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Old 01-28-2004, 11:59 AM
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In the good ol USA, when we sell agricultural produce through consignment brokers, they automatically have to put the money in trust...and the brokers are obligated as fidiciaries to the seller. If they go bankrupt, the trust monies are NOT considered assets of the bankrupt, and can still be distributed to the sellers. Of course, if there is co-mingling, you're screwed, and that's when we go lock down their accounts. This is under a law we call PACA. Maybe we have a BK attorney who can tell us about other types of items and how they are treated here.

Seems to me that if you are going to consign a car (or antiques, etc.) to a broker, you want to make sure the money goes into a trust account for this specific reason.
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