§ 7216. — Violations of contract.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC7216]
TITLE 7--AGRICULTURE
CHAPTER 100--AGRICULTURAL MARKET TRANSITION
SUBCHAPTER II--PRODUCTION FLEXIBILITY CONTRACTS
Sec. 7216. Violations of contract
(a) Termination of contract for violation
Except as provided in subsection (b) of this section, if an owner or
producer subject to a contract violates a requirement of the contract
specified in section 7211(a) of this title, the Secretary shall
terminate the contract with respect to the owner or producer on each
farm in which the owner or producer has an interest. On the termination,
the owner or producer shall forfeit all rights to receive future
contract payments on each farm in which the owner or producer has an
interest and shall refund to the Secretary all contract payments
received by the owner or producer during the period of the violation,
together with interest on the contract payments as determined by the
Secretary.
(b) Refund or adjustment
If the Secretary determines that a violation does not warrant
termination of the contract under subsection (a) of this section, the
Secretary may require the owner or producer subject to the contract--
(1) to refund to the Secretary that part of the contract
payments received by the owner or producer during the period of the
violation, together with interest on the contract payments as
determined by the Secretary; or
(2) to accept a reduction in the amount of future contract
payments that is proportionate to the severity of the violation, as
determined by the Secretary.
(c) Foreclosure
(1) Effect of foreclosure
An owner or producer subject to a contract may not be required
to make repayments to the Secretary of amounts received under the
contract if the contract acreage has been foreclosed on and the
Secretary determines that forgiving the repayments is appropriate to
provide fair and equitable treatment.
(2) Resumption of operation
This subsection shall not void the responsibilities of the owner
or producer under the contract if the owner or producer continues or
resumes operation, or control, of the contract acreage. On the
resumption of operation or control over the contract acreage by the
owner or producer, the provisions of the contract in effect on the
date of the foreclosure shall apply.
(d) Review
A determination of the Secretary under this section shall be
considered to be an adverse decision for purposes of the availability of
administrative review of the determination.
(Pub. L. 104-127, title I, Sec. 116, Apr. 4, 1996, 110 Stat. 903.)
Section Referred to in Other Sections
This section is referred to in section 7213 of this title.
