[Code of Federal Regulations]
[Title 7, Volume 8]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR982.54]

[Page 548-549]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER IX--AGRICULTURAL MARKETING SERVICE (Marketing Agreements and 
      Orders; Fruits, Vegetables, Nuts), DEPARTMENT OF AGRICULTURE
 
PART 982_HAZELNUTS GROWN IN OREGON AND WASHINGTON--Table of Contents
 
                    Subpart_Order Regulating Handling
 
Sec. 982.54  Deferment of restricted obligation.

    (a) Bonding. Compliance by any handler with the requirements of 
Sec. 982.50 when restricted hazelnuts may be withheld shall be 
temporarily deferred to any date requested by the handler, but not later 
than 60 days prior to the end of the marketing year. Such deferment 
shall be conditioned upon the voluntary execution and delivery by the 
handler to the Board of a written undertaking before beginning to handle 
merchantable hazelnuts during the marketing year. Such written 
undertaking shall be secured by a bond or bonds with a surety or 
sureties acceptable to the Board that on or prior to such date the 
handler will have fully satisfied the restricted obligation required by 
Sec. 982.50, subject to any adjustment pursuant to Sec. 982.51.
    (b) Bonding requirement. Such bond or bonds shall, at all times 
during their effective period, be in such amounts that the aggregate 
thereof shall be no less than the total bonding value of the handler's 
deferred restricted obligation. The bonding value shall be the deferred 
restricted obligation poundage multiplied by the applicable bonding 
rate. The cost of such bond or bonds shall be borne by the handler 
filing same.
    (c) Bonding rate. Said bonding rate shall be an amount per pound as 
established by the Board. Such bonding rate shall be based on the 
estimated value of restricted credits for the current marketing year. 
Until bonding rates for a marketing year are fixed, the rates in effect 
for the preceding marketing year shall continue in effect. The Board 
should make any necessary adjustments once such new rates are fixed.
    (d) Restricted credit purchases. Any sums collected through default 
of a handler on the handler's bond shall be used by the Board to 
purchase restricted credits from handlers, who have such restricted 
credits in excess of their needs, and are willing to part with them. The 
Board shall at all times purchase the lowest priced restricted credits 
offered, and the purchases shall be made from the various handlers as 
nearly as practicable in proportion to the quantity of their respective 
offerings of the restricted credits to be purchased.
    (e) Unexpended sums. Any unexpended sums which have been collected 
by the Board through default of a handler on the handler's bond, 
remaining in the possession of the Board at the end of a marketing year, 
shall be used to reimburse the Board for its expenses, including 
administrative and other costs incurred in the collection of such sums, 
and in the purchase of restricted credits as provided in paragraph (d) 
of this section.
    (f) Transfer of restricted credit purchases. Restricted credits 
purchased as provided for in this section shall be turned over to those 
handlers who have defaulted on their bonds for liquidation

[[Page 549]]

of their restricted obligation. The quantity delivered to each handler 
shall be that quantity represented by sums collected through default.
    (g) Collection upon bonds. Collection upon any defaulted bond shall 
be deemed a satisfaction of the restricted obligation represented by the 
collection.

[40 FR 53228, Nov. 17, 1975, as amended at 46 FR 26039, May 11, 1981; 51 
FR 29549, Aug. 19, 1986; 61 FR 17560, Apr. 22, 1996]