Ken Rosenstein and Ali Gianni Zia‘s article on The Financial Protection for Fresh Fruit and Vegetable Farmers Act – A new trust mechanism in the produce industry and its implications for lending” is published in LexisNexis’ National Insolvency Review:
Under the new framework, “perishable fruits or vegetables” and “proceeds of sale” are deemed to be held in trust by the purchaser for the supplier when the supplier includes a notice in the invoice, or gives notice within 30 days of the purchaser receiving the goods, informing the purchaser of their intent to claim beneficial ownership in case of bankruptcy or receivership, the purchaser has 30 days or less to pay the full balance owed, and the purchaser, trustee, or receiver fails to pay the balance when due according to the invoice.
Read the original article from Miller Thomson’s Financial Services and Restructuring Communiqué.
