[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: 9CFR203.16]



[Page 57-58]

 

                  TITLE 9--ANIMALS AND ANIMAL PRODUCTS

 

  CHAPTER II--GRAIN INSPECTION, PACKERS AND STOCKYARDS ADMINISTRATION 

      (PACKERS AND STOCKYARDS PROGRAMS), DEPARTMENT OF AGRICULTURE

 

PART 203_STATEMENTS OF GENERAL POLICY UNDER THE PACKERS

AND STOCKYARDS ACT--Table of Contents

 

Sec. 203.16  Mailing of checks in payment for livestock purchased for slaughter, for cash and not on credit.



    (a) The Grain Inspection, Packers and Stockyards Administration 

(Packers and Stockyards Programs) recognizes that one who sells 

livestock to a packer, market agency, or dealer, who is purchasing for 

slaughter, may not intend to be present at the point of transfer of 

possession of the livestock, to receive payment, at the time a check in 

payment for such livestock may be delivered by the purchaser, and may 

not wish to authorize a representative to receive such a check; or for 

other reasons such a seller may prefer that such a purchaser make 

payment by mailing a check within the time limit as prescribed in 

section 409(a) of the Act. In cases when the seller does not intend to 

be present, he may use the following form of notification to the 

purchaser:



    I do not intend to be present at the point of transfer of possession 

of livestock sold by me to (name of packer, market agency, or dealer) 

for the purpose of receiving a check in payment for such livestock.

    I hereby direct (name of packer, market agency, or dealer) to make 

payment for livestock purchased from me, by mailing a check for the full 

amount of the purchase price before the close of the next business day 

following the purchase of livestock and transfer of possession thereof 

or, in the case of a purchase on a ``carcass'' or ``grade and yield'' 

basis, not later than the close of the first business day following 

determination of the purchase price.

    This does not constitute an extension of credit to (name of packer, 

market agency or dealer). This is subject to cancellation by me at any 

time, and if not cancelled by (date), it shall terminate on that date.





If the seller, for reasons other than not being present to receive 

payment, prefers to have the packer, market agency, or dealer make 

payment by mailing a check within the time limit as provided in section 

409(a), he may use the above form but should not include the



[[Page 58]]



statement in the first sentence that he does not intend to be present.

    (b) The Grain Inspection, Packers and Stockyards Administration 

(Packers and Stockyards Programs) believes that such an agreement would 

not constitute an extension of credit within the meaning of section 206 

of the Act because it would not give the purchaser any more time to 

issue a check than is provided in section 409(a).



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

0580-0015)



(Sec. 401, 42 Stat. 168 (7 U.S.C 221); sec. 407, 42 Stat. 169 (7 U.S.C. 

228); sec. 409, as added by sec. 7, 90 Stat. 1250 (7 U.S.C. 228b); 7 CFR 

2.17, 2.54; 42 FR 35625; Pub. L. 96-511, 94 Stat. 2812 (44 U.S.C. 3501 

et seq.); 7 U.S.C. 222 and 228 and 15 U.S.C. 46)



[42 FR 49929, Sept. 28, 1977, as amended at 49 FR 39516, Oct. 9, 1984; 

68 FR 75388, Dec. 31, 2003]