[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: 9CFR205.211]

[Page 71]
 
                  TITLE 9--ANIMALS AND ANIMAL PRODUCTS
 
  CHAPTER II--GRAIN INSPECTION, PACKERS AND STOCKYARDS ADMINISTRATION 
       (PACKERS AND STOCKYARDS PROGRAMS),DEPARTMENT OF AGRICULTURE
 
PART 205--CLEAR TITLE--PROTECTION FOR PURCHASERS OF FARM PRODUCTS--Table of Contents
 
Sec. 205.211  Applicability of court decisions under the UCC.

    (a) Court decisions under the Uniform Commercial Code (UCC), about 
the scope of the ``farm products'' exception in Section 9-307(1) 
thereof, and interpreting the terms therein, particularly ``person 
engaged in farming operations'' which is not defined in the Section, are 
applicable to an extent in interpreting the Section. The basis of this 
is the legislative intent of the Section to pre-empt State laws 
reflecting that ``farm products'' exception, as shown in the House 
Committee Report on Pub. L. 99-198, No. 99-271, Part 1, September 13, 
1985, at pages 108 et seq.
    (b) That UCC Section 9-307(1) reads as follows:

    (1) A buyer in ordinary course of business (subsection (9) of 
Section 1-201) other than a person buying farm products from a person 
engaged in farming operations takes free of a security interest created 
by his seller even though the security interest is perfected and even 
though the buyer knows of its existence. (emphasis added)