80-4-422. Delayed payment or purchase contracts. (1) A commodity dealer who purchases agricultural commodities by purchase contract shall maintain books, records, and other documents as required by the department to establish compliance with the provisions of this section.
(2) In addition to other required information, a purchase contract must contain or provide for all of the following:
(a) the seller's and purchaser's name and address;
(b) the conditions of delivery;
(c) the amount and kind of agricultural commodities delivered;
(d) the price per unit or basis of value;
(e) the date payment is to be made; and
(f) a notice of financial risk involved in the delayed payment contract, in a form the department shall adopt pursuant to the rulemaking authority provided in 80-4-403.
(3) Title to all agricultural commodities sold by purchase contract is in the purchaser as of the time the agricultural commodities are delivered to and in physical control of the purchaser unless the contract provides otherwise. The contract must be signed by both parties and executed in duplicate. One copy must be retained by the commodity dealer, and one copy must be provided to the seller. Upon revocation, suspension, or termination of a commodity dealer's or warehouse operator's license, the department may advance the payment date for all delayed payment contracts to a date not later than 30 days following the effective date of the revocation, suspension, or termination. When not otherwise provided, the purchase price for all agricultural commodities must be determined as of the effective date of revocation, suspension, or termination in accordance with all other provisions of the contract. However, if the business of the commodity dealer is sold to another licensed commodity dealer, purchase contracts may be assigned to the purchasing commodity dealer.
(4) Any contract that does not satisfy the conditions imposed by this part is considered a sale other than a purchase contract and is subject to the provisions of 80-4-608.
History: En. Sec. 13, Ch. 539, L. 1983; amd. Sec. 1, Ch. 518, L. 1991; amd. Sec. 2, Ch. 452, L. 1993.