N.Y. Comp. Codes R. & Regs. tit. 1 § 43.9

Current through Register Vol. 46, No. 50, December 11, 2024

Section 43.9 - Claims against mandatory minimum surety bonds and producers security fund

(a) A deficiency in payment for milk by a milk dealer resulting from an error in butterfat test or other calculation or from a disagreement over quantity, test, price or other terms of trade shall not be cause for a producer or a market administrator to file a claim, pursuant to section 258-b(5) of the law, against a mandatory minimum surety bond and the producers security fund.

(b) Claims against a mandatory minimum surety bond and the producers security fund shall be filed within 30 days of notice by the commissioner to producers and a market administrator unless the commissioner determines that there is reasonable cause to accept claims filed after such deadline.

(c) The appropriate uniform price of milk for which a claim is filed shall be the uniform price for the milk marketing order under which such milk is priced, adjusted for butterfat content and zone location, or such other pay price as the commissioner determines is appropriate for a milk dealer not subject to a milk marketing order. For purposes of this Part, any amount owed to or received or credited from a producer settlement or equalization fund of an order promulgated under section 258-m or 258-n of the law by a cooperative on milk included in a claim filed against a defaulting milk dealer shall be considered as owing to or credited from such fund on account of the milk dealer and shall be added to or deducted, as the case may be, from the cooperative's claim against a mandatory minimum surety bond and the producers security fund.

(d) For the purpose of determining the amount payable on a claim pursuant to section 258-b(5)(c) of the law, the earliest debt owed a claimant by a milk dealer shall mean the amount owed for milk sold or delivered to such milk dealer during the first 43-consecutive-day period for which payment was not received.

(e) In the event the commissioner authorizes the comptroller to make estimated payments from the producers security fund to individual producer claimants, pursuant to section 258-b(5)(a) of the law, each such claimant shall be required as a condition to receiving an estimated payment to execute a written agreement to repay to the producers security fund any amount thereafter determined by the commissioner is not due upon the producer's claim.

N.Y. Comp. Codes R. & Regs. Tit. 1 § 43.9