Sec. 21.
(1) If there is no other disposition within 30 days after the delivery of farm produce to a grain dealer, the farm produce transaction is a price later agreement transaction.
(2) Title of farm produce subject to a price later agreement is transferred to the grain dealer at the time the price later agreement is executed.
(3) A grain dealer shall maintain a separate file in numerical sequence of noncanceled price later agreements that is available for inspection during normal business hours by the department. The grain dealer shall include in the records an account of any information required by the director to document the grain dealer's obligation to a depositor under a price later agreement.
(4) A grain dealer shall not include a charge for storage in any transaction that includes a price later agreement.
(5) The form and content of a price later agreement shall be approved by the department. Each price later agreement must contain blank lines or spaces for inserting all of the following information, statements, and provisions, as applicable:
(a) The date of receipt of the farm produce.
(b) The grain dealer's handling charge rates and the calculation of the depositor's charges.
(c) The net weight, type, and grade factors of the farm produce.
(d) The signature of the grain dealer or his or her authorized agent.
(e) The name and address of the depositor.
(f) The signature of the depositor or, if signed by an authorized agent of the depositor, the name and signature of the depositor's authorized agent. This subdivision does not apply to a transaction described in subsection (1).
(g) An expiration date.
(h) A statement that the price later agreement is issued subject to this act and rules promulgated under this act.
(6) A person shall not knowingly deposit farm produce under a price later agreement without disclosing any lien on or lack of title to the farm produce.
(7) A price later agreement shall not be converted to a warehouse receipt.
(8) At the expiration date of a price later agreement, a grain dealer shall settle at market price or renegotiate.
History: Add. 1996, Act 311, Imd. Eff. June 24, 1996 ;-- Am. 2002, Act 80, Eff. Mar. 31, 2003
Last modified: October 10, 2016