[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: 9CFR201.29]

[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]