Title 16 Chapter 16 Section 702

Corporations
Uniform Limited Cooperative Association Act
Section 702
Marketing contracts.

            

16-16-702.   Marketing contracts.

            (1) If a marketing contract provides for the sale of products, commodities, or goods to a limited cooperative association, the sale transfers title to the association upon delivery or at any other specific time expressly provided by the contract.

            (2) A marketing contract may:

            (a) authorize a limited cooperative association to create an enforceable security interest in the products, commodities, or goods delivered; and

            (b) allow the association to sell the products, commodities, or goods delivered and pay the sales price on a pooled or other basis after deducting selling costs, processing costs, overhead, expenses, and other charges.

            (3) Some or all of the provisions of a marketing contract between a patron member and a limited cooperative association may be contained in the organic rules.


Enacted by Chapter 363, 2008 General Session