17-1616.Marketing contracts; injunction to prevent breach.
(a) The association and the association's members may make and execute
marketing contracts, requiring the members to sell, for any period of time, not
over 10 years, all or any specified part of their agricultural products or
specified commodities exclusively to or through the association or any
facilities to be created by the association. The contract may provide that the
association may sell or resell products of the association's members with or
without taking title thereto; and pay over to the association's members the
resale price, after deducting all necessary selling, overhead, and other costs
and expenses, and other proper reserves, including interest on common or
preferred stock not exceeding the greater of 8% per annum or the contract
interest rate set forth in subsection (a) of K.S.A. 16-207, and amendments
thereto, at the time of issuance thereof and reserves for retiring the stock,
if any. These limitations shall not apply to dividends paid by subsidiaries
created hereunder to parent cooperative corporations operating under this act.
(b) The bylaws and the marketing contract may fix, as liquidated damages,
specific sums to be paid by the member or stockholder to the association upon
the breach by such member or stockholder of any provision of the marketing
contract regarding the sale or delivery or withholding of products; and may
further provide that the member will pay all costs, premiums for bonds,
expenses and fees in case any action is brought upon the contract by the
association; and any such provision shall be valid and enforceable in the
courts of this state. In the event of the such breach or threatened breach of
such marketing contract by a member, the association shall be entitled to an
injunction to prevent the further breach of the contract, and to a decree of
specific performance thereof. Pending the adjudication of such an action and
upon filing a verified complaint showing the breach or threatened breach, and
upon filing a sufficient bond, the association shall be entitled to a temporary
restraining order and preliminary injunction against the member.
History: L. 1921, ch. 148, § 16; R.S. 1923, 17-1616; L. 1931, ch.
150, § 7; L. 1992, ch. 227, § 16; July 1.
17-1616.Marketing contracts; injunction to prevent breach.
(a) The association and the association's members may make and execute
marketing contracts, requiring the members to sell, for any period of time, not
over 10 years, all or any specified part of their agricultural products or
specified commodities exclusively to or through the association or any
facilities to be created by the association. The contract may provide that the
association may sell or resell products of the association's members with or
without taking title thereto; and pay over to the association's members the
resale price, after deducting all necessary selling, overhead, and other costs
and expenses, and other proper reserves, including interest on common or
preferred stock not exceeding the greater of 8% per annum or the contract
interest rate set forth in subsection (a) of K.S.A. 16-207, and amendments
thereto, at the time of issuance thereof and reserves for retiring the stock,
if any. These limitations shall not apply to dividends paid by subsidiaries
created hereunder to parent cooperative corporations operating under this act.
(b) The bylaws and the marketing contract may fix, as liquidated damages,
specific sums to be paid by the member or stockholder to the association upon
the breach by such member or stockholder of any provision of the marketing
contract regarding the sale or delivery or withholding of products; and may
further provide that the member will pay all costs, premiums for bonds,
expenses and fees in case any action is brought upon the contract by the
association; and any such provision shall be valid and enforceable in the
courts of this state. In the event of the such breach or threatened breach of
such marketing contract by a member, the association shall be entitled to an
injunction to prevent the further breach of the contract, and to a decree of
specific performance thereof. Pending the adjudication of such an action and
upon filing a verified complaint showing the breach or threatened breach, and
upon filing a sufficient bond, the association shall be entitled to a temporary
restraining order and preliminary injunction against the member.
History: L. 1921, ch. 148, § 16; R.S. 1923, 17-1616; L. 1931, ch.
150, § 7; L. 1992, ch. 227, § 16; July 1.
17-1616.Marketing contracts; injunction to prevent breach.
(a) The association and the association's members may make and execute
marketing contracts, requiring the members to sell, for any period of time, not
over 10 years, all or any specified part of their agricultural products or
specified commodities exclusively to or through the association or any
facilities to be created by the association. The contract may provide that the
association may sell or resell products of the association's members with or
without taking title thereto; and pay over to the association's members the
resale price, after deducting all necessary selling, overhead, and other costs
and expenses, and other proper reserves, including interest on common or
preferred stock not exceeding the greater of 8% per annum or the contract
interest rate set forth in subsection (a) of K.S.A. 16-207, and amendments
thereto, at the time of issuance thereof and reserves for retiring the stock,
if any. These limitations shall not apply to dividends paid by subsidiaries
created hereunder to parent cooperative corporations operating under this act.
(b) The bylaws and the marketing contract may fix, as liquidated damages,
specific sums to be paid by the member or stockholder to the association upon
the breach by such member or stockholder of any provision of the marketing
contract regarding the sale or delivery or withholding of products; and may
further provide that the member will pay all costs, premiums for bonds,
expenses and fees in case any action is brought upon the contract by the
association; and any such provision shall be valid and enforceable in the
courts of this state. In the event of the such breach or threatened breach of
such marketing contract by a member, the association shall be entitled to an
injunction to prevent the further breach of the contract, and to a decree of
specific performance thereof. Pending the adjudication of such an action and
upon filing a verified complaint showing the breach or threatened breach, and
upon filing a sufficient bond, the association shall be entitled to a temporary
restraining order and preliminary injunction against the member.
History: L. 1921, ch. 148, § 16; R.S. 1923, 17-1616; L. 1931, ch.
150, § 7; L. 1992, ch. 227, § 16; July 1.