,,ii  #aaeth ,,congress  #b;d ,session  
,s4 #cadj  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,june #bf1     
#bjah,mr4 ,inhofe 7for himself1 ,mr4    
,daines1 ,mr4 ,moran1 and ,mrs4         
,fischer7 introduced the following bill2
 which was read twice and referred to   
the ,committee on ,agriculture1         
,nutrition1 and ,forestry  ,a ,,bill    
,to amend the ,packers and ,stockyards  
,act1 #aiba1 to provide for the         
establishment of a trust for the benefit
 of all unpaid cash sellers of          
livestock1 and for other purposes4  #a4 
,short title ,this ,act may be cited as 
the ,securing ,all ,livestock ,equitably
 ,act of #bjah or the ,,sale ,act of    
#bjah4  #b4 ,establishment of trust for 
benefit of unpaid cash sellers of       
livestock ,title ,,iii of the ,packers  
and ,stockyards ,act1 #aiba 7#g         
,u4,s4,c4 #bja et seq471 is amended by  
adding at the end the following3  #cah4 
,statutory trust established2 dealer    
7a7 ,definition of cash sale ,in this   

section1 the term cash sale means a sale
 in which the seller does not expressly 
extend credit to the buyer4  7b7        
,establishment  7#a7 ,in general ,except
 as provided in paragraphs 7#b7 and     
7#c71 all livestock purchased by a      
dealer in cash sales and all inventories
 of1 or receivables or proceeds from1   
that livestock shall be held by the     
dealer in trust for the benefit of all  
unpaid cash sellers of that livestock   
until full payment has been received by 
those unpaid cash sellers4  7#b7        
,exemption ,this section shall not apply
 to a dealer the amount of average      
annual purchases of livestock of which  
does not exceed #bej1jjj4  7#c7 ,waiver 
7,a7 ,in general ,a dealer and a cash   
seller may voluntarily waive the        
applicability of this section to the    
dealer and cash seller through a written
 agreement described in subparagraph    
7,b7 that is signed before any sale to  
which the written agreement applies     
takes place4  7,b7 ,written agreement ,a

 written agreement referred to in       
subparagraph 7,a7 shall indicate whether
 the written agreement applies to-- 7i7 
#a sale2  7ii7 all sales before a       
specific date2 or  7iii7 all sales until
 the dealer or cash seller terminates   
the agreement in writing4  7,c7 ,effect 
on payment terms ,a waiver under        
subparagraph 7,a7 shall not affect the  
payment terms of the sale4  7#d7 ,effect
 of dishonored instruments ,for purposes
 of determining full payment under      
paragraph 7#a71 a payment to an unpaid  
cash seller shall not be considered to  
have been made if the unpaid cash seller
 receives a payment instrument that is  
dishonored4  7c7 ,enforcement ,if a     
dealer fails to perform the duties      
required by subsection 7b71 the         
,secretary shall take such action as is 
necessary-- 7#a7 to enforce the trust1  
including by appointing an independent  
trustee2 and  7#b7 to preserve the      
assets of the trust4  7d7 ,preservation 
of trust ,an unpaid cash seller shall   

lose the benefit of a trust under       
subsection 7b7 if the unpaid cash seller
 has not preserved the trust by-- 7#a7  
providing a written notice to the       
applicable dealer of the intent of the  
unpaid cash seller to preserve the      
benefits of the trust2 and  7#b7 filing 
that notice with the ,secretary-- 7,a7  
not later than #cj days after the final 
date for making a payment under section 
#dji in the event that a payment        
instrument has not been received2 or    
7,b7 not later than #ae business days   
after the date on which the seller      
receives notice that the payment        
instrument promptly presented for       
payment has been dishonored4  7e7       
,notice to lien holders ,not later than 
#ae business days after the date on     
which a dealer receives notice under    
subsection 7d77#a7 with respect to a    
trust1 the dealer shall give notice of  
the intent of the unpaid cash seller to 
preserve the benefits of the trust to   
all persons who have recorded a security

 interest in1 or lien on1 the livestock 
held in that trust4  7f7 ,purchase of   
livestock subject to trust  7#a7 ,in    
general ,notwithstanding section #acbd  
of the ,food ,security ,act of #aihe 7#g
 ,u4,s4,c4 #afca71 a buyer in the       
ordinary course that purchases livestock
 that is held in trust by a dealer under
 subsection 7b71 including from a dealer
 that engages in farming operations1    
shall receive good title to the         
livestock free of the dealer trust--    
7,a7 if the buyer receives the livestock
 in exchange for payment of new value2  
and  7,b7 without regard to whether--   
7i7 the dealer trust has been preserved 
in accordance with this section2 or     
7ii7 the buyer knows of the existence of
 the dealer trust4  7#b7 ,payment       
,payment shall not be considered to have
 been made under paragraph 7#a77;,a7 if 
a payment instrument given in exchange  
for the livestock is dishonored4  7g7   
,transfer of livestock subject to trust 
,a transfer of livestock that is held in

 trust by a dealer under subsection 7b7 
shall not be considered to be for new   
value under subsection 7f77#a77;,a7 if  
the transfer is-- 7#a7 in satisfaction  
of an antecedent debt2 or  7#b7 to a    
secured party pursuant to a security    
agreement4  4