district and territories. See Iowa Code 4.1
- 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 which a contract of purchase has not been negotiated or for the warehouse operator operating the facility. See Iowa Code 203C.1
- Warehouse: shall mean any building, structure, or other protected enclosure in this state used or usable for the storage of agricultural products. See Iowa Code 203C.1
- 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. See Iowa Code 203C.1
2. In storing grain in an alternative warehouse under subsection 1, all of the following requirements apply:
a. The warehouse operator must obtain from such warehouse operator a nonnegotiable warehouse receipt and such receipt must show clearly the following notation:
Held in trust for depositors of (name of original receiving warehouse).
b. When the licensed warehouse operator begins to use the alternative warehouse, the licensed warehouse operator must have sufficient net worth under section 203C.6 or provide a deficiency bond or an irrevocable letter of credit to cover the increase in the licensed warehouse operator’s gross capacity.
3. A licensed warehouse operator may transfer grain for storage to another licensed warehouse operator while the warehouse operator receiving such grain has grain stored elsewhere under the provisions of this section.