[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: 9CFR205.212]



[Page 71-72]

 

                  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. 205.212  ``Buyer in ordinary course of business'' and ``security 

interest.''



    The terms ``buyer in ordinary course of business'' and ``security 

interest'' are defined in subsections (c) (1) and (7). There are 

differences between those



[[Page 72]]



definitions and the UCC definitions of the same terms. In interpreting 

those differences, the following would be pertinent:

    (a) The legislative intent discussed above in Sec. 205.211, to pre-

empt State laws reflecting the ``farm products'' exception; and

    (b) The legislative intent shown in subsections (a) and (b) that 

certain persons take free and clear of certain interests of a ``secured 

lender'' ``when the seller fails to repay the lender,'' unless such 

persons have information about such interests made available to them as 

provided in the Section.