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HomeFood and Agricultural CodeDiv. 20Ch. 6Art. 1§ 55405 New Value Definition

§ 55405 New Value Definition

Food and Agricultural Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 55405 New Value Definition

Key Takeaways

  • •New value means a new loan or advance given by a lender to a processor.
  • •It can be money or other property.
  • •It does not include extending or renewing an old loan.
  • •It also does not include replacing an old loan with a new one.

Example

A farmer needs money to buy new equipment.

If a bank gives the farmer a new loan to buy the equipment, that is 'new value.' But if the bank just extends the time to pay back an old loan, that is not 'new value.'

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 55405 New Value Definition

“New value” includes any new advance or loan, whether in money or other property, which is made by a lender to a processor. It does not, however, include any extension or renewal of any existing obligation of the processor, nor any obligation which is substituted for such existing obligation. (Enacted by Stats. 1967, Ch. 15.)

Last verified: January 23, 2026

Key Terms

obligationnew valueproperty

Related Statutes

  • § 5405 County Pest Control Contracts
  • § 4101 Exposition Park Governance
  • § 5401 Pest Infestation Public Nuisance
  • § 5404 Emergency Pest Nuisance Abatement
  • § 12001 Agricultural Pest Control Adviser Licensing

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Food and Agricultural Code. Section 55405.
View Official Source