issuance of scale tickets showing actual weight and other pertinent information concerning the livestock weighed; the removal of livestock from scales afte weighing and delivery to holding pens; the holding of livestock for a reasonable time pending delivery or shipment to buyers; the delivery of livestock to buy ers; and the obtaining of receipts for livestock delivered to buyers. Consignors market agencies, dealers, packers, buyers, or other users of stockyard facilities and services requiring special facilities or services in addition to the basic facili ties and services furnished at the stockyard may be required to pay a reasonable charge for such special facilities and services in addition to basic yardage charges.

$201.18 Requirements as to filing by licensees. Each licensee furnishing services or providing facilities for which a charge is made shall plainly state in the schedule of rates and charges filed by such licensee the effective date of the schedule, the city, place, or market at which the schedule applies, the name and business address of the licensee, the nature of the services or facilities furnished, and the terms or conditions under which the services or facilities will be furnished and the rates and charges will be applied.

§ 201.19. Size, style, and number of copies. Schedules of rates and charges and amendments thereto of stockyard owners, market agencies, and licensees shall be printed or typed on paper which is approximately 8 by 11 inches in size. the lines of print or type being horizontal to the 8-inch dimension. Three copies of each such schedule or amendment, one copy of which shall be signed by the stockyard owner, market agency, or licensee filing the same, shall be filed as provided in § 201.22.

§ 201.20. Numbering, arrangement, and substance of schedules and amendments. The schedules of each stockyard owner, market agency, and licensee shall be designated by successive numbers as filed. Each such schedule shall be divided into sections to cover the various classes of service or facilities furnished by the stockvard owner, market agency, or licensee. Each amendment of such schedule shall be numbered and shall show the number of the schedule of which it is an amendment. Each such amendment shall in its body make adequate reference to the sections of the schedule which are amended, and shall set forth in full such sections as amended or supplemented. Each amendment shall indicate the numbers of the amendments to the original schedule that remain in effect. After a stockvard owner, market agency, or licensee has filed thirty (30) amendments to its schedule, any further change in the rates or charges shall be embodied in a new schedule which shall contain all rates and charges then in effect: Provided, however. That not more than ten (10) amendments relating to charges other than for feed may be filed without filing and publishing a new schedule.

§ 201.21 Rules or regulations affecting rates and charges. Each stockyard owner, market agency, and licensee shall set out in its schedule of rates and charges every rule or regulation which in any way changes or affects any rate or charge or the value of the services furnished thereunder and shall designate the rates or charges affected by each such rule or regulation.

$201.22 Time and place stockyard owners, market agencies, and licensees are to file schedules and amendments. Duplicate copies of all schedules and rules or regulations and amendments or supplements thereto required to be filed under the act by market agencies and stockyard owners shall be kept open for public inspection at their places of business. Licensees shall post duplicate copies of all schedules of rates, charges, and rentals in a conspicuous location in their places of business where they may be readily observed by any interested person. Unless the requirement as to filing and notice is specifically waived, as provided for in section 306 (c) of the act. all amendments to schedules or rules or regulations changing a rate or charge shall be filed with the Chief at Washington, D. C.. not less than ten (10) days before the effective date thereof: Provided, however, That in the case of a tariff supplement which relates only to changes in feed charges, determined on a cost plus specified margin basis as provided for in the basic tariff schedule of the stockyard involved, such tariff supplement shall be filed with sunporting data, disclosing the average cost of the feed on hand, with the District Supervisor for the district in which the stockvard filing the supplement is located, and such supplement shall become effective two (2) days there. after

8 ༡༠1 ༡༢ Joint schedules. If the same schedule is to be observed by more than one market agency or licensee, ore schedule will suffice for all market agencies or licensees at any one stockyard, city, place, or market observing it whose names and business addresses are shown on it, together with the name of the organiza

tion, if any, by which adopted: Provided, That at least one copy of such schedule or amendment thereto is signed in ink by each of the market agencies or licensees observing the same and is filed with the Chief at Washington, D. C., and each market agency and licensee complies with the posting requirements of § 201.22. $201.24 Prescribed rates, charges, practices, and regulations. After the effective date of any general order issued by the Secretary prescribing rates, charges, practices, or regulations governing the rendition of stockyard services or the selling or buying of livestock on a commission basis at a stockyard, or governing the rendition of any service or the use of any facilities in a city, place, or market, designated by the Secretary under title V of the act, every market agency operating at such stockyard and every licenesee operating in such city, place, or market shall conform to such order.

$201.25 Proposed incrcases in existing charges must be supported by specific data. Each stockyard owner, market agency, and licensee proposing an increase in existing charges, either by supplement or amendment to a filed tariff or by submission of a new tariff, shall forward with the supplement, amendment, or tariff proposing the increase information as to reasons for the proposed increase and shall furnish specific and detailed data on which the proposed increase is based together with such additional information as the Director may require.

$201.26 Form. The schedules of each stockyard owner, market agency, and licensee shall be substantially in the form set out below:

(Not less than ten days after receipt in Washington Office) (Insert here, dividing into sections, the various classes of service performed by the stockyard owner or operator, market agency or licensee, the kind of livestock or poultry concerning which services are performed, the nature of the services, and the terms or conditions under which the services are rendere:l.)

(Signed by)

(Operator's Name)

(Owner, Partner, or Official Designation)

GENERAL BONDING PROVISIONS

$201.27 Underwriter; substantial equivalents in lieu of bonds. The surety on bonds maintained under §§ 201.29 to 201.38 shall be a surety company approved by the United States Treasury Department for bonds executed to the United States. Except as otherwise provided in § 201.29, any other form of indemnity which is found by the Chief to afford protection substantially equivalent to that of a surety bond may be accepted in lieu of a bond. The requirements of §§ 201.28 to 201.38 shall be applicable to equivalents furnished in lieu of bonds.

$201.28 Duplicates of bonds or equivalents to be filed with the Chief, Washington, D. C. Fully executed duplicates of bonds or equivalents maintained under 201.29 to 201.38 shall be filed with the Chief at Washington, D. C.

MARKET AGENCY AND DEALER BONDS

$201.29 Market agencies and dealers to file on or before commencing operans. Every market agency and dealer, except packer buyers registered as dealers to purchase livestock for slaughter only, shall, on or before the date of commencement of operations, execute and thereafter maintain, or cause to be executed and thereafter maintained, a reasonable bond, to a suitable trustee, to secure the performance of obligations incurred as such market agency or deale

at posted stockyards: Provided, That on and after September 1, 1954, the on bond equivalent that may be filed by an applicant for registration to operate as market agency selling livestock on an agency basis shall be one representing pledge of fully negotiable bonds of the United States Government: And provide further, That with the exception of those bond equivalents which were effect on September 1, 1957, the only bond equivalent that may be filed or main tained by a market agency engaged in selling livestock on an agency basi shall be one representing a pledge of fully negotiable bonds of the Unite States Government. The bond of every registrant, acting in the capacity clearing agency, and thereby being responsible for the financial obligations other registrants, shall show the name of the person for whom the clearing agenc holds itself out to be responsible and whose obligations are covered by the bond Any person registered as both a market agency selling livestock on an agenc basis and as a dealer shall file separate bonds to cover his market agency an dealer operations. The amount of each such bond will be computed on the basi of the volume of business handled by the registrant in each separate capacity.

§ 201.30 Amount of market agency and dealer bonds. Except as hereinafte otherwise provided, the amount of each market agency and dealer bond shall be not less than the nearest multiple of one thousand dollars ($1,000) above the average amount of sales or purchases, or both, of livestock by such market agency or dealer at posted stockyards or, in the absence of segregated records, all sales and purchases, during a period equivalent to two business days, based on the total number of the business days, and the total amount of such sales or purchases, or both, in the preceding 12 months, or in such part thereof in which such market agency or dealer did business, if any. For the purpose of this computation, 260 shall be deemed the number of business days in any year. When the principal part of the livestock handled by a market agency or dealer is sold or purchased at public auction, the amount of the bond shall be not less than the nearest multiple of one thousand dollars ($1,000) above an amount determined by dividing the total value of the livestock sold or purchased, or both, at posted stockyards, or, in the absence of segregated records, all sales and purchases during the preceding 12 months, or such part thereof as the market agency or dealer was engaged in business, by the actual number of auction sales at which livestock was sold or purchased by the market agency or dealer, but in no instance shall the divisor be greater than 130. In no case shall the amount of bond be less than five thousand dollars ($5,000). When the sales or purchases, or both, calculated as hereinbefore specified, exceed fifty thousand dollars ($50,000) the amount of the bond need not exceed fifty thousand dollars ($50,000) plus ten (10) percent of the excess. Whenever the Chief finds any bond required by §§ 201.29 to 201.34 to be inadequate, such bond upon notice, shall be adjusted to meet the requirements of this section. If a person applying for registration as a market agency or dealer has been engaged in the business of handling livestock in such capacity prior to the date of the application, the value of the livestock so handled, if representative of his future operations, shall be used in computing the amount of bond in accordance with the provisions of this section.

$201.31 Conditions in market agency and dealer bonds. Each market agency and dealer bond shall contain conditions applicable to the activity or activities in which the person or persons named as principal in the bond propose to engage, which conditions shall be as follows or in terms to provide equivalent protection. (a) When the principal sells on commission:

If the said principal shall safely keep and faithfully and promptly account for and pay to the owners or their duly authorized agents the proceeds of sales of all livestock received for sale on a commission basis by the said principal at a public stockyard as defined in the Packers and Stockyards Act.

(b) When the principal buys on commission :

If the said principal shall faithfully and promptly execute all orders for purchases of livestock undertaken by said principal on a commission basis, on behalf of buyers, at a public stockyard as defined in the Packers and Stockyards Act, and shall safely keep and properly disburse all funds coming into the hands of said principal for the purpose of making such livestock purchases, paying for all livestock so purchased.

(c) When the principal operates as a dealer (trader):

If the said principal shall pay, when due, to the person or persons entitled thereto the purchase price for all livestock purchased by said principal at a public stockyard as defined in the Packers and Stockyards Act.

(d) When the principal "clears" and thus is responsible for the obligations of other registrants:

If the said principal, acting in the capacity of broker or clearing agency, and thereby being responsible for the financial obligations of other registrants at a public stockyard as defined in the Packers and Stockyards Act, viz: (insert here the names of such registrants) shall (1) pay,

when due, to the person or persons entitled thereto the purchase price for all livestock purchased by such other registrants; (2) safely keep and properly disburse all funds coming into the hands of said principal for the purpose of making such purchases; and (3) safely keep and faithfully and promptly account for and pay to the owners or their duly authorized agents the proceeds of sales of all livestock received for sale on a commission basis by such other registrants for whom said principal acts as broker or clearing agency.

$201.32 Trustee in market agency and dealer bonds. Bonds shall be in favor of a financially responsible, disinterested trustee, satisfactory to the Chief. Secretaries or other officers of livestock exchanges or of similar trade associations, and banks and trust companies, or their officers, are deemed suitable trustees.

§201.33 Persons damaged may maintain suit to recover on market agency and dealer bonds. Each bond shall contain a provision that any person damaged by failure of the principal to comply with the condition clauses of the bond may maintain suit to recover on the bond even though such person is not a party named in the bond.

§ 201.34 Termination of market agency and dealer bonds. Each bond shall contain a provision requiring that at least ten days' notice in writing be given to the Chief at Washington, D. C., by the party terminating such bond in order to effect its termination.

LICENSEE BONDS

$201.35 Standards for bonds submitted by applicants for licenses and licensees. Surety bonds submitted by applicants for licenses and by licensees as provided for by §§ 201.14 and 201.15 shall meet the following standards:

(a) Each licensee bond shall contain conditions applicable to the activity or activities in which the person or persons named as principal in the bond propose to engage, which conditions shall be as follows or in terms to provide equivalent protection.

(1) When the applicant or licensee sells live poultry on a commission or agency basis, the bond shall contain the following clause:

If the said principal shall safely keep and faithfully and promptly account for and pay to the owners or their duly authorized agents the proceeds of sales of all live poultry received for sale on a commission basis by the said principal in his capacity as a licensee.

(2) When the applicant or licensee operates as a dealer, the bond shall contain the following clause:

If the said principal shall pay when due, to the person or persons entitled thereto, the purchase price of all live poultry purchased by said principal in his capacity as a licensee.

(b) The amount of such bond shall be at least equal to the amount by which the applicant or licensee has failed to meet the financial requirements of these regulations.

§201.36 Trustee in licensee bonds. Bonds shall be in favor of a financially responsible, disinterested trustee, satisfactory to the Chief. Secretaries of trade associations, and banks and trust companies, or their officers, are deemed suitable trustees.

§ 201.37. Persons damaged may maintain suit to recover on licensee bonds. Each bond shall contain a provision that any person damaged by failure of the principal to comply with the condition clauses of the bond may maintain suit to recover on the bond even though such a person is not a party named in the bond.

§ 201.38 Termination of licensee bonds. Each bond shall contain a provision requiring that at least ten days' notice in writing be given to the Chief at Washington, D. C., by the party terminating such bond in order to effect its termination.

PROCEEDS OF SALE

§201.39 Payment to be made to consignor or shipper by market agencies and licensees; exceptions. (a) No market agency or licensee shall, except as provided in paragraph (b) of this section, pay the net proceeds or any part thereof, arising from the sale of livestock or live poultry consigned to it for sale.

to any person other than the consignor or shipper of such livestock or live poultry except upon an order from the Secretary or a court of competent jurisdiction, unless (1) such market agency or licensee has reason to believe that such person is the owner of the livestock or live poultry, (2) such person holds a valid, unsatisfied mortgage or lien upon the particular livestock or live poultry, or (3) such person holds a written order authorizing such payment executed by the owner at the time of or immediately following the consignment of such livestock or live poultry.

(b) The net proceeds arising from the sale of livestock, the ownership of which has been questioned by a market agency duly authorized to inspect brands, marks, and other identifying characteristics of livestock may be paid in accordance with the directions of such brand inspection agency if the laws of the State from which such livestock originated or was shipped to market make provision for payment of the proceeds in the manner directed by the brand inspection agency and if the market agency to which the livestock was consigned, and the consignor or consignors concerned, are unable to establish the ownership of the livestock within a reasonable period of time, not to exceed 60 days after sale.

§ 201.40 Market agencies or licensees not to use shippers' proceeds or funds received for purchases on commission for own purposes through “bank float" or otherwise. No market agency or licensee engaged in selling or buying livestock or live poultry on a commission or agency basis shall use shippers' proceeds or funds received for the purchase of livestock or live poultry on order for purposes of its own either through recourse to the so-called “float” in the bank account in which the proceeds or funds are deposited or in any other

manner.

§ 201.41 Market agencies and licensees to make faithful and prompt accounting to consignors or shippers or other interested persons of whom they have knowledge. No market agency or licensee shall make such use or disposition of funds in its possession or control as will endanger or impair the faithful and prompt accounting for and payment of such portion thereof as may be due the consignor or shipper of livestock or live poultry or other persons having an interest therein of which interest such market agency or licensee has knowledge. § 201.42 Custodial accounts for shippers' proceeds. If the Secretary finds that any market agency or licensee has used for purposes of its own any proceeds derived from the sale of livestock or live poultry handled on a commission or agency basis, or any funds received for the purchase of livestock or live poultry on a commission or agency basis, or any other funds which have come into its possession in its capacity of an agent, such market agency or licensee shall thereafter deposit the gross proceeds received from the sale of livestock or live poultry handled on a commission or agency basis in a separate bank account designated as "Custodial Account for Shippers' Proceeds," or by a similar identifying designation. Such account shall be drawn on only for payment of the net proceeds to the consignor or shipper, or such other person or persons whom such market agency or licensee has knowledge is entitled thereto, and to obtain therefrom the sums due the market agency or licensee as compensation for its services, as set out in its tariffs, and for such sums as are necessary to pay all legal charges against the consignment of livestock or live poultry which a market agency or licensee may, in its capacity as agent, be required to pay for and on behalf of the consignor or shipper. The market agency or licensee in each case shall keep such accounts and records as will at all times disclose the names of the consignors and the amount due and payable to each from funds in the Custodial Account for Shippers' Proceeds. For the proper maintenance of such accounts and in order to expedite examination thereof by duly authorized representatives of the Secretary, the market agency or licensee in each case shall keep the accounts in a manner which will clearly reflect the handling of the funds in compliance with the requirements of this section.

ACCOUNTS AND RECORDS

§ 201.43 Market agencies and licensees to make prompt accounting and transmittal of net proceeds. Each market agency shall, before the close of the next business day following the sale of any livestock consigned to it for sale, transmit or deliver to the consignor or shipper of the livestock, or his duly authorized agent, in the absence of any knowledge that any other person, or persons, has any interest in the livestock, the net proceeds received from the sale and a true written account of such sale, showing the number, weight, and price of each kind