§ 15-12-1-34 — Marketing contracts

(a) An association and its members may
make and execute marketing contracts requiring the members to sell,
for any period that is not more than ten (10) years:
(1) all or any specified part of the members' agricultural products;
or
(2) specified commodities;
exclusively to or through the association or any facilities to be created
by the association.
(b) If a member contracts a sale to the association, it shall be
conclusively held that title to the products passes absolutely and
unreservedly, except for recorded liens, to the association:
(1) upon delivery; or
(2) at any other specified time, if expressly and definitely agreed
in the contract.
(c) A contract authorized under this section may provide that the
association may:
(1) sell or resell the products delivered by the association's
members, with or without taking title to the products; and
(2) pay over to the association's members the resale price, with or
without pooling, actual or proportionate, after deducting all
necessary selling, overhead, and other costs and expenses,
including:
(A) interest on preferred stock, not exceeding eight percent
(8%) per year;
(B) reserves for retiring the stock, if any;
(C) other proper reserves;
(D) interest not exceeding eight percent (8%) per year on
common stock; and
(E) any other deductions specified in the contract.
[Pre-2008 Recodification Citation: 15-7-1-15.]

Legislative History

As added by P.L.2-2008, SEC.3.