§ 4.1-48-05 — Recapture of capital investment required by a potato production contract

1. A contractor may not terminate or cancel a contract that requires a producer to make a
capital investment in buildings or equipment that cost one hundred thousand dollars or
more and have a useful life of five or more years until:

a. The producer has been given written notice of the intention to terminate or cancel
the contract at least one hundred eighty days before the effective date of the
termination or cancellation, or as provided in subsection 3; and
b. The producer has been reimbursed for damages incurred by an investment in
buildings or equipment that was made for the purpose of meeting minimum
requirements of the contract.
2. Except as provided in subsection 3, if a producer fails to comply with the provisions of
a contract that requires a capital investment subject to subsection 1, a contractor may
not terminate or cancel that contract until:
a. The contractor has given written notice with all the reasons for the termination or
cancellation at least ninety days before termination or cancellation, or as provided
in subsection 3; and
b. The recipient of the notice fails to correct the reasons stated for termination or
cancellation in the notice within sixty days of receipt of the notice.
3. The one hundred eighty-day notice period under subsection 1, and the ninety-day
notice period and the sixty-day notice period under subsection 2, are waived and the
contract may be canceled or terminated immediately if the alleged grounds for
termination or cancellation are:
a. Voluntary abandonment of the contract relationship by the producer; or
b. Conviction of the producer of an offense directly related to the business
conducted under the contract.