9 CFR 201.42 - Custodial accounts for trust funds.

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§ 201.42 Custodial accounts for trust funds.

(a)Payments for livestock are trust funds. Each payment that a livestock buyer makes to a market agency selling on commission is a trust fund. Funds deposited in custodial accounts are also trust funds.

(b)Custodial accounts for shippers' proceeds. Every market agency engaged in selling livestock on a commission or agency basis shall establish and maintain a separate bank account designated as “Custodial Account for Shippers' Proceeds,” or some similar identifying designation, to disclose that the depositor is acting as a fiduciary and that the funds in the account are trust funds.

(c)Deposits in custodial accounts. The market agency shall deposit in its custodial account before the close of the next business day (the next day on which banks are customarily open for business whether or not the market agency does business on that day) after livestock is sold (1) the proceeds from the sale of livestock that have been collected, and (2) an amount equal to the proceeds receivable from the sale of livestock that are due from (i) the market agency, (ii) any owner, officer, or employee of the market agency, and (iii) any buyer to whom the market agency has extended credit. The market agency shall thereafter deposit in the custodial account all proceeds collected until the account has been reimbursed in full, and shall, before the close of the seventh day following the sale of livestock, deposit an amount equal to all the remaining proceeds receivable whether or not the proceeds have been collected by the market agency.

(d)Withdrawals from custodial accounts. The custodial account for shippers' proceeds shall be drawn on only for payment of (1) the net proceeds to the consignor or shipper, or to any person that the market agency knows is entitled to payment, (2) to pay lawful charges against the consignment of livestock which the market agency shall, in its capacity as agent, be required to pay, and (3) to obtain any sums due the market agency as compensation for its services.

(e)Accounts and records. Each market agency shall keep such accounts and records as will disclose at all times the handling of funds in such custodial accounts for shippers' proceeds. Accounts and records must at all times disclose the name of the consignors and the amount due and payable to each from funds in the custodial account for shippers' proceeds.

(f)Insured banks. Such custodial accounts for shippers' proceeds must be established and maintained in banks whose deposits are insured by the Federal Deposit Insurance Corporation.

(g)Certificates of deposit and/or savings accounts. Funds in a custodial account for shippers' proceeds may be maintained in an interest-bearing savings account and/or invested in one or more certificates of deposit, to the extent that such deposit or investment does not impair the ability of the market agency to meet its obligations to its consignors. The savings account must be properly designated as a party of the custodial account of the market agency in its fiduciary capacity as trustee of the custodial funds and maintained in the same bank as the custodial account. The certificates of deposit, as property of the custodial account, must be issued by the bank in which the custodial account is kept and must be made payable to the market agency in its fiduciary capacity as trustee of the custodial funds.

(Approved by the Office of Management and Budget under control number 0580-0015)
[ 47 FR 32696, July 29, 1982, as amended at 54 FR 26349, June 23, 1989; 68 FR 75388, Dec. 31, 2003]

This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.

This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].

It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.

United States Code
U.S. Code: Title 7 - AGRICULTURE

§ 181 - Short title

§ 182 - Definitions

§ 183 - When transaction deemed in commerce; “State” defined

§ 191 - “Packer” defined

§ 192 - Unlawful practices enumerated

§ 193 - Procedure before Secretary for violations

§ 194 - Conclusiveness of order; appeal and review

§ 195 - Punishment for violation of order

§ 196 - Statutory trust established; livestock

§ 197 - Statutory trust established; poultry

§ 197a - Production contracts

§ 197b - Choice of law and venue

§ 197c - Arbitration

§ 198 - Definitions

§ 198a - Swine packer marketing contracts offered to producers

§ 198b - Report on the Secretary’s jurisdiction, power, duties, and authorities

§ 201 - “Stockyard owner”; “stockyard services”; “market agency”; “dealer”; defined

§ 202 - “Stockyard” defined; determination by Secretary as to particular yard

§ 203 - Activity as stockyard dealer or market agency; benefits to business and welfare of stockyard; registration; penalty for failure to register

§ 204 - Bond and suspension of registrants

§ 205 - General duty as to services; revocation of registration

§ 206 - Rates and charges generally; discrimination

§ 207 - Schedule of rates

§ 208 - Unreasonable or discriminatory practices generally; rights of stockyard owner of management and regulation

§ 209 - Liability to individuals for violations; enforcement generally

§ 210 - Proceedings before Secretary for violations

§ 211 - Order of Secretary as to charges or practices; prescribing rates and practices generally

§ 212 - Prescribing rates and practices to prevent discrimination between intrastate and interstate commerce

§ 213 - Prevention of unfair, discriminatory, or deceptive practices

§ 214 - Effective date of orders

§ 215 - Failure to obey orders; punishment

§ 216 - Proceedings to enforce orders; injunction

§ 217 - Proceedings for suspension of orders

§ 217a - Fees for inspection of brands or marks

§ 218 to 218d - Repealed. Pub. L. 100–173, § 10, Nov. 23, 1987, 101 Stat. 922

§ 221 - Accounts and records of business; punishment for failure to keep

§ 222 - Federal Trade Commission powers adopted for enforcement of chapter

§ 223 - Responsibility of principal for act or omission of agent

§ 224 - Attorney General to institute court proceedings for enforcement

§ 225 - Laws unaffected

§ 226 - Powers of Interstate Commerce Commission unaffected

§ 227 - Powers of Federal Trade Commission and Secretary of Agriculture

§ 228 - Authority of Secretary

§ 228a - Authority of Secretary to request temporary injunction or restraining order

§ 228b - Prompt payment for purchase of livestock

7 U.S. Code § 228b–1 - Final date for making payment to cash seller or poultry grower

7 U.S. Code § 228b–2 - Violations by live poultry dealers

7 U.S. Code § 228b–3 - Judicial review of order regarding live poultry dealer

7 U.S. Code § 228b–4 - Violation of final order by live poultry dealer; penalty

§ 228c - Federal preemption of State and local requirements

§ 228d - Annual assessment of cattle and hog industries

§ 229 - Repealed. Pub. L. 110–234, title XI, 11004(b), May 22, 2008, 122 Stat. 1356, and Pub. L. 110–246, § 4(a), title XI, § 11004(b), June 18, 2008, 122 Stat. 1664, 2118

§ 229c - Separability

Title 9 published on 19-May-2018 03:53

The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 9 CFR Part 201 after this date.

  • 2017-10-18; vol. 82 # 200 - Wednesday, October 18, 2017
    1. 82 FR 48594 - Scope of Sections 202(a) and (b) of the Packers and Stockyards Act
      GPO FDSys XML | Text
      DEPARTMENT OF AGRICULTURE, Grain Inspection, Packers and Stockyards Administration
      Final rule; withdrawal.
      The interim final rule published on December 20, 2016 (81 FR 92566), is withdrawn as of October 18, 2017.
      9 CFR Part 201