8 CCR 1202-11 Part 12 - Requirements for Credit-Sale Contracts
12.1. When a farm products dealer,
small-volume farm products dealer, or commodity handler issues a credit-sale
contract, the contract must include the following, which is in addition to the
requirements in section
35-36-207(1) and
35-36-307(1)
C.R.S.:
* The signature of the producer or the owner;
* The signature of the commodity handler or farm products dealer's authorized agent, and
* A completion date, or date payment is due.
12.2. When a farm products dealer
or small-volume dealer receives farm products for which payment has not been
made, the farm products dealer or small-volume dealer, within thirty (30)
calendar days after the receipt of such farm products, shall provide the
producer or owner of the farm products with a credit-sale contract containing
the statement: "this contract constitutes a voluntary extension of credit by
the owner to the dealer or small-volume dealer. The surety bond or irrevocable
letter of credit of the dealer or small-volume dealer may not completely
protect the owner from financial loss in the event of a failure of the dealer
or small-volume dealer." Such statement shall be conspicuously printed on the
first page of the contract, in the same font and font size as the majority of
the text in the contract.
12.3.
When a commodity handler receives commodities for which payment has not been
made, the commodity handler, within thirty (30) calendar days after the receipt
of such commodities, shall provide the producer or owner of the commodities
with a credit-sale contract containing the statement: "this contract
constitutes a voluntary extension of credit by the owner to the commodity
handler. The surety bond or irrevocable letter of credit of the commodity
handler may not completely protect the owner from financial loss in the event
of a failure of the commodity handler." Such statement shall be conspicuously
printed on the first page of the contract, in the same font and font size as
the majority of the text within the contract.
12.4. A commodity handler issuing credit sale
contracts shall maintain positive working capital and a current ratio equal to
or greater than one-to-one.
12.5.
When a dealer, small-volume dealer, or commodity handler reaches the completion
date, or the date payment is due on a credit-sale contract, for which payment
has not been made, a new contract shall be entered into.
Notes
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