[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: 7CFR984.56]

[Page 585]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER IX--AGRICULTURAL MARKETING SERVICE (Marketing Agreements and 
      Orders; Fruits, Vegetables, Nuts), DEPARTMENT OF AGRICULTURE
 
PART 984_WALNUTS GROWN IN CALIFORNIA--Table of Contents
 
                    Subpart_Order Regulating Handling
 
Sec. 984.56  Disposition of reserve walnuts.

    (a) General. The Board shall have power and authority to sell or 
dispose of any and all reserve walnuts withheld upon the best terms and 
at the highest returns obtainable consistent with the ultimate complete 
disposition of reserve, subject to all conditions of this section. The 
Board may dispose of reserve walnuts through handlers acting as agents 
of the Board under the terms and conditions specified by the Board.
    (b) Export. The Board may export or authorize the disposition in 
export to the destinations outside the United States, Puerto Rico, and 
the Canal Zone, the quantity of reserve walnuts permitted to be exported 
by the export percentage establishment pursuant to Sec. 984.49. Reserve 
walnuts may be exported by any handler as an agent of the Board under 
the terms and conditions specified by the Board.
    (c) Pooling. At any time during the marketing year a handler may 
deliver reserve walnuts and any substandard walnuts meeting the minimum 
kernel content requirements effective pursuant to Sec. 984.50(e) to the 
Board for pooling and crediting against his reserve obligation. Any 
reserve walnuts that the handler as agent of the Board has not disposed 
of by the end of the marketing year shall thereafter be delivered to the 
Board for pooling on demand. The Board shall dispose of these walnuts 
for use in the following outlets: Government agencies, charitable 
institutions, poultry or animal feed, walnut oil or other markets 
noncompetitive with markets for merchantable free walnuts. The Board may 
rent and operate or arrange the use of facilities for storage and 
disposition of reserve walnuts delivered to it.
    (d) Crediting. The kernelweight of walnuts disposed of in accordance 
with this section shall be credited to the handler's reserve obligation. 
At any time during the marketing year, upon a handler's written request, 
the Board shall transfer part or all of the handler's credit in excess 
of his reserve obligation to any handler he designates.
    (e) Pool proceeds. The proceeds remaining after the payment of all 
expenses incurred by the Board in receiving, holding, and disposing of 
pooled walnuts shall be distributed pro rata by the Board to each 
handler in proportion to his contribution thereto, measured in 
kernelweight, or such other basis as the Board may adopt with the 
approval of the Secretary.
    (f) Rules and regulations. The Board, with the approval of the 
Secretary, may prescribe such rules and regulations as are necessary to 
carry out the provisions of this section.

[41 FR 31544, July 29, 1976]