§ 250-A — Trust upon farm products and sales proceeds for the benefit of producers

New York § 250-A

• Jurisdiction: New York
• Law AGM: Agriculture & Markets
• Art. 20: Licensing of Farm Products Dealers

Text

§ 250-a. Trust upon farm products and sales proceeds for the benefit\nof producers. 1. Farm products received by a dealer in all transactions\nand all inventories of food or other products derived from farm products\nand any receivables or proceeds from the sale of such farm products,\nfood or other products shall be held by such dealer in trust for the\nbenefit of all unpaid producers of such farm products until full payment\nof the amounts owing in connection with such transactions has been\nreceived by such producers.\n 2. To preserve the trust benefit provided by this section, a producer\nmust within sixty days from the date by which the dealer was obligated\nby statute, regulation or written agreement to make payment to the\nproducer, give written notice to the dealer that the producer is\nelecting the trust benefit. The written notice shall set forth\ninformation in sufficient detail to identify the transaction subject to\nthe trust. Notwithstanding any other provision of this subdivision,\nnothing shall prevent a producer from providing notice of the trust\nbenefit election to a dealer prior to the date by which the dealer was\nobligated to make payment.\n 3. Trust beneficiaries shall have a cause of action to enforce payment\nfrom the trust. The supreme court is hereby vested with jurisdiction to\nentertain such actions. A producer who prevails in an action to enforce\npayment from the trust shall recover from the dealer related costs, fees\nand disbursements and may recover reasonable attorney fees as determined\nby the court.\n