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7 U.S.C. § 217b — Statutory trust established; dealer
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
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Source file: Laws/federal/codes/united-states-code/title-7/section-217b-statutory-trust-established-dealer--42fcdc303a.md
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Source location: Title 7, Chapter 9, § 217b; chapter-009-packers-and-stockyards.md
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**(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 sale means a sale in which the seller does not expressly extend credit to the buyer.
**(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** — Payment shall not be considered to have been made if a payment instrument given in exchange for the livestock is dishonored.
(3) **Transfer in satisfaction of antecedent debt** — A transfer of livestock subject to a dealer trust is not for value if the transfer is in satisfaction of an antecedent debt or to a secured party pursuant to a security agreement.
**(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.
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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
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Federal law — U.S. Code and appendices · legal_authorities
Page 346
TITLE 7—AGRICULTURE
§ 217a
of the Board, or Secretary of Transportation, as appro-
priate, see section 205 of Pub. L. 104–88, set out as a
note under section 1301 of Title 49.
§ 217a. Fees for inspection of brands or marks
(a) Authorization by Secretary; registration as
market agency
The Secretary may, upon written application
made to him, and if he deems it necessary, au-
thorize the charging and collection, at any
stockyard subject to the provisions of this chap-
ter, by any department or agency of any State
in which branding or marking or both branding
and marking livestock as a means of estab-
lishing ownership prevails by custom or statute,
or by a duly organized livestock association of
any such State, of a reasonable and nondiscrim-
inatory fee for the inspection of brands, marks,
and other identifying characteristics of live-
stock originating in or shipped from such State,
for the purpose of determining the ownership of
such livestock. No charge shall be made under
any such authorization until the authorized de-
partment, agency, or association has registered
as a market agency. No more than one such au-
thorization shall be issued with respect to such
inspection of livestock originating in or shipped
from any one State. If more than one such appli-
cation is filed with respect to such inspection of
livestock originating in or shipped from any one
State, the Secretary shall issue such authoriza-
tion to the applicant deemed by him best quali-
fied to perform the proposed service, on the
basis of (1) experience, (2) financial responsi-
bility, (3) extent and efficiency of organization,
(4) possession of necessary records, and (5) any
other factor relating to the ability of the appli-
cant to perform the proposed service. The Sec-
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