Massachusetts § 42C - Default by licensee; notices; action on bond; payment of claims

§ 42C. Default by licensee; notices; action on bond; payment of claims

Section 42C. Each producer shall notify the commissioner in writing of any default in the timely payment for milk on the part of a licensee, such notification to be made within ninety days after the date on which payment for milk is regularly due under the provisions of chapter ninety-four A, of orders, rules or regulations issued under the authority thereof, or of a federal milk marketing order effective in the commonwealth. Upon default by the licensee in any of the conditions of his bond or other security, if there is reason to believe that the licensee is in arrears in his payments to producers for milk received by him, the commissioner shall give notice to all producers so affected to file verified claims with him, and may, if he deems it advisable, fix a limit of time within which such claims shall be filed. The commissioner or his duly authorized assistant shall examine claims so filed and shall certify the amounts determined by him to be due thereon. Upon such default, the commissioner or his duly authorized assistant may bring such action as is deemed necessary upon any bond given under the two preceding sections, may foreclose any mortgage given thereunder and sell the mortgaged property and may sell any collateral deposited with him thereunder. He shall first apply the sum recovered in any such action, or the proceeds of the sale of any such mortgaged property or deposited collateral, or any cash deposited as security toward the payment of any claims of producers filed and certified under this section, and, if the amount thereof is more than sufficient to pay all such claims in full, shall pay any balance remaining, after deducting all expenses, to the licensee or his legal representative or surety or other person entitled thereto. In any action taken upon a bond or other security filed under the provisions of sections forty-two A and forty-two B, the certificate of the commissioner in determining the amounts due shall be prima facie evidence of the facts stated therein.