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How does a seller provide notice of intent to preserve trust benefits?

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How does a seller provide notice of intent to preserve trust benefits?

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Sellers have two options to provide notice to preserve their trust benefits. First, the seller may send the buyer a written document entitled “Notice of Intent to Preserve PACA Trust Benefits”. The trust notice must contain sufficient detail to allow the buyer to identify the transactions subject to the trust and must be given to the buyer within thirty days from the date payment was past due or receipt of notification that a payment instrument was dishonored. A sample PACA trust notice is attached as Exhibit “C”. Second, the 1995 PACA amendments provide produce sellers who have a PACA license with an alternative method to preserve their trust rights. This alternative method allows the PACA licensee to use their invoice or other billing document as the trust notice if it contains verbatim the following language: The perishable agricultural commodities listed on this invoice are sold subject to the statutory trust authorized by Section 5(c) of the Perishable Agricultural Commodities Act

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