[Code of Federal Regulations]

[Title 9, Volume 2]

[Revised as of January 1, 2007]

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

[CITE: 9CFR201.27]



[Page 8]

 

                  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. 201.27  Underwriter; equivalent in lieu of bonds; standard forms.



    (a) The surety on bonds maintained under the regulations in this 

part shall be a surety company which is currently approved by the United 

States Treasury Department for bonds executed to the United States; and 

which has not failed or refused to satisfy its legal obligations under 

bonds issued under said regulations.

    (b) Any packer, market agency, or dealer required to maintain a 

surety bond under these regulations may elect to maintain, in whole or 

partial substitution for such surety bond, a bond equivalent as provided 

below. The total amount of any such surety bond, equivalent, or 

combination thereof, must be the total amount of the surety bond 

otherwise required under these regulations. Any such bond equivalent 

must be in the form of:

    (1) A trust fund agreement governing funds actually deposited or 

invested in fully negotiable obligations of the United States or 

Federally-insured deposits or accounts in the name of and readily 

convertible to currency by a trustee as provided in Sec. 201.32, or

    (2) A trust agreement governing funds which may be drawn by a 

trustee as provided in Sec. 201.32, under one or more irrevocable, 

transferrable, standby letters of credit, issued by a Federally-insured 

bank or institution and physically received and retained by such 

trustee.

    (c) The provisions of Sec. Sec. 201.27 through 201.34 shall be 

applicable to the trust fund agreements, trust agreements and letters of 

credit authorized in paragraph (b) of this section.

    (d) Bonds, trust fund agreements, letters of credit and trust 

agreements shall be filed on forms approved by the Administrator.



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

0580-0015)



[56 FR 2128, Jan. 22, 1991, as amended at 61 FR 36279, July 10, 1996; 62 

FR 11759, Mar. 13, 1997; 68 FR 75388, Dec. 31, 2003]