A public warehouseman also may insert in the warehouse receipt the following provision:
If any of the grain embraced in this receipt proves to be covered by a chattel mortgage
or other lien, or the partial or absolute title proves to be in someone other than the
person to whom this receipt was issued, the same, if discovered before the delivery of
the grain, is sufficient reason for the refusal to deliver to the holder of the receipt, or if
discovered after the delivery of the grain, the delivery is deemed an additional delivery
for which the holder of this receipt, to whom the delivery is made, is accountable.
4.1-58-21. Credit-sale contracts.
1.A warehouseman may not purchase grain by a credit-sale contract except as provided
in this section. All credit-sale contracts must be in writing
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A public warehouseman also may insert in the warehouse receipt the following provision:
If any of the grain embraced in this receipt proves to be covered by a chattel mortgage
or other lien, or the partial or absolute title proves to be in someone other than the
person to whom this receipt was issued, the same, if discovered before the delivery of
the grain, is sufficient reason for the refusal to deliver to the holder of the receipt, or if
discovered after the delivery of the grain, the delivery is deemed an additional delivery
for which the holder of this receipt, to whom the delivery is made, is accountable.
4.1-58-21. Credit-sale contracts.
1. A warehouseman may not purchase grain by a credit-sale contract except as provided
in this section. All credit-sale contracts must be in writing and must be consecutively
numbered when printing the contract. The warehouseman shall maintain an accurate
record of all credit-sale contract numbers, including the disposition of each numbered
form, whether by execution, destruction, or otherwise. Each credit-sale contract must
contain or provide for:
a. The seller's name and address.
b. The conditions of delivery.
c. The amount and kind of grain delivered.
d. The price per unit or basis of value.
e. The date payment is to be made.
f. The duration of the credit-sale contract.
g. Notice in a clear and prominent manner that the sale is not protected by the bond
coverage provided for in section 4.1-58-11. However, if the warehouseman has
obtained bond coverage in addition to that required by section 4.1-58-11 and that
coverage extends to the benefit of credit-sale contracts, the warehouseman may
state that in the credit-sale contract along with the extent of the coverage.
2. The contract must be signed by both parties and executed in duplicate. An electronic
signature satisfies the requirement. An unsigned contract must be considered an
unconverted scale ticket in accordance with section 4.1-58-15. The warehouseman
shall retain one copy and deliver one copy to the seller. Upon revocation, termination,
or cancellation of a warehouseman's license, the payment date for all credit-sale
contracts, at the seller's option, must be advanced to a date not later than thirty days
after the effective date of the revocation, termination, or cancellation, and the purchase
price for all unpriced grain must be determined as of the effective date of revocation,
termination, or cancellation in accordance with all other provisions of the contract.
When a public warehouse is transferred under this chapter, credit-sale contracts may
be assigned to another licensed public warehouseman.
3. A warehouseman that uses deferred-payment contracts shall inform producers of bond
protection.