[Code of Federal Regulations]
[Title 7, Volume 1]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR12.8]

[Page 342-343]
 
                          TITLE 7--AGRICULTURE
 
PART 12_HIGHLY ERODIBLE LAND AND WETLAND CONSERVATION--Table of Contents
 
                      Subpart A_General Provisions
 
Sec. 12.8  Affiliated persons.

    (a) Ineligibility of affiliated persons. Ineligibility of an 
individual or entity under this part for benefits shall also be an 
ineligibility for benefits for ``affiliated persons'' as defined in this 
section.
    (b) Affiliated persons of an individual. If the person requesting 
benefits is an individual, the affiliated persons are:
    (1) The spouse and minor child of such person or guardian of such 
child; except that spouses who establish to the satisfaction of the COC 
that operations of the husband and wife are maintained separately and 
independently shall not be considered affiliates;
    (2) Any partnership, joint venture, or other enterprise in which the 
person or any person listed in paragraphs (b)(1) has an ownership 
interest or financial interest; unless such interest is held indirectly 
through another business enterprise; or
    (3) Any trust in which the individual, business enterprise, or any 
person listed in paragraph (b)(1) is a beneficiary or has a financial 
interest, unless such interest is held indirectly through another 
business enterprise.
    (c) Affiliated persons of an entity. If the person who has requested 
benefits from USDA is a corporation, partnership, or other joint 
venture, the affiliated persons are any participant or

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stockholder therein of the corporation, partnership, or other joint 
venture, except for persons who have an indirect interest through 
another business enterprise in such corporation, partnership, or other 
joint venture or persons with a 20 percent or less share in a 
corporation.
    (d) Limitation. Any reduction in payments which results only from 
the application of the affiliation provisions of this section to a 
partnership, joint venture, trust, or other enterprise shall be limited 
to the extent of interest held in such partnership, joint venture, 
trust, or other enterprise by the person or business enterprise that 
committed the violation. However, for violations for which the business 
enterprise is considered directly responsible under the provisions of 
this part, the business enterprise shall be subject to a full loss of 
benefits, including those instances in which the business enterprise has 
an interest in the land where the violation occurred or where the 
business enterprise had an interest in the crops produced on the land.
    (e) Avoidance of this part. Limitations on affiliation shall not 
apply as needed to correct for any action that would otherwise tend to 
defeat the purposes of this part.