302 Kar 35:060. Contracts

Link to law: http://www.lrc.ky.gov/kar/302/035/060.htm
Published: 2015

      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
Read Entire Law on www.lrc.ky.gov