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7 U.S.C. § 197 — Statutory trust established; poultry
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 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
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Source file: Laws/federal/codes/united-states-code/title-7/section-197-statutory-trust-established-poultry--9e4291790c.md
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Source location: Title 7, Chapter 9, § 197; chapter-009-packers-and-stockyards.md
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**(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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section228b-1&num=0&edition=prelim), 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.
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Federal law — U.S. Code and appendices · legal_authorities
When used in this chapter—
(1) The term “person” includes individuals, partnerships, corporations, and associations;
(2) The term “Secretary” means the Secretary of Agriculture;
(3) The term “meat food products” means all products and byproducts of the slaughtering and meat-packing industry—if edible;
(4) The term “livestock” means cattle, sheep, swine, horses, mules, or goats—whether live or dead;
(5) The term “livestock products” means all products and byproducts (other than meats and meat food products) of the slaughtering and meat-packing industry derived in whole or in part from livestock;
(6) The term “poultry” means chickens, turkeys, ducks, geese, and other domestic fowl;
(7) The term “poultry product” means any product or byproduct of the business of slaughtering poultry and processing poultry after slaughter;
(8) The term “poultry grower” means any person engaged in the business of raising and caring for live poultry for slaughter by another, whether the poultry is owned by such person or by another, but not an employee of the owner of such poultry;
(9) The term “poultry growing arrangement” means any growout contract, marketing agreement, or other arrangement under which a poultry grower raises and cares for live poultry for delivery, in accord with another’s instructions, for slaughter;
(10) The term “live poultry dealer” means any person engaged in the business of obtaining live poultry by purchase or under a poultry growing arrangement for the purpose of either slaughtering it or selling it for slaughter by another, if poultry is obtained by such person in commerce, or if poultry obtained by such person is sold or shipped in commerce, or if poultry products from poultry obtained by such person are sold or shipped in commerce; and
(11) The term “
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Omitted**
**(b) Jurisdiction of Federal Trade Commission** The Federal Trade Commission shall have power and jurisdiction over any matter involving meat, meat food products, livestock products in unmanufactured form, or poultry products, which by this chapter is made subject to the power or jurisdiction of the Secretary, as follows:
(1) When the Secretary in the exercise of his duties requests of the Commission that it make investigations and reports in any case.
(2) In any investigation of, or proceeding for the prevention of, an alleged violation of any Act administered by the Commission, arising out of acts or transactions involving meat, meat food products, or livestock products in unmanufactured form, if the Commission determines that effective exercise of its power or jurisdiction with respect to retail sales of any such commodities is or will be impaired by the absence of power or jurisdiction over all acts or transactions involving such commodities in such investigation or proceeding. In order to avoid unnecessary duplication of effort by the Government and burdens upon the industry, the Commissioner shall notify the Secretary of such determination, the reasons therefor, and the acts or transactions involved, and shall not exercise power or jurisdiction with regard to acts or transactions (other than retail sales) involving such commodities if the Secretary within ten days from the date of receipt of the notice notifies the Commission that there is pending in his Department an investigation of, or proceeding for the prevention of, an alleged violation of this chapter involving the same subject matter.
(3) Over all transactions in commerce in margarine, oleomargarine, or poultry products and over retail sales of meat, meat food products and livestock pr
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Written complaint by Secretary; hearing; intervention; amended complaint** Whenever the Secretary has reason to believe that any live poultry dealer has violated or is violating any provision of [section 197 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section197&num=0&edition=prelim) or [section 228b–1 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section228b-1&num=0&edition=prelim), he shall cause a complaint in writing to be served upon the live poultry dealer, stating his charges in that respect, and requiring the live poultry dealer to attend and testify at a hearing at a time and place designated therein, at least 30 days after the service of such complaint; and at such time and place there shall be afforded the live poultry dealer a reasonable opportunity to be informed as to the evidence introduced against him (including the right of cross-examination), and to be heard in person or by counsel and through witnesses, under such regulations as the Secretary may prescribe. Any person for good cause shown may, on application, be allowed by the Secretary to intervene in such proceeding, and appear in person or by counsel. At any time prior to the close of the hearing, the Secretary may amend the complaint; but in case of any amendment adding new charges, the hearing shall, on the request of the live poultry dealer, be adjourned for a period not exceeding 15 days.
**(b) Report on findings of fact by Secretary; cease and desist order; assessment of civil penalty; action by Attorney General upon live poultry dealer’s failure to pay penalty** If, after such hearing, the Secretary finds that the live poultry dealer has violated, or is violating, any provisions of [section 197 of this title](h
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Federal law — U.S. Code and appendices · legal_authorities
Page 335
TITLE 7—AGRICULTURE
§ 197
AMENDMENTS
2002—Subsecs. (a), (c), (g). Pub. L. 107–171 substituted
‘‘packer or swine contractor’’ for ‘‘packer’’ wherever
appearing.
1984—Subsec. (d). Pub. L. 98–620 struck out provisions
requiring proceedings in such cases in the court of ap-
peals to be made a preferred cause and expedited in
every way.
1958—Subsec. (b). Pub. L. 85–791 § 6(b), substituted
‘‘thereupon file in the court’’ for ‘‘forthwith prepare,
certify, and file in the court a full and accurate tran-
script of’’, and ‘‘as provided in section 2112 of Title 28’’
for ‘‘including the complaint, the evidence, and the re-
port and order’’ in first sentence, and ‘‘record’’ for
‘‘transcript’’ in second sentence.
Subsec. (c). Pub. L. 85–791, § 6(b), substituted ‘‘peti-
tion’’ for ‘‘transcript’’.
Subsec. (d). Pub. L. 85–791, § 6(b), struck out ‘‘duly
certified’’ after ‘‘admitted’’.
Subsec. (h). Pub. L. 85–791, § 6(c), substituted ‘‘juris-
diction, which upon the finding of the record with it
shall be exclusive,’’ for ‘‘exclusive jurisdiction,’’ and
section ‘‘1254’’ for ‘‘347’’.
Statutory Notes and Related Subsidiaries
CHANGE OF NAME
Act June 25, 1948, eff. Sept. 1, 1948, as amended May
24, 1949, substituted ‘‘court of appeals’’ for ‘‘circuit
court of appeals’’, wherever appearing.
Act of June 7, 1934, provided that Court of Appeals in
District of Columbia, should hereafter be known as the
United States Court of Appeals for the District of Co-
lumbia.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98–620 not applicable to cases
pending on Nov. 8, 1984, see section 403 of Pub. L. 98–620,
set out as an Effective Date note under section 1657 of
Title 28, Judiciary and Judicial Procedure.
§ 195. Punishment for violation of order
Any packer or
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