The 9th Circuit (sitting en banc) recently overruled established case law and expanded trust rights under the Perishable Agricultural Commodities Act (PACA). The court now requires a “threshold true sale inquiry” focusing primarily on the transfer of risk between the parties. If there is no true sale (as with secured loans) then the court’s inquiry stops there and the assets remain in the trust. If there is a true sale then the court will consider whether the transaction is commercially reasonable: those not commercially reasonable remain in the trust while those that are both true sales and commercially reasonable will provide buyers with assets free and clear of the trust.
You can read more about this ruling here.