You must notify the buyer (debtor) within 30 days of the date that payment was due or notification was received that a customer’s check bounced. You can preserve your trust rights as follows:
A PACA licensee can fulfill this notification requirement by adding the following exact wording to its usual invoice or billing statement:
“The perishable agricultural commodities listed on this invoice are sold subject to statutory trust authorized by section 5(c) of the Perishable Agricultural Commodities Act, 1930 (7 U.S.C. 499e(c)). The seller of these commodities retains a trust claim over these commodities, all inventories of food or other products derived from these commodities, and any receivables or proceeds from the sale of these commodities until full payment is received.”
Other produce sellers (Non PACA licensee), like unlicensed growers, must provide the debtor with a written notice of their intent to preserve trust benefits under the PACA within 30 days from the date that payment was past due or notification was received that a payment instrument was dishonored.