Marketing Contracts

(a)If a marketing contract provides for the sale of products, commodities, or goods to a limited cooperative association, the sale transfers title to the association upon delivery or at any other specific time expressly provided by the contract.

(b)A marketing contract may:

(1)authorize a limited cooperative association to create an enforceable security interest in the products, commodities, or goods delivered; and CH. 17 THE GUAM UNIFORM LIMITED COOPERATIVE ASSOCIATION ACT

(2)allow the association to sell the products, commodities, or goods delivered and pay the sales price on a pooled or other basis after deducting selling costs, processing costs, overhead, expenses, and other charges.

(c)Some or all of the provisions of a marketing contract between a patron member and a limited cooperative association may be contained in the organic rules.