
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 7USC197]

 
                          TITLE 7--AGRICULTURE
 
                    CHAPTER 9--PACKERS AND STOCKYARDS
 
                    SUBCHAPTER II--PACKERS GENERALLY
 
                       Part A--General Provisions
 
Sec. 197. Statutory trust established; poultry


(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.

(c) Effect of dishonored instruments

    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.

(Aug. 15, 1921, ch. 64, title II, Sec. 207, as added Pub. L. 100-173, 
Sec. 4, Nov. 23, 1987, 101 Stat. 918.)


                             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.

                  Section Referred to in Other Sections

    This section is referred to in sections 227, 228b-2 of this title.
