A licensed or required-to-be-licensed grain dealer must pay the seller for grain on delivery, on demand, or by the dealer’s scheduled payment date if no demand is made.
1. a. A grain dealer licensed or required to be licensed pursuant to section 203.3 shall pay the purchase price to the seller for grain as follows: (1) Upon delivery or later upon demand by the seller. If the seller does not make a demand, the grain dealer shall pay the purchase price not later than the last date for scheduled payments made by the licensed grain dealer to sellers for delivered grain according to the grain dealer’s standard business operation as provided by rules adopted by the department. (2) In accordance with the terms of a credit-sale contract that satisfies the requirements of this chapter. b. A grain dealer licensed or required to be licensed pursuant to section 203.3 shall not hold a check for the purchase of grain more than five days after the grain dealer issues a check to the seller. After that date, the grain dealer shall deliver the check in person or by mail to the seller’s last known address. The department shall adopt rules pursuant to chapter 17A for a grain dealer’s payment by check and electronic funds transfer. 2. As used in this section: a. “Delivery” means the transfer of title to and possession of grain by a seller to a grain dealer or to another person in accordance with the agreement of the seller and the grain dealer. b. “Payment” means the actual payment or tender of payment by a grain dealer to a seller of the agreed purchase price, or in the case of disputes as to sales of grain, the undisputed portion of the purchase price without reduction for any separate claim of the grain dealer against the seller. [C75, 77, 79, 81, §542.8; 81 Acts, ch 180, §9] C93, §203.8 96 Acts, ch 1030, §1; 2003 Acts, ch 69, §4; 2025 Acts, ch 105, §5 Referred to in §203.1, 203.12B, 203.15 Subsection 1 amended