[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: 9CFR205.212]



[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. 205.212  ``Buyer in ordinary course of business'' and ``security interest.''



    The terms ``buyer in ordinary course of business'' and ``security 

interest'' are defined in subsections (c) (1) and (7). There are 

differences between those definitions and the UCC definitions of the 

same terms. In interpreting those differences, the following would be 

pertinent:

    (a) The legislative intent discussed above in Sec. 205.211, to pre-

empt State laws reflecting the ``farm products'' exception; and

    (b) The legislative intent shown in subsections (a) and (b) that 

certain persons take free and clear of certain interests of a ``secured 

lender'' ``when the seller fails to repay the lender,'' unless such 

persons have information about such interests made available to them as 

provided in the Section.