[Code of Federal Regulations]
[Title 7, Volume 7, Parts 700 to 899]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR729.309]

[Page 205]
 
                          TITLE 7--AGRICULTURE
 
                            CHAPTER VII--FARM
                SERVICE AGENCY, DEPARTMENT OF AGRICULTURE
 
PART 729--PEANUTS--Table of Contents
 
   Subpart C--Marketing Cards, Marketings, Penalties, and Assessments
 
Sec. 729.309  Persons to pay penalty or collect debts.

    (a) Marketings to handlers. The buyer shall be liable for the full 
penalty due on marketings of excess quota peanuts that such handler buys 
or otherwise acquires from a producer. Also, the buyer shall be liable 
with the producer for the full penalty due on peanuts purchased from a 
producer as additional peanuts in excess of the amount contracted with 
the producer as contract additional peanuts in accordance with part 1446 
of this title. The buyer may deduct the penalty from the price paid to 
the producer for the peanuts. If the net value of a lot of peanuts is 
less than the penalty due on such lot, or if the handler fails to 
collect the penalty due on any marketing of a lot of peanuts from a 
farm, the buyer and each of the producers on the farm shall be held 
jointly and severally liable for the amount of any unpaid penalty due on 
such lot of peanuts.
    (b) Other marketings. The producer is liable for the penalty due on 
any marketings of excess quota peanuts to persons who are not 
established peanut buyers.
    (c) Penalty for error on marketing card. The producer and the buyer 
are jointly and severally liable for any penalties which may be due if 
the buyer made an error or failed to properly record the pounds of 
peanuts marketed on the producer's marketing card and such error 
resulted in marketings in excess of the effective poundage quota or the 
pounds contracted as additional peanuts in accordance with part 1446 of 
this title.
    (d) Notice to affected parties. All affected parties shall be deemed 
to be on notice that penalties are due when the marketings of peanuts 
for domestic edible use exceed the effective poundage quota indicated on 
the marketing card or the marketing of peanuts as contract additional 
peanuts exceeds the amount contracted by the producer as additional 
peanuts in accordance with part 1446 of this title. In addition:
    (1) PPQ lien. If a peanut poundage quota (PPQ) lien is recorded on a 
claim record maintained in a county FSA office in accordance with 
Sec. 729.308 of this part or recorded on the peanut marketing card such 
recordation shall constitute notice to any peanut buyer that until the 
amount of the penalty involved plus accrued interest is paid, the United 
States has a lien on any peanuts, from any crop year that are subject to 
farm poundage quotas in which the person liable for payment of the 
penalty has an interest. Peanut poundage quota (PPQ) lien amounts shall 
be collected by the buyer and paid to the Farm Service Agency prior to 
making collection for any other liens or claims, except for a lien that 
was perfected before the PPQ lien became attached, as provided in 
Sec. 729.308 of this part. Such buyer shall be liable for payment of 
such amount that was, or should have been, collected by the buyer.
    (2) U.S. claim. If a U.S. claim, other than for a PPQ lien, is 
recorded on a marketing card, such recordation shall constitute notice 
to any peanut buyer that, to the extent of the indebtedness shown, and 
subject to prior liens, the net proceeds from any price support loan due 
the debtor must be withheld from the producer and paid to the Farm 
Service Agency. Such buyer shall be liable for payment of such amount 
that was, or should have been, withheld.
    (3) Converted penalty rate. If a converted penalty rate is entered 
on the marketing card by the county FSA office, the buyer shall collect 
penalty at such converted penalty rate on each pound of peanuts acquired 
from the producers of the peanuts. Any penalty that is collected must be 
paid to the Farm Service Agency. Such buyer shall be liable for payment 
of such amount that was, or should have been, collected by the buyer.