Illinois Administrative Code › Title 8 - AGRICULTURE AND ANIMALS › Part 281 - GRAIN CODE › Section 281.50 - Price Later Contracts

Current through Register Vol. 48, No. 28, July 12, 2024
a)
			 Prescribed Form
A price later contract executed between a licensee and a
				producer shall be on a prescribed form that has been approved by the
				Department. A licensee may issue a price later contract by way of a written
				price later contract document, an EPLC, or both. All price later contracts
				shall include, but need not be limited to, the following information:
1) The legal name and address of the
			 licensee;
2) The legal name of the
			 seller;
3) The bushel amount of
			 grain to be covered by the contract;
4) The grade and commodity of grain to be
			 covered by the contract;
5) The
			 dates of delivery of the grain to be covered by the contract;
6) The method of pricing;
7) A section to indicate service charges,
			 advances or other terms;
8) The
			 following statements:
A) Title to the grain
			 covered by this contract passes to buyer at the time of delivery.
B) Buyer is required to maintain grain assets
			 and price later, storage and drying service charges equal to 90% of its price
			 later obligations.
C) Price later
			 grain is not stored grain for the seller. In the event of a failure, the
			 contract is the basis for a grain dealer claim. The maximum coverage afforded
			 by the Illinois Grain Insurance Fund is 85% of valid grain dealer claim amounts
			 up to a maximum of $250,000 per claimant. The maximum payment per claimant
			 covers all contracts that in any way can be related or tied to a person or
			 entity, whether in full or in part.
D) This contract shall cease to be the basis
			 of a valid claim, and seller shall not be entitled to any recovery:
i) When both the date of completion of
			 delivery and the date of pricing of the grain are in excess of 160 days before
			 the date of failure;
ii) If the
			 later of the date of execution of the contract or the date of delivery of the
			 grain covered by the price later contract occurred more than 365 days before
			 the date of failure (The phrase "the later of the date" means the date closest
			 to the date of failure, and the phrase "date of delivery" means the date of the
			 last delivery of grain to be applied to the quantity requirement of the price
			 later contract.);
iii) If the claim
			 is based upon or acquired by fraudulent or illegal acts of the
			 seller.
E) The execution
			 of subsequent price later contracts for the grain previously covered by a price
			 later contract shall not extend coverage of a claim beyond the original 365
			 days.
F) The contract must be
			 signed by both parties within 30 days after the last date of delivery or, if an
			 EPLC is used, the EPLC must be maintained as an electronic record containing
			 electronic signatures and security procedures for both parties within 30 days
			 after the last date of delivery. If the contract is not signed by both parties
			 within 30 days after the last date of delivery or if the EPLC is not maintained
			 as an electronic record containing electronic signatures and security
			 procedures for both parties within 30 days after the last date of delivery,
			 then the grain will be priced at the market price of the grain at the close of
			 the next business day after the 29th day.
G) Within 5 business days after the seller
			 selects a price for all or any part of the grain represented by the price later
			 contract, the buyer shall settle and mail to the seller full settlement for the
			 priced grain;
9) A
			 section indicating the signature, electronic or otherwise, and date of
			 signature for both the seller and buyer's representative;
10) The contract shall contain a schedule of
			 settlements and basis activity for the grain to be covered by the
			 contract.