§ 250-b. Producer claims against security and agricultural producers\nsecurity fund. 1. (a) A producer who has not received full payment of\namounts due for farm products in accordance with the prompt payment\nprovisions of sections two hundred forty-five and two hundred forty-six\nof this article shall immediately notify the commissioner in writing of\nsuch default in payment. The notification shall set forth the dates of\nthe transactions, the dealer to whom the farm products were sold and/or\ndelivered, the type of product delivered, the amount and the price\nagreed upon for such product.\n (b) If the commissioner has reason to believe that a licensed dealer\nhas defaulted in making payments for farm products to producers, the\ncommissioner shall give notice to producers to file verified claims\nwithin thirty days of such notice. The commissioner shall examine the\nclaims so filed, determine the amount due upon such claims, and certify\nthe amounts due each claimant. No claims against the security or the\nagricultural producers security fund shall be allowed for sales of farm\nproducts: (i) to any unlicensed person; (ii) that occurred more than one\nhundred twenty days after the earliest transaction between the producer\nand the dealer that remains unpaid as of the date the claim is filed,\nwhether or not that earliest unpaid transaction is included in the\nclaim; or (iii) where a claim is submitted more than three hundred\nsixty-five days after sale and delivery, but in no event beyond the\nexpiration of the thirty day period provided in the notice published by\nthe commissioner pursuant to this section.\n (c) Claims shall be chargeable first against any initial or additional\nbond or letter of credit provided by the defaulting dealer, and in the\nevent such security is not sufficient to pay the amount owed to all\nproducers, the amounts recovered shall be divided pro rata among all\nclaimants. Any remaining amount of the certified claim shall be payable\nas set forth in paragraph (d) of this subdivision. The commissioner may\nbring an action upon the bonds or letter of credit and for purposes of\nsuch action his or her determination certifying the amounts due shall be\npresumptive evidence of the facts stated therein. In the event that the\nissuer of the bond or letter of credit fails or refuses to honor its\nobligation to pay under the bond or letter of credit within thirty days\nfrom the date of the commissioner's demand for payment, the commissioner\nmay pay from the agricultural producers security fund the amount of the\ndemand and bring an action to recover the amount of the demand from the\nissuer of the bond or letter of credit. Any recovery in such action\nshall be deposited in the agricultural producers security fund.\n (d) The remainder of such claims against a licensee who elects not to\nbe subject to the additional bonding requirements which are not\nsatisfied by the bond or letter of credit or alternative security shall\nbe processed first against any credit insurance purchased pursuant to\nthis article and any balance thereafter against the agricultural\nproducers security fund. Payment of individual claims against the fund\nshall not exceed eighty percent of the difference between the total\namount recovered on that claim against the bond or other security and\nthe amount determined to be owed pursuant to paragraph (b) of this\nsubdivision. In the event that the fund is not sufficient to pay such\namounts owed to the claimants, recovery from the fund shall be divided\npro rata.\n 2. If any claim is paid from the agricultural producers security fund,\nthe defaulting licensee shall be liable to the commissioner for the\nbenefit of the fund for the amount of claims so paid. If the defaulting\nlicensee has not paid the commissioner within fifteen days after\npersonal service upon him or her of the commissioner's certification of\npayment of a claim from the fund for which the licensee has been found\nliable
‹ Prev All New York sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.