7 U.S.C. § 197 — Statutory trust established; poultry

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 swine contractor, or any offi- cer, director, agent, or employee of a packer or swine contractor, who fails to obey any order of the Secretary issued under the provisions of sec- tion 193 of this title, or such order as modified— (1) After the expiration of the time allowed for filing a petition in the court of appeals to set aside or modify such order, if no such peti- tion has been filed within such time; or (2) After the expiration of the time allowed for applying for a writ of certiorari, if such order, or such order as modified, has been sus- tained by the court of appeals and no such writ has been applied for within such time; or (3) After such order, or such order as modi- fied, has been sustained by the courts as pro- vided in section 194 of this title; shall on con- viction be fined not less than $500 nor more than $10,000, or imprisoned for not less than six months nor more than five years, or both. Each day during which such failure continues shall be deemed a separate offense. (Aug. 15, 1921, ch. 64, title II, § 205, 42 Stat. 163; June 25, 1948, ch. 646, § 32(a), 62 Stat. 991; May 24, 1949, ch. 139, § 127, 63 Stat. 107; Pub. L. 107–171, title X, § 10502(b)(1), May 13, 2002, 116 Stat. 509.) Editorial Notes AMENDMENTS 2002—Pub. L. 107–171 substituted ‘‘packer or swine contractor’’ for ‘‘packer’’ in two places in introductory provisions. Statutory Notes and Related Subsidiaries CHANGE OF NAME Act June 25, 1948, as amended by act May 24, 1949, substituted ‘‘court of appeals’’ for ‘‘circuit court of ap- peals’’, wherever appearing in this section. § 196. Statutory trust established; livestock (a) Protection of public interest from inadequate financing arrangements It is hereby found that a burden on and ob- struction to commerce in livestock is caused by financing arrangements under which packers en- cumber, 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 live- stock products therefrom, when payment is not made for the livestock and that such arrange- ments 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 pro- ceeds 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 live- stock products derived therefrom, shall be held by such packer in trust for the benefit of all un- paid cash sellers of such livestock until full pay- ment 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, or within fifteen business days after the seller has received notice that the payment in- strument promptly presented for payment has been dishonored, the seller has not preserved his trust under this subsection. The trust shall be preserved by giving written notice to the packer and by filing such notice with the Secretary. (c) Definition of cash sale For the purpose of this section, a cash sale means a sale in which the seller does not ex- pressly extend credit to the buyer. (Aug. 15, 1921, ch. 64, title II, § 206, as added Pub. L. 94–410, § 8, Sept. 13, 1976, 90 Stat. 1251.) § 197. Statutory trust established; poultry (a) Protection of public interest from inadequate financing arrangements It is hereby found that a burden on and ob- struction to commerce in poultry is caused by financing arrangements under which live poul- try dealers encumber, give lenders security in- terest in, or place liens on, poultry obtained by such persons by purchase in cash sales or by Page 336 TITLE 7—AGRICULTURE § 197a 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 financ- ing arrangements are contrary to the public in- terest. This section is intended to remedy such burden on and obstruction to commerce in poul- try and protect the public interest. (b) Poultry, inventories, receivables and pro- ceeds 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 receiv- ables 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 re- ceived by such unpaid cash sellers or poultry growers, unless such live poultry dealer does not have average annual sales of live poultry, or av- erage 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 re- ceives a payment instrument which is dishon- ored. (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 re- ceived, within 30 days of the final date for mak- ing payment under section 228b–1 of this title, or within 15 business days after the seller or poul- try 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 ex- pressly extend credit to the buyer. (Aug. 15, 1921, ch. 64, title II, § 207, as added Pub. L. 100–173, § 4, Nov. 23, 1987, 101 Stat. 918.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective 90 days after Nov. 23, 1987, see sec- tion 12 of Pub. L. 100–173, set out as an Effective Date of 1987 Amendment note under section 182 of this title. § 197a. Production contracts (a) Right of contract producers to cancel produc- tion contracts (1) In general A poultry grower or swine production con- tract grower may cancel a poultry growing ar- rangement or swine production contract by mailing a cancellation notice to the live poul- try dealer or swine contractor not later than the later of— (A) the date that is 3 business days after the date on which the poultry growing ar- rangement or swine production contract is executed; or (B) any cancellation date specified in the poultry growing arrangement or swine pro- duction contract. (2) Disclosure A poultry growing arrangement or swine production contract shall clearly disclose— (A) the right of the poultry grower or swine production contract grower to cancel the poultry growing arrangement or swine production contract; (B) the method by which the poultry grow- er or swine production contract grower may cancel the poultry growing arrangement or swine production contract; and (C) the deadline for canceling the poultry growing arrangement or swine production contract. (b) Required disclosure of additional capital in- vestments in production contracts (1) In general A poultry growing arrangement or swine production contract shall contain on the first page a statement identified as ‘‘Additional Capital Investments Disclosure Statement’’, which shall conspicuously state that addi- tional large capital investments may be re- quired of the poultry grower or swine produc- tion contract grower during the term of the poultry growing arrangement or swine produc- tion contract. (2) Application Paragraph (1) shall apply to any poultry growing arrangement or swine production con- tract entered into, amended, altered, modified, renewed, or extended after the date of the en- actment of this section. (Aug. 15, 1921, ch. 64, title II, § 208, as added Pub. L. 110–234, title XI, § 11005, May 22, 2008, 122 Stat. 1356, and Pub. L. 110–246, § 4(a), title XI, § 11005, June 18, 2008, 122 Stat. 1664, 2118.) Editorial Notes REFERENCES IN TEXT The date of the enactment of this section, referred to in subsec. (b)(2), is the date of enactment of Pub. L. 110–246, which was approved June 18, 2008. CODIFICATION Pub. L. 110–234 and Pub. L. 110–246 enacted identical sections. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246. Section 11005 of Pub. L. 110–246, which directed amendment of title II of the Packers and Stockyards Act, 1921, by adding sections 208 to 210 at the end, was executed by adding the sections at the end of this part, which is subtitle A of title II of the Act, to reflect the probable intent of Congress. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Enactment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the