GA - GAC
Rules and Regulations of the State of Georgia
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Subject 40-13-11 PAYMENT FOR LIVESTOCK PURCHASED AT AUCTION

Rule 40-13-11-.01 Payment for Livestock Purchased at Auction

(1) Payment for livestock purchased at auctions shall be made on the same date of the purchase of the livestock, except that persons regulated by the provisions of the Federal "Packers and Stockyards Act of 1921" may make payment by placing in the mail a check on the day following the date of purchase. If payment is not received from dealer or packer within six calendar days following purchase of livestock, the livestock sales establishment shall within 24 hours notify by personal contact, telephone or wire, the Commissioner of Agriculture that payment has not been received. It shall be the duty of the Commissioner of Agriculture, after having received such notification, and determination of nonpayment has been made, to notify all licensed sales establishments of the fact of such nonpayment. No dealer or packer will be allowed to purchase on a regular sale any livestock unless the payment has been received by the sales establishment from the prior sale date.
(2) In the event that a check or draft issued in payment for livestock is dishonored, the livestock sales establishment shall notify personally, by telephone or wire, the Commissioner of Agriculture of this fact as soon as possible, but in no event later than 24 hours after having knowledge of such dishonor. It shall be the duty of the Commissioner of Agriculture, after having received such notification, to notify all licensed sales establishments of the fact of such dishonor.
(3) No livestock sales establishment shall extend credit to any dealer or packer unless such dealer or packer has on file with the sales establishment, prior to any such transaction, a letter of credit or guarantee from a commercial bank or other financial institution doing business in the State of Georgia in an amount sufficient to cover the actual credit extended; Provided, however, that for the purpose of this paragraph, the use of a draft as a manner of payment shall not constitute an extension of credit.
(4) Any violation of this chapter shall be grounds for the revocation or suspension of any license issued by the Commissioner of Agriculture: Provided, however, that no license shall be revoked without opportunity for a hearing in accordance with the provisions of the Georgia Administrative Procedure Act. In lieu of such license revocation or suspension, the Commissioner may with the written consent of the affected party or parties impose a reasonable penalty, not to exceed $1000 for each such violation.