§ 603. — Government owned cotton; transfer to Secretary of Agriculture; powers of Secretary.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC603]
TITLE 7--AGRICULTURE
CHAPTER 26--AGRICULTURAL ADJUSTMENT
SUBCHAPTER II--COTTON OPTION CONTRACTS
Sec. 603. Government owned cotton; transfer to Secretary of
Agriculture; powers of Secretary
The Farm Credit Administration and all departments and other
agencies of the Government, not including the Federal intermediate
credit banks are directed--
(a) To sell to the Secretary of Agriculture at such price as may be
agreed upon, not in excess of the market price, all cotton now owned by
them.
(b) To take such action and to make such settlements as are
necessary in order to acquire full legal title to all cotton on which
money has been loaned or advanced by any department or agency of the
United States, including futures contracts for cotton or which is held
as collateral for loans or advances and to make final settlement of such
loans and advances as follows:
(1) In making such settlements with regard to cotton, including
operations to which such cotton is related, such cotton shall be
taken over by all such departments or agencies other than the
Secretary of Agriculture at a price or sum equal to the amounts
directly or indirectly loaned or advanced thereon and outstanding,
including loans by the Government, department or agency and any
loans senior thereto, plus any sums required to adjust advances to
growers to 90 per centum of the value of their cotton at the date of
its delivery in the first instance as collateral to the department
or agency involved, such sums to be computed by subtracting the
total amount already advanced to growers on account of pools of
which such cotton was a part, from 90 per centum of the value of the
cotton to be taken over as of the time of such delivery as
collateral, plus unpaid accrued carrying charges and operating costs
on such cotton, less, however, any existing assets of the borrower
derived from net income, earnings, or profits arising from such
cotton, and from operations to which such cotton is related; all as
determined by the department or agency making the settlement.
(2) The Secretary of Agriculture shall make settlements with
respect to cotton held as collateral for loans or advances made by
him on such terms as in his judgment may be deemed advisable, and to
carry out the provisions of this section, is authorized to indemnify
or furnish bonds to warehousemen for lost warehouse receipts and to
pay the premiums on such bonds.
When full legal title to the cotton referred to in this subsection
has been acquired, it shall be sold to the Secretary of Agriculture for
the purposes of this section, in the same manner as provided in
subsection (a) of this section.
(c) The Secretary of Agriculture is authorized to purchase the
cotton specified in subsections (a) and (b) of this section.
(May 12, 1933, ch. 25, title I, Sec. 3, 48 Stat. 32; 1933 Ex. Ord. No.
6084, Mar. 22, 1933.)
Change of Name
Ex. Ord. No. 6084, set out as a note preceding section 2241 of Title
12, Banks and Banking, changed the name of ``Federal Farm Board'' to
``Farm Credit Administration''.
Transfer of Functions
Ex. Ord. No. 9322, Mar. 26, 1943, 8 F.R. 3807, as amended by Ex.
Ord. No. 9334, Apr. 19, 1943, 8 F.R. 5423, removed Farm Credit
Administration from Food Production Administration of Department of
Agriculture and returned it to its former status as a separate agency of
Department.
Ex. Ord. No. 9280, Dec. 5, 1942, 7 F.R. 10179, made Farm Credit
Administration a part of Food Production Administration of Department of
Agriculture.
Farm Credit Administration transferred to Department of Agriculture
by 1939 Reorg. Plan No. 1, Sec. 401, 4 F.R. 2727, 53 Stat. 1423, set out
in the Appendix to Title 5, Government Organization and Employees.
Exceptions From Transfer of Functions
Functions of Corporations of Department of Agriculture, boards of
directors and officers of such corporations; Advisory Board of Commodity
Credit Corporation; and Farm Credit Administration or any agency,
officer or entity of, under, or subject to supervision of said
Administration excepted from functions of officers, agencies, and
employees transferred to Secretary of Agriculture by 1953 Reorg. Plan
No. 2, Sec. 1, effective June 4, 1953, 18 F.R. 3219, 67 Stat. 633, set
out as a note under section 2201 of this title.
Farm Credit Administration
Establishment of Farm Credit Administration as independent agency,
and other changes in status, functions, etc., see section 2241 et seq.,
of Title 12, Banks and Banking.
Section Referred to in Other Sections
This section is referred to in sections 604, 673 of this title.
