§ 10a. — Cooperative associations and corporations, exclusion from board of trade; rules of board inapplicable to payment of compensation by association.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC10a]
TITLE 7--AGRICULTURE
CHAPTER 1--COMMODITY EXCHANGES
Sec. 10a. Cooperative associations and corporations, exclusion
from board of trade; rules of board inapplicable to payment of
compensation by association
(a) No board of trade which has been designated or registered as a
contract market or a derivatives transaction execution facility exclude
\1\ from membership in, and all privileges on, such board of trade, any
association or corporation engaged in cash commodity business having
adequate financial responsibility which is organized under the
cooperative laws of any State, or which has been recognized as a
cooperative association of producers by the United States Government or
by any agency thereof, if such association or corporation complies and
agrees to comply with such terms and conditions as are or may be imposed
lawfully upon other members of such board, and as are or may be imposed
lawfully upon a cooperative association of producers engaged in cash
commodity business, unless such board of trade is authorized by the
commission to exclude such association or corporation from membership
and privileges after hearing held upon at least three days' notice
subsequent to the filing of complaint by the board of trade: Provided,
however, That if any such association or corporation shall fail to meet
its obligations with any established clearing house or clearing agency
of any contract market, such association or corporation shall be ipso
facto debarred from further trading on such contract market, except such
trading as may be necessary to close open trades and to discharge
existing contracts in accordance with the rules of such contract market
applicable in such cases. Such commission may prescribe that such
association or corporation shall have and retain membership and
privileges, with or without imposing conditions, or it may permit such
board of trade immediately to bar such association or corporation from
membership and privileges. Any order of said commission entered
hereunder shall be reviewable by the court of appeals for the circuit in
which such association or corporation, or such board of trade, has its
principal place of business, on written petition either of such
association or corporation, or of such board of trade, under the
procedure provided in section 8(b) of this title, but such order shall
not be stayed by the court pending review.
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\1\ So in original. Probably should read ``shall exclude''.
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(b) No rule of any board of trade designated or registered as a
contract market or a derivatives transaction execution facility shall
forbid or be construed to forbid the payment of compensation on a
commodity-unit basis, or otherwise, by any federated cooperative
association to its regional member-associations for services rendered or
to be rendered in connection with any organization work, educational
activity, or procurement of patronage, provided no part of any such
compensation is returned to patrons (whether members or nonmembers) of
such cooperative association, or of its regional or local member-
associations, otherwise than as a dividend on capital stock or as a
patronage dividend out of the net earnings or surplus of such federated
cooperative association.
(Sept. 21, 1922, ch. 369, Sec. 6a, as added June 15, 1936, ch. 545,
Sec. 9, 49 Stat. 1499; amended June 25, 1948, ch. 646, Sec. 32(a), 62
Stat. 991; May 24, 1949, ch. 139, Sec. 127, 63 Stat. 107; Pub. L. 102-
546, title II, Sec. 209(b)(4), title IV, Sec. 402(8), Oct. 28, 1992, 106
Stat. 3607, 3625; Pub. L. 106-554, Sec. 1(a)(5) [title I,
Sec. 123(a)(13)], Dec. 21, 2000, 114 Stat. 2763, 2763A-409.)
Amendments
2000--Subsec. (a). Pub. L. 106-554, Sec. 1(a)(5) [title I,
Sec. 123(a)(13)(A)], substituted ``designated or registered as a
contract market or a derivatives transaction execution facility'' for
``designated as a `contract market' shall''.
Subsec. (b). Pub. L. 106-554, Sec. 1(a)(5) [title I,
Sec. 123(a)(13)(B)], substituted ``designated or registered as a
contract market or a derivatives transaction execution facility'' for
``designated as a contract market''.
1992--Pub. L. 102-546 redesignated subsecs. (1) and (2) as (a) and
(b), respectively, and in subsec. (a) substituted reference to section
8(b) of this title for reference to section 8 of this title.
Change of Name
Act June 25, 1948, as amended by act May 24, 1949, substituted
``court of appeals'' for ``circuit court of appeals'' wherever
appearing.
Effective Date
For effective date of section, see section 13 of act June 15, 1936,
set out as an Effective Date of 1936 Amendment note under section 1 of
this title.
Section Referred to in Other Sections
This section is referred to in section 7b-1 of this title.
