§3414.4. Prompt payment for cotton; suit on bond; private action; attorney fees
A. Any cotton merchant or cotton agent who purchases cotton from a producer shall
pay the producer for the cotton within ten working days after the day the cotton is delivered,
or pursuant to the contract of sale.
B. Any producer from whom cotton was purchased or contracted to be purchased and
to whom money is due for cotton sold for future delivery as a result of the nonperformance
of the cotton merchant or cotton agent shall be entitled to submit a claim on the security to
the commission pursuant to its administrative procedures. Limitation of liability as to the
security shall not restrict suits against the cotton merchant or cotton agent for losses incurred
in excess of the amount of the security. Suit may be brought in any parish where the crop
or any part thereof was grown or any other venue authorized by law. Upon suits being filed
in excess of the amount of the bond or alternate security, the commission may require new
security in an amount sufficient to secure the aggregate amount of such suits, and if such
additional security is not given within thirty days of demand therefor, the commission may
cancel the license of the cotton merchant. In the case of the insolvency of a cotton merchant,
any cotton producer or cotton landowner having contracts for future delivery shall be entitled
to submit a claim on the security to the commission pursuant to its administrative procedures
and participate in the recovery on the security to the extent of his pro rata losses under his
contract.
C. Should the security proceeds recovered be insufficient to satisfy all claims in full,
any producer who has received only partial satisfaction shall retain all other rights possessed
under the law without prejudice.
D. The commission may bring an action on the security in any court of competent
jurisdiction.
Acts 1997, No. 1034, §1; Acts 2010, No. 767, §1, eff. June 30, 2010; Acts 2015, No.
430, §1.