
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: 7USC228b]

 
                          TITLE 7--AGRICULTURE
 
                    CHAPTER 9--PACKERS AND STOCKYARDS
 
                    SUBCHAPTER V--GENERAL PROVISIONS
 
Sec. 228b. Prompt payment for purchase of livestock


(a) Full amount of purchase price required; methods of payment

    Each packer, market agency, or dealer purchasing livestock shall, 
before the close of the next business day following the purchase of 
livestock and transfer of possession thereof, deliver to the seller or 
his duly authorized representative the full amount of the purchase 
price: Provided, That each packer, market agency, or dealer purchasing 
livestock for slaughter shall, before the close of the next business day 
following purchase of livestock and transfer of 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) Waiver of prompt payment by written agreement; disclosure 
        requirements

    Notwithstanding the provisions of subsection (a) of this section and 
subject to such terms and conditions as the Secretary may 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) of this section. Any 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) Delay in payment or attempt to delay deemed unfair practice

    Any delay or attempt to delay by a market agency, dealer, or packer 
purchasing livestock, the collection of funds as herein provided, 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 chapter. Nothing in this section shall be deemed to 
limit the meaning of the term ``unfair practice'' as used in this 
chapter.

(Aug. 15, 1921, ch. 64, title IV, Sec. 409, as added Pub. L. 94-410, 
Sec. 7, Sept. 13, 1976, 90 Stat. 1250.)

                  Section Referred to in Other Sections

    This section is referred to in sections 196, 228c of this title.
