---
kind: "section"
citation: "7 U.S.C. § 204"
title: "7"
title_heading: "Agriculture"
number: "204"
heading: "Bond and suspension of registrants"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/204"
units:
  - "Chapter 9 — Packers and Stockyards"
  - "Subchapter III — Stockyards and Stockyard Dealers"
---

# §204. Bond and suspension of registrants


On and after July 12, 1943, the [Secretary](/usc/7/182.md?p=2) may require reasonable bonds from every [market agency](/usc/7/201.md?p=c) (as defined in this subchapter), every [packer](/usc/7/198.md?p=2) (as defined in subchapter II of this chapter) in connection with its [livestock](/usc/7/182.md?p=4) purchasing operations (except that those [packers](/usc/7/198.md?p=2) whose average annual purchases do not exceed $500,000 will be exempt from the provisions of this paragraph), and every other [person](/usc/7/182.md?p=1) operating as a [dealer](/usc/7/201.md?p=d) (as defined in this subchapter) under such rules and regulations as he may prescribe, to secure the performance of their obligations, and whenever, after due notice and hearing, the [Secretary](/usc/7/182.md?p=2) finds any registrant is insolvent or has violated any provisions of this chapter he may issue an order suspending such registrant for a reasonable specified period. Such order of suspension shall take effect within not less than five days, unless suspended or modified or set aside by the [Secretary](/usc/7/182.md?p=2) or a court of competent jurisdiction. If the [Secretary](/usc/7/182.md?p=2) finds any [packer](/usc/7/198.md?p=2) is insolvent, he may after notice and hearing issue an order under the provisions of [section 193 of this title](/usc/7/193.md) requiring such [packer](/usc/7/198.md?p=2) to cease and desist from purchasing [livestock](/usc/7/182.md?p=4) while insolvent, or while insolvent purchasing [livestock](/usc/7/182.md?p=4) except under such conditions as the [Secretary](/usc/7/182.md?p=2) may prescribe to effectuate the purposes of this chapter.


## Source credit

(July 12, 1943, ch. 215, 57 Stat. 422; Pub. L. 94–410, §§ 1, 4, Sept. 13, 1976, 90 Stat. 1249.)

## Notes

### Editorial Notes

### Codification

Section was enacted as part of the Department of Agriculture Appropriation Act, 1944, act July 12, 1943, and not as part of the Packers and Stockyards Act, 1921, which comprises this chapter.

### Amendments

1976—Pub. L. 94–410 inserted provisions exempting market agencies and packers whose average annual purchases do not exceed $500,000 from bonding requirement and authorizing Secretary, after notice and hearing, to issue cease and desist orders to insolvent packers prohibiting the purchase of livestock except under conditions prescribed by Secretary, respectively.

### Prior Provisions

Provisions similar to those in this section were contained in the following prior appropriation acts:

July 22, 1942, ch. 516, 56 Stat. 689.

July 1, 1941, ch. 267, 55 Stat. 432.

June 25, 1940, ch. 421, 54 Stat. 557.

June 30, 1939, ch. 253, title I, 53 Stat. 970.

June 16, 1938, ch. 464, title I, 52 Stat. 721.

June 29, 1937, ch. 404, 50 Stat. 406.

June 4, 1936, ch. 489, 49 Stat. 1432.

May 17, 1935, ch. 131, title I, 49 Stat. 257.

Mar. 26, 1934, ch. 89, 48 Stat. 477.

Mar. 3, 1933, ch. 203, 47 Stat. 1441.

July 7, 1932, ch. 443, 47 Stat. 620.

Feb. 23, 1931, ch. 278, 46 Stat. 1252.

May 27, 1930, ch. 341, 46 Stat. 402.

Feb. 16, 1929, ch. 227, 45 Stat. 1198.

May 16, 1928, ch. 572, 45 Stat. 547.

Jan. 18, 1927, ch. 39, 44 Stat. 1002.

May 11, 1926, ch. 286, 44 Stat. 527.

Feb. 10, 1925, ch. 200, 43 Stat. 851.

June 5, 1924, ch. 266, 43 Stat. 460.