7 USC 217b - Statutory trust established; dealer

U.S Code last checked for updates: Nov 24, 2024

§ 217b.

Statutory trust established; dealer

(a)

Establishment

(1)

In general

(2)

Exemption

(3)

Effect of dishonored instruments

(b)

Preservation of trust

An unpaid cash seller shall lose the benefit of a trust under subsection (a) if the unpaid cash seller has not preserved the trust by giving written notice to the dealer involved and filing such notice with the Secretary—

(1)

within 30 days of the final date for making a payment under section 228b of this title in the event that a payment instrument has not been received; or

(2)

within 15 business days after the date on which the seller receives notice that the payment instrument promptly presented for payment has been dishonored.

(c)

Notice to lien holders

(d)

Cash sales defined

(e)

Purchase of livestock subject to trust

(1)

In general

A person purchasing livestock subject to a dealer trust shall receive good title to the livestock if the person receives the livestock—

(A)

in exchange for payment of new value; and

(B)

in good faith without notice that the transfer is a breach of trust.

(2)

Dishonored payment instrument

(3)

Transfer in satisfaction of antecedent debt

(f)

Enforcement

Whenever the Secretary has reason to believe that a dealer subject to this section has failed to perform the duties required by this section or whenever the Secretary has reason to believe that it will be in the best interest of unpaid cash sellers, the Secretary shall do one or more of the following—

(1)

appoint an independent trustee to carry out the duties required by this section, preserve trust assets, and enforce the trust;

(2)

serve as independent trustee, preserve trust assets, and enforce the trust; or

(3)

file suit in the United States district court for the district in which the dealer resides to enjoin the dealer’s failure to perform the duties required by this section, preserve trust assets, and to enforce the trust. Attorneys employed by the Secretary may, with the approval of the Attorney General, represent the Secretary in any such suit. Nothing herein shall preclude unpaid sellers from filing suit to preserve or enforce the trust.

(Aug. 15, 1921, ch. 64, title III, § 318, as added Pub. L. 116–260, div. N, title VII, § 763, Dec. 27, 2020, 134 Stat. 2114.)

cite as: 7 USC 217b