[Code of Federal Regulations]

[Title 9, Volume 2]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 9CFR201.43]



[Page 13-14]

 

                  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. 201.43  Payment and accounting for livestock and live poultry.



    (a) Market agencies to make prompt accounting and transmittal of net 

proceeds. Each market agency shall, before the close of the next 

business day following the sale of any livestock consigned to it for 

sale, transmit or deliver to the



[[Page 14]]



consignor or shipper of the livestock, or the duly authorized agent, in 

the absence of any knowledge that any other person, or persons, has any 

interest in the livestock, the net proceeds received from the sale and a 

true written account of such sale, showing the number, weight, and price 

of each kind of animal sold, the date of sale, the commission, yardage, 

and other lawful charges, and such other facts as may be necessary to 

complete the account and show fully the true nature of the transaction.

    (b) Prompt payment for livestock and live poultry--terms and 

conditions. (1) No packer, market agency, or dealer shall purchase 

livestock for which payment is made by a draft which is not a check, 

unless the seller expressly agrees in writing before the transaction 

that payment may be made by such a draft. (In cases of packers whose 

average annual purchases exceed $500,000, and market agencies and 

dealers acting as agents for such packers, see also Sec. 201.200).

    (2)(i) No packer, market agency, or dealer purchasing livestock for 

cash and not on credit, whether for slaughter or not for slaughter, 

shall mail a check in payment for the livestock unless the check is 

placed in an envelope with proper first class postage prepaid and 

properly addressed to the seller or such person as he may direct, in a 

post office, letter box, or other receptacle regularly used for the 

deposit of mail for delivery, from which such envelope is scheduled to 

be collected (A) before the close of the next business day following the 

purchase of livestock and transfer of possession thereof, or (B) in the 

case of a purchase on a ``carcass'' or ``grade and yield'' basis, before 

the close of the first business day following determination of the 

purchase price.

    (ii) No packer, market agency, or dealer purchasing livestock for 

slaughter, shall mail a check in payment for the livestock unless (A) 

the check is made available for actual delivery and the seller or his 

duly authorized representative is not present to receive payment, at the 

point of transfer of possession of such livestock, on or before the 

close of the next business day following the purchase of the livestock 

and transfer of possession thereof, or, in the case of a purchase on a 

``carcass'' or ``grade and yield'' basis, on or before the close of the 

first business day following determination of the purchase price; or 

unless (B) the seller expressly agrees in writing before the transaction 

that payment may be made by such mailing of a check.

    (3) Any agreement referred to in paragraph (b) (1) or (2) of this 

section shall be disclosed in the records of any market agency or dealer 

selling such livestock, and in the records of the packer, market agency, 

or dealer purchasing such livestock, and retained by such person 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 thereof.

    (4) No packer, live poultry dealer, market agency, or livestock 

dealer shall as a condition to its purchase of livestock or poultry, 

impose, demand, compel or dictate the terms or manner of payment, or 

attempt to obtain a payment agreement from a seller through any threat 

of retaliation or other form of intimidation.

    (c) Purchaser to promptly reimburse agents. Each packer, market 

agency, or dealer who utilizes or employs an agent to purchase livestock 

for him, shall, in transactions where such agent uses his own funds to 

pay for livestock purchased on order, transmit or deliver to such agent 

the full amount of the purchase price before the close of the next 

business day following receipt of notification of the payment of such 

purchase price, unless otherwise expressly agreed between the parties 

before the purchase of the livestock. Any such agreement shall be 

disclosed in the records of the principal and in the records of any 

market agency or dealer acting as such agent.



(Approved by the Office of Management and Budget under control number 

0580-0015)



(7 U.S.C. 228, 7 U.S.C. 222, and 15 U.S.C. 46)



[49 FR 6083, Feb. 17, 1984, as amended at 49 FR 8235, Mar. 6, 1984; 54 

FR 16355, Apr. 24, 1989; 68 FR 75388, Dec. 31, 2003]