[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: 9CFR205.213]

[Page 72]
 
                  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. 205.213  Obligations subject--``person indebted''--``debtor.''

    (a) A debt need not exist at the time of filing of an EFS. The basis 
for this is that subsection (c)(4) does not require the EFS, and 
subsection (c)(2)(C) does not require the master list, to show any 
amount of debt.
    (b) The Section does not provide for the transaction in which one 
person subjects a product to a security interest for another's debt. 
However the terms ``person indebted'' and ``debtor'' in the Section 
refer to the person who owns a product and subjects it to a security 
interest, whether or not that person owes a debt to the secured party. 
The basis for this is the purpose for which the information is supplied. 
Any buyer of a farm product, commission merchant, or selling agent 
querying a master list or system operator about a prospective seller of 
a farm product is interested in whether that seller has subjected that 
product to a security interest, not in whether the debt is owed by that 
seller or by another.
    (c) Security interests existing prior to establishment of a system 
can be filed in such a system and reflected in the master list if 
documents are in existence or are created which meet the requirements of 
subsection (c)(4) besides filing, if such documents are filed wherever 
State law requires, and if the system operator receives the information 
about them needed for the master list.
    (d) A system can be in compliance with the Section, although it 
reflects security interests not supported by EFS's as defined in the 
legislation, and although it reflects security interests on items other 
than farm products. However, subsections (e) (2) and (3), and (g)(2) (C) 
and (D), will apply only as to entries reflecting farm products and 
supported by EFS's as defined in the Section, and it must be possible to 
distinguish the entries to which these provisions apply from the other 
entries.