Do I Have a Potential Claim Under the Statutory Trust?
- Did a packer fail to pay you?
- Does the packer owe you for livestock?
- Was your transaction a cash sale?
If you answered “no” to any of these questions, you do not have a potential claim.
Review Frequently Asked Questions for clarification related to these three questions.
If you answered “yes” to all three questions above, you may have a potential claim. Review the questions below for some other factors that may affect your claim.
When do I need to file my trust claim?
- Within thirty (30) calendar days after the final date for making a payment under Section 409 (also known as 7 U.S.C. §228b) of the Packers and Stockyards Act, or
- Within fifteen (15) business days after you receive notice that the bank dishonored the packer’s payment instrument (such as a check), which you promptly presented for payment.
How do I file my trust claim?
- Give written notice to the packer and us. Contact us at our regional office that covers your state.
- Request written confirmation of receipt for both notices. Keep copies of the notice and receipts to show that you timely filed your claim.
What should I include in my trust claim?
- Packer’s name and contact information
- Your name and contact information
- Date of any livestock transaction(s) for which the packer owes you
- Amount the packer owes you for livestock
- Date(s) of any notice(s) you received indicating that the bank dishonored the packer’s payment instrument(s) for livestock issued to you
- Copies of relevant documents and any other information that may support the validity of your trust claim
What must a subject packer do if I timely file a valid trust claim?
- It fully pays you and all others who timely filed valid trust claims, or
- It fully distributes proceeds from the affected assets among claimants with valid trust claims, if timely filed valid trust claims exceed the value of affected assets.
Which of the subject packer's assets does the statutory trust affect?
- All livestock purchased by the packer in cash sales, and
- All inventories, receivables, and proceeds of meat, meat food products, and livestock products derived from livestock purchased by the packer in cash sales.
How does the statutory trust benefit me?
It grants you, and all other unpaid livestock sellers who file timely and valid trust claims against a subject packer,
- Rights to the packer’s affected assets until the packer fully pays you for your livestock or it fully distributes the proceeds from those assets among claimants with valid trust claims, and
- Superior legal claim to the packer’s affected assets than the packer’s secured creditors have over those same assets.
Where can I get additional information about the statutory trust?