PSD- 2200 Trust Fund Agreement

OMB Control No. 0581-0308

TFA Number:_____________________

TRUST FUND AGREEMENT

U.S. Department Of Agriculture
Agricultural Marketing Service
Fair Trade Practices Program
Packers and Stockyards Division
1.

REQUIRED OF LIVESTOCK MARKET AGENCIES, DEALERS AND PACKERS
Subject to the Packers and Stockyards Act, 1921, as Amended and Supplemented

Principal Name, Address, Phone and Email

2. Trustee Name, Address, Phone and Email

3. Depository Name, Address, Phone and Email

NOTE: A COPY OF THE SECURITY(IES) MUST BE ATTACHED WITH THIS DOCUMENT
4. a. Security(ies) Identification and Number:
4b. FDIC/NCUA ID Number
__________________________________
_________________________________________
5. Name(s) of Person(s) to Whom Interest or Dividends are to be Paid:

6a. Amount of Trust Fund Agreement (Spell Out Dollar Amount)

6b. Dollar Amount

7. 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 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 collateral
set out above is hereby deposited by principal with trustee or depository, for the following purposes and subject to the following conditions:
Check the box showing the condition clause that applies to your trust fund agreement. Each type of operation requires a separate financial
instrument.
Applicable if Principal SELLS
(1) If Principal shall pay when due to the person or persons entitled thereto the gross amount, less lawful
on commission
charges, for which all livestock is sold for the accounts of others by Principal, 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
Condition Clause 1
conditions, then the funds drawn by the Trustee shall be liable, subject to the terms, conditions, and
limitations as listed in (a) through (m):
Applicable if Principal BUYS on
(2) If Principal shall pay when due to the person or persons entitled thereto the purchase price of all
commission or as a dealer
livestock purchased by the Principal for his/her own account or for the accounts of others, and if the
Principal safely keeps and properly disburses all funds, if any, which come into his/her hands for the
Condition Clause 2
purpose of paying for livestock purchased for the accounts of others, 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 the
funds drawn by the Trustee shall be liable, subject to the terms, conditions, and limitations as listed in
(a) through (m):
Applicable if other registrants
(3) If Principal, acting as a clearing agency responsible for the financial obligations of other registrants
CLEAR through Principal
engaged in buying livestock, hereinafter referred to as “clearees,” List the clearees:
Condition Clause 3

Applicable if Principal BUYS as a
Packer
Condition Clause 4

Form PSD 2200

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, 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 the funds drawn by the Trustee shall be liable, subject to the terms, conditions, and
limitations as listed in (a) through (m):
(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 the funds drawn by the Trustee shall be liable, subject to the terms, conditions, and
limitations as listed in (a) through (m):

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(a) 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 trust fund agreement as hereinafter provided.
(b) 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 trust fund agreement to the extent of such payment or payments.
(c) Any person damaged by failure of Principal to comply with any condition clause of this trust fund agreement, may maintain suit in his/her
own name to recover on this trust fund 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.
(d) Any claim for recovery on this trust fund agreement must be filed in writing with either Trustee or the Deputy Administrator, Agricultural
Marketing Service, Fair Trade Practices Program, Packers and Stockyards Division, U.S. Department of Agriculture (hereinafter known as
“Deputy Administrator”), 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.
(e) The Deputy Administrator is authorized to designate a person to act as Trustee under this trust fund 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.
(f) The Trustee shall not be liable to pay any claim for recovery on this trust fund 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.
(g) The trust fund agreement shall not be used to pay fees, salaries, or expenses for legal representation of the Principal.
(h) The term “person” as used in this trust fund 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.
(i) 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 trust fund agreement to the same extent and in the same manner as if they were the personal acts of Principal.
(j) 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.
(k) This trust fund 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 trust fund agreement, the 30 day termination provision will be waived, and this trust fund
agreement will become terminated as of the effective date of the bond or bond equivalent. In no case shall the funds deposited with the
Trustee herein be returned to the Principal until a Trust Fund Agreement Special Report, Form PSD 2500, has been submitted by the
Principal to the Deputy Administrator certifying that all obligations arising under the conditions of this trust fund 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 the claim is invalid,
Trustee shall cause termination of this trust fund agreement in accordance with this paragraph.
(l) A fully executed duplicate of this trust fund agreement, and of any endorsement, amendment, rider, or other attachment will be filed with the
Regional Director, Packers and Stockyards Division, for the region in which the Principal resides or has his/her principal place of business.
(m) The securities pledged by Principal under this trust fund 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. Trustee, prior to paying any funds to any
claimant, shall determine the total amount due to all claimants under this trust fund agreement. In the event that claims filed against
this trust fund 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.

8. Date Effective: _________________________
9a. Name of Trustee

9b. Signature of Trustee

10a. Name of Principal

10b. Signature of Principal

Depository acknowledges having received notice 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, Agricultural Marketing Service,
Fair Trade Practices Program, Packers and Stockyards Division, U.S. 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.
11a. Depository By (Name and Title)

Form PSD 2200

11b. Authorized Signature of Depository

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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 is 0581-0308. The time required to
complete this information collection is estimated to average 2.410 hours 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.
In accordance with Federal law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, this institution is prohibited from
discriminating on the basis of race, color, national origin, sex, age, disability, and reprisal or retaliation for prior civil rights activity. (Not all
prohibited bases apply to all programs.) Persons with disabilities who require alternative means of communication for program information (e.g.,
Braille, large print, audiotape, American Sign Language, etc.) should contact the responsible State or local Agency that administers the program or
USDA’s TARGET Center at (202) 720-2600 (voice and TTY) or contact USDA through the Federal Relay Service at (800) 877-8339. Additionally,
program information is also available in languages other than English.
To file a complaint alleging discrimination, complete the USDA Program Discrimination Complaint Form, AD-3027, found online at
http://www.ascr.usda.gov/complaint_filing_cust.html, or at any USDA office or write a letter addressed to USDA and provide in the letter all of the
information requested in the form. To request a copy of the complaint form, call (866) 632-9992. Submit your completed form or letter to USDA
by: (a) mail: U.S. Department of Agriculture, Office of the Assistant Secretary for Civil Rights, 1400 Independence Avenue, SW, Washington, D.C.
20250-9410; (b) fax: (202) 690-7442; or (c) email: [email protected]

Form PSD 2200

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Instructions to Complete
Trust Fund Agreement
Form PSD 2200
A Trust Fund Agreement may be used to meet the bonding requirements of the Packers and Stockyards Act,
1921 (Act) , as amended and supplemented. The principal may pledge one or more savings accounts or
certificates of deposit to fulfill the requirement to obtain and file a trust fund agreement under the Act. The
security(ies) MUST be pledged in the name of the principal and the trustee for the sole purpose of securing
the principal’s livestock operations. Example: Principal Name and Trade Name (if applicable) AND Trustee
Name.
A trust fund agreement requires complete and correct information to be submitted to the Packers and
Stockyards Division (PSD) on Form PSD 2200. If any information is missing or incorrect, the PSD 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 $28,061 for each violation.
After completing the trust fund agreement, the trustee must retain the original along with the original
security(s) and send a fully executed copy of the trust fund agreement with original signatures and security(s)
to the appropriate regional office of the PSD as listed below. If the trustee is a state official, the regional
office will obtain the signature of the trustee. The states, provinces, and territories covered by each regional
office are listed below its address.
Regional Offices of the Packers and Stockyards Division
Agricultural Marketing Service, Fair Trade Practices Program
Atlanta Regional Office
Denver Regional Office
Des Moines Regional Office
75 Ted Turner Drive SW, Ste 230 3950 Lewiston St., Suite 200
210 Walnut Street, Room 317
Atlanta, GA 30303-3308
Aurora, CO 80011-1556
Des Moines, IA 50309-2110
Telephone: (303) 375-4240
Telephone: (404) 562-5840
Telephone: (515) 323-2579
FAX: (303) 371-4609
FAX: (404) 562-5848
FAX: (515) 323-2590
E-mail:
E-mail:
E-mail:
[email protected]

States Covered
AL, AR, CT, DC, DE, FL, GA,
LA, MA, MD, ME, MS, NC,
NL, NH, NJ, NY, PA, PR, QC,
RI, SC, TN, VA, VT, WV

[email protected]

[email protected]

States Covered
States Covered
AB, AK, AZ, BC, CA, CO, HI, IA, IL, IN, KY, MB, MI, MO,
ID, KS, MT, NE, NM, NV,
MN, ND, OH, ON, SD, WI
OK, OR, SK, TX, UT, WA,
WY

If you have any questions about the form or completing the form, please contact the appropriate regional
office of the PSD listed above.
The Regional Office of the Packers and Stockyards Division will assign the trust fund agreement number.
The bank issuing the security pledged as collateral to this trust fund agreement may complete lines 1 through
7, sign line 9a, and complete 11a and 11b, if applicable. This is not a requirement, and in some instances, the
Principal will complete these lines.
The Principal must complete lines 10a and 10b.
The trustee, if different than the issuing bank, the trustee must complete lines 9a and 9b.
Form PSD 2200

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Line
No.
1

2

3
4
a and b

5

6
a and b

Subject
Principal Name,
Address, Phone
and Email
Trustee Name,
Address, Phone
and Email

Bank/Depository
Name, Address,
Phone and Email
Security/Securities
Account or
Identification
Number(s) and
FDIC/NCUA ID
Number
Interest of
Dividends to be
Paid to
Amount of Trust
Fund Agreement

Instruction
Enter the full name, address, (street, city, state, and zip+4) phone, and
email of the principal. The principal’s name must match the name under
which the principal is registered with the PSD. Contact the Regional
Office that covers your state, province, or territory as listed above, if you
need this information.
Enter the full name, address, (street, city, state, and zip+4) phone, and
email of the trustee. A trustee must always be named for the trust fund
agreement, and must be a financially responsible, disinterested person.
Trustee’s that may be named, are CPAs, bank or trust company officials,
attorneys-at-law, officers of livestock exchanges or similar organizations,
banks and trust companies, or their officers, or a State agency or official.
If the bank issuing the collateral will not act as the trustee, the principal is
responsible for finding a financially disinterested third party to act as
trustee. The trustee cannot be anyone directly involved with the business
of the principal.
Some States require a State agency or official to be named as trustee.
Please contact the Regional Office covering your state for this
information.
Enter the name, address (street, city, state, and zip +4) phone, and email
of the bank or other institution where the principal has deposited the funds
pledged to the trust fund agreement.
a. Enter the account number(s) or the certificate(s) of deposit
identification number(s).
NOTE: A copy of the security or securities must be attached with this
document.
b. Enter the FDIC/NCUA ID number of the financial institution
providing the account or certificate of deposit.
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.
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:
a. Ten Thousand Dollars and No/100

Form PSD 2200

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b.

$10,000.00

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Line
No.
7

Subject
Condition Clauses

Instruction
Line 7 defines the conditions applicable for livestock operations.
The firm shall check the appropriate box to indicate the correct condition
clause as applies to its operation.
Examples of each of the condition clauses are:
Condition Clause 1 - The principal sells livestock for the account of
others.
Condition Clause 2 - The principal buys livestock for his/her own
account or for the accounts of others.
Condition Clause 3 - The principal is providing financial instrument
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 financial instrument should be inserted into the
space available in condition clause 3.
Condition Clause 4 - The principal is purchasing livestock for purposes
of slaughter for his/her own account as a packer.

8
9
and b

10
a and b

Effective Date

Each type of operation (condition clause) requires a separate trust
fund agreement. The only instance a trust fund agreement will be
accepted with multiple condition clauses selected are when the firm
operates as both a dealer/order buyer and clearing agent, thereby
providing a Clause 2/3 trust fund agreement.
Enter the effective date of the Trust Fund Agreement.

Trustee Name and
Signature

Trustee’s Signature: The trustee or someone authorized to sign for the
trustee must print and sign, where indicated. If the trustee is a state
official, The Packers and Stockyards Division will obtain the trustee’s
signature where indicated on the form.

Principal Name
and Signature

Principal’s Signature: The principal, or someone authorized to sign for
the principal (i.e. partner, owner, or officer), must print and sign the trust
fund agreement.




Form PSD 2200

If an individual operation, the principal must print and sign
the trust fund agreement.
If a partnership operation, one of the partners must print and
sign the trust fund agreement.
If a corporation, Limited Liability Corporation, Limited
Liability Partnership, or association, an officer, member, or
duly authorized agent of the firm must print and sign the trust
fund agreement.

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Line
No.
11
a and b

Form PSD 2200

Subject
Depository by;
Print Name, Title
and then Signature

Instruction
a. Name and title of the authorized officer of the bank or other
institution, signing the form as depository.
b. Signature of the officer of the bank or other institution where the
principal has deposited the funds pledged to the trust fund
agreement.

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