§197 — Title 7 Agriculture | U.S. Code

Summary

Requires live poultry dealers to hold any live poultry they buy, and the related inventory, money owed, or sales proceeds, in trust for unpaid cash sellers and poultry growers until those sellers and growers are paid in full. A dealer does not have to do this if their average yearly sales or the average yearly value of poultry they get is $100,000 or less. If a seller gets a payment instrument that is later dishonored, that does not count as payment. To keep the trust rights, an unpaid seller must act fast: within 30 days after the final payment date under section 228b–1, or within 15 business days after learning a payment was dishonored. The seller preserves the trust by giving written notice to the dealer and filing that notice with the Secretary. Cash sale: a sale where the seller does not extend credit.

Title 7, §197

Agriculture — Source: USLM XML via OLRC

(a)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)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.

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

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

Statutory Notes and Related Subsidiaries

Effective Date

Section effective 90 days after Nov. 23, 1987, see section 12 of Pub. L. 100–173, set out as an

Effective Date

of 1987 Amendment note under section 182 of this title.

§197 Statutory Trust Established; Poultry

Summary

Title 7, §197

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Citations & Metadata