[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: 9CFR203.16]

[Page 57-58]
 
                  TITLE 9--ANIMALS AND ANIMAL PRODUCTS
 
  CHAPTER II--GRAIN INSPECTION, PACKERS AND STOCKYARDS ADMINISTRATION 
       (PACKERS AND STOCKYARDS PROGRAMS),DEPARTMENT OF AGRICULTURE
 
PART 203--STATEMENTS OF GENERAL POLICY UNDER THE PACKERS AND STOCKYARDS ACT--Table of Contents
 
Sec. 203.16  Mailing of checks in payment for livestock purchased for slaughter, for cash and not on credit.

    (a) The Grain Inspection, Packers and Stockyards Administration 
(Pack- ers and Stockyards Programs) recognizes that one who sells 
livestock to a packer, market agency, or dealer, who is purchasing for 
slaughter, may not intend to be present at the point of transfer of 
possession of the livestock, to receive payment, at the time a check in 
payment for such livestock may be delivered by the purchaser, and may 
not wish to authorize a representative to receive such a check; or for 
other reasons such a seller may prefer that such a purchaser make 
payment by mailing a check within the time limit as prescribed in 
section 409(a) of the Act. In cases when the seller does not intend to 
be present, he may use the following form of notification to the 
purchaser:

    I do not intend to be present at the point of transfer of possession 
of livestock sold by me to (name of packer, market agency, or dealer) 
for the purpose of receiving a check in payment for such livestock.
    I hereby direct (name of packer, market agency, or dealer) to make 
payment for livestock purchased from me, by mailing a check for the full 
amount of the purchase price before the close of the next business day 
following the purchase of livestock and transfer of possession thereof 
or, in the case of a purchase on a ``carcass'' or ``grade and yield'' 
basis, not later than the close of the first business day following 
determination of the purchase price.
    This does not constitute an extension of credit to (name of packer, 
market agency or dealer). This is subject to cancellation by me at any 
time, and if not cancelled by (date), it shall terminate on that date.


If the seller, for reasons other than not being present to receive 
payment, prefers to have the packer, market agency, or dealer make 
payment by mailing a check within the time limit as provided in section 
409(a), he may use the above form but should not include the statement 
in the first sentence that he does not intend to be present.
    (b) The Grain Inspection, Packers and Stockyards Administration 
(Pack- ers and Stockyards Programs) believes that such an agreement 
would not constitute an extension of credit within the meaning of 
section 206 of the Act because it would not give the purchaser

[[Page 58]]

any more time to issue a check than is provided in section 409(a).

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

(Sec. 401, 42 Stat. 168 (7 U.S.C 221); sec. 407, 42 Stat. 169 (7 U.S.C. 
228); 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. 28, 1977, as amended at 49 FR 39516, Oct. 9, 1984]