P&SP 2200 Trust Fund Agreement in Lieu of Bond

Instructions to Complete
Trust Fund Agreement
Form P&SP-2200

A Trust Fund Agreement may be used in lieu of a surety bond to meet the bonding requirements of the Packers and Stockyards
Act, 1921, as amended and supplemented. If the principal chooses to pledge one or more savings accounts or one or more
certificates of deposit to fulfill the requirement to obtain and file a bond under the Packers and Stockyards Act, the account(s) or
certificate(s) of deposit MUST be pledged in the name of the principal and the trustee for the sole purpose of securing the
principal’s livestock operations.
A trust fund agreement requires complete and correct information to be submitted to the Packers and Stockyards Program on Form
P&SP-2200. If any information is missing or incorrect, the Packers and Stockyards Program will return the trust fund agreement
form to the principal or financial institution for completion or correction.
Operating without proper registration and bond may subject the principal to severe penalties under law, including a fine of not
more than $11,000 for each violation.
After completing the trust fund agreement form, the trustee must retain the original and must send a fully executed copy with
original signatures to the appropriate regional office of the Packers and Stockyards Program as listed below. The states covered by
each regional office are listed below its address.
Regional Offices of the Packers and Stockyards Program
Grain Inspection, Packers and Stockyards Administration
Eastern Regional Office
Western Regional Office
Midwestern Regional Office
Suite 230
3950 Lewiston St., Suite 200
Room 317
75 Spring Street
Aurora, CO 80011-1556
210 Walnut Street
Atlanta, GA 30303-3308
Telephone: (303) 375-4240
Des Moines, IA 50309-2110
Telephone: (404) 562-5840
FAX: (303) 371-4609
Telephone: (515) 323-2579
FAX: (404) 562-5848
E-mail:
FAX: (515) 323-2590
[email protected]
E-mail: [email protected]
E-mail: [email protected]
States Covered
States Covered
States Covered
AL, AR, CT, DC, DE, FL, GA, LA, AK, AZ, CA, CO, HI, ID, KS, MT, IA, IL, IN, KY, OH, MI, MO, MN,
MA, MD, ME, MS, NC, NH, NJ,
NM, NV, OK, OR, TX, UT, WA,
ND, NE, SD, WI
NY, PA, RI, SC, TN, VA, VT, WV
WY
If you have any questions about the form or completing the form, please contact the appropriate regional office of the Packers and
Stockyards Program listed above.
The Regional Office of the Packers and Stockyards Program will assign the trust fund agreement number.
The bank issuing the security pledged as collateral to this trust fund agreement should complete lines 1 through 7, sign line 8a, and
complete 9 through 11, if applicable. This is not a requirement and in some instances, the Principal will complete these lines.
The Principal must sign line 8b.
The trustee, if different than the issuing bank, must sign line 8.
Line
No.
1

Subject
Principal Name, Address,
and Phone No.

Instruction
List the full name, address, and telephone number of the principal. The principal’s
name must match the name under which the principal is registered with the Packers
and Stockyards Program.
For example, John Doe might be registered as John Doe OR John Doe Livestock, Inc.
OR John Doe d.b.a John Doe Livestock, Inc. OR John Doe and Sam Doe d.b.a Doe
Livestock L.L.C., or John Doe and Sam Doe.

P&SP-2200-i

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Line
No.
2

Subject
Trustee Name, Address, and
Phone No.

Instruction
List the full name, address, and telephone number of the trustee. A trustee MUST
ALWAYS be named for the trust fund agreement, and must be a financially
responsible, disinterested person. If the bank issuing the collateral will not act as the
trustee, the principal is responsible for finding a disinterested third party to act as
trustee. The trustee cannot be anyone that is directly involved with the business of the
principal.
Some States require that a State agency or official be named as trustee.

3
a and b

4

Amount of Trust Fund
Agreement

Condition Clauses

See separate Trustee and Contact Information package for descriptions of suitable
trustees and State trustee contact information (available on the GIPSA web site along
with the forms and instructions).
Spell out the full dollar amount of the trust fund agreement. For example, if the full
dollar amount of the trust fund agreement is $10,000, list the amount as follows:
Ten Thousand Dollars and No/100
$10,000.00
Line 4 defines the conditions that are applicable for livestock operations. If condition
3 applies, enter the registrant(s) name(s) to be listed as clearee(s) under this bond in
the space available in the definition for condition 3.
Examples of each of the conditions are:

4a

Conditions NOT Applicable
to Principal’s Operation

Condition 1. The principal sells livestock for the account of others.
Condition 2. The principal buys livestock for his/her own account or for the accounts
of others.
Condition 3. The principal is providing bond coverage for other registrant(s), as
clearee(s), and therefore responsible for the obligations of the clearee(s). The
registrant(s) name(s) to be listed as clearees under this bond should be inserted into the
space available in condition 3.
Condition 4. The principal is purchasing livestock for purposes of slaughter for
his/her own account as a packer.
Enter the condition clauses that are NOT applicable to the principal’s livestock
operations. Based on the principal’s operation, enter one of the following
combinations of conditions to exclude from the bond:


5
6
7

Interest or Dividends to be
Paid to
Name of Trustee
Effective Date

P&SP-2200-i

Enter 2, 3 and 4 if the principal will be operating as a market agency selling
on commission.
 Enter 1, 3 and 4 if the principal will be operating as a dealer buying and
selling for his or her own account or as a market agency buying on
commission.
 Enter 1 and 4 if the principal will be operating as a dealer and/or market
agency buying on commission and a clearing agency responsible for the
financial obligations of other registrants.
 Enter 1, 2 and 4 if the principal is operating solely as a clearing agency
responsible for the financial obligations of other registrants.
 Enter 1, 2 and 3 if the principal is operating as a packer.
Enter the name of the individual or entity to receive interest or dividends earned. The
principal may name anyone; however, this line MUST be completed.
Enter the full name, city and state of the trustee, as shown in line 2.
Enter the effective date of the Trust Fund Agreement.

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Line
No.
8

Subject
Signatures

Instruction
a. Trustee’s Signature: The trustee or someone authorized to sign for the trustee must
sign, where indicated.
b. Principal’s Signature: The principal, or someone authorized to sign for the
principal (i.e. partner, owner, or officer), must sign the agreement.




If an individual operation, the principal must sign the agreement.
If a partnership operation, one of the partners must sign the agreement.
If a corporation, limited liability corporation, limited liability partnership, or
association, an owner, officer or duly authorized agent of the firm must sign
the agreement.

If the trustee named on the front of the trust fund agreement is a state official, the bottom portion of the trust fund agreement
must also be completed.
9
10
11
12

Name of Bank or Other
Depository
Account or Security /
Securities Identification
Depository by (Name and
Title)
Signature

P&SP-2200-i

List the name and address of the bank or other institution where the principal has
deposited the funds pledged to the trust fund agreement.
List the account number(s) or the number(s) of the certificate(s) of deposit.
Name and title of the authorized officer of the bank or other institution, signing the
form as depository.
An officer of the bank or other institution where the principal has deposited the funds
pledged to the trust fund agreement must sign the form.

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OMB No. 0580-0015 Expires xx/xx/20xx
TFA NO.:____________________

TRUST FUND AGREEMENT IN LIEU OF BOND

U.S. DEPARTMENT OF AGRICULTURE
GRAIN INSPECTION, PACKERS AND
STOCKYARDS ADMINISTRATION
PACKERS AND STOCKYARDS PROGRAM

Required of Livestock, Market Agencies, Dealers and Packers
Under The Packers and Stockyards Act, 1921, as Amended and
Supplemented
1 PRINCIPAL NAME AND ADDRESS

2 TRUSTEE NAME AND ADDRESS

3a AMOUNT OF BOND (SPELL OUT DOLLAR AMOUNT)

3b DOLLAR AMOUNT
$

4 The provisions of the Packers and Stockyards Act, 1921, as amended and supplemented, and the
regulations of the Secretary of Agriculture issued thereunder, require a good and sufficient surety bond or
its equivalent of all market agencies, dealers, and packers as defined in the Packers and Stockyards Act,
1921, as amended and supplemented to cover their obligations as such; and whereas, the principal is
engaged in business as a market agency, dealer or packer as defined in the Packers and Stockyards Act,
1921, as amended and supplemented. Therefore, the amount set out above is hereby deposited by principal
with trustee, for the following purposes and subject to the following conditions:
Applicable if Principal SELLS
on commission
Applicable if Principal BUYS
on commission or as a dealer

Applicable if other registrants
CLEAR through Principal

Applicable if Principal BUYS
as a Packer

(1) If Principal shall pay when due to the person or persons entitled thereto
the gross amount, less lawful charges, for which all livestock is sold for the
accounts of others by Principal,
(2) If Principal shall pay when due to the person or persons entitled thereto
the purchase price of all livestock purchased by said Principal for his/her
own account or for the accounts of others, and if Principal shall safely keep
and properly disburse all funds, if any, which come into his/her hands for
the purpose of paying for livestock purchased for the accounts of others,
(3) If Principal, acting as a clearing agency responsible for the financial
obligations of other registrants engaged in buying livestock, hereinafter
referred to as “clearees,” including:

or if Principal’s clearees shall (1) pay when due to the person or persons
entitled thereto the purchase price of all livestock purchased by Principal’s
clearees for their own accounts or for the accounts of others and (2) safely
keep and properly disburse all funds coming into the hands of Principal or
Principal’s clearees for the purpose of paying for livestock purchased for the
accounts of others,
(4) If Principal shall pay when due to the person or persons entitled thereto
the purchase price of all livestock purchased for purposes of slaughter by
Principal for his/her own account,

then this fund shall not be liable, but if there shall be any defaults, failures, or neglects under any one or
more of the listed conditions, then this fund shall be liable, subject to the following terms, conditions, and
limitations:
(a) Conditions __________, __________, and __________ were deleted prior to execution and
are not part hereof.
Form P&SP-2200

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(b) This trust fund agreement shall apply only to transactions occurring on or at any time after the
effective date, and before the effective date of termination of this agreement as hereinafter
provided.
(c) Payment by Trustee to a claimant in settlement of one or more claims shall discharge the
Trustee as to those claims and shall reduce the amount of this fund to the extent of such
payment or payments.
(d) Any person damaged by failure of Principal to comply with any condition clause of this
agreement, may maintain suit in his/her own name to recover on this agreement even though
such person is not a party named in this agreement. Principal and Trustee hereby waive every
defense, if any, based on the fact that any person damaged or in whose name a suit shall be
brought is not a party or privy to this agreement.
(e) Any claim for recovery on this agreement must be filed in writing with either Trustee or the
Deputy Administrator, Packers and Stockyards Program, Grain Inspection, Packers and
Stockyards Administration, United States Department of Agriculture and whichever of these
parties receives such a claim shall notify the other party at the earliest practicable date. All
claims must be filed within 60 days of the date of the transaction on which claim is based.
Suit thereon shall not be commenced in less than 120 days or more than 547 days from the
date of the transaction on which the claim is based.
(f) The Deputy Administrator is authorized to designate a person to act as Trustee under this
agreement if the Trustee designated herein fails or is unable to act or serve. In the event of
such designation, all assets of the trust fund to which this agreement refers shall be paid over
to the person so designated to act as Trustee.
(g) The Trustee shall not be liable to pay any claim for recovery on this agreement if it is not filed
in writing within 60 days from the date of the transaction on which the claim is based, or if
suit thereon is commenced less than 120 or more than 547 days from the date of the
transaction on which the claim is based.
(h) The trust fund shall not be used to pay fees, salaries, or expenses for legal representation of
the Principal.
(i) The term “person” as used in this agreement shall be construed to mean and include both
singular and plural, corporations, partnerships, associations, individuals, and the heirs,
executors, administrators, successors, or assigned thereof.
(j) The acts, omissions, or failures of authorized agents or representatives of Principal or persons
whom Principal shall knowingly permit to represent themselves as acting for Principal shall
be taken and construed to be the acts, omissions, or failures of Principal and to be within the
protection of this agreement to the same extent and in the same manner as if they were the
personal acts of Principal.
(k) Termination of the clearance of a registrant under condition clause three (3) of this trust fund
agreement may be accomplished by issuance of a rider deleting the name of the clearee.
Termination of the clearance shall become effective 30 days after the date of receipt of the
rider by the Deputy Administrator.
(l) This agreement may be terminated by either party hereto delivering written notice of
termination to the other party and the Deputy Administrator at least 30 days prior to the
effective date of termination. In the event that the Principal named herein files an
acceptable bond written by an approved Surety to replace this agreement, the 30 day
termination provision will be waived, and this agreement will become terminated as of
the effective date of the bond. In no case shall the funds deposited with the Trustee herein
be returned to the Principal until a Trust Fund Agreement Special Report, Form P&SP-5, has
been submitted by the Principal to the Deputy Administrator certifying that all obligations
arising under the conditions of this agreement prior to the effective date of its termination
have been discharged and authorization for the release of the funds has been received from
Deputy Administrator. Immediately upon filing of a claim for recovery on this agreement,
unless Trustee believes that claim is frivolous, Trustee shall cause termination of this
agreement in accordance with this paragraph.
(m) Interest or dividends accruing to the securities pledged to this trust agreement are to be
delivered by Trustee to:
______________________________________________________________________________________
5 NAME(S) OF PERSON(S) TO WHOM INTEREST OR DIVIDENDS ARE TO BE PAID
______________________________________________________________________________________
6 NAME OF TRUSTEE
______________________________________________________________________________________
Form P&SP-2200

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hereby accepts the trust under the above agreement.
Any notice or document required to be given to or filed with the Deputy Administrator under
this agreement may be given to the Regional Director of the Regional Office, Packers and
Stockyards Program, in the region where the Principal resides or maintains their principal
place of business. Any approval, authorization, designation, or other action taken by the
Deputy Administrator under this agreement may be taken or performed by the Regional
Director or the Deputy Administrator.
(n) A fully executed duplicate of this agreement, and of any endorsement, amendment, rider, or
other attachment will be filed with the Regional Director, Packers and Stockyards Program,
for the region in which the Principal resides or has his/her principal place of business.
(o) The securities pledged by Principal under this agreement may be disbursed to known valid
claimants by Trustee after he/she has been presented with a sworn proof of claim form and
other papers to support such claims. In the event that claims filed against this agreement
exceed the sum of the securities pledged to the agreement, the securities shall be prorated to
the valid claimants known by Trustee. Trustee shall determine the total amount of valid
claims prior to disbursing any portion of the securities pledged under this trust fund
agreement.
7 DATE EFFECTIVE: _________________________
8a SIGNATURE OF TRUSTEE

8b SIGNATURE OF PRINCIPAL

COMPLETE THIS BLOCK ONLY IF TRUSTEE IS A STATE OFFICIAL AND TRUST FUNDS
OR SECURITIES ARE PLACED IN AN ACCOUNT OR DEPOSITORY IN TRUSTEE’S NAME
______________________________________________________________________________________
9 NAME OF BANK OR OTHER DEPOSITORY
______________________________________________________________________________________
10 ACCOUNT OR SECURITY(IES) IDENTIFICATION AND NUMBER
______________________________________________________________________________________
Depository acknowledges having received notice that the account and/or security(ies) identified above are
trust funds subject to a trust fund agreement, to be paid out only as directed in writing by Trustee, or by
successor Trustee appointed by the Deputy Administrator, Packers and Stockyards Program, Grain
Inspection, Packers and Stockyards Administration, United States Department of Agriculture and properly
identified as such, or by a court of competent jurisdiction. Depository will not be responsible for any such
person's disposition of such funds.
11 DEPOSITORY BY (TITLE)
__________________________________________________
12 (Authorized signature)
According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond to,
a collection of information unless it displays a valid OMB control number. The valid OMB control number for this information collection
is 0580-0015. The time required to complete this information collection is estimated to average 2 hours 41 minutes per response,
including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing
and reviewing the collection of information.
The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin,
age, disability, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political
beliefs, reprisal, or because all or part of an individual’s income is derived from any public assistance program. (Not all prohibited bases apply
to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print,
audiotape, etc.) should contact USDA’s TARGET Center at (202) 720-2600 (voice and TDD). To file a complaint of discrimination, write to
USDA, Director, Office of Civil Rights, 1400 Independence Avenue, S.W., Washington, D.C. 20250-9410, or call (800) 795-3272 (voice) or
(202) 720-6382 (TDD). USDA is an equal opportunity provider and employer.

Form P&SP-2200

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