RS 3:3414.2 Prompt payment for rice - Louisiana Statutes

§3414.2.  Prompt payment for rice

A.  The provisions of this Section shall apply to each transaction in which a purchaser buys rice from a producer under a bid contract.

B.  As used in this Section, the following terms shall have the following meanings ascribed to them:

(1)  "Bid contract" means an agreement between a producer and a purchaser under which the purchaser examines samples of rice and extends to the producer an offer to purchase the rice at a price based on the quality of the sample.

(2)  "Confirmation date" means the date on which the bid contract was confirmed.

(3)  "Confirmed" means the bid contract has been agreed to.  A bid contract is confirmed when the producer and the purchaser agree to the quantity and price of the rice to be sold.

(4)  "Delivery date" means the date on which the purchaser is required to take delivery of the rice, either under the provisions of this Section or under the provisions of a written agreement between the producer and the purchaser.

(5)  "Person" means any individual, partnership, corporation, association, or other legal entity.

(6)  "Purchaser" means any person who purchases rice from a producer under a bid contract.

C.  Each purchaser shall take possession of the rice which is the subject of the bid contract no later than the fourteenth calendar day after the confirmation date unless the producer and the purchaser agree in writing that the purchaser shall take possession of the rice on a different delivery date.

D.  If the purchaser does not take possession of the rice on or before any delivery date, the purchaser shall pay all storage and related charges for the storage of the rice after each delivery date, with such time not to exceed thirty days following each such delivery date.

E.  After the thirtieth day following any delivery date, if the purchaser has not taken possession of the rice, the producer shall have the option to either continue to hold the rice for delivery to the purchaser, deliver the rice to another purchaser, or amend the original bid contract by mutual written consent.

F.  Each purchaser shall pay for the rice purchased from each producer under a bid contract no later than the tenth calendar day after the purchaser takes possession of the rice or receives accurate distribution instructions from the seller, whichever is later.

G.  If the purchaser does not make payment as required in Subsection F, the purchaser shall pay the producer interest on the purchase price at the legal rate of interest as established in Civil Code Article 2924.

H.  Any grain dealer acting solely as a commissioned agent for the producer in a bid contract transaction shall not be considered a purchaser or a producer in a bid contract where the actual purchasing grain dealer does not take possession of the rice.

Acts 1985, No. 482, §1; Acts 1986, No. 515, §1; Acts 2004, No. 580, §1.