North Dakota Code 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:
Terms Used In North Dakota Code 4.1-58-21
- Contract: A legal written agreement that becomes binding when signed.
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See North Dakota Code 1-01-49
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.