[Code of Federal Regulations]
[Title 9, Volume 2]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 9CFR201.200]

[Page 29]
 
                  TITLE 9--ANIMALS AND ANIMAL PRODUCTS
 
  CHAPTER II--GRAIN INSPECTION, PACKERS AND STOCKYARDS ADMINISTRATION 
       (PACKERS AND STOCKYARDS PROGRAMS),DEPARTMENT OF AGRICULTURE
 
PART 201--REGULATIONS UNDER THE PACKERS AND STOCKYARDS ACT--Table of Contents
 
Sec. 201.200  Sale of livestock to a packer on credit.

    (a) No packer whose average annual purchases of livestock exceed 
$500,000 shall purchase livestock on credit, and no dealer or market 
agency acting as an agent for such a packer shall purchase livestock on 
credit, unless: (1) Before purchasing such livestock the packer obtains 
from the seller a written acknowledgment as follows:

    On this date I am entering into a written agreement for the sale of 
livestock on credit to ----------------, a packer, and I understand that 
in doing so I will have no rights under the trust provisions of section 
206 of the Packers and Stockyards Act, 1921, as amended (7 U.S.C. 196, 
Pub. L. 94-410), with respect to any such credit sale. The written 
agreement for such selling on credit

Covers a single sale.
Provides that it will remain in effect until (date).
Provides that it will remain in effect until canceled in writing by 
either party.
(Omit the provisions not applicable.)
Date____________________________________________________________________
Signature_______________________________________________________________

    (2) Such packer retains such acknowledgment, together with all other 
documents, if any, setting forth the terms of such credit sales on which 
the purchaser and seller have agreed, and such dealer or market agency 
retains a copy thereof, in his records for such time as is required by 
any law, or by written notice served on such person by the 
Administrator, but not less than two calendar years from the date of 
expiration of the written agreement referred to in such acknowledgment; 
and
    (3) Such seller receives a copy of such acknowledgment.
    (b) Purchasing livestock for which payment is to be made by a draft 
which is not a check, shall constitute purchasing such livestock on 
credit within the meaning of paragraph (a) of this section. (See also 
Sec. 201.43(b)(1).)
    (c) The provisions of this section shall not be construed to permit 
any transaction prohibited by Sec. 201.61(a) relating to financing by 
market agencies selling on a commission basis.

(Approved by the Office of Management and Budget under control number 
0590-0001)

(Sec. 401, 42 Stat. 168 (7 U.S.C. 221); sec. 409, as added by sec. 7, 90 
Stat. 1250 (7 U.S.C 228b); 7 CFR 2.17, 2.54; 42 FR 35625; Pub. L. 96-
511, 94 Stat. 2812 (44 U.S.C. 3501 et seq.); 7 U.S.C. 222 and 228 and 15 
U.S.C. 46)

[42 FR 49929, Sept. 8, 1977, as amended at 49 FR 39516, Oct. 9, 1984; 54 
FR 37094, Sept. 7, 1989]