[Code of Federal Regulations]
[Title 7, Volume 9]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1000.28]

[Page 12-13]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER X--AGRICULTURAL MARKETING SERVICE (Marketing Agreements and 
                 Orders; Milk) DEPARTMENT OF AGRICULTURE
 
PART 1000_GENERAL PROVISIONS OF FEDERAL MILK MARKETING ORDERS--Table 
of Contents
 
      Subpart E_Rules of Practice and Procedure Governing Handlers
 
Sec.  1000.28  Termination of obligations.

    (a) Except as provided in paragraphs (b) and (c) of this section, 
the obligation of any handler to pay money required to be paid under the 
terms of the order shall terminate 2 years after the last day of the 
month during which the market administrator receives the handler's 
report of receipts and utilization on which such obligation is based, 
unless within such 2-year period, the market administrator notifies the 
handler in writing that such money is due and payable. Service of such 
written notice shall be complete upon mailing to the handler's last 
known address and it shall contain, but need not be limited to, the 
following information:
    (1) The amount of the obligation;
    (2) The month(s) on which such obligation is based; and
    (3) If the obligation is payable to one or more producers or to a 
cooperative association, the name of such producer(s) or such 
cooperative association, or if the obligation is payable to the market 
administrator, the account for which it is to be paid.
    (b) If a handler fails or refuses, with respect to any obligation 
under the order, to make available to the market administrator all 
records required by the order to be made available, the market 
administrator may notify the handler in writing, within the 2-year 
period provided for in paragraph (a) of this section, of such failure or 
refusal. If the market administrator so notifies a handler, the said 2-
year period with respect to such obligation shall not begin to run until 
the first day of the month following the month during which all such 
records pertaining to such obligation are made available to the market 
administrator.
    (c) Notwithstanding the provisions of paragraphs (a) and (b) of this 
section, a handler's obligation under the order to pay money shall not 
be terminated with respect to any transaction involving fraud or willful 
concealment of a fact, material to the obligation, on the part of the 
handler against whom the obligation is sought to be imposed.
    (d) Unless the handler files a petition pursuant to section 
8c(15)(A) of the Act

[[Page 13]]

and the applicable rules and regulations (7 CFR 900.50 through 900.71) 
within the applicable 2-year period indicated below, the obligation of 
the market administrator:
    (1) To pay a handler any money which such handler claims is due 
under the terms of the order shall terminate 2 years after the end of 
the month during which the skim milk and butterfat involved in the claim 
were received; or
    (2) To refund any payment made by a handler (including a deduction 
or offset by the market administrator) shall terminate 2 years after the 
end of the month during which payment was made by the handler.