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Membership Membership Districts Uniform Marketing & Delivery Agreement Corn Procurement Policy Pool System for Corn Delivery Freight Incentive Commercial Level Investment Distillers Discount Bylaws & Articles of Incorporation
Uniform Marketing & delivery agreement
The Cooperative will procure its corn requirements from its members, in proportion to Shares owned, under a Uniform Marketing and Delivery Agreement with members. Each member is required to sign a Uniform Marketing and Delivery Agreement as a condition of membership. The Uniform Marketing and Delivery Agreement is intended to protect GLCP interest by insuring an adequate supply of corm for its plants. It is also intended to protect a Member by insuring his or hers right to market a specified number of bushels of corn with GLCP on a patronage basis based on Shares owned.
The following is a summary of the Uniform Marketing and Delivery Agreement:
- Members will be required to deliver corn to our facilities each year in proportion to Shares of Common Stock owned. Actual bushels per Share will be established by the Board of Directors, based on Shares outstanding and corn requirements.
- Members will supply us the committed bushels of corn each year, even if he or she has to buy the corn or we have to buy the corn for the member’s account.
- GLCP may schedule deliveries of committed bushels if warranted by market conditions and corn supply.
- GLCP will require commercially acceptable corn in accordance with federal and state standards, and in accordance with standards established by GLCP. GLCP has the right to either reject or make deductions for substandard corn.
- Members will be required to notify GLCP of any security interests or liens in his or her corn.
- Payments for the corn will be made to the members in accordance with paragraph 8 of the Agreement.
- The Agreement has a five year initial term with a three year evergreen term.
- A member agrees to comply with the Articles and Bylaws and to accept distributions as income and patronage dividends as income if said patronage dividends are qualified written notices of allocation within the meaning Subchapter T of the Internal Revenue Code of 1986.
Uniform Marketing and Delivery (UMDA) Agreement
Consent Bylaw
A member who participates in the delivery of corn to the Cooperative will, pursuant to the Cooperative’s Bylaws, Membership Agreement, and Uniform Marketing Agreement, have agreed and consented that the amount of any distributions with respect to that member’s patronage of the Cooperative which re made in qualified written notices of allocation or in qualified per-share retain certificates (as such terms are defined in Section 1388 of the Internal Revenue Code), shall be taken into account by that member at their stated dollar amounts in determining the income of that member in the taxable year in which such per-share retains certificates are received by that member. The significance of the Consent Bylaw is explained in greater detail in “Federal Tax Considerations – Form and Tax Treatment of Patronage Dividends; Consent Bylaw.”
