Can one PACA trust beneficiary receive payment of trust assets to the detriment of the others?
If sufficient trust assets are not available to pay all PACA trust creditors’ claims in full, the remaining PACA trust assets must be paid pro-rata to those with valid claims. However, no rule requires all PACA trust creditors to be paid at the same time. Accordingly, those trust creditors who take prompt action routinely have the best recovery rates.
