KRS 272A.7-020: Marketing contracts -- Title and enforcement.

(1) 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.

(2) A marketing contract may:

(a) Authorize a limited cooperative association to create an enforceable security

interest in the products, commodities, or goods delivered; and

(b) 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.

(3) 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.