§ 228b. — Prompt payment for purchase of livestock.
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and December 19, 2003]
[CITE: 7USC228b]
TITLE 7--AGRICULTURE
CHAPTER 9--PACKERS AND STOCKYARDS
SUBCHAPTER V--GENERAL PROVISIONS
Sec. 228b. Prompt payment for purchase of livestock
(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 wire transfer funds
to the seller's account 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 wire transfer funds to the seller's account 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 wire transfer
funds or place a check in the United States mail for the full amount of
the purchase price, properly addressed to the seller, within the time
limits specified in this subsection, such action being deemed compliance
with the requirement for prompt payment.
(b) Waiver of prompt payment by written agreement; disclosure
requirements
Notwithstanding the provisions of subsection (a) of this section and
subject to such terms and conditions as the Secretary may prescribe, the
parties to the purchase and sale of livestock may expressly agree in
writing, before such purchase or sale, to effect payment in a manner
other than that required in subsection (a) of this section. Any such
agreement shall be disclosed in the records of any market agency or
dealer selling the livestock, and in the purchaser's records and on the
accounts or other documents issued by the purchaser relating to the
transaction.
(c) Delay in payment or attempt to delay deemed unfair practice
Any delay or attempt to delay by a market agency, dealer, or packer
purchasing livestock, the collection of funds as herein provided, or
otherwise for the purpose of or resulting in extending the normal period
of payment for such livestock shall be considered an ``unfair practice''
in violation of this chapter. Nothing in this section shall be deemed to
limit the meaning of the term ``unfair practice'' as used in this
chapter.
(Aug. 15, 1921, ch. 64, title IV, Sec. 409, as added Pub. L. 94-410,
Sec. 7, Sept. 13, 1976, 90 Stat. 1250.)
Section Referred to in Other Sections
This section is referred to in sections 196, 228c of this title.
