(1)
General records. A grain dealer shall maintain complete and
sufficient records to show all purchases, sales, and payments for grain
purchased.
(2)
Daily
position record. Unless otherwise approved by the
bureau, every grain
dealer shall keep and maintain on a daily basis a grain position record on a
form approved by the
bureau. The daily position record shall summarize one
month's activity in a format approved by the
bureau. The daily position record
shall indicate at least the increases and decreases and ending balances on a
daily basis for unpaid company-owned. The daily position record shall reflect
the obligations in the appropriate columns.
A separate daily position record shall be maintained for each
kind and class of grain and each type of commodity that is identity-preserved.
All daily entries to the daily position record shall reflect transactions made
through that day's close of business unless another time of day is elected by
the licensee and applied by the licensee on a consistent basis.
(3)
Inspection.
For the purpose of inspection, the hours of 8 a.m. to 5 p.m., except Saturday,
Sunday and holidays, shall be considered as ordinary business hours. All
financial records, grain records and payment records shall be available for
inspection by the bureau during ordinary business hours, and any other time
specified by the bureau in writing. All records shall be made available within
the state of Iowa upon request. Unless the bureau has been notified that the
records would not be available for inspection, an examination fee may be
assessed to the grain dealer if an examiner arrives at the licensee's location
and the records are not available for inspection.
(4)
Settlement sheets.
Unless the grain dealer utilizes a computer system which sequentially numbers
settlement sheets as generated, every grain dealer shall have prenumbered
settlement sheets. All settlement sheets shall show, at a minimum, the
following:
a. The grain dealer's name and
address;
b. Seller's name and
address;
c. Date of
deliveries;
d. Scale ticket
numbers;
e. Amount, kind and grade
factors of the grain; and
f.Method
of settlement:
(1) If priced, the price per
bushel, the quantity of grain priced and the date of pricing.
(2) If paid for, the date, price per bushel,
the quantity of grain paid for, the amount of payment and check number or
electronic funds transfer number.
(3) If credit-sale contract, the contract
type, date and number and the quantity of grain transferred to the
contract.
(4) If warehouse receipt,
the receipt number, date and quantity of grain transferred to the
receipt.
(5) If removed from the
warehouse, the delivery document numbers, dates and amounts of the shipments.
Copies of all settlement sheets shall be maintained in
alphabetical or numerical order by the dealer as part of the records, unless
the dealer uses a computer system approved in writing by the bureau which
sequentially numbers and prints settlement sheets and the settlement sheets can
be retrieved on and reprinted by the computer system. A copy of the settlement
sheet shall be given to the seller upon demand, upon payment or upon the
issuance of a credit-sale contract. Any settlement sheet used in the pricing of
grain for the purpose of sale to the grain dealer shall have the price shown on
all copies of such settlement sheet. Deliveries and settlement transactions
shall be posted to the settlement sheet on a daily basis unless a computer
system is utilized which can generate a scale ticket summary sheet for each
depositor
(5)
Scale tickets. If the
dealer has a scale or regular access to a scale which can be used for weighing
grain, the dealer shall use prenumbered scale tickets showing, at a minimum,
the following:
a. Date.
b. The dealer's name and location.
c. Seller's name.
d. Gross weight, tare weight, and delivered
weight.
e. Type of product or
commodity.
f. An indication of
whether the commodity is being
received or loaded out.
One copy of each ticket shall be maintained in numerical order,
unless the grain dealer uses a computer system approved in writing by the
warehouse bureau which sequentially numbers and prints scale tickets and the
scale ticket information and can be retrieved on and reprinted by the computer
system. However, a ticket printed at the time of weighing shall be the document
of record. All copies of reprinted scale tickets shall be marked "duplicate."
All scale ticket forms in the possession of a grain dealer shall have been
permanently and consecutively numbered at the time of printing. The licensee
shall be responsible for providing a list of all scale tickets used at each
location. Any scale ticket used in pricing grain for the purpose of sale to the
grain dealer shall have the price shown on all copies of such ticket if priced
at the time of delivery. If the dealer does not have a scale or regular access
to a scale and purchases grain by having the grain custom weighed at various
locations or at destination, the dealer shall maintain one copy of the scale
ticket in daily order as part of the grain records.
(6)
Direct shipment
records. When grain is delivered by a producer or the producer's agent
to a third party in accordance with an agreement between the producer and the
grain dealer and the grain is weighed at the destination or is custom weighed,
the direct shipment is to be considered an obligation of the grain dealer on
the date stated on the destination scale ticket, and the direct shipment shall
be reflected in the daily position record on the date when the grain dealer is
able to obtain the load weights. A grain dealer who also holds a warehouse
operator license may maintain a separate daily position record for each kind of
direct shipment grain. The grain dealer shall notify the bureau in writing if
the grain dealer elects to maintain such a daily position record.
(7)
Credit-sale contracts.
One copy of every outstanding credit-sale contract shall be maintained in
numerical order as part of the records.
a.
Required content. A credit-sale contract shall contain a minimum of the
following:
(1) Buyer's name and
location;
(2) Seller's name and
address;
(3) The conditions of
delivery;
(4) Amount and kind of
grain delivered;
(5) Price per
bushel or basis of value;
(6) The
date payment is to be made;
(7) The
duration of the credit-sale contract, which shall not exceed 12 months from the
date the contract is executed;
(8)
The wording "Credit-Sale Contract," which shall appear in the title or subtitle
of the contract;
(9) Consecutive
numbering at the time of printing; and
(10) Signature and date by both
parties.
b. Notice of
credit-sale contract acknowledgment. A licensed grain dealer who purchases
grain by credit-sale contract shall obtain from the seller a signed
acknowledgment stating that the seller has
received notice that grain purchased
by credit-sale contract is not protected by the grain depositors and sellers
indemnity fund. Failure of the grain dealer to obtain the acknowledgment of the
seller is a violation of Iowa Code section
203.15 and
may result in license suspension or revocation under Iowa Code section
203.10.
Failure of the grain dealer to obtain the acknowledgment does not alter the
fact that the seller shall be unable to recover from the grain depositors and
sellers
indemnity fund any loss incurred under a credit-sale contract. The
acknowledgment shall comply with one of the following:
(1) Be a separate form, which shall be
prescribed by the bureau. The notice shall state that the seller has received
notice that the grain is not protected by the grain depositors and sellers
indemnity fund. A copy of the notice shall be attached to the grain dealer's
copy and seller's copy of the credit-sale contract; or
(2) The grain dealer may add the following
wording to the credit-sale contract directly above the signature of the buyer
and seller in bold print of equal size or larger than the body of the contract:
"By their signature hereto, the undersigned aver that the seller has been
orally advised by the buyer that this transaction is not covered by the grain
depositors and sellers indemnity fund"; or
(3) The grain dealer may add the following
wording to the credit-sale contract directly above the signature of the buyer
and seller in bold print of equal size or larger than the body of the contract:
"By their signature hereto, the undersigned acknowledge that the seller has
received notice that this credit-sale transaction is not protected by the grain
depositors and sellers indemnity fund."
c. If someone other than the seller indicated
on a credit-sale contract signs the contract, the grain dealer shall be able to
provide the
bureau with proof of business relationship between the indicated
seller and the
person who signed the contract. This document shall be signed by
the
person who produced the grain or caused the grain to be produced. The
document is required for but not limited to contracts signed by the following:
(1) Landlord or tenant.
(2) Parent or child.
(3) Spouse.
(4) Siblings.
(5) Farm managers (may use a copy of the
management agreement).
(6)
Executors, trustees, administrators, etc. (may use a copy of court document of
appointment).
(7) Corporate
officers (other than the president), partners and members or officers of other
legal entities.
If a contract is issued to two or more sellers, all must sign
the contract.
d.
A licensee's purchases of grain by credit-sale contract from a person licensed
as a grain dealer in any jurisdiction are not subject to the requirements of
91.11(7). Any grain purchased from a grain dealer is not eligible for recovery
from the grain depositors and sellers indemnity fund.
(8)
Cancellation procedures for
credit-sale contracts.
a. One copy
of each canceled credit-sale contract shall be maintained in separate numerical
order from the outstanding credit-sale contracts as part of the records. The
grain dealer shall either mark the face of the credit-sale contract with the
word "Canceled," the check number, and date of payment or shall provide a
numerically ordered listing that shows the contract numbers, check numbers and
payment dates. Credit-sale contracts may only be marked "void" if errors are
made on the day of issue; otherwise they are to be considered
"canceled."
b. Partial payments.
Advances and partial payments shall be noted on the face of the outstanding
credit-sale contracts or by other method of documentation that shows the net
balance and is approved by the
bureau. The following information shall be
noted:
(1) Amount of bushels paid;
(2) Date paid;
(3) Check number; and
(4) Remaining balance of the
contract.
(9)
Retention of records. All records shall be kept for a period
of not less than six years. Such records shall be kept for the stated time
period even if a license has been canceled.
This rule is intended to implement Iowa Code sections 203.2,
203.9, 203.15, 203D.1, 203D.3 and 203D.6.
