---
kind: "section"
citation: "7 U.S.C. § 228b"
title: "7"
title_heading: "Agriculture"
number: "228b"
heading: "Prompt payment for purchase of livestock"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/228b"
units:
  - "Chapter 9 — Packers and Stockyards"
  - "Subchapter V — General Provisions"
---

# §228b. Prompt payment for purchase of livestock

- (a) **Full amount of purchase price required; methods of payment—** Each [packer](/usc/7/198.md?p=2), [market agency](/usc/7/201.md?p=c), or [dealer](/usc/7/201.md?p=d) purchasing [livestock](/usc/7/182.md?p=4) shall, before the close of the next business day following the purchase of [livestock](/usc/7/182.md?p=4) and transfer of possession thereof, deliver to the seller or his duly authorized representative the full amount of the purchase price: Provided, That each [packer](/usc/7/198.md?p=2), [market agency](/usc/7/201.md?p=c), or [dealer](/usc/7/201.md?p=d) purchasing [livestock](/usc/7/182.md?p=4) for slaughter shall, before the close of the next business day following purchase of [livestock](/usc/7/182.md?p=4) and transfer of possession thereof, actually deliver at the point of transfer of possession to the seller or his duly authorized representative a check or shall transfer funds for the full amount of the purchase price to the account of the seller by wire, electronic funds transfer, or any other expeditious method determined appropriate by the [Secretary](/usc/7/182.md?p=2) for the full amount of the purchase price; or, in the case of a purchase on a carcass or “grade and yield” basis, the purchaser shall make payment by check at the point of transfer of possession or shall transfer funds for the full amount of the purchase price to the account of the seller by wire, electronic funds transfer, or any other expeditious method determined appropriate by the [Secretary](/usc/7/182.md?p=2) for the full amount of the purchase price not later than the close of the first business day following determination of the purchase price: Provided further, That if the seller or his duly authorized representative is not present to receive payment at the point of transfer of possession, as herein provided, the [packer](/usc/7/198.md?p=2), [market agency](/usc/7/201.md?p=c) or [dealer](/usc/7/201.md?p=d) shall transfer funds for the full amount of the purchase price by wire, electronic funds transfer, or any other expeditious method determined appropriate by the [Secretary](/usc/7/182.md?p=2) or place a check in the United States mail for the full amount of the purchase price, properly addressed to the seller, within the time limits specified in this subsection, such action being deemed compliance with the requirement for prompt payment.
- (b) **Waiver of prompt payment by written agreement; disclosure requirements—** Notwithstanding the provisions of [subsection (a)](#a) of this section and subject to such terms and conditions as the [Secretary](/usc/7/182.md?p=2) may prescribe, the parties to the purchase and sale of [livestock](/usc/7/182.md?p=4) may expressly agree in writing, before such purchase or sale, to effect payment in a manner other than that required in [subsection (a)](#a). Any such agreement shall be disclosed in the records of any [market agency](/usc/7/201.md?p=c) or [dealer](/usc/7/201.md?p=d) selling the [livestock](/usc/7/182.md?p=4), and in the purchaser’s records and on the accounts or other documents issued by the purchaser relating to the transaction.
- (c) **Delay in payment or attempt to delay deemed unfair practice—** Any delay or attempt to delay by a [market agency](/usc/7/201.md?p=c), [dealer](/usc/7/201.md?p=d), or [packer](/usc/7/198.md?p=2) purchasing [livestock](/usc/7/182.md?p=4), the collection of funds as herein provided, or otherwise for the purpose of or resulting in extending the normal period of payment for such [livestock](/usc/7/182.md?p=4) shall be considered an “unfair practice” in violation of this chapter. Nothing in this section shall be deemed to limit the meaning of the term “unfair practice” as used in this chapter.

## Source credit

(Aug. 15, 1921, ch. 64, title IV, § 409, as added Pub. L. 94–410, § 7, Sept. 13, 1976, 90 Stat. 1250; amended Pub. L. 114–237, § 3, Oct. 7, 2016, 130 Stat. 970.)

## Notes

### Editorial Notes

### Amendments

2016—Subsec. (a). Pub. L. 114–237, § 3, substituted “shall transfer funds for the full amount of the purchase price to the account of the seller by wire, electronic funds transfer, or any other expeditious method determined appropriate by the Secretary” for “shall wire transfer funds to the seller’s account” in two places in first proviso and “or dealer shall transfer funds for the full amount of the purchase price by wire, electronic funds transfer, or any other expeditious method determined appropriate by the Secretary” for “or dealer shall wire transfer funds” in second proviso.