South Carolina Code of Regulations
Chapter 5 - DEPARTMENT OF AGRICULTURE
Article 15 - MISCELLANEOUS PROVISIONS
Section 5-581.03 - Contracts
Current through Register Vol. 48, No. 3, March 22, 2024
1. All purchases of grain from producers, other than grain paid for at time of delivery by U.S. currency, or cashier's check, shall be supported by cancelled check(s) or by a written contract(s) or by any other written documentation required by the Commissioner of Agriculture.
2. The licensed grain dealer shall for all grain received or delivered to him by the producer for purchase that is not paid for upon delivery, shall issue a written acknowledgement to the seller stating the terms of purchase. No grain that is to be purchased by the dealer from the producer shall remain in the custody, care, or possession of the dealer without a written explanation of the intended disposition of said grain. Written contracts may be negotiated prior to, or acknowledgement written upon the dealer receiving said grain.
3. Contracts to be used by licensed grain dealers shall contain the following:
4. The licensed grain dealer shall assure that:
5. The licensed grain dealer shall account for all contracts. Void contracts shall be placed in his file for inspection.
6. The licensed grain dealer shall before using any contract, file with the Commissioner of Agriculture a sample of the said contract to be used for approval.
7. [Deleted]
8. Any licensed dealer who wishes to change or alter the contents of his contract must notify in writing the Commissioner of Agriculture. A sample of the contract with requested changes must be on file with the South Carolina Department of Agriculture. The Commissioner of Agriculture may approve or disapprove the requested changes.
9. The Commissioner of Agriculture may require any additional information from a licensed grain dealer that is deemed necessary to--
10. A licensed grain dealer who purchases commodities by deferred-price or delayed-payment contracts, or any similar credit-type sale agreements, shall at all times maintain grain, rights in grain, proceeds from the sale of grain, or a combination thereof totaling a minimum of ninety percent of the current market value of the dealer's obligation for commodities purchased by such agreement. Such amount shall be evidenced or represented by one or more of the following:
This requirement shall not apply to contracts between a grain dealer and seller who executes an affidavit within the contract forfeiting title, ownership of the commodity and all rights under the Dealer and Handler Guaranty Fund as provided for in Section 39-22-200.