USDA Issues Final Rule On PACA Trust Provision
On April 12, USDA issued a final rule on revising the Perishable Agricultural Commodity Act (PACA) regulators regarding post-default agreements for payments. The rule will take effect on Wednesday, April 13. As part of the final rule, the new regulation will reverse a series of court decisions holding that post-default payment agreements eliminated PACA Trust protections. Under the new-regulation, such post-default agreements for payment will not be considered by AMS to adversely affect trust protections. …