§ 604. — Borrowing money; expenditures; authority 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: 7USC604]
TITLE 7--AGRICULTURE
CHAPTER 26--AGRICULTURAL ADJUSTMENT
SUBCHAPTER II--COTTON OPTION CONTRACTS
Sec. 604. Borrowing money; expenditures; authority of Secretary
(a) The Secretary of Agriculture shall have authority to borrow
money upon all cotton in his possession or control and may, at his
discretion, deposit as collateral for such loans the warehouse receipts
for such cotton.
(b) The Secretary of the Treasury is authorized to advance, in his
discretion, out of any money in the Treasury not otherwise appropriated,
the sum of $100,000,000, to the Secretary of Agriculture, for paying off
any debt or debts which may have been or may be incurred by the
Secretary of Agriculture and discharging any lien or liens which may
have arisen or may arise pursuant to sections 603, 604, and 607 of this
title, for protecting title to any cotton which may have been or may be
acquired by the Secretary of Agriculture under authority of said
sections, and for paying any expenses (including, but not limited to,
warehouse charges, insurance, salaries, interest, costs, and
commissions) incident to carrying, handling, insuring, and marketing of
said cotton and for the purposes described in subsection (e) of this
section. This sum shall be available until the cotton acquired by the
Secretary of Agriculture under authority of this chapter including
cotton futures, shall have been finally marketed by any agency which may
have been or may be established by the Secretary of Agriculture for the
handling, carrying, insuring, or marketing of any cotton acquired by the
Secretary of Agriculture.
(c) The funds authorized by subsection (b) of this section shall be
made available to the Secretary of Agriculture from time to time upon
his request and with the approval of the Secretary of the Treasury. Each
such request shall be accompanied by a statement showing by weight and
average grade and staple the quantity of cotton held by the Secretary of
Agriculture and the approximate aggregate market value thereof.
(d) It is the purpose of subsections (b) and (c) of this section to
provide an alternative method to that provided by subsection (a) of this
section, for enabling the Secretary of Agriculture to finance the
acquisition, carrying, handling, insuring, and marketing of cotton
acquired by him under authority of section 603 of this title. The
Secretary of Agriculture may at his discretion make use of either or
both of the methods provided in this section for obtaining funds for the
purposes hereinabove enumerated.
(e) The Secretary of Agriculture is authorized to use in his
discretion any funds obtained by him pursuant to the provisions of
subsection (a) or (b) of this section for making advances to any agency
which may have been or may be established by the Secretary of
Agriculture for the handling, carrying, insuring, or marketing of any
cotton acquired by the Secretary of Agriculture, to enable any such
agency to perform, exercise, and discharge any of the duties,
privileges, and functions which such agency may be authorized to
perform, exercise, or discharge.
(f) The proceeds derived from the sale of cotton shall be held for
the Secretary of Agriculture by the Treasurer of the United States in a
special deposit account and shall be used by the Secretary of
Agriculture to discharge the obligations incurred under authority of
sections 603, 604, and 607 of this title. Whenever any cotton shall be
marketed the net proceeds (after discharge of other obligations incurred
with respect thereto) derived from the sale thereof shall be used, to
the extent required, to reimburse the Treasury for such portion of the
funds hereby provided for as shall have been used, which shall be
covered into the Treasury as a miscellaneous receipt. If when all of the
cotton acquired by the Secretary of Agriculture shall have been marketed
and all of the obligations incurred with respect to such cotton shall
have been discharged, and the Treasury reimbursed for any and all sums
which may have been advanced pursuant to subsection (b) of this section,
there shall remain any balance in the hands of the Secretary of
Agriculture, such balance shall be covered into the Treasury as
miscellaneous receipts.
The word ``obligation'' when used in this section shall include
(without being limited to) administrative expenses, warehouse charges,
insurance, salaries, interest, costs, commissions, and other expenses
incident to handling, carrying, insuring, and marketing of said cotton.
(May 12, 1933, ch. 25, title I, Sec. 4, 48 Stat. 33; June 19, 1934, ch.
648, title II, Sec. 1, 48 Stat. 1058; Aug. 24, 1935, ch. 641, Secs. 35,
36, 49 Stat. 775.)
Amendments
1935--Subsec. (b). Act Aug. 24, 1935, Sec. 35, struck out ``to be
available until March 1, 1936'' after ``$100,000,000'' and inserted last
sentence relating to availability of the sum of $100,000,000.
Subsec. (f). Act Aug. 24, 1935, Sec. 36, inserted last par. defining
``obligation''.
1934--Subsec. (a). Act June 19, 1934, inserted ``may in his
discretion'' after ``or control and''.
Subsecs. (b) to (f). Act June 19, 1934, added subsecs. (b) to (f).
Section Referred to in Other Sections
This section is referred to in section 673 of this title; title 12
section 1150a.
