- 6 - in both the selling and marketing of the corn committed to MCP. In addition, MCP had “sole and complete discretion in all phases of the marketing activity”. The 1994 and 1995 UMAs did not obligate Fultz Farms; only Mr. Fultz and MCP were parties to the agreements. The UMAs specified that MCP was obligated to pay Mr. Fultz for delivered corn as follows: (1) An initial payment of 80 percent of the loan value per bushel of corn delivered within 5 days of MCP’s acceptance of the corn; (2) storage and interest payments for corn delivered after October 1 of each processing year; (3) an additional payment (“value-added payment”) for the value added to the corn during its processing by MCP, which was to be based on a yearend determination of MCP’s “net proceeds from all of its operations” which would further compensate Mr. Fultz for his corn and still allow MCP to retain its financial integrity; and (4) patronage dividends. Under the UMAs, Mr. Fultz was required to produce and deliver corn to MCP for processing three times a year (October through January; February through May; and June through September), giving approximately a third of the total required annual quantity at each delivery time. Mr. Fultz was free to satisfy his delivery obligations through several means. He could meet these obligations to MCP with corn that was grown on his ownPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011