[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: 9CFR205.211]



[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. 205.211  Applicability of court decisions under the UCC.



    (a) Court decisions under the Uniform Commercial Code (UCC), about 

the scope of the ``farm products'' exception in Section 9-307(1) 

thereof, and interpreting the terms therein, particularly ``person 

engaged in farming operations'' which is not defined in the Section, are 

applicable to an extent in interpreting the Section. The basis of this 

is the legislative intent of the Section to pre-empt State laws 

reflecting that ``farm products'' exception, as shown in the House 

Committee Report on Pub. L. 99-198, No. 99-271, Part 1, September 13, 

1985, at pages 108 et seq.

    (b) That UCC Section 9-307(1) reads as follows:



    (1) A buyer in ordinary course of business (subsection (9) of 

Section 1-201) other than a person buying farm products from a person 

engaged in farming operations takes free of a security interest created 

by his seller even though the security interest is perfected and even 

though the buyer knows of its existence. (emphasis added)