PSD- 2000 Surety Bond Required Livestock Market

OMB Control No. 0581-0308

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

SURETY BOND
REQUIRED OF LIVESTOCK MARKET AGENCIES, DEALERS, AND
PACKERS

Subject to the Packers And Stockyards Act, 1921, as Amended and Supplemented

1. Bond Number __________________________
3. Surety Name, Address, Phone, and Email

2. Principal Name, Address, Phone, and Email

4. Trustee (List if required by State,) Name, Address, Phone, and Email

5b. Dollar Amount

5a. Amount of Bond (Spell out dollar amount)

$
6. Check the box showing the condition clause that applies to your bond. Each type of operation requires a separate financial instrument.
Applicable if Principal SELLS on commission
Condition Clause 1
Applicable if Principal BUYS on commission or as a
dealer
Condition Clause 2

Applicable if other registrants CLEAR through
Principal

(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, then this bond 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 bond shall be liable,
subject to the following terms, conditions, and limitations as listed in (a) through (l):
(2) If Principal shall pay when due to the person or persons entitled thereto the purchase
price of all livestock purchased by Principal for his/her own account or for the accounts
of others, and if Principal safely keeps and properly disburses all funds, if any, which
come into his/her hands for the purpose of paying for livestock purchased for the
accounts of others, then this bond 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 bond shall
be liable, subject to the following terms, conditions, and limitations as listed in (a)
through (l):
(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:

Condition Clause 3

Applicable if Principal BUYS as a Packer
Condition Clause 4

(a)
(b)
(c)

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 bond 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 bond shall be liable, subject to the following terms, conditions, and
limitations as listed in (a) through (l):
(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 bond 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 bond shall
be liable, subject to the following terms, conditions, and limitations as listed in (a)
through (l):

This bond shall apply only to transactions occurring on or at any time after the date hereof, and before the effective date of termination
hereof as hereinafter provided.
Payment by Surety to a claimant or to Trustee in settlement of one or more claims shall discharge Surety as to those claims and shall
reduce the penal sum of this bond to the extent of such payment or payments.
Any person damaged by failure of Principal to comply with any condition clause of this bond may maintain suit in his or her own name to
recover on this bond even though such person is not a party named in this bond. Trustee may maintain suit in his or her own name, the
recovery to be made for the use of the persons damaged. Principal and Surety 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 bond.

Form PSD 2000

Expires XX/XX/XXXX

Page 1 of 5

(d)

(e)
(f)
(g)
(h)
(i)
(j)
(k)

(l)

Any claim for recovery on this bond must be filed in writing with either Surety, Trustee if one is named, 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 such party or
parties at the earliest practicable date. Surety/Trustee, prior to paying any claimant, shall determine the total amount due to all
claimants under this surety bond. In the event that claims filed against this bond exceeds the amount of the bond, the funds paid
shall be prorated to the valid claimants known by Surety/Trustee. Surety/Trustee shall determine the total amount of valid claims
prior to disbursing any portion of the bond.
The Deputy Administrator is authorized to designate a trustee to represent all claimants under this bond if (1) any claim is filed or any
action is required to recover damages for breach of any condition of this bond, and if (2) a trustee is not designated herein or Trustee
designated herein fails or is unable to act or serve.
Surety shall not be liable to pay any claim for recovery on this bond 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.
The proceeds of this bond shall not be used to pay fees, salaries, or expenses for legal representation of Surety or Principal.
The term “person” as used in this bond shall be construed to mean and include both singular and plural, corporations, partnerships,
associations, individuals, and the heirs, executors, administrators, successors, or assigns thereof.
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 bond to the same extent and in the same manner as if they were the personal acts of Principal.
Termination of the clearing services for a registrant under condition clause three (3) of this bond may be accomplished by issuance of a
rider or endorsement by Surety herein deleting the name of the registrant as a clearee. Termination of the clearing services shall become
effective thirty (30) days after the date of receipt of the rider or endorsement by the Packers and Stockyards Division.
This bond may be terminated by either party hereto delivering written notice of termination to the other party and the Packers and
Stockyards Division at least thirty (30) days prior to the effective date of such termination. In the event that Surety named herein writes a
new bond to replace this bond for the same Principal, the thirty (30) day termination will be waived, and this bond will terminate as of the
effective date of the replacement bond. Immediately upon filing of a claim for recovery on this bond, unless Surety believes that such
claim is invalid, Surety shall cause termination of this bond in accordance with this paragraph.
A fully executed duplicate of this bond and of any endorsement, amendment, rider, or other attachment hereto, shall be filed with the
Regional Director, Packers and Stockyards Division, for the area in which Principal resides or has his, her, or its principal place of
business.

7. Signatures
a. Principal's Signature

Name & Title

b. Surety's Signature

Name & Title

c. Trustee's Signature

Name & Title

8. Date Effective _________________________________________
9. Attach Power Of Attorney
An adequate bond and registration is required in order to operate as a market agency or dealer as defined in Section 301 or packer as defined in
Section 201 of the Packers and Stockyards Act, 1921, as amended and supplemented (7 U.S.C. 201 and 7 U.S.C. 191, respectively) and
9 CFR 201.29. Information held confidential (9 CFR 201.96).
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 2.25 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 provided 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 2000

Expires XX/XX/XXXX

Page 2 of 5

Instructions to Complete
Surety Bond Form
Form PSD 2000
When you, as a packer, market agency or dealer (also referred to as the Principal), apply for a surety
bond to meet the bonding requirements of the Packers and Stockyards Division (PSD), you must
provide form PSD 2000 to the surety for execution of the surety bond to cover your operation with the
Packers and Stockyards Division.
A surety bond requires complete and correct information to be submitted to the PSD on form PSD
2000. If any information is missing or incorrect, PSD will return the surety bond form to the principal
or surety for completion or correction.
Operating without proper registration and bond may subject the principal to severe civil penalties as
authorized by law for each violation, and additional penalties for each day the violation continues (7
U.S.C § 203).
Submit the completed form to the PSD regional office that covers your area. The Areas covered by
each regional office are listed below the regional office's address.
Regional Offices of the Packers and Stockyards Division
Agricultural Marketing Service, Fair Trade Practices Program
Eastern Regional Office
Midwestern Regional Office
Western Regional Office
75 Ted Turner Drive SW, Ste 230 210 Walnut Street, Room 317
3950 Lewiston St., Suite 200
Atlanta, GA 30303-3308
Des Moines, IA 50309-2110
Aurora, CO 80011-1556
Telephone: (404) 562-5840
Telephone: (515) 323-2579
Telephone: (303) 375-4240
FAX: (404) 562-5848
FAX: (515) 323-2590
FAX: (303) 371-4609
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,
IA, IL, IN, KY, MB, MI, MN,
AB, AK, AZ, BC, CA, CO, HI,
LA, MA, MD, ME, MS, NC,
MO, ND, NE, OH, ON, SD, WI ID, KS, MT, NM, NV, OK, OR,
NH, NJ, NL, NY, PA, PR, QC,
SK, TX, UT, WA, WY
RI, SC, TN, VA, VT, WV

If you have any questions about the form or completing the form, please contact the PSD Regional
Office that covers your area, as listed above.
The Surety must complete lines 1 through 6, sign line 7(b), and complete lines 8 and 9.
The Principal must sign line 7(a).
If the surety bond names a trustee, the trustee must sign line 7(c).

Form PSD 2000

Expires XX/XX/XXXX

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Line No.

Subject

Instruction

1

Bond Number

Enter the bond number assigned by the surety.

2

Principal
Name,
Address and
Phone
(Street, City,
State, Zip + 4,
Phone, and
Email)
Surety Name,
Address and
Phone (Street,
City, State,
Zip + 4,
Phone, and
Email)
Trustee, If
Required,
Name,
Address and
Phone (Street,
City, State,
Zip + 4,
Phone, and
Email)
Amount of
Bond

Enter the full name, mailing address, phone, and email of the principal.
The principal’s name must match the name under which the principal is
registered with the Packers and Stockyards Division.

3

4

5
a and b

Enter the full name, mailing address, phone, and email of the surety.

If a trustee is required on the surety bond, enter the trustee’s full name,
address, phone and email. If a trustee is not required, leave line 4 blank
or insert N/A or None listed.
Some States require a State agency or official be named as trustee.
Please contact the Regional Office covering your state for this
information.
Enter the full dollar amount of the surety bond; spell out the amount and
provide the amount numerically. For example, if the full dollar amount
of the bond is $10,000, list the amount as follows:
a. Ten Thousand Dollars and No/100

Form PSD 2000

Expires XX/XX/XXXX

b.

$10.000.00

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Line No.
6

Subject

Instruction

Condition
Clauses

Line 6 defines the conditions that are applicable for livestock
operations.
The surety shall indicate the correct condition clause as applies to the
firm’s operation.
Examples of each of the condition clauses are:
Condition Clause 1 - The principal sells livestock for the account of
others. (Registered as Selling Livestock on Commission)
Condition Clause 2 - The principal buys livestock for his/her own
account or for the accounts of others. (Registered as Buying Livestock
on Commission or as a Dealer)
Condition Clause 3 - The principal is providing bond coverage for
other registrant(s), as clearee(s), and therefore is responsible for the
obligations of the clearee(s). (Registered as Clearing Services) The
registrant(s) name(s) to be listed as clearees under this surety bond
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.

7
a, b, and c

8
9

Each type of operation (defined through the condition clause)
requires a separate surety bond. The only instance a surety bond
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 surety bond
Signatures
a. Principal’s Signature: The principal, or someone authorized to sign
for the principal (i.e. partner, owner, or officer), must print their name
and sign the surety bond.
• If an Individual operation, the principal must print and sign the
surety bond.
• If a Partnership operation, one of the partners must print and
sign the surety bond.
• If a Corporation, Limited Liability Corporation, Limited
Liability Partnership, or Association, an owner, officer or duly
authorized agent of the firm must print and sign the surety bond.
b. Surety’s Signature: The attorney-in-fact for the surety company
must print and sign the surety bond.
c. Trustee’s Signature: If a trustee is named on the surety bond,
Packers and Stockyards Division will obtain the trustee’s signature,
where indicated on the form.
d. Electronic signatures are considered valid.
Date Effective Enter the effective date of the surety bond.
Attach Power A Power of Attorney must be attached to the surety bond. The date of
of Attorney
the Power of Attorney must be equal to or prior to the effective date of
the surety bond. The person listed as the Attorney-in-Fact signing the
surety bond for the surety company must be listed on the Power of
Attorney.

Form PSD 2000

Expires XX/XX/XXXX

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