Section 250-B. Producer claims against security and agricultural producers security fund

1. (a) A producer who has not received  full  payment  of  amounts  due  for  farm  products  in accordance with the prompt payment
  provisions of sections two hundred forty-five and two hundred  forty-six
  of  this article shall immediately notify the commissioner in writing of
  such default in payment. The notification shall set forth the  dates  of
  the  transactions, the dealer to whom the farm products were sold and/or
  delivered, the type of product  delivered,  the  amount  and  the  price
  agreed upon for such product.
    (b)  If  the commissioner has reason to believe that a licensed dealer
  has defaulted in making payments for farm  products  to  producers,  the
  commissioner  shall  give  notice  to  producers to file verified claims
  within thirty days of such notice. The commissioner  shall  examine  the
  claims  so filed, determine the amount due upon such claims, and certify
  the amounts due each claimant. No claims against  the  security  or  the
  agricultural  producers security fund shall be allowed for sales of farm
  products: (i) to any unlicensed person; (ii) that occurred more than one
  hundred twenty days after the earliest transaction between the  producer
  and  the  dealer  that remains unpaid as of the date the claim is filed,
  whether or not that earliest  unpaid  transaction  is  included  in  the
  claim;  or  (iii)  where  a  claim  is submitted more than three hundred
  sixty-five days after sale and delivery, but  in  no  event  beyond  the
  expiration  of the thirty day period provided in the notice published by
  the commissioner pursuant to this section.
    (c) Claims shall be chargeable first against any initial or additional
  bond or letter of credit provided by the defaulting dealer, and  in  the
  event  such  security  is  not  sufficient to pay the amount owed to all
  producers, the amounts recovered shall be divided  pro  rata  among  all
  claimants.  Any remaining amount of the certified claim shall be payable
  as set forth in paragraph (d) of this subdivision. The commissioner  may
  bring  an  action upon the bonds or letter of credit and for purposes of
  such action his or her determination certifying the amounts due shall be
  presumptive evidence of the facts stated therein. In the event that  the
  issuer  of  the  bond  or letter of credit fails or refuses to honor its
  obligation to pay under the bond or letter of credit within thirty  days
  from the date of the commissioner's demand for payment, the commissioner
  may  pay from the agricultural producers security fund the amount of the
  demand and bring an action to recover the amount of the demand from  the
  issuer  of  the  bond  or  letter of credit. Any recovery in such action
  shall be deposited in the agricultural producers security fund.
    (d) The remainder of such claims against a licensee who elects not  to
  be  subject  to  the  additional  bonding  requirements  which  are  not
  satisfied by the bond or letter of credit or alternative security  shall
  be  processed  first  against any credit insurance purchased pursuant to
  this  article  and  any  balance  thereafter  against  the  agricultural
  producers  security  fund. Payment of individual claims against the fund
  shall not exceed eighty percent of  the  difference  between  the  total
  amount  recovered  on  that claim against the bond or other security and
  the amount determined to be owed  pursuant  to  paragraph  (b)  of  this
  subdivision.  In  the  event that the fund is not sufficient to pay such
  amounts owed to the claimants, recovery from the fund shall  be  divided
  pro rata.
    2. If any claim is paid from the agricultural producers security fund,
  the  defaulting  licensee  shall  be  liable to the commissioner for the
  benefit of the fund for the amount of claims so paid. If the  defaulting
  licensee  has  not  paid  the  commissioner  within  fifteen  days after
  personal service upon him or her of the commissioner's certification  of
  payment  of  a claim from the fund for which the licensee has been found

  liable to the claimant, the commissioner may issue a warrant under  seal
  of  the  department  directed  to the sheriff of any county of the state
  commanding him or her to levy  upon  and  sell  the  real  and  personal
  property of the defaulting licensee, found within his or her county, for
  the  payment  of  the amount of such claim with interest and the cost of
  executing the warrant, and to return such warrant  to  the  commissioner
  and pay to him or her the money collected by virtue thereof within sixty
  days  after  the receipt of such warrant. The commissioner may file with
  the clerk of any county a copy of such warrant, and thereupon the  clerk
  shall  enter in the judgment docket, in the column for judgment debtors,
  the name of the defaulting licensee designated in the  warrant,  and  in
  appropriate  columns  the  amount  of  the  licensee's  liability to the
  commissioner for claims, interest and costs, and the date when such copy
  is filed. Thereupon, the amount of such warrant so docketed shall become
  a lien, relating back to and deemed perfected as  of  the  date  of  the
  dealer's  earliest  default in payment to producers as determined by the
  commissioner, upon and shall bind the real  and  personal  property  and
  chattels real of the person against whom it is issued in the same manner
  as  a  judgment  duly  docketed in the office of such clerk. The sheriff
  shall thereupon proceed upon the same in all respects, with like effect,
  and in the same manner prescribed by law in respect to executions issued
  against property upon judgments of a  court  of  record,  and  shall  be
  entitled  to  the  same  fees  for  his or her services in executing the
  warrant, to be collected in the same manner. Upon such filing of a  copy
  of  a  warrant, the commissioner shall have the same remedies to enforce
  the licensee's liability as if he or she had recovered judgment  against
  the licensee for the amount of the warrant.