276.401. Title, and scope of the law--definitions.

MISSOURI STATUTES AND CODES

276.401. Title, and scope of the law--definitions.

Title, and scope of the law--definitions.

276.401. 1. Sections 276.401 to 276.582 shall be known as the"Missouri Grain Dealer Law".

2. The provisions of the Missouri grain dealer law shall apply tograin purchases where title to the grain transfers from the seller to thebuyer within the state of Missouri.

3. Unless otherwise specified by contractual agreement, title shallbe deemed to pass to the buyer as follows:

(1) On freight on board (FOB) origin or freight on board (FOB) basingpoint contracts, title transfers at time and place of shipment;

(2) On delivered contracts, when and where constructively placed, orotherwise made available at buyer's original destination;

(3) On contracts involving in-store commodities, at the storingwarehouse and at the time of contracting or transfer, and/or mailing ofdocuments, if required, by certified mail, unless and to the extentwarehouse tariff, warehouse receipt and/or storage contract assumes therisk of loss and/or damage.

4. As used in sections 276.401 to 276.582, unless the contextotherwise requires, the following terms mean:

(1) "Auditor", a person appointed under sections 276.401 to 276.582by the director to assist in the administration of sections 276.401 to276.582, and whose duties include making inspections, audits andinvestigations authorized under sections 276.401 to 276.582;

(2) "Authorized agent", any person who has the legal authority to acton behalf of, or for the benefit of, another person;

(3) "Buyer", any person who buys or contracts to buy grain;

(4) "Certified public accountant", any person licensed as such underchapter 326, RSMo;

(5) "Claimant", any person who requests payment for grain sold by himto a dealer, but who does not receive payment because the purchasing dealerfails or refuses to make payment;

(6) "Credit sales contracts", a conditional grain sales contractwherein payment and/or pricing of the grain is deferred to a later date.Credit sales contracts include, but are not limited to, all contractsmeeting the definition of deferred payment contracts, and/or delayed pricecontracts;

(7) "Current assets", resources that are reasonably expected to berealized in cash, sold, or consumed (prepaid items) within one year of thebalance sheet date;

(8) "Current liabilities", obligations reasonably expected to beliquidated within one year and the liquidation of which is expected torequire the use of existing resources, properly classified as currentassets, or the creation of additional liabilities. Current liabilitiesinclude obligations that, by their terms, are payable on demand unless thecreditor has waived, in writing, the right to demand payment within oneyear of the balance sheet date;

(9) "Deferred payment agreement", a conditional grain salestransaction establishing an agreed upon price for the grain and delayingpayment to an agreed upon later date or time period. Ownership of thegrain, and the right to sell it, transfers from seller to buyer so long asthe conditions specified in section 276.461 and section 411.325, RSMo, aremet;

(10) "Deferred pricing agreement", a conditional grain salestransaction wherein no price has been established on the grain, the sellerretains the right to price the grain later at a mutually agreed upon methodof price determination. Deferred pricing agreements include, but are notlimited to, contracts commonly known as no price established contracts,price later contracts, and basis contracts on which the purchase price isnot established at or before delivery of the grain. Ownership of thegrain, and the right to sell it, transfers from seller to buyer so long asthe conditions specified in section 276.461 and section 411.325, RSMo, aremet;

(11) "Delivery date" shall mean the date upon which the sellertransfers physical possession, or the right of physical possession, of thelast unit of grain in any given transaction;

(12) "Department", the Missouri department of agriculture;

(13) "Designated representative", an employee or official of thedepartment designated by the director to assist in the administration ofsections 276.401 to 276.582;

(14) "Director", the director of the Missouri department ofagriculture or his designated representative;

(15) "Generally accepted accounting principles", the conventions,rules and procedures necessary to define accepted accounting practice,which include broad guidelines of general application as well as detailedpractices and procedures generally accepted by the accounting profession,and which have substantial authoritative support from the AmericanInstitute of Certified Public Accountants;

(16) "Grain", all grains for which the United States Department ofAgriculture has established standards under the United States GrainStandards Act, Sections 71 to 87, Title 7, United States Code, and anyother agricultural commodity or seed prescribed by the director byregulation;

(17) "Grain dealer" or "dealer", any person engaged in the businessof, or as a part of his business participates in, buying grain where titleto the grain transfers from the seller to the buyer within the state ofMissouri. "Grain dealer" or "dealer" shall not be construed to mean orinclude:

(a) Any person or entity who is a member of a recognized board oftrade or futures exchange and whose trading in grain is limited solely totrading with other members of a recognized board of trade or futuresexchange; provided, that grain purchases from a licensed warehouseman,farmer/producer or any other individual or entity in a manner other thanthrough the purchase of a grain futures contract on a recognized board oftrade or futures exchange shall be subject to sections 276.401 to 276.582.Exempted herein are all futures transactions;

(b) A producer or feeder of grain for livestock or poultry buyinggrain for his own farming or feeding purposes who purchases grainexclusively from licensed grain dealers or whose total grain purchases fromproducers during his or her fiscal year do not exceed one hundred thousanddollars;

(d) A manufacturer or processor of registered or unregistered feedwhose total grain purchases from producers during his or her fiscal yeardoes not exceed one hundred thousand dollars and who pays for all grainpurchases from producers at the time of physical transfer of the grain fromthe seller or his or her agent to the buyer or his or her agent and whoseresale of such grain is solely in the form of manufactured or processedfeed or feed by-products or whole feed grains to be used by the purchaserthereof as feed;

(18) "Grain transport vehicle", a truck, tractor-trailer unit, wagon,pup, or any other vehicle or trailer used by a dealer, whether owned orleased by him, to transport grain which he has purchased; except that, bulkor bagged feed delivery trucks which are used principally for the purposeof hauling feed and any trucks for which the licensed gross weight does notexceed twenty-four thousand pounds shall not be construed to be a graintransport vehicle;

(19) "Insolvent" or "insolvency", (a) an excess of liabilities overassets or (b) the inability of a person to meet his financial obligationsas they come due, or both (a) and (b);

(20) "Interested person", any person having a contractual or otherfinancial interest in grain sold to a dealer, licensed, or required to belicensed;

(21) "Location", any site other than the principal office where thegrain dealer engages in the business of purchasing grain;

(22) "Minimum price contract", a conditional grain sales transactionestablishing an agreed upon minimum price where the seller may participatein subsequent price gain, if any. Ownership of the grain, and the right tosell it, transfers from the seller to the buyer so long as the conditionsspecified in section 276.461 and section 411.325, RSMo, are met;

(23) "Person", any individual, partnership, corporation, cooperative,society, association, trustee, receiver, public body, political subdivisionor any other legal or commercial entity of any kind whatsoever, and anymember, officer or employee thereof;

(24) "Producer", any owner, tenant or operator of land who has aninterest in and receives all or any part of the proceeds from the sale ofgrain or livestock produced thereon;

(25) "Purchase", to buy or contract to buy grain;

(26) "Sale", the passing of title from the seller to the buyer inconsideration of the payment or promise of payment of a certain price inmoney, or its equivalent;

(27) "Value", any consideration sufficient to support a simplecontract.