Okla. Admin. Code § 35:10-7-6

Current through Vol. 42, No. 4, November 1, 2024

Section 35:10-7-6 - Commodity sales contracts

(a) Commodities which have been received at a chartered warehouse for which the actual sale price is not fixed with proper documentation or payment made, or a sales contract made, shall be construed to be commodities held for storage.

(b) All sales contracts for the purchase of commodities by the warehouseman shall be consecutively numbered and include the warehouse charter number. The contract shall define the exact terms of the contract, including but not limited to, who is the legal owner of the commodities.

(c) All delayed pricing or deferred payment contracts shall comply with 35:10-7-6(b) and shall:

(1) Provide that title to the commodities passes from the seller to the buyer upon signing of the deferred pricing contract;

(2) Provide that no storage is charged by the buyer under the terms of the contract; however, maintenance and service fees may be charged under the terms of the contract mutually agreed upon by buyer and seller; and

(3) Contain language in bold, capital print that is at least in a ten (10) point type or font size, and initialed by the producer that commodities sold under the delayed pricing or deferred payment contracts are not covered by the Commodity Storage Indemnity Fund.

(4) Delayed pricing or deferred payment contracts shall be considered a voluntary extension of credit and shall not be covered by the surety bond of the chartered facility or the Commodity Storage Indemnity Fund.

Okla. Admin. Code § 35:10-7-6

Amended at 11 Ok Reg 2515, eff 5-3-94 (emergency); Amended at 11 Ok Reg 3107, eff 6-27-94; Amended at 14 Ok Reg 3699, eff 8-7-97 (emergency); Amended at 15 Ok Reg 2490, eff 6-25-98; Amended at 18 Ok Reg 1439, eff 5-25-01