[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: 9CFR201.29]



[Page 9]

 

                  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. 201.29  Market agencies, packers and dealers required to file and maintain bonds.



    (a) Every market agency, packer, and dealer, except as provided in 

paragraph (d) of this section, and except packer buyers registered as 

dealers to purchase livestock for slaughter only, shall execute and 

maintain a reasonable bond on forms approved by the Administrator 

containing the appropriate condition clauses, as set forth in Sec. 

201.31 of the regulations, applicable to the activity or activities in 

which the person or persons propose to engage, to secure the performance 

of obligations incurred by such market agency, packer, or dealer. No 

market agency, packer, or dealer required to maintain a bond shall 

conduct his operations unless there is on file and in effect a bond 

complying with the regulations in this part.

    (b) Every market agency buying on a commission basis and every 

dealer buying for his own account or for the accounts of others shall 

file and maintain a bond. If a registrant operates as both a market 

agency buying on a commission basis and as a dealer, only one bond to 

cover both buying operations need be filed. Any person operating as a 

market agency selling on a commission basis and as a market agency 

buying on a commission basis or as a dealer shall file and maintain 

separate bonds to cover his selling and buying operations.

    (c) Each market agency and dealer whose buying operations are 

cleared by another market agency shall be named as clearee in the bond 

filed and maintained by the market agency registered to provide clearing 

services. Each market agency selling livestock on a commission basis 

shall file and maintain its own bond.

    (d) Every packer purchasing livestock, directly or through an 

affiliate or employee or a wholly-owned subsidiary, except those packers 

whose annual purchases do not exceed $500,000, shall file and maintain a 

reasonable bond. In the event a packer maintains a wholly-owned 

subsidiary or affiliate to conduct its livestock buying, the wholly-

owned subsidiary or affiliate shall be registered as a packer buyer for 

its parent packer firm, and the required bond shall be maintained by the 

parent packer firm.



(7 U.S.C. 204, 228(a))



[48 FR 8806, Mar. 2, 1983]