§519 — Title 7 Agriculture | U.S. Code

Summary

Associations that made loan agreements with the Commodity Credit Corporation under sections 106A or 106B of the Agricultural Act of 1949 (7 U.S.C. 1445–1, 1445–2) must sell specific amounts of quota tobacco they hold from the loan pool. Association: a group that entered those loan agreements with the Commodity Credit Corporation. For each type of tobacco, the quantity the association must sell equals the money in its No Net Cost Tobacco Fund and No Net Cost Tobacco Account for that tobacco divided by the Secretary’s average list price per pound. Any loan tobacco not assigned to the association will be sold by the Commodity Credit Corporation as the Secretary decides. The Secretary must also move money from the Tobacco Trust Fund under section 518e(b)(1)(B) to reimburse the Commodity Credit Corporation for any net losses. Any funds left in the association’s No Net Cost Fund or Account after these steps must go to the association to give to quota tobacco producers under a plan the Secretary approves.

Title 7, §519

Agriculture — Source: USLM XML via OLRC

(a)To provide for the orderly disposition of quota tobacco held by an association that has entered into a loan agreement with the Commodity Credit Corporation under section 106A or 106B of the Agricultural Act of 1949 (7 U.S.C. 1445–1, 1445–2) (referred to in this section as an “association”), loan pool stocks for each kind of tobacco held by the association shall be disposed of in accordance with this section.

(b)For each kind of tobacco held by an association, the association shall be responsible for the disposal of a specific quantity of the loan pool stocks for that kind of tobacco held by the association. The quantity transferred to the association for disposal shall be equal to the quantity determined by dividing—

(1)the amount of funds held by the association in the No Net Cost Tobacco Fund and the No Net Cost Tobacco Account established under section 106A and 106B of the Agricultural Act of 1949 (7 U.S.C. 1445–1, 1445–2) for the kind of tobacco; by

(2)the average list price per pound for the kind of tobacco, as determined by the Secretary.

(c)(1)Any loan pool stocks of a kind of tobacco of an association that are not transferred to the association under subsection (b) for disposal shall be disposed of by Commodity Credit Corporation in a manner determined by the Secretary.

(2)As required by section 518e(b)(1)(B) of this title, the Secretary shall transfer from the Tobacco Trust Fund to the No Net Cost Tobacco Fund or the No Net Cost Tobacco Account of an association established under section 106A or 106B of the Agricultural Act of 1949 (7 U.S.C. 1445–1, 1445–2) such amounts as the Secretary determines will be adequate to reimburse the Commodity Credit Corporation for any net losses that the Corporation may sustain under its loan agreements with the association.

(d)Any funds in the No Net Cost Tobacco Fund or the No Net Cost Tobacco Account of an association established under section 106A and 106B of the Agricultural Act of 1949 (7 U.S.C. 1445–1, 1445–2) that remain after the application of subsections (b) and (c) shall be transferred to the association for distribution to producers of quota tobacco in accordance with a plan approved by the Secretary.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 106A and 106B of the Agricultural Act of 1949, referred to in text, were classified to section 1445–1 and 1445–2, respectively, of this title prior to repeal by Pub. L. 108–357, title VI, § 612(a), Oct. 22, 2004, 118 Stat. 1523.

Statutory Notes and Related Subsidiaries

Effective Date

Section applicable to the 2005 and subsequent crops of tobacco, see section 643 of Pub. L. 108–357, set out as a note under section 518 of this title.

§519 Treatment of Tobacco Loan Pool Stocks and Outstanding Loan Costs