[Code of Federal Regulations]
[Title 7, Volume 10]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1463.112]

[Page 674]
 
                          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. 1463.112  Successor in interest contracts.

    (a) A quota holder or tobacco producer who is eligible to receive a 
payment under this part, and for whom a claim has not been established 
by the United States, may enter into a successor in interest contract 
with another party using the correct CCC form. Such successor in 
interest contract will become effective upon approval by CCC, and will 
not include the 2005 payment. Only one such successor in interest 
contract may be entered into by a quota holder or tobacco producer with 
respect to a farm for each kind of tobacco.
    (b) Annually, 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. This discount rate will 
be determined as provided in Sec. 1463.111(d)(2). Unless there is 
consideration for such contract in an amount equal to or greater than 
the discounted value of the payments, subject to the successor in 
interest or contract, based on the discount rate established for such 
payments by CCC, CCC will not approve any succession in interest 
contract other than to:
    (1) A family member; or
    (2) 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.
    (c) CCC will issue a payment, except the 2005 payment, to a 
successor party only if such party is otherwise in compliance with all 
other applicable regulations, which includes for successors to producer 
contracts only the wetlands and highly erodible land provisions of part 
12 of this chapter. In accordance with part 1403 of this title, any 
claim owed by the successor party to the United States will be deducted 
from any payment made under this part prior to the issuance of the 
payment to the successor party.
    (d) CCC will report to the Internal Revenue Service any payment made 
under a successor in interest contract as income earned by the successor 
party.