Browse Arkansas Code titles and sections
7 U.S.C. § 228b — Prompt payment for purchase of livestock
Federal law — U.S. Code and appendices · legal_authorities
**(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 transfer funds for the full amount of the purchase price to the account of the seller by wire, electronic funds transfer, or any other expeditious method determined appropriate by the Secretary 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 transfer funds for the full amount of the purchase price to the account of the seller by wire, electronic funds transfer, or any other expeditious method determined appropriate by the Secretary 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 transfer funds for the full amount of the purchase price by wire, electronic funds transfer, or any other expeditious method determined appropriate by the Secretary or place a check
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 228b
Stored review status: release_metadata_unconfirmed. A text match is a research starting point; applicability is not established.
Original supplied file — preserved unchanged
Download original Markdown file
File SHA-256: a92ba7fae5402d31daa2a87f0c8a2f8ae99911de363110aa8e3e792919ad101b. The original may include catalog metadata, neighboring provisions, or embedded records outside this collection's scope. Search shows only the selected federal record. Historical editions and unverified snapshots are not a statement of current law.
Authority boundary: historical or unconfirmed source not current law verified.
Open the recorded source website ↗
Record provenance
Stable record: federal_law:legal_authorities:record_usc_0c1352a7f10283e9d789c4bf
Source file: Laws/federal/codes/united-states-code/title-7/section-228b-prompt-payment-for-purchase-of-livestock--4bef34584c.md
Pages: Not recorded – Not recorded
Passage SHA-256: 50e8c5b541ba3d832d50531def2282e05be2108d636ad7ea93524a7cc3615abf
Source location: Title 7, Chapter 9, § 228b; chapter-009-packers-and-stockyards.md
Stored source content
**(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 transfer funds for the full amount of the purchase price to the account of the seller by wire, electronic funds transfer, or any other expeditious method determined appropriate by the Secretary 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 transfer funds for the full amount of the purchase price to the account of the seller by wire, electronic funds transfer, or any other expeditious method determined appropriate by the Secretary 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 transfer funds for the full amount of the purchase price by wire, electronic funds transfer, or any other expeditious method determined appropriate by the Secretary 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). 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.
Cross-references
Connections may be documented source relationships, shared citations or nearby passages. Each explains its basis; a connection alone does not establish applicability to your situation.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Protection of public interest from inadequate financing arrangements** It is hereby found that a burden on and obstruction to commerce in livestock is caused by financing arrangements under which packers encumber, give lenders security interest in, or place liens on, livestock purchased by packers in cash sales, or on inventories 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) Livestock, inventories, receivables and proceeds held by packer in trust for benefit of unpaid cash sellers; time limitations; exempt packers; effect of dishonored instruments; preservation of trust benefits by seller** 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 not been received, within thirty days of the final date for making a payment under [section 228b of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section228b&num=0&edition=prelim
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 196
Stored review status: release_metadata_unconfirmed. Incoming connection: Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Establishment**
(1) **In general** — All livestock purchased by a dealer in cash sales and all inventories of, or receivables or proceeds from, such livestock shall be held by such dealer in trust for the benefit of all unpaid cash sellers of such livestock until full payment has been received by such unpaid cash sellers.
(2) **Exemption** — Any dealer whose average annual purchases of livestock do not exceed $100,000 shall be exempt from the provisions of this section.
(3) **Effect of dishonored instruments** — For purposes of determining full payment under paragraph (1), a payment to an unpaid cash seller shall not be considered to have been made if the unpaid cash seller receives a payment instrument that is dishonored.
**(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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section228b&num=0&edition=prelim) 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** When a dealer receives notice under subsection (b) of the unpaid cash seller’s intent to preserve the benefits of the trust, the dealer shall, within 15 business days, give notice to all persons who have recorded a security interest in, or lien on, the livestock held in such trust.
**(d) Cash sales defined** For the purpose of this section, a cash s
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 217b
Stored review status: release_metadata_unconfirmed. Incoming connection: Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
No requirement of any State or territory of the United States, or any subdivision thereof, or the District of Columbia, with respect to bonding of packers or prompt payment by packers for livestock purchases may be enforced upon any packer operating in compliance with the bonding provisions under [section 204 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section204&num=0&edition=prelim), and prompt payment provisions of [section 228b of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section228b&num=0&edition=prelim), respectively: Provided, That this section shall not preclude a State from enforcing a requirement, with respect to payment for livestock purchased by a packer at a stockyard subject to this chapter, which is not in conflict with this chapter or regulations thereunder: Provided further, That this section shall not preclude a State from enforcing State law or regulations with respect to any packer not subject to this chapter or [section 204 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section204&num=0&edition=prelim).
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 228c
Stored review status: release_metadata_unconfirmed. Incoming connection: Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
Page 352
TITLE 7—AGRICULTURE
§ 228b
Editorial Notes
CODIFICATION
A prior section 228a, act Sept. 21, 1944, ch. 412, title I,
§ 101(c), 58 Stat. 734, which related to inspections of
livestock, hides, animal products, etc., was transferred
to section 396 of this title.
PRIOR PROVISIONS
A prior section 408 of act Aug. 15, 1921, was renum-
bered section 417 and is classified to section 229c of this
title.
AMENDMENTS
1987—Pub. L. 100–173 inserted ‘‘or live poultry, or has
failed to pay any poultry grower what is due on ac-
count of poultry obtained under a poultry growing ar-
rangement,’’ after ‘‘unmanufactured form,’’.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 1987 AMENDMENT
Amendment by Pub. L. 100–173 effective 90 days after
Nov. 23, 1987, see section 12 of Pub. L. 100–173, set out
as a note under section 182 of this title.
§ 228b. Prompt payment for purchase of livestock
(a) Full amount of purchase price required;
methods of payment
Each packer, market agency, or dealer pur-
chasing livestock shall, before the close of the
next business day following the purchase of live-
stock and transfer of possession thereof, deliver
to the seller or his duly authorized representa-
tive the full amount of the purchase price: Pro-
vided, That each packer, market agency, or deal-
er purchasing livestock for slaughter shall, be-
fore 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 transfer funds
for the full amount of the purchase price to the
account of the seller by wire, electronic funds
transfer, or any other expeditious method deter-
mined appropriate by the S
Source: Supplied 2024 U.S. Code historical extraction · 7 U.S.C. § 228b
Stored review status: historical_2024_not_currentness_verified. Same stored citation; legal effect and authority still require review.