There is no cost for the seminar and it will take place from 2-3 p.m. eastern time.
To access the seminar, click here. Then call (866) 779-0773 and request meeting #3033409. To read The Packer story, click here.
The proposed rule involves trust protection and post-default payment under PACA and was published in the Federal Register on June 8, 2010. A USDA news release explains that the Agricultural Marketing Service (AMS) issued the proposal "in response to concerns raised by the produce industry. PACA imposes a statutory trust on certain assets of persons or entities subject to the act that have not paid for perishable agricultural commodities." Transactions which are trust-eligible "must meet certain criteria under PACA."
The regulations "clearly define the maximum allowable payment terms of 30 days for pre-transaction agreements," however, payment terms in post-default agreements are not mentioned. The proposed rule seeks to provide guidance on how to preserve trust rights in situations of post-default agreements.
More specifically, if there is a default in payment, the revision would allow "a seller, supplier, or agent who has met the eligibility requirements to enter into a written scheduled payment agreement for payment of the past due amount while maintaining its trust eligibility." The length of the agreement could not extend past 180 days from the default date "while still maintaining eligibility" for trust protection. The propose rule also addresses situations of bankruptcy and civil trust actions.
To read the USDA news release, click here.
For the text of the proposed rule published in the Federal Register, click here.
Posted: 08/17/2010
