Section 61407.3 Of Article 5. Bonding And Payment For Manufacturing Milk From California Food And Agricultural Code >> Division 21. >> Part 3. >> Chapter 1. >> Article 5.

. Payments by a handler to a producer, for the purposes of any action on a handler's bond for any year, shall be credited first to interest and then to principal due, owed, and unpaid. Amounts to be applied to the principal shall be applied first to the amount owed for the most recent deliveries and then successively, in descending order, to the amounts owed to the next most recent deliveries.