Menu
Forums
New posts
Search forums
What's new
New posts
New media
New media comments
New profile posts
Latest activity
Media
New media
New comments
Search media
Members
Current visitors
New profile posts
Search profile posts
Log in
Register
What's new
Search
Search
Search titles and first posts only
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Forums
Cattle Boards
Beginners Board
Holding checks
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Help Support CattleToday:
Message
<blockquote data-quote="Bonsman" data-source="post: 794428" data-attributes="member: 8504"><p>Never hold a check. There are several problems. First, by holding the check you are extending the purchaser credit. If the check does not clear the bank, then you are an unsecured creditor. The purchaser's bank has a perfected security interest in your cattle that you sold. If you "repossess" the cattle, then the purchaser's bank can sue you for conversion of their collateral and win. Second, by holding the check, you lose any criminal actions that you could have used. For example, theft by check. Third, if a bankruptcy is filed, then you lose, period. The trustee in bankruptcy can pursue you for a preference and make you return the money--<strong><em><u>even if you get paid.</u></em></strong> He can do this because the payment is not in the ordinary course of business. The same thing applies if you go get your cattle back, the Trustee can make you pay for your cattle. No, it is not right; but it is the law of bankruptcy. I have seen too many of these situations in my 20 years of practicing "cow law" in Amarillo. I can (and have) written several articles on this situation as well as taking drafts, when title transfers, and what can the bankruptcy trustee recover. Finally, for those of you who think that "title" to the livestock does not change hands until the check clears the bank--you are very wrong. And it does not matter what your contract says about when title changes. The bank or the bankruptcy trustee always wins. The unpaid seller of livestock always remains unpaid.</p></blockquote><p></p>
[QUOTE="Bonsman, post: 794428, member: 8504"] Never hold a check. There are several problems. First, by holding the check you are extending the purchaser credit. If the check does not clear the bank, then you are an unsecured creditor. The purchaser's bank has a perfected security interest in your cattle that you sold. If you "repossess" the cattle, then the purchaser's bank can sue you for conversion of their collateral and win. Second, by holding the check, you lose any criminal actions that you could have used. For example, theft by check. Third, if a bankruptcy is filed, then you lose, period. The trustee in bankruptcy can pursue you for a preference and make you return the money--[b][i][u]even if you get paid.[/u][/i][/b] He can do this because the payment is not in the ordinary course of business. The same thing applies if you go get your cattle back, the Trustee can make you pay for your cattle. No, it is not right; but it is the law of bankruptcy. I have seen too many of these situations in my 20 years of practicing "cow law" in Amarillo. I can (and have) written several articles on this situation as well as taking drafts, when title transfers, and what can the bankruptcy trustee recover. Finally, for those of you who think that "title" to the livestock does not change hands until the check clears the bank--you are very wrong. And it does not matter what your contract says about when title changes. The bank or the bankruptcy trustee always wins. The unpaid seller of livestock always remains unpaid. [/QUOTE]
Insert quotes…
Verification
Post reply
Forums
Cattle Boards
Beginners Board
Holding checks
Top