§ 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.