[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: 9CFR201.31]

[Page 11]
 
                  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. 201.31  Conditions in market agency, dealer and packer bonds.

    Each market agency, dealer and packer bond shall contain conditions 
applicable to the activity or activities in which the person or persons 
named as principal or clearees in the bond propose to engage, which 
conditions shall be as follows or in terms to provide equivalent 
protection:
    (a) Condition Clause No. 1: When the principal sells livestock for 
the accounts of others. If the said principal shall pay when due to the 
person or persons entitled thereto the gross amount, less lawful 
charges, for which all livestock is sold for the accounts of others by 
said principal.
    (b) Condition Clause No. 2: When the principal buys livestock for 
his own account or for the accounts of others. If the said principal 
shall pay when due to the person or persons entitled thereto the 
purchase price of all livestock purchased by said principal for his own 
account or for the accounts of others, and if the said principal shall 
safely keep and properly disburse all funds, if any, which come into his 
hands for the purpose of paying for livestock purchased for the accounts 
of others.
    (c) Condition Clause No. 3: When the principal clears other 
registrants buying livestock and thus is responsible for the obligations 
of such other registrants. If the said principal, acting as a clearing 
agency responsible for the financial obligations of other registrants 
engaged in buying livestock, viz: (Insert here the names of such other 
registrants as they appear in the application for registration), or if 
such other registrants, shall (1) pay when due to the person or persons 
entitled thereto the purchase price of all livestock purchased by such 
other registrants for their own account or for the accounts of others; 
and (2) safely keep and properly disburse all funds coming into the 
hands of such principal or such other registrants for the purpose of 
paying for livestock purchased for the accounts of others.
    (d) Condition Clause No. 4: When the principal buys livestock for 
his own account as a packer. If the said principal shall pay when due to 
the person or persons entitled thereto the purchase price of all 
livestock purchased by said principal for his own account.

[47 FR 32695, July 29, 1982]