Price later contracts that are in electronic form shall be numbered consecutively.
(b) A grain dealer purchasing grain by price later contract
shall at all times own grain, rights in grain, proceeds from the
sale of grain, and other assets acceptable to the Department as set
forth in this Code totaling 90% of the unpaid balance of
the grain dealer's obligations for grain purchased by price later
contract. That amount shall at all times remain unencumbered and
shall be represented by the aggregate of the following:
(1) Grain owned by the grain dealer valued by means
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(c) For the purpose of computing the dollar value of grain
and the balance due on price later contract obligations, the value
of grain shall be figured at the current market price.
(d) Title to grain sold by price later contract shall
transfer to a grain dealer at the time of delivery of the
grain.
Therefore, no storage charges shall be made with respect to grain
purchased by price later contract. A service charge for
handling the contract, however, may be made.
(e) Subject to subsection (f) of this Section,
if a price later contract is not signed by all parties
within 30 days of the last date of delivery of grain
intended to be sold by price later contract, then
the grain intended to be sold by price later contract shall
be priced on the next business day after 30 days from
the last date of delivery of grain intended to be sold
by price later contract at the market price of the grain
at the close of the next business day after the 29th day.
When the grain is priced under this subsection, the grain dealer shall send
notice to the seller of the grain within 10 days. The notice shall contain the
number of bushels sold, the price per bushel, all applicable discounts, the net
proceeds, and a notice that states that the Grain Insurance Fund shall provide
protection for a period of only 160 days from the date of pricing of the grain.
In the event of a failure, if a price later contract is not signed by all
the parties to the transaction, the Department may consider the grain to be
sold by price later contract if a preponderance of the evidence indicates the
grain was to be sold by price later contract.
(f) If grain is in storage with a
warehouseman and is intended to be sold by price later contract, that grain
shall be considered as remaining in storage and not be deemed sold by price
later contract until the date the price later contract is signed by all
parties.
(g) Scale tickets or other approved documents with
respect to grain purchased by a grain dealer by price later
contract shall contain the following: "Sold Grain; Price Later".
(h) Price later contracts shall be issued consecutively and recorded by
the grain
dealer as established by rule.
(i) A licensee shall not issue a collateral warehouse
receipt on grain purchased by a price later contract to the extent
the purchase price has not been paid by the licensee.
(j) Failure to comply with the requirements of this Section
may result in suspension
of the privilege to purchase grain by price later contract for up
to one year.
(k) When a producer with a price later contract selects a price for all or
any part of the grain represented by that contract, then within 5 business days
after that price selection, the licensee shall mail to that producer a
confirmation of the price selection, clearly and succinctly indicating the
price selected. If the price later contract is in electronic form, the licensee shall, within 5 business days after that price selection, e-mail to that producer a confirmation of the price selection, clearly and succinctly indicating the price selected, in full satisfaction of the mailing requirement in the previous sentence.
(l) The issuance and use of price later contracts in electronic form pursuant to the rules promulgated by the Department are specifically authorized by this Code, and any such price later contracts shall have the same validity and enforceability, for all purposes, as those in non-electronic form. For purposes of this Code, the word "written", and derivatives thereof, when used in relation to price later contracts, shall include price later contracts created or displayed electronically.
(Source: P.A. 96-464, eff. 8-14-09.)
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