Bankruptcy As Grounds For Cancellation

(1) If a commodity dealer files for bankruptcy, a contract or any part of a contract for delivery of a commodity may be canceled without penalty to the producer if the cancellation involves only the remaining unperformed portions of the contract. A cancellation under this section: (a) is not a breach of contract; (b) is allowed even if not explicitly provided for in the contract. (2) In the event of a cancellation, a commodity dealer remains responsible for payment that is due to the producer for delivered portions of the contract.