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__________________________________ _________________________________________ 

OMB Control No. 0581-0308 

TFA Number:

U.S. Department of Agriculture 

Agricultural Marketing Service 

Fair Trade Practices Program 

Packers and Stockyards Division 

TRUST FUND AGREEMENT 

REQUIRED OF LIVESTOCK MARKET AGENCIES, DEALERS AND PACKERS 

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

1. 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 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 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 

on commission 

Condition Clause 1 

(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 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 Principal BUYS on 

commission or as a DEALER 

Condition Clause 2 

(2) If Principal shall pay when due to the person or persons entitled thereto the purchase price of all

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

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 

CLEAR through Principal 

Condition Clause 3 

(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,” List the clearees:

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): 

Applicable if Principal BUYS as a 

Packer 

 Condition Clause 4 

(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) 

(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. 

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. 

(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) 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 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: program.intake@usda.gov 

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