Page:United States Statutes at Large Volume 90 Part 1.djvu/1301

 PUBLIC LAW 94-410—SEPT. 13, 1976

90 STAT. 1251

possession thereof, actually deliver at the point of transfer of possession to the seller or his duly authorized representative a check or shall wire transfer funds to the seller's account for the full amount of the purchase price; or, in the case of a purchase on a carcass or 'grade and yield' basis, the purchaser shall make payment by check at the point of transfer of possession or shall wire transfer funds to the seller's account for the full amount of the purchase price not later than the close of the first business day following determination of the purchase price: Provided further, That if the seller or his duly authorized representative is not present to receive payment at the point of transfer of possession, as herein provided, the packer, market agency or dealer shall wire transfer funds or place a check in the United States mail for the full amount of the purchase price, properly addressed to the seller, within the time limits specified in this subsection, such action being deemed compliance with the requirement for prompt payment. "(b) Notwithstanding the provisions of subsection (a) of this Written section and subject to such terms and conditions as the Secretary may agreement. prescribe, the parties to the purchase and sale of livestock may expressly agree in writing, before such purchase or sale, to effect payment in a manner other than that required in subsection (a). Any Disclosure. such agreement shall be disclosed in the records of any market agency or dealer selling the livestock, and in the purchaser's records and on the accounts or other documents issued by the purchaser relating to the transaction. "(c) Any delay or attempt to delay by a market agency, dealer, Unfair or packer purchasing livestock, the collection of funds as herein pro- practice. vided, or otherwise for the purpose of or resulting in extending the normal period of payment for such livestock shall be considered an 'unfair practice' in violation of this Act. Nothing in this section shall be deemed to limit the meaning of the term 'unfair practice' as used in this Act.". SEC. 8. The Packers and Stockyards Act, 1921, as amended (7 U.S.C. 181 et seq.), is further amended by adding after section 205 (7 U.S.C. 195) a new section 206, to read as follows: "SEC. 206. (a) It is hereby found that a burden on and obstruction Financing to commerce in livestock is caused by financing arrangements under arrangements, which packers encumber, give lenders security interest in, or place remedy. liens on, livestock purchased by packers in cash sales, or on inventories 7 USC 196. of or receivables or proceeds from meat, meat food products, or livestock products therefrom, when payment is not made for the livestock and that such arrangements are contrary to the public interest. This section is intended to remedy such burden on and obstruction to commerce in livestock and protect the public interest. " (b) All livestock purchased by a packer in cash sales, and all inventories of, or receivables or proceeds from meat, meat food products, or livestock products derived therefrom, shall be held by such packer in trust for the benefit of all unpaid cash sellers of such livestock until full payment has been received by such unpaid sellers: Provided, That any packer whose average annual purchases do not exceed $500,000 will be exempt from the provisions of this section. Payment shall not be considered to have been made if the seller receives a payment instrument which is dishonored: Provided, That the unpaid seller shall lose the benefit of such trust if, in the event that a payment instrument has

�