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this is the legislative intent of the Section to pre-empt State laws reflecting that "farm products" exception, as shown in the House Committee Report on Pub. L. 99-198, No. 99-271, Part 1, September 13, 1985, at pages 108 et seq. (b) That UCC Section 9-307(1) reads as follows:

(1) A buyer in ordinary course of business (subsection (9) of Section 1-201) other than a person buying farm products from a person engaged in farming operations takes free of a security interest created by his seller even though the security interest is perfected and even though the buyer knows of its existence. (emphasis added)

$205.212 "Buyer in ordinary course of business" and "security interest." The terms "buyer in ordinary course of business" and "security interest" are defined in subsections (c) (1) and (7). There are differences between those definitions and the UCC definitions of the same terms. In interpreting those differences, the following would be pertinent:

(a) The legislative intent discussed above in §205.211, to pre-empt State laws reflecting the "farm products" exception; and

(b) The legislative intent shown in subsections (a) and (b) that certain persons take free and clear of certain interests of a "secured lender" "when the seller fails to repay the lender," unless such persons have information about such interests made available to them as provided in the Section.

$205.213 Obligations subject-"person indebted"-"debtor."

(a) A debt need not exist at the time of filing of an EFS. The basis for this is that subsection (c)(4) does not require the EFS, and subsection (c)(2)(C) does not require the master list, to show any amount of debt.

(b) The Section does not provide for the transaction in which one person subjects a product to a security interest for another's debt. However the terms "person indebted" and "debtor" in the Section refer to the person who owns a product and subjects it to a security interest, whether or not that person owes a debt to the secured party. The basis for this is the purpose for which the information is supplied.

Any buyer of a farm product, commission merchant, or selling agent querying a master list or system operator about a prospective seller of a farm product is interested in whether that seller has subjected that product to a security interest, not in whether the debt is owed by that seller or by another.

(c) Security interests existing prior to establishment of a system can be filed in such a system and reflected in the master list if documents are in existence or are created which meet the requirements of subsection (c)(4) besides filing, if such documents are filed wherever State law requires, and if the system operator receives the information about them needed for the master list.

(d) A system can be in compliance with the Section, although it reflects security interests not supported by EFS's as defined in the legislation, and although it reflects security interests on items other than farm products. However, subsections (e) (2) and (3), and (g)(2) (C) and (D), will apply only as to entries reflecting farm products and supported by EFS's as defined in the Section, and it must be possible to distinguish the entries to which these provisions apply from the other entries.

§ 205.214 Litigation as to whether a system is operating in compliance with the Section.

(a) The requirements for a system in subsection (c) are written as the definition of the term "central filing system," so that failure of a system to meet any such requirement, either at the time of its establishment or later, will mean that it is not a "central filing system" as defined.

(b) The issue whether a system, after certification, is operating in compliance, thus whether it is a "central filing system" as defined, could be litigated and ruled on in a case involving only private parties, such as a lender and a buyer of a farm product. The only immediate effect of a finding in such a case, that a system is not a "central filing system" as defined, would be that the rights of the secured party in the case would be as if the State had no system. However, others

CHAPTER III-FOOD SAFETY AND

INSPECTION SERVICE,

DEPARTMENT OF AGRICULTURE

SUBCHAPTER A-AGENCY ORGANIZATION AND TERMINOLOGY; MANDATORY MEAT AND POULTRY PRODUCTS INSPECTION AND VOLUNTARY INSPECTION AND CERTIFICATION

Part

Page

300

301

302

303

304

305

Agency mission and organization
Definitions

Application of inspection and other requirements ..
Exemptions

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Application for inspection; grant of inspection
Official numbers; inauguration of inspection; with-
drawal of inspection; reports of violation

75

76

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311

Disposal of diseased or otherwise adulterated car-
casses and parts ......

312

Official marks, devices and certificates

313

Humane slaughter of livestock

314

Handling and disposal of condemned or other ined-
ible products at official establishments ....

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315

Rendering or other disposal of carcasses and parts
passed for cooking

156

316

317

318

Marking products and their containers
Labeling, marking devices, and containers
Entry into official establishments; reinspection
and preparation of products

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Part 327

Page

Imported products

355

329

Detention; seizure and condemnation; criminal of-
fenses .....

374

331

Special provisions for designated States and Terri-
tories; and for designation of establishments
which endanger public health and for such des-
ignated establishments

376

......

335

Rules of practice governing proceedings under the
Federal Meat Inspection Act ......

382

350

351

352

354

355

362 381

....

Special services relating to meat and other prod-
ucts
Certification of technical animal fats for export
Exotic animals; voluntary inspection .....

Voluntary inspection of rabbits and edible prod-
ucts thereof

Certified products for dogs, cats, and other
carnivora; inspection, certification, and identi-
fication as to class, quality, quantity, and condi-
tion ......

Voluntary poultry inspection regulations
Poultry products inspection regulations

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389

396

403

428

439

444

SUBCHAPTERS B-C [RESERVED]

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Fees and charges for inspection services and lab-
oratory accreditation ......

674

SUBCHAPTER E-REGULATORY REQUIREMENTS UNDER THE FEDERAL MEAT INSPECTION ACT AND THE POULTRY PRODUCTS INSPECTION ACT

416

Sanitation

675

417

Hazard Analysis and Critical Control Point
(HACCP) Systems

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Inspection of eggs and egg products (Egg Products
Inspection Act)

727

SUBCHAPTER A-AGENCY ORGANIZATION AND TERMINOLOGY; MANDATORY MEAT AND POULTRY PRODUCTS INSPECTION AND VOLUNTARY INSPECTION AND CERTIFICATION

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(b) Implementing regulations. This chapter of title 9 of the Code of Federal Regulations (9 CFR chapter III) includes, in addition to administrative rules, rules and regulations that implement provisions of the following statutes:

(1) The Federal Meat Inspection Act, as amended (FMIA) (21 U.S.C. 601 et seq.), except provisions pertaining to the inspection and certification of the condition of animals for export, and related legislation;

(2) The Poultry Products Inspection Act, as amended (PPIA) (21 U.S.C. 451 et seq.);

(3) The Egg Products Inspection Act, as amended (EPIA) (21 U.S.C. 1031 et seq.), except for the shell egg surveillance program, voluntary laboratory analyses of egg products, and the voluntary grading program;

(4) The Humane Slaughter Act (7 U.S.C. 1901-1906);

(5) The Talmadge-Aiken Act (7 U.S.C. 450), with respect to cooperation with States in the administration of the

Federal Meat Inspection Act and the Poultry Products Inspection Act;

(6) The Agricultural Marketing Act of 1946, as amended (7 U.S.C. 1621–1627), relating to voluntary inspection of poultry and edible products thereof; voluntary inspection and certification of technical animal fat; certified products for dogs, cats, and other carnivora; voluntary inspection of rabbits and edible products thereof; and voluntary inspection and certification of edible meat and other products; and

(7) The National Laboratory Accreditation Program (7 U.S.C. 138–1381) with respect to laboratories accredited only for pesticide residue analysis in meat and poultry products.

$300.3 FSIS organization.

(a) General. The organization of FSIS reflects the agency's primary regulatory responsibilities: implementation of the FMIA, the PPIA, and the EPIA.

(b) Headquarters. FSIS has four principal components or offices, each of which is under the direction of a Deputy Administrator. The Deputy Administrators, along with their staffs, and the Administrator, along with the Office of the Administrator and three staff offices that report to the Administrator, are located at U.S. Department of Agriculture headquarters in Washington, DC.

(1) Program offices. FSIS's headquarters offices are the Office of Public Health and Science, which provides scientific analysis, advice, data, and recommendations on matters involving public health and science; the Office of Management, which provides centralized administrative and support services; the Office of Policy, Program Development and Evaluation, which develops and recommends domestic and international policy activities; and the Office of Field Operations, which manages regulatory oversight and inspection (see paragraph (c) of this section).

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