[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: 9CFR205.213]



[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.