§ 35-36-207 — Credit sale contracts - rules

Colorado § 35-36-207

• Jurisdiction: Colorado
• Title 35: Agriculture
• Art.: Commodities Handlers and Farm Products

Text

(1) When a commodity handler
purchases commodities for which payment has not been made, the commodity
handler, within thirty days after the receipt of the commodities, shall provide the
producer or owner of the commodities with the credit sale contract. The credit sale
contract must contain the following information:

(a) The class, grade, and quantity of the commodities purchased, and the
date of the purchase;

(b) The charges for handling, if any;

(c) The name and address of the producer or owner and the signature of the
commodity handler;

(d) The contract number;

(e) The words not a storage contract printed in block capital letters in bold-faced type, conspicuously on the first page of the contract;

(f) One or more statements specified by the commissioner by rule, including
one that warns a producer that entering into a credit sale contract entails a risk that
the bond may not completely protect the producer from loss in the event of a
failure of the commodity handler.

(2) (a) A commodity handler or a small-volume commodity handler shall
retain records for a period of two years and shall keep the records at the
commodity handler's or the small-volume commodity handler's place of business at
all times.

(b) (I) With respect to a credit sale contract, a commodity handler shall retain
records for a period of two years after the date of completion of the credit sale
contract.

(II) The records must reflect those credit sale contracts that have been
canceled and those that are still open and be kept at the commodity handler's
place of business at all times.

(3) The commissioner shall require an annual report of the status of the
credit sale contracts along with the financial statement required in section 35-36-204 (1)(b).

(4) A commodity handler or small-volume commodity handler shall
consecutively number all credit sale contracts entered into by the commodity
handler and make available copies of the credit sale contracts for inspection and
examination by the commissioner or the commissioner's authorized agents.

(5) A commodity handler issuing credit sale contracts shall maintain
allowable net assets of not less than twenty-five thousand dollars and shall
maintain reserves in an amount equaling or exceeding one hundred percent of the
value of all of that commodity handler's open credit sale contracts, which value
shall be determined with reference to the daily bid price. The reserves may be in the
form of any one or a combination of the following:

(a) Cash;

(b) Commodity assets, including commodities and warehouse receipts or
other evidence of storage of commodities;

(c) Credit sale contracts with other commodity handlers licensed by the
department; or

(d) An irrevocable letter of credit in favor of the commissioner, which letter
of credit is subject to section 35-36-216.

(6) A small-volume commodity handler shall not enter into or offer to enter
into a credit sale contract.

Legislative History

Source: L. 2020: Entire article amended with relocations, (HB 20-1213), ch. 160, p. 728, � 2, effective June 29.