|
|
Exhibit "B" SAMPLE REVOCATION OF PAYMENT TERM AGREEMENT (Date) Re: Payment terms Dear Valued Customer: As you may be aware, the Perishable Agricultural Commodities Act ("PACA") was amended in 1995 allowing us to preserve our rights as a PACA trust beneficiary by including a notice on our invoice informing you, as the buyer, of the fact the transaction is subject to the PACA trust. This invoice notice method will free our company from the time-consuming and expensive method of sending a separate trust notice as was required in the past. Our company is in the process of implementing the invoice notice procedure set forth in the amended law. This more streamlined invoice notice method also negates the previous need for entering into a separate written payment term agreement with each of our customers. Accordingly, this letter hereby revokes any prior written payment agreements entered into between you and (your company name). Please be advised the payment term between you and (your company name) for all future shipments is PACA full payment promptly defined in the regulations issued by the Secretary of the USDA. Full payment promptly for most sales is defined as ten (10) days after acceptance; consignments are due ten (10) days after final sale or twenty (20) days after acceptance, whichever comes first; price after sale on open sales are due (20) days after acceptance. Thank you for your continued business. We look forward to continuing and strengthening our relationship in the future under the new and improved PACA trust system. (Closing) |
