16-1502.   Contract termination or cancellation; notification, timeperiods.(a) Except as provided in subsection (b), if a producer failsto comply with the provisions of a contract that requires a capital investmentin excess of $100,000 or more and has a useful life of five years or more, acontractor may not terminate or cancel that contract until:

      (1)   The contractor has given written notice with all the reasons for thetermination or cancellation at least 90 days before termination or cancellationor as provided in subsection (b); and

      (2)   the producer who receives the notice fails to correct the reasons statedfor termination or cancellation in the notice within 60 days of receipt of thenotice.

      (b)   The 90-day notice period and 60-day notice period under subsection(a)(1) and (2) are waived and the contract may be terminated or canceledimmediately if the alleged grounds for termination or cancellation are:

      (1)   Voluntary abandonment of the contract relationship by the producer;

      (2)   conviction of the producer of an offense directly related to thebusiness contracted under the contract;

      (3)   material breach of the contract by the producer;

      (4)   a failure to care for the swine in accordance with good animal husbandrypractices;

      (5)   the bankruptcy or insolvency of the producer; or

      (6)   an acceleration of any indebtedness secured by the property on which theswine are being raised.

      History:   L. 1994, ch. 130, § 9; April 14.