302 KAR 35:060.
Contracts.
RELATES TO: KRS
251.480
STATUTORY
AUTHORITY: KRS 251.420
NECESSITY,
FUNCTION, AND CONFORMITY: Establishes the minimum provisions for forward
pricing and storage contracts used by grain storage establishments licensed
under KRS Chapter 251.
Section 1. (1)
All contracts under which grain is sold on a forward pricing (delayed pricing)
basis shall be in writing and in a form approved by the Kentucky State
Department of Agriculture, Division of Weights and Measures. Such forms shall
at a minimum provide:
(a) Terms
sufficient to comply with relevant requirements of KRS Chapter 355.
(b) The
following language in bold type not less than twelve (12) points in size
located on the face of all forward pricing (delayed pricing) contracts:
"In selling
commodities under this agreement, I, the seller, fully understand that I am
transferring title to the undersigned buyer upon delivery, and that after
delivery I may be held to be an unsecured creditor of the buyer for the market
value of commodities so delivered until the price is established and settlement
is completed. If the buyer defaults in his obligation for settlement I may be
held to be a common unsecured creditor of the buyer for the value of
commodities not settled for."
(2) Forward
pricing (delayed pricing) contract means a contract used between a producer and
a buyer of grain, soybeans, and oil seed which provides that title to the
commodity passes with delivery to the buyer and that payment will be in the
form of a sum certain or a sum determined later to be due and payable in the
future at a time certain or a time to be specified.
Section 2.
Contracts for the cash sales of grain, soybeans and oil seed by a producer to a
buyer, other than the contract described in Section 1(2) of this administrative
regulation shall at a minimum specify the type, grade and quantity of grain,
soybeans and oil seed sold under the contract and clearly disclosed the time
and method of payment and the time that title to such grain, soybeans and oil seed
passes from the producer to the seller.
Section 3.
Applicants for a grain storage establishment license or renewal of a grain
storage establishment license shall submit with the application all forms of
contracts used by the grain storage establishment for storage or forward
pricing (delayed pricing) of grain unless the only contracts utilized for
storage or forward pricing (delayed pricing) of grain are standard forms
approved and supplied by the Kentucky Department of Agriculture.
Section 4. A grain
storage establishment may store grain, soybeans and oil seed under a warehouse
receipt as defined in KRS 355.7-101 et seq. without such prior approval of such
contract or receipt.
Section 5.
Contracts for the storage of grain, soybeans and oil seed shall at a minimum
identify the type, grade and quantity of grain, soybeans and oil seed stored
under the contract and disclose all charges that will be or may be applied to
such stored grain, soybeans and oil seed and any time limitations specified in
the contract period.
Section 6. A
grain storage establishment may until June 30, 1983, comply with the provisions
of Section 1(1)(b) of this administrative regulation by attaching securely to
the statement required in Section 1(1)(b) of this administrative regulation to
a preprinted contract otherwise approved by the department under the provisions
of Section 1(1)(a) of this administrative regulation.
Section 7. Forms
appended hereto are approved for use in storage or forward pricing (delayed
pricing) of grain and need not be submitted for approval. (9 Ky.R. 388; Am.
780; eff. 2-2-83.)
APPENDIX
A
DELAYED
PRICE AGREEMENT
DATE:__________________
Agreement No._______________
Commodities under
agreement:___________________________
It is hereby
agreed that I, the undersigned seller, may from time to time, by my own choice,
sell and deliver to the undersigned buyer, agricultural commodities as listed
above, on which the price is to be established at a later date. I pledge that
the commodities delivered pursuant to this agreement shall be free of any lien
or encumbrance.
In selling
commodities under this agreement, I, the seller, fully understand that I am
transferring title to the undersigned buyer upon delivery, and that after
delivery I am a creditor of the buyer for the market value of commodities so
delivered until the price is established and settlement is completed. If the
buyer defaults in his obligation for settlement I may be held to be a common
(unsecured) creditor of the buyer for the value of commodities not settled for.
Upon demand by
the seller, the buyer is obligated to pay his regular bid price upon the date
of demand for the commodities being priced by the seller which have been
delivered under this agreement, less any service charge which is due and
payable to the buyer. The buyer shall pay the same price as he is bidding for
like commodities being delivered to him for sale on that date by other sellers.
For services
rendered in connection with this agreement the seller shall be liable to the
buyer for delayed price charges as printed on the back of the scale ticket.
Each scale
ticket, which is marked for delayed price, hereby becomes a part of this
agreement.
__________________________
____________________________
Seller Buyer
__________________________
____________________________
Address Address
__________________________
____________________________
Authorized Signature
Authorized Signature