A bill that will provide fresh produce sellers in Canada with financial protection in case of buyer bankruptcy has moved to second reading in the Senate. Bill C-280, the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act was adopted by the House of Commons on Oct. 25, with its first reading in the Senate the next day.
The bill offers financial protection to fresh produce sellers similar to that offered to counterparts in the US.
Bill C-280’s deemed trust emulates the United States Perishable Agricultural Marketing Act’s Trust in providing fresh produce sellers in Canada a way to secure payment in case of buyer bankruptcy with no additional burden on the government.
Source: farmtario.com