New York firm obtains PACA license following bankruptcy
New York firm obtains PACA license following bankruptcy
Smallhold Inc., operating out of Brooklyn, NY, has posted a $50,000 surety bond with the U.S. Department of Agriculture.
The company was required to post the bond under the Perishable Agricultural Commodities Act following its involvement in a bankruptcy. The company posted the bond as a prerequisite for obtaining a new license to operate in the produce industry.
The USDA will hold the bond for three years and nine months, providing assurance that the licensee will conduct business according to the PACA and will pay any reparation awards that may be issued against it in connection with transactions occurring within the period the bond is held.
The PACA Division, part of the Fair Trade Practices Program in the Agricultural Marketing Service, regulates fair trading practices of produce businesses operating subject to PACA, including buyers, sellers, commission merchants, dealers and brokers within the fruit and vegetable industry.