On April 17, 2020, the Iowa Supreme Court issued a ruling in MidWestOne Bank v. Heartland Co-op regarding competing claims by a secured lender and a grain elevator for the costs of storing and drying grain, reports JD Supra.
The Iowa Supreme Court’s ruling makes it clear that a grain elevator or co-op may not offset its costs of drying and storing grain against the sale of grain which is subject to a security interest.
If elevators want to continue the practice of offsetting costs, they will need take action such as obtaining a written waiver or following the standards prescribed by Iowa law for warehouse liens.
Read the full report here.
