Scot Pierce has written an article for to the March/April 2012 edition of  The Commercial Factor, a publication of the International Factoring Association.  The article is entitled, “Hidden Liens and Trusts:  The PACA Trust Problem.”

Purchasing invoices that could be subject to the Perishable Agricultural Commodities Act is risky.  The Act creates a trust on the proceeds of produce in favor of unpaid producers and farmers.  Factors frequently lose in litigation over this Act. Smart strategies and understanding the risks involved can help factors make better decisions.

Please read the article on page 38:    http://www.factoring.org/newsletters/commercial_factor04-12.pdf