PSD-2600 Letter of Credit

OMB Control No. 0581-0308

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

LETTER OF CREDIT,
IRREVOCABLE, TRANSFERABLE, AND STANDBY
ACCOMPANIED BY TRUST AGREEMENT (FORM PSD 2300)

1a. Issuing Bank or Financial Institution,
Branch, Division, Department, Physical
Address, City, State, Zip+4, Phone and
FDIC/NCUA ID Number

2. Letter of Credit Number (LOC)

1b. Issuing Bank or Financial Institution Mailing
Address (if different from physical address), City,
State, Zip+4 and Phone

3. Amount

4. Date

$

5. To ____________________________________________________________________________, as
Trustee or a successor trustee to a Trust Agreement (TA) that became effective on 6. ______________,
Original TA Date
to which 7.___________________________________________________________________,
Principal Name, City, and State
is a party:

This credit is transferable, one or more times, but only to a successor trustee designated by the Packers and
Stockyards Division under the same Trust Agreement. Any such transfer shall govern all rights of the
Trustee, including the entire amount that remains available under this credit at the time of such transfer.
Sight draft or drafts must be drawn on us. Your draft or drafts drawn at sight must bear the following clause:

Drawn under __________________________________________________________ standby letter of
8. Bank/Financial Institution Name
Credit number _____________________dated _________________ up to the aggregate amount of
9. Number of LOC
10. LOC Date
$______________________________.
11. Amount

Form PSD 2600

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The following signed statement must be made by the drawer and must accompany any such draft:
Drawer will handle the funds received under the accompanying draft in accord with the Trust Agreement
which became effective on ___________________________________
12. Original TA Date
to which _______________________________________________________________ is a party.
13. Principal Name, City and State

We (the bank) will not be responsible for the disposition of any funds received by drawers. Except as
otherwise provided herein, any such draft does not need to be presented with any other document.
If any such draft is drawn by a successor trustee under the same Trust Agreement, it must be accompanied
by a copy of the letter issued by the Packers and Stockyards Division designating such drawer as the
successor trustee. We will not be responsible for verifying the authenticity of any such document that
appears to be authentic on its face.
This Letter of Credit may not be modified without the written approval of the Deputy Administrator,
Agricultural Marketing Service, Fair Trade Practices Program, Packers and Stockyards Division.
14.
Any such draft must be received by us on or before 14a. ____________________________________.
We hereby agree with drawers, endorsers, and bona fide holders of all drafts drawn hereunder and in
compliance herewith that such drafts will be duly honored on sight upon presentation to us.
If desired: The amount of any draft drawn hereunder must be endorsed on the reverse side of this letter
of credit by the negotiating bank, and any such draft must be accompanied by a signed statement that
an appropriate notation has been made, or by this letter of credit. 14b.
Yes
No

OR (choose section 14 or 15, one or the other, but not both)
15.
Any such draft must be received by us on or before 15a. ___________________________________.
We hereby agree with drawers of all drafts drawn hereunder and in compliance herewith that such
drafts will be duly honored on sight upon presentation to us.
If desired: This letter must be presented with any such draft for endorsement of the amount of such draft
on the reverse side of this letter. 15b.
Yes
No

Form PSD 2600

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Except as provided above, this credit is subject to the Uniform Customs and Practice for Documentary
Credits (July 2007 revision), International Chamber of Commerce Publication No. 600.

16a. Authorized Name (Print):

16b. Authorized Signature:

16c. Title:

16d. Phone:

16e. Email Address:

.

This form is authorized by 7 U.S.C. 204 and 9 CFR 201.27. If a Letter of Credit is used is lieu of the bonding requirement, the completed and
executed form must be submitted to the Packers and Stockyards Division.
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 collection is estimated to average .90 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 2600

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INSTRUCTIONS TO COMPLETE LETTER OF CREDIT,
IRREVOCABLE, TRANSFERABLE, AND STANDBY (FORM PSD 2600)
ACCOMPANIED BY TRUST AGREEMENT (FORM PSD 2300)
When you, as a packer, market agency, or dealer, provide a trust agreement to meet the bonding
requirements of the Packers and Stockyards Act, 1921, as amended and supplemented, one or
more irrevocable, transferable, standby letters of credit, issued by a Federally-insured bank or
institution, must also be executed to cover your operation with the Packers and Stockyards
Division (PSD).
A letter of credit issued toward a trust agreement requires complete and correct information to be
submitted to the PSD on Form PSD 2600. If any information is missing or incorrect, the PSD
will return the letter of credit form to the issuing bank or 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 $28,061.00 for each violation.
Submission instructions for the bank: After completing the letter of credit, an electronically
reproduced copy of the letter of credit, a fully executed copy of such trust agreement, rider(s),
amendment(s), or other attachment(s) to such trust agreement, must be filed with the appropriate
regional office. 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 Dr., SW, Suite 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: (404) 562-5840
Telephone: (303) 375-4240 Telephone: (515) 323-2579
FAX: (404) 562-5848
FAX: (303) 371-4609
FAX: (515) 323-2590
E-mail:
E-mail:
E-mail:
[email protected]
[email protected]
[email protected]
States Covered
States Covered
States Covered
AL, AR, CT, DC, DE, FL, GA,
AB, AK, AZ, BC, CA, CO,
IA, IL, IN, KY, MB, MI, MO,
LA, MA, MD, ME, MS, NC,
HI, ID, KS, MT, NM, NV,
MN, ND, NE, OH, ON, SD, WI
NH, NJ, NL, NY, PA, PR, QC,
OK, OR, SK, TX, UT, WA,
RI, SC, TN, VA, VT, WV
WY
If you have any questions about the form or completing the form, please contact the regional
office of the PSD listed above.
The financial institution providing the Standby Letter of Credit, Irrevocable, Transferable, and
Standby, completes the form and signs line 16a.

Form PSD 2600

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Line
No.
1a.

Subject

Instruction
Enter the name, branch division, department, and
physical address and phone of the issuing Federallyinsured bank or financial institution. Enter the
FDIC/NCUA Identification number of the issuing bank
or financial institution.

2

Issuing Bank or
Financial Institution
Physical Address,
Phone, and
FDIC/NCUA
Identification Number
Issuing Bank or
Financial Institution
Mailing Address, Phone
Letter of Credit Number

3

Amount

4
5

Date
Trustee’s Name

6

Effective date of Trust
Agreement

7

Principal Name, City
and State

8

Name Of Bank or
Financial Institution
Letter of Credit Number

1b.

9
10
11
12
13

Form PSD 2600

Effective Date of Letter
of Credit
Amount
Effective Date of Trust
Agreement
Principal Name, City
and State

Enter the name, branch division, department, and mailing
address and phone of the issuing Federally-insured bank
or financial institution.
Enter the number assigned to the letter of credit,
irrevocable, transferable, and standby, hereinafter known
as “letter of credit”, by the issuing bank or financial
institution.
Enter the full amount for which the letter of credit has
been executed.
Enter the date the letter of credit was issued.
Enter the name of the trustee named to the trust
agreement. You may reference line 5 of Trust
Agreement Form PSD 2300 for the name of the
Trustee.
This line must be completed with the original effective
date of the trust agreement. You may reference line 6
of Trust Agreement Form PSD 2300 for the effective
date of the corresponding trust agreement.
Enter the full name of the principal, city & state. The
principal’s name must match the name under which the
principal is registered with the PSD.
Enter the name of the bank or financial institution. This
is the same as listed in line 1.
Enter the identifying number issued by the bank or
financial institution for the letter of credit. This is the
same as listed in line 2.
Enter the effective date of the letter of credit. This is the
same as listed in line 4.
Enter the full amount of the letter of credit. This is the
same as listed in line 3.
Enter the effective date of the trust agreement. This is
the same as listed in line 6.
Enter the full name of the principal. This is the same as
listed in line 7.

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Line
No.
14
a and b

Subject

Instruction

Expiration Date

First choose either section 14 or 15 and enter the
expiration date of the letter of credit in 14a. or 15a.
Choose one section or the other, but not both. We
prefer the letter(s) of credit are valid for at least one year,
but it is not required.

or
15
a and b

Further decide, by checking Yes or No at 14b. or 15b.
whether you want the additional wording to apply.
Be reminded the funds available under this letter of
credit may not be withdrawn and released except to
the Trustee, or by written approval of the Deputy
Administrator of the Agricultural Marketing Service,
Fair Trade Practices Program, Packers and
Stockyards Division.

16
a
through
e

Form PSD 2600

Authorized signature

An authorized officer of the bank or financial institution
must sign the letter of credit. Also, enter the name, title,
and phone of the person signing the Letter of Credit.
Include official’s email address.

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