§ 258-b. Prompt payment for milk purchases; security funds; bonding of\nmilk dealers. 1. Scope of coverage. (a) For purposes of this section, a\ncooperative corporation or association of producers shall be deemed to\nbe a producer and not a dealer with respect to the milk of its producer\nmembers under contract with such cooperative, and shall be deemed to be\na dealer with respect to milk purchased or received from non-member\nproducers.\n (b) Notwithstanding any other provision of this section, sales or\nother transfers of milk between cooperatives shall not be subject to\nbond or assessment under the security provisions of this section.\n (c) Any corporation or association of persons engaged in the\nproduction of agricultural products which is operated for the mutual\nbenefit of its members and which qualifies as such under the provisions\nof the Capper-Volstead Act shall be deemed to be a cooperative\ncorporation or association for purposes of this section.\n (d) Upon an application of a dealer, and pursuant to regulations\npromulgated to effectuate the provisions of this paragraph, a dealer\nthat purchases less than one hundred thousand pounds of milk per month\nshall not be subject to bond or assessment under the security provisions\nof this section when the commissioner waives such provisions.\nNotwithstanding such waiver, a claim may be filed and pursued against\nsuch a dealer as provided for in this section; and any claim that is\ncertified for payment by the commissioner shall be paid from funds\nderived from license fees assessed upon milk dealers pursuant to section\ntwo hundred fifty-eight-a of this article.\n The defaulting dealer shall be liable for reimbursement to the\ncommissioner for the value of the claim in the same manner as if the\nclaim was paid out of the milk producers security fund as provided for\nin paragraph (e) of subdivision five of this section.\n 2. Prompt payment for milk. (a) Every milk dealer shall: on or before\nthe last day of each month, or such date of payment as established by a\nfederal milk marketing order regulating the marketing of milk in the\nstate or a state milk marketing order promulgated pursuant to section\ntwo hundred fifty-eight-m of this article, whichever is earlier, pay for\nall milk received from producers during the first fifteen days of such\nmonth based upon a price or formula as determined by the commissioner\nand every such milk dealer shall, on or before the twentieth day of each\nmonth, or such date of payment as established by a federal milk\nmarketing order regulating the marketing of milk in the state or a state\nmilk marketing order promulgated pursuant to section two hundred\nfifty-eight-m of this article, whichever is earlier, pay the balance\nowed producers for milk received during the preceding month.\n (b) Notwithstanding any other provision of this section, the\ncommissioner may extend the time for payment from dealers with respect\nto purchases from producers of non-grade A milk for up to one hundred\ntwenty days after the last day of the month in which the milk was\nreceived, provided such producers have requested the extension in\nwriting in such manner as may be acceptable to the commissioner.\n (c) Any producer who does not receive payment for milk sold or\ndelivered to a milk dealer, within the time prescribed in paragraph (a)\nof this subdivision, shall promptly notify the commissioner of such\nfact.\n (d) All wholesale purchasers of milk buying from a licensed milk\ndealer shall provide not less than seven days' notice to their milk\ndealer supplier before changing suppliers. All wholesale purchasers\nshall make payment in full to their milk dealer supplier or satisfy\ntheir debts by an appropriate surety bond posted or other legal\ninstrument of payment provided, less any legal rebates, discounts, or\nother credit earned, before changing suppliers. The provisions of this\nparagraph shall apply only if the milk dealer has satisfied all\
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