Michigan Laws 285.81 – Price later agreement
Current as of: 2023 | Check for updates
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(1) If there is no other disposition within 30 days after the delivery of farm produce to a grain dealer, the farm produce transaction is a price later agreement transaction.
(2) Title of farm produce subject to a price later agreement is transferred to the grain dealer at the time the price later agreement is executed.
Terms Used In Michigan Laws 285.81
- Department: means the department of agriculture. See Michigan Laws 285.62
- Depositor: means either of the following:
(i) A person who delivers farm produce to a licensed grain dealer for storage, processing, shipment, or sale and has title to the farm produce at the time of delivery. See Michigan Laws 285.62Director: means the director of the department or his or her designee. See Michigan Laws 285.62 disposition: means a cash sale or other transfer of farm produce or placement of farm produce on a warehouse receipt or price later agreement. See Michigan Laws 285.62 Farm produce: means 1 or more of dry edible beans, soybeans, small grains, cereal grains, or corn. See Michigan Laws 285.62 Grain dealer: means a person engaged in the business of receiving, buying, exchanging, selling, or storing farm produce in this state. See Michigan Laws 285.62 Lien: A claim against real or personal property in satisfaction of a debt. Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period. Person: means an individual, corporation, limited liability company, partnership, association, cooperative organization, or other legal entity. See Michigan Laws 285.62 Price later agreement: means a written or electronically transmitted agreement between a depositor and a grain dealer where the grain dealer receives title to farm produce and the depositor retains the option to price the farm produce after delivery based on conditions in the agreement. See Michigan Laws 285.62 Storage: means the deposit of farm produce in trust with a grain dealer by a depositor. See Michigan Laws 285.62 Warehouse receipt: means a written or electronically transmitted receipt issued by a grain dealer to a depositor at the time the grain dealer accepts farm produce for storage. See Michigan Laws 285.62
(3) A grain dealer shall maintain a separate file in numerical sequence of noncanceled price later agreements that is available for inspection during normal business hours by the department. The grain dealer shall include in the records an account of any information required by the director to document the grain dealer’s obligation to a depositor under a price later agreement.
(4) A grain dealer shall not include a charge for storage in any transaction that includes a price later agreement.
(5) The form and content of a price later agreement shall be approved by the department. Each price later agreement must contain blank lines or spaces for inserting all of the following information, statements, and provisions, as applicable:
(a) The date of receipt of the farm produce.
(b) The grain dealer’s handling charge rates and the calculation of the depositor’s charges.
(c) The net weight, type, and grade factors of the farm produce.
(d) The signature of the grain dealer or his or her authorized agent.
(e) The name and address of the depositor.
(f) The signature of the depositor or, if signed by an authorized agent of the depositor, the name and signature of the depositor’s authorized agent. This subdivision does not apply to a transaction described in subsection (1).
(g) An expiration date.
(h) A statement that the price later agreement is issued subject to this act and rules promulgated under this act.
(6) A person shall not knowingly deposit farm produce under a price later agreement without disclosing any lien on or lack of title to the farm produce.
(7) A price later agreement shall not be converted to a warehouse receipt.
(8) At the expiration date of a price later agreement, a grain dealer shall settle at market price or renegotiate.