69-7-659 - Methods of purchasing catfish products; bonds and other security requirements; unfair practices.
§ 69-7-659. Methods of purchasing catfish products; bonds and other security requirements; unfair practices.
(1) Each processor shall use one of the following methods to purchase catfish products:
(a) The processor may deliver to the producer or his duly authorized representative and any secured parties the full amount of the purchase price on the same day the catfish product is purchased and possession is transferred.
(b) The processor may before the close of the twenty-eighth (28th) calendar day following the purchase of the catfish products and transfer of possession thereof, deliver to the producer or his duly authorized representative and any secured parties the full amount of the purchase price. If the producer or his duly authorized representative or secured parties are not present to receive payment at the point of transfer or possession, as herein provided, the processor 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 producer and any secured parties, within the time limits specified in this subsection. Such action shall be deemed in compliance with the requirement for prompt payment under this paragraph.
(c) The parties to the purchase and sale of catfish products may expressly agree in writing, before such purchase or sale, to effect payment in a manner other than that required in paragraphs (a) or (b) provided the manner of payment does not interfere with the rights of secured parties. Any such agreement shall be disclosed in the records of any producer selling the catfish, and in the processors records and on the accounts or other documents issued by the processors relating to the transaction.
(2) In the event the processor shall elect the method prescribed in subparagraph (1)(b) of this section, to purchase catfish products, such processor shall, prior to such transaction, be required to:
(a) Be bonded in the amount of Two Hundred Fifty Thousand Dollars ($250,000.00) or in an amount which may be determined by the commissioner;
(b) Post a security bond in the amount of Two Hundred Fifty Thousand Dollars ($250,000.00) or in an amount which may be determined by the commissioner; or
(c) Provide cash security, letters of credit and/or such other evidences of security as shall be authorized by the commissioner.
(3) Any delay or attempt to delay, by a processor purchasing catfish products, the collection of funds as herein provided, or otherwise, for the purpose of or resulting in extending the normal period of payment for such catfish shall be considered an "unfair practice" in violation of this article.
Sources: Laws, 1986, ch. 431, § 5, eff from and after July 1, 1986.