Sec. 34. (a) An association and its members may make and execute marketing contracts requiring the members to sell, for any period that is not more than ten (10) years:

(1) all or any specified part of the members’ agricultural products; or

Ask a business law question, get an answer ASAP!
Thousands of highly rated, verified business lawyers.
Click here to chat with a lawyer about your rights.

Terms Used In Indiana Code 15-12-1-34

  • agricultural products: includes horticultural, viticultural, forestry, dairy, livestock, grain, poultry, bee, and any other farm product. See Indiana Code 15-12-1-3
  • association: means any corporation organized under or governed by this chapter. See Indiana Code 15-12-1-4
  • Contract: A legal written agreement that becomes binding when signed.
  • member: means the following:

    Indiana Code 15-12-1-5

  • Year: means a calendar year, unless otherwise expressed. See Indiana Code 1-1-4-5
(2) specified commodities;

exclusively to or through the association or any facilities to be created by the association.

     (b) If a member contracts a sale to the association, it shall be conclusively held that title to the products passes absolutely and unreservedly, except for recorded liens, to the association:

(1) upon delivery; or

(2) at any other specified time, if expressly and definitely agreed in the contract.

     (c) A contract authorized under this section may provide that the association may:

(1) sell or resell the products delivered by the association’s members, with or without taking title to the products; and

(2) pay over to the association’s members the resale price, with or without pooling, actual or proportionate, after deducting all necessary selling, overhead, and other costs and expenses, including:

(A) interest on preferred stock, not exceeding eight percent (8%) per year;

(B) reserves for retiring the stock, if any;

(C) other proper reserves;

(D) interest not exceeding eight percent (8%) per year on common stock; and

(E) any other deductions specified in the contract.

[Pre-2008 Recodification Citation: 15-7-1-15.]

As added by P.L.2-2008, SEC.3.