Sec. 2.27. Mineral deferred delivery contract.

236 words·~1 min read·/il/chapter-815/act-5/2-27

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Sec. 2.27. Mineral deferred delivery contract. "Mineral deferred delivery contract" means any account, agreement, or contract for the purchase or sale, primarily for speculation or investment purposes and not for the use or consumption by the offeree or purchaser, of a metal or mineral, whether for immediate or subsequent delivery, and whether characterized as a cash contract, deferred shipment contract, installment contract, or otherwise. Any mineral deferred delivery contract offered or sold, in the absence of evidence to the contrary, is presumed to be offered or sold for speculation or investment purposes. A mineral deferred delivery contract does not include any of the following:

(1)Any contract or agreement that requires, and in which the purchaser receives, within

28 calendar days after the payment in good funds of any portion of the purchase price, physical delivery of the metal or mineral to be purchased under the contract or agreement.

(2)Any contract or agreement for the sale or purchase of a metal or mineral between

merchants.

Nothing herein shall affect the jurisdiction or authority of the Commodity Futures Trading Commission under the Federal 1936 Act or the application of any provision thereof or regulation thereunder to any person or transaction subject thereto. The Secretary of State may, for the purposes of this Section, by rules and regulations, define

(i)the means that constitute "physical delivery" of a metal or mineral and

(ii)the term "between merchants".