Marketing contracts.

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  • (1) If a marketing contract provides for the sale of products, commodities, or goods to a limited cooperative association, the sale transfers title to the association upon delivery or at any other specific time expressly provided by the contract.
  • (2) A marketing contract may:
    • (a) authorize a limited cooperative association to create an enforceable security interest in the products, commodities, or goods delivered; and
    • (b) allow the association to sell the products, commodities, or goods delivered and pay the sales price on a pooled or other basis after deducting selling costs, processing costs, overhead, expenses, and other charges.
  • (3) Some or all of the provisions of a marketing contract between a patron member and a limited cooperative association may be contained in the organic rules.




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