§ 54-152. Marketing contract.
§54‑152. Marketing contract.
(a) The association andits members may make and execute marketing contracts, requiring the members tosell, for any period of time, not over 10 years, all or any specified part oftheir agricultural products or specified commodities exclusively to or throughthe association or any facilities to be created by the association. Thecontract may provide that the association may sell or resell the products ofits members, with or without taking title thereto, and pay over to its membersthe resale price, after deducting all necessary selling, overhead, and othercosts and expenses, including dividends on preferred stock, not exceeding tenpercent (10%) per annum, and reserve for retiring the stock, if any; and otherproper reserves; and dividends not exceeding ten percent (10%) per annum uponcommon stock.
(b) The bylaws and themarketing contract may fix, as liquidated damages, specific sums to be paid bythe member or stockholder to the association upon the breach by him of any provisionof the marketing contract regarding the sale or delivery or withholding ofproducts; and may further provide that the member will pay all costs, premiumsfor bonds, expenses and fees in case any action is brought upon the contract bythe association; and any such provisions shall be valid and enforceable in thecourts of this State.
(c) In the event of anysuch breach or threatened breach of such marketing contract by a member, theassociation shall be entitled to an injunction to prevent the further breach ofthe contract, and to a decree of specific performance thereof. Pending theadjudication of such an action, and upon filing a verified complaint showingthe breach or threatened breach, and upon filing a sufficient bond, theassociation shall be entitled to a temporary restraining order and preliminaryinjunction against the member.
(d) In the event that amember of an association incorporated under this chapter shall have died; andthat, at a time more than six months after his death, such cooperativecorporation has in its hands moneys not in excess of one hundred dollars($100.00) which would have been distributable and payable to such member exceptfor his death; and that there has been appointed no administrator of his estateor that the administration of his estate has been closed at such time; thensuch corporation, without making any publication of notice, may disburse suchmoneys (not in excess of one hundred dollars ($100.00)) in the followingorder:
(1) To the widow of thedeceased if there is a widow,
(2) To pay anyunsatisfied claims for funeral expenses or reimburse any person for the paymentthereof, and
(3) To any adult personof the class of those nearest of kin to the deceased, for the benefit of allmembers of such class.
In making such disbursementsthe said corporation shall be responsible and liable only for the exercise ofgood faith and reasonable care and shall have no further responsibility orliability with respect to such moneys or their application or disbursement. (1921,c. 87, s. 17; C.S., s. 5259(y); 1959, c. 1174; 1979, 2nd Sess., c. 1302, ss. 1,2.)