[Code of Federal Regulations]
[Title 9, Volume 2]
[Revised as of January 1, 2008]
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]