Price Later Contracts

(1) A “delayed payment, deferred price, or price later contract” shall be made out at least in triplicate. One (1) copy shall be given to the producers and one (1) copy kept for grain dealer’s files, the third (3rd) copy shall be filed in numerical order at the dealer’s place of business so that it can be used in the department’s normal examination of the dealer’s records unless otherwise directed by the department. Both the producer and the grain dealer shall sign this agreement within thirty (30) days after completion of delivery of any given lot of grain. If the grain has been priced and paid for within this thirty (30) day period, a price later contract does not need to be executed. A lapse of more than thirty (30) days in delivery shall constitute the end of delivery of a lot of grain for purposes of complying with this rule. This contract must contain clear agreement between the two (2) parties involved as to how the price will be determined. (2) When reprinting contracts, the following statements shall be printed on the price later contract: (a) Title to the grain covered by this contract passes to buyer upon delivery; (b) Buyer is required to maintain liquid assets equal to ninety percent (90%) of its price later obligations; and (c) Price later grain is not stored for the seller. This contract is regarded as a grain dealer claim. The maximum coverage afforded by the Tennessee Grain Indemnity Fund is eighty-five percent (85%) of the valid grain dealer claim amount up to a maximum of $100,000 per claimant. (3) Document representing grain delivered to the grain dealer shall clearly indicate that the grain is sold unless it has been sold by the means of the price later contract. In such case, the document will be marked “Sold Grain: Price Later”