N.Y. Agriculture & Markets Law § 250-a: Trust upon farm products and sales proceeds for the benefit of producers

§ 250-a. Trust upon farm products and sales proceeds for the benefit

of producers. 1. Farm products received by a dealer in all transactions

and all inventories of food or other products derived from farm products

and any receivables or proceeds from the sale of such farm products,

food or other products shall be held by such dealer in trust for the

benefit of all unpaid producers of such farm products until full payment

of the amounts owing in connection with such transactions has been

received by such producers.

2. To preserve the trust benefit provided by this section, a producer

must within sixty days from the date by which the dealer was obligated

by statute, regulation or written agreement to make payment to the

producer, give written notice to the dealer that the producer is

electing the trust benefit. The written notice shall set forth

information in sufficient detail to identify the transaction subject to

the trust. Notwithstanding any other provision of this subdivision,

nothing shall prevent a producer from providing notice of the trust

benefit election to a dealer prior to the date by which the dealer was

obligated to make payment.

3. Trust beneficiaries shall have a cause of action to enforce payment

from the trust. The supreme court is hereby vested with jurisdiction to

entertain such actions. A producer who prevails in an action to enforce

payment from the trust shall recover from the dealer related costs, fees

and disbursements and may recover reasonable attorney fees as determined

by the court.