501A.603 Agricultural commodities and products — marketing contracts.
1. Authority. A cooperative and its patron member or patron may make and execute a marketing contract, requiring the patron member or patron to sell a specified portion of the patron member’s or patron’s agricultural commodity or product or specified commodity or product produced from a certain area exclusively to or through the cooperative or facility established by the cooperative.
2. Title to commodities or products. If a sale is contracted to the cooperative, the sale shall transfer title to the commodity or product absolutely, except for a recorded lien or security interest against the agricultural commodity or product of the patron member or patron as provided in article 9 of chapter 554, and provisions in Title XIV, subtitle 3, governing agricultural liens, and liens granted against farm products under federal law, to the cooperative on delivery of the commodity or product or at another specified time if expressly provided in the contract. The contract may allow the cooperative to sell or resell the commodity or product of its patron member or patron with or without taking title to the commodity or product, and pay the resale price to the patron member or patron, after deducting all necessary selling, overhead, and other costs and expenses, including other proper reserves and interest.
3. Term of contract. A single term of a marketing contract shall not exceed ten years, but a marketing contract may be made self-renewing for periods not exceeding five years each, subject to the right of either party to terminate by giving written notice of the termination during a period of the current term as specified in the contract.
4. Damages for breach of contract. The cooperative’s bylaws or marketing contract in which the cooperative is a party may set a specific sum as liquidated damages to be paid by the patron member or patron to the cooperative for breach of any provision of the marketing contract regarding the sale or delivery or withholding of a commodity or product and may provide that the patron member or patron shall pay the costs, premiums for bonds, expenses, and fees if an action is brought on the contract by the cooperative. The remedies for breach of contract are valid and enforceable in the courts of this state. The provisions shall be enforced as liquidated damages and are not considered a penalty.
5. Injunction against breach of contract. If there is a breach or threatened breach of a marketing contract by a patron member or patron, the cooperative is entitled to an injunction to prevent the further breach of the contract and to a decree of specific performance of the contract. Pending the adjudication of the action after filing a complaint showing the breach or threatened breach and filing a sufficient bond, the cooperative is entitled to a temporary restraining order and preliminary injunction against the patron member or patron.
6. Penalties for contract interference. A person who knowingly induces or attempts to induce any patron member or patron of a cooperative organized under this chapter to breach a marketing contract with the cooperative is guilty of a simple misdemeanor.
7. Civil damages for contract interference. In addition to the penalty provided in subsection 6, the person may be liable to the cooperative for civil damages for any violation of that subsection.
2005 Acts, ch 135, §34; 2006 Acts, ch 1030, §54
Structure Iowa Code
Chapter 501A - COOPERATIVE ASSOCIATIONS ACT
Section 501A.101 - Short title.
Section 501A.102 - Definitions.
Section 501A.103 - Requirements for signatures on documents.
Section 501A.201 - General filing requirements.
Section 501A.201A - Secretary of state — extra services — surcharge.
Section 501A.202 - Filing duty of secretary of state.
Section 501A.203 - Effective time and date of documents.
Section 501A.204 - Correcting filed documents.
Section 501A.207 - Appeal from secretary of state’s refusal to file document.
Section 501A.208 - Evidentiary effect of copy of filed document.
Section 501A.209 - Certificate of existence.
Section 501A.210 - Penalty for signing false document.
Section 501A.211 - Secretary of state — powers.
Section 501A.221 - Certificate of authority.
Section 501A.222 - Cancellation of certificate of authority.
Section 501A.231 - Biennial report for secretary of state.
Section 501A.302 - Reserved name.
Section 501A.401 - Registered office and registered agent.
Section 501A.402 - Change of registered office or registered agent.
Section 501A.404 - Service on domestic cooperatives.
Section 501A.405 - Service on foreign cooperative.
Section 501A.501 - Organizational purpose.
Section 501A.502 - Organizers.
Section 501A.503 - Articles of organization.
Section 501A.504 - Amendment of articles.
Section 501A.507 - Cooperative records.
Section 501A.602 - Emergency powers.
Section 501A.603 - Agricultural commodities and products — marketing contracts.
Section 501A.701 - Board governs cooperative.
Section 501A.702 - Number of directors.
Section 501A.703 - Election of directors.
Section 501A.704 - Filling vacancies.
Section 501A.705 - Removal of directors.
Section 501A.706 - Board of directors’ meetings.
Section 501A.708 - Action of board of directors.
Section 501A.709 - Action without a meeting.
Section 501A.710 - Audit committee.
Section 501A.711 - Committees.
Section 501A.712 - Standard of conduct.
Section 501A.713 - Director conflicts of interest.
Section 501A.715 - Indemnification.
Section 501A.802 - Member liability.
Section 501A.803 - Regular members’ meetings.
Section 501A.804 - Special members’ meetings.
Section 501A.805 - Certification of meeting notice.
Section 501A.807 - Remote communications for members’ meetings.
Section 501A.808 - Action of members.
Section 501A.809 - Action without a meeting.
Section 501A.810 - Member voting rights.
Section 501A.811 - Patron member voting based on patronage.
Section 501A.812 - Voting rights.
Section 501A.813 - Voting by organizations and legal representatives.
Section 501A.815 - Sale of property and assets.
Section 501A.816 - Vote of ownership interests held by cooperative.
Section 501A.901 - Membership interests.
Section 501A.902 - Assignment of financial rights.
Section 501A.903 - Nature of a membership interest and statement of interest owned.
Section 501A.904 - Certificated and uncertificated membership interests.
Section 501A.905 - Lost certificates — replacement.
Section 501A.906 - Restriction on transfer or registration of membership interests.
Section 501A.1001 - Authorization, form, and acceptance of contributions.
Section 501A.1002 - Restatement of value of previous contributions.
Section 501A.1003 - Contribution agreements.
Section 501A.1004 - Contribution rights agreements.
Section 501A.1005 - Allocations and distributions — profits, losses, cash, or other assets.
Section 501A.1006 - Allocations and distributions — net income.
Section 501A.1007 - Member control agreements.
Section 501A.1008 - Reversion of disbursements.
Section 501A.1101 - Merger and consolidation.
Section 501A.1102 - Merger of subsidiary.
Section 501A.1103 - Abandonment.
Section 501A.1201 - Methods of dissolution.
Section 501A.1202 - Winding up.
Section 501A.1203 - Revocation of dissolution proceedings.
Section 501A.1204 - Statute of limitations.
Section 501A.1205 - Articles of dissolution.
Section 501A.1206 - Application for court-supervised voluntary dissolution.
Section 501A.1207 - Court-ordered remedies for dissolution.
Section 501A.1208 - Procedure in involuntary or court-supervised voluntary dissolution.
Section 501A.1209 - Receiver qualifications and powers.
Section 501A.1210 - Dissolution action by attorney general — administrative dissolution.
Section 501A.1211 - Filing claims in court-supervised dissolution proceedings.
Section 501A.1212 - Discontinuance of court-supervised dissolution proceedings.
Section 501A.1213 - Court-supervised dissolution order.
Section 501A.1214 - Filing court’s dissolution order.
Section 501A.1215 - Barring of claims.
Section 501A.1216 - Right to sue or defend after dissolution.