[Code of Federal Regulations]
[Title 7, Volume 10]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1463.111]

[Page 652-653]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1463_2005	2014 TOBACCO TRANSITION PROGRAM--Table of Contents
 
              Subpart B_Tobacco Transition Payment Program
 
Sec.  1463.111  Offsets and assignments.

    (a) TTPP payments made to any person under this subpart shall be 
made without regard to questions of title under State law and without 
regard to any claim or lien against the tobacco quota, tobacco marketing 
allotment, or the farm for which a tobacco quota had been established 
under part 723 of this title by any creditor or any other person.
    (b) The provisions of part 1404 of this title shall not apply to 
this part.
    (c) A quota holder or tobacco producer who is eligible to receive a 
payment under this part may assign a payment, or a portion thereof, to 
be made under this part to another person using the correct CCC form. 
Such an assignment will become effective upon approval by CCC. In order 
to provide for the orderly issuance of payments under this part, CCC may 
limit, in its sole discretion, the number of assignments that may be 
made with respect to a contract.
    (d)(1) CCC will establish, after consultation with the Department of 
the Treasury, a discount rate that reflects the value of any remaining 
payments due under this part if such payments were to be made as a lump 
sum payment in the current year. Unless there is consideration for such 
contract in an amount equal to or greater than the discounted value of 
the payments, subject to the assignment, based on the discount rate 
established for such payments by CCC, CCC will not approve any 
assignment other than to:
    (i) A family member; or
    (ii) A party who had purchased a tobacco marketing quota prior to 
October 22, 2004 and had placed the quota on a farm with the owner's 
consent prior to that date in the manner that had been prescribed by FSA 
under part 723 of this chapter.
    (2) The discount rate established by CCC will be determined by 
adding 200 basis points to the prime lending rate, as determined by CCC. 
If this sum is a fraction of a number, CCC will round the discount rate 
to the nearest whole number. Rounding of a half percent will be to the 
next higher whole number.
    (e) CCC will issue a payment to an assignee only to the extent and 
amount of payment that CCC would otherwise have issued to the quota 
holder or producer in the absence of the assignment. In accordance with 
part 1403 of this title, any claim owed by the assignor to the United 
States will be deducted from any payment made under this part prior to 
the issuance of the payment to the assignee.
    (f) CCC will report to the Internal Revenue Service any payment 
assigned

[[Page 653]]

under this section as income earned by the assignor.