Sec. 12105. Prompt payment
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/bill/118/s/5335/is/section-12105·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 409 of the Packers and Stockyards Act, 1921 ( 7 U.S.C. 228b ), is amended to read as follows: In this section, the term covered payer means— a packer; a market agency; and a dealer. Except as provided in subsection (c), each covered payer that purchases livestock shall promptly deliver to the seller or their duly authorized representative the full amount owed for that livestock by the close of— the next business day following price determination and transfer of possession of the livestock, if payment for the full amount owed is made by— presenting a check or cash to the seller; placing a check in the United States mail (or equivalent mail service) properly addressed to the seller; or transferring the full amount by any other expeditious method determined appropriate by the Secretary; or the third business day following price determination and transfer of possession of the livestock, if payment for the full amount owed is made by— Automated Clearing House; or wire transfer.
Subject to such terms and conditions as the Secretary may require, a covered payer and seller may expressly agree in writing, before a purchase or sale of livestock, to effect payment in a manner other than a manner required under subsection (b). Any agreement under paragraph
(1)shall be disclosed in the records of the covered payer and the seller, including any documents issued by the covered payer relating to the transaction. A payment made by a covered payer pursuant to subsection
(b)shall be considered— a cash sale for purposes of this Act; and to be made in contemporaneous exchange for new value for other relevant purposes. Any delay in making, or attempt to delay making, full payment for livestock by a covered payer in accordance with this section, including any such delay or attempt to delay for the purpose of, or that results in, extending the required period of payment under this section, shall be considered an unfair practice in violation of this Act. Nothing in this section limits the meaning of the term unfair practice as used in this Act. .
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