Agricultural Marketing Service April 12, 2011 – Federal Register Recent Federal Regulation Documents
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Perishable Agricultural Commodities Act: Impact of Post-Default Agreements on Trust Protection Eligibility
The Department of Agriculture (USDA) is amending the regulations under the Perishable Agricultural Commodities Act (PACA) to allow, if there is a default in payment as defined in the regulations, a seller, supplier, or agent who has met the PACA trust eligibility requirements to enter into a scheduled agreement for payment of the past due amount without foregoing its trust eligibility. USDA is also amending 7 CFR 46.46(e)(2) by adding the words ``prior to the transaction.'' This change clarifies that the 30-day maximum time period for payment to which a seller can agree and still qualify for coverage under the trust refers to pre-transaction agreements.