When someone approached PACA in years past, when the big stick was still alive and well, most of the ones that went forward that were informal quickly went formal. You have to post the double bond before you can move into the formal process. That money is held until a decision is reached. Once the decision is reached, if there is no counterclaim, the money is returned. That money is held in case the buyer has a counterclaim for unpaid freight or some sort of recall, whatever the case may be, because PACA obviously has jurisdiction over only its own buyers, so in order to be fair, they want to hold some cash in case there is a counterclaim.
On May 16th, 2016. See this statement in context.