7 U.S.C. § 197 — Statutory trust established; poultry

submitted 105 years ago by Pub. L. 100-173 to r/title-7-AGRICULTURE · 407 words · no verdicts yet

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Live poultry dealers must hold poultry they buy in cash sales, or get through growing arrangements, in trust for unpaid sellers and growers. This protects them until they are fully paid. Dealers with average annual sales or value under $100,000 are exempt. Sellers and growers must give written notice to keep this trust protection.

(a) Protection of public interest from inadequate financing arrangements: Congress found that poultry commerce is burdened and obstructed when live poultry dealers borrow against, give lenders a security interest in, or place liens on poultry they obtained by cash purchase or by a poultry growing arrangement — or on the inventories, receivables, or proceeds from poultry or poultry products made from it — while payment has not been made, and that this is against the public interest. This section is meant to fix that problem and protect the public interest. (b) Poultry, inventories, receivables and proceeds held by dealer in trust for benefit of unpaid cash sellers or poultry growers: All poultry a live poultry dealer obtains by cash purchase or by a poultry growing arrangement, and all inventories of, or receivables or proceeds from, poultry or poultry products made from it, must be held by the dealer in trust for all unpaid cash sellers or poultry growers, until they are fully paid. This does not apply to a dealer whose average annual sales of live poultry, or average annual value of poultry obtained, does not exceed $100,000. (c) Effect of dishonored instruments: Payment is not considered made if the cash seller or poultry grower receives a payment instrument that is dishonored. (d) Preservation of trust benefit by seller or poultry grower: The unpaid cash seller or poultry grower loses the trust's benefit unless it is preserved in time — either within 30 days of the final payment date under section 228b–1 of this title (if no payment instrument was received), or within 15 business days after learning that a promptly presented payment instrument was dishonored. The trust is preserved by giving written notice to the live poultry dealer and filing that notice with the Secretary. (e) Definition of cash sale: For this section, a "cash sale" means a sale where the seller does not expressly extend credit to the buyer.

the actual law source: uscode.house.gov ↗public domain

(a) Protection of public interest from inadequate financing arrangements

It is hereby found that a burden on and obstruction to commerce in poultry is caused by financing arrangements under which live poultry dealers encumber, give lenders security interest in, or place liens on, poultry obtained by such persons by purchase in cash sales or by poultry growing arrangements, or on inventories of or receivables or proceeds from such poultry or poultry products therefrom, when payment is not made for the poultry and that such financing arrangements are contrary to the public interest. This section is intended to remedy such burden on and obstruction to commerce in poultry and protect the public interest.

(b) Poultry, inventories, receivables and proceeds held by dealer in trust for benefit of unpaid cash sellers or poultry growers

All poultry obtained by a live poultry dealer, by purchase in cash sales or by poultry growing arrangement, and all inventories of, or receivables or proceeds from such poultry or poultry products derived therefrom, shall be held by such live poultry dealer in trust for the benefit of all unpaid cash sellers or poultry growers of such poultry, until full payment has been received by such unpaid cash sellers or poultry growers, unless such live poultry dealer does not have average annual sales of live poultry, or average annual value of live poultry obtained by purchase or by poultry growing arrangement, in excess of $100,000.

Payment shall not be considered to have been made if the cash seller or poultry grower receives a payment instrument which is dishonored.

(d) Preservation of trust benefit by seller or poultry grower

The unpaid cash seller or poultry grower shall lose the benefit of such trust if, in the event that a payment instrument has not been received, within 30 days of the final date for making payment under section 228b–1 of this title, or within 15 business days after the seller or poultry grower has received notice that the payment instrument promptly presented for payment has been dishonored, the seller or poultry grower has not preserved his trust under this section. The trust shall be preserved by giving written notice to the live poultry dealer and by filing such notice with the Secretary.

(e) Definition of cash sale

For the purpose of this section, a cash sale means a sale in which the seller does not expressly extend credit to the buyer.

Source credit: (Aug. 15, 1921, ch. 64, title II, § 207, as added Pub. L. 100–173, § 4, Nov. 23, 1987, 101 Stat. 918.)

history & why it existsrecord from the source credit

1921Enacted · Pub. L. 100-173 · 101 Stat. 918

A history note hasn’t been published yet. The record shows enactment by Pub. L. 100-173 on 1921-08-15.

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