7 U.S.C. § 10a — Cooperative associations and corporations,

Page 104 TITLE 7—AGRICULTURE § 9b 1 So in original. Probably should read ‘‘shall exclude’’. AMENDMENTS 2010—Pars. (4), (5). Pub. L. 111–203 added pars. (4) and (5). 2000—Pars. (2)(A), (3)(A). Pub. L. 106–554 substituted ‘‘the privileges of all registered entities’’ for ‘‘trading on all contract markets’’. 1992—Pub. L. 102–546 amended section generally. Prior to amendment, section read as follows: ‘‘In determining the amount of the money penalty assessed under sec- tions 9 and 15 of this title, the Commission shall con- sider, in the case of a person whose primary business involves the use of the commodity futures market—the appropriateness of such penalty to the size of the busi- ness of the person charged, the extent of such person’s ability to continue in business, and the gravity of the violation; and in the case of a person whose primary business does not involve the use of the commodity fu- tures market—the appropriateness of such penalty to the net worth of the person charged, and the gravity of the violation. If the offending person upon whom such penalty is imposed, after the lapse of the period al- lowed for appeal or after the affirmance of such pen- alty, shall fail to pay such penalty the Commission shall refer the matter to the Attorney General who shall recover such penalty by action in the appropriate United States district court.’’ Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective on the later of 360 days after July 21, 2010, or, to the extent a provi- sion of subtitle A (§§ 711–754) of title VII of Pub. L. 111–203 requires a rulemaking, not less than 60 days after publication of the final rule or regulation imple- menting such provision of subtitle A, see section 754 of Pub. L. 111–203, set out as a note under section 1a of this title. EFFECTIVE DATE For effective date of section, see section 418 of Pub. L. 93–463, set out as an Effective Date of 1974 Amend- ment note under section 2 of this title. § 9b. Rules prohibiting deceptive and other abu- sive telemarketing acts or practices (1) Except as provided in paragraph (2), not later than six months after the effective date of rules promulgated by the Federal Trade Com- mission under section 6102(a) of title 15, the Commission shall promulgate, or require each registered futures association to promulgate, rules substantially similar to such rules to pro- hibit deceptive and other abusive telemarketing acts or practices by any person registered or ex- empt from registration under this chapter in connection with such person’s business as a fu- tures commission merchant, introducing broker, commodity trading advisor, commodity pool op- erator, leverage transaction merchant, floor broker, or floor trader, or a person associated with any such person. (2) The Commission is not required to promul- gate rules under paragraph (1) if it determines that— (A) rules adopted by the Commission under this chapter provide protection from deceptive and abusive telemarketing by persons de- scribed under paragraph (1) substantially simi- lar to that provided by rules promulgated by the Federal Trade Commission under section 6102(a) of title 15; or (B) such a rule promulgated by the Commis- sion is not necessary or appropriate in the public interest, or for the protection of cus- tomers in the futures and options markets, or would be inconsistent with the maintenance of fair and orderly markets. If the Commission determines that an exception described in subparagraph (A) or (B) applies, the Commission shall publish in the Federal Reg- ister its determination with the reasons for it. (Sept. 21, 1922, ch. 369, § 6(f), as added Pub. L. 103–297, § 3(e)(2), Aug. 16, 1994, 108 Stat. 1547.) Editorial Notes CODIFICATION Section is comprised of subsec. (f) of section 6 of act Sept. 21, 1922. Subsecs. (a) and (b) of section 6 are classi- fied to section 8 of this title. Subsec. (c) of section 6 is classified to section 9 of this title. Subsecs. (d), (e), and (g) of section 6 are classified to sections 13b, 9a, and 9c of this title, respectively. § 9c. Notice of investigations and enforcement ac- tions The Commission shall provide the Securities and Exchange Commission with notice of the commencement of any proceeding and a copy of any order entered by the Commission pursuant to section 9 and 13b of this title against any fu- tures commission merchant or introducing broker registered pursuant to section 6f(a)(2) of this title, any floor broker or floor trader ex- empt from registration pursuant to section 6f(a)(3) of this title, any associated person ex- empt from registration pursuant to section 6k(6) of this title, or any board of trade designated as a contract market pursuant to section 7b–1 of this title. (Sept. 21, 1922, ch. 369, § 6(g), as added Pub. L. 106–554, § 1(a)(5) [title II, § 253(b)], Dec. 21, 2000, 114 Stat. 2763, 2763A–449.) Editorial Notes CODIFICATION Section is comprised of subsec. (g) of section 6 of act Sept. 21, 1922. Subsecs. (a) and (b) of section 6 are classi- fied to section 8 of this title. Subsec. (c) of section 6 is classified to section 9 of this title. Subsecs. (d), (e), and (f) of section 6 are classified to sections 13b, 9a, and 9b of this title, respectively. § 10. Repealed. June 25, 1948, ch. 646, § 39, 62 Stat. 992, eff. Sept. 1, 1948 Section, acts Sept. 21, 1922, ch. 369, § 6(b), 42 Stat. 1001; June 15, 1936, ch. 545, § 8(k), 49 Stat. 1499, related to re- view by Supreme Court on certiorari. See section 1254 of Title 28, Judiciary and Judicial Procedure. § 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 des- ignated or registered as a contract market or a derivatives transaction execution facility ex- clude 1 from membership in, and all privileges on, such board of trade, any association or cor- poration engaged in cash commodity business Page 105 TITLE 7—AGRICULTURE § 11 having adequate financial responsibility which is organized under the cooperative laws of any State, or which has been recognized as a cooper- ative 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 condi- tions as are or may be imposed lawfully upon other members of such board, and as are or may be imposed lawfully upon a cooperative associa- tion of producers engaged in cash commodity business, unless such board of trade is author- ized by the commission to exclude such associa- tion or corporation from membership and privi- leges after hearing held upon at least three days’ notice subsequent to the filing of com- plaint 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 con- tract 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 with- out imposing conditions, or it may permit such board of trade immediately to bar such associa- tion or corporation from membership and privi- leges. Any order of said commission entered hereunder shall be reviewable by the court of ap- peals for the circuit in which such association or corporation, or such board of trade, has its prin- cipal place of business, on written petition ei- ther of such association or corporation, or of such board of trade, under the procedure pro- vided in section 8(b) of this title, but such order shall not be stayed by the court pending review. (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 compensa- tion on a commodity-unit basis, or otherwise, by any federated cooperative association to its re- gional member-associations for services ren- dered or to be rendered in connection with any organization work, educational activity, or pro- curement of patronage, provided no part of any such compensation is returned to patrons (whether members or nonmembers) of such coop- erative association, or of its regional or local member-associations, otherwise than as a divi- dend on capital stock or as a patronage dividend out of the net earnings or surplus of such fed- erated cooperative association. (Sept. 21, 1922, ch. 369, § 6a, as added June 15, 1936, ch. 545, § 9, 49 Stat. 1499; amended June 25, 1948, ch. 646, § 32(a), 62 Stat. 991; May 24, 1949, ch. 139, § 127, 63 Stat. 107; Pub. L. 102–546, title II, § 209(b)(4), title IV, § 402(8), Oct. 28, 1992, 106 Stat. 3607, 3625; Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(13)], Dec. 21, 2000, 114 Stat. 2763, 2763A–409.) Editorial Notes AMENDMENTS 2000—Subsec. (a). Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(13)(A)], substituted ‘‘designated or registered as a contract market or a derivatives transaction execu- tion facility’’ for ‘‘designated as a ‘contract market’ shall’’. Subsec. (b). Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(13)(B)], substituted ‘‘designated or registered as a contract market or a derivatives transaction execu- tion 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) sub- stituted reference to section 8(b) of this title for ref- erence to section 8 of this title. Statutory Notes and Related Subsidiaries CHANGE OF NAME Act June 25, 1948, as amended by act May 24, 1949, substituted ‘‘court of appeals’’ for ‘‘circuit court of ap- peals’’ 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. § 11. Vacation on request of designation or reg- istration as ‘‘registered entity’’; redesignation or reregistration Any person that has been designated or reg- istered a registered entity in the manner pro- vided in this chapter may have such designation or registration vacated and set aside by giving notice in writing to the Commission requesting that its designation or registration as a reg- istered entity be vacated, which notice shall be served at least ninety days prior to the date named therein as the date when the vacation of designation or registration shall take effect. Upon receipt of such notice the Commission shall forthwith order the vacation of the des- ignation or registration of the registered entity, effective upon the day named in the notice, and shall forthwith send a copy of the notice and its order to all other registered entities. From and after the date upon which the vacation became effective the said person can thereafter be des- ignated or registered again a registered entity by making application to the Commission in the manner in this chapter provided for an original application. (Sept. 21, 1922, ch. 369, § 7, 42 Stat. 1002; Pub. L. 93–463, title I, § 103(a), (e), Oct. 23, 1974, 88 Stat. 1392; Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(17)], Dec. 21, 2000, 114 Stat. 2763, 2763A–409.) Editorial Notes AMENDMENTS 2000—Pub. L. 106–554, in first sentence, substituted ‘‘person’’ for ‘‘board of trade’’, inserted ‘‘or registered’’ after ‘‘designated’’, inserted ‘‘or registration’’ after ‘‘designation’’ wherever appearing, and substituted ‘‘registered entity’’ for ‘‘contract market’’ in two places, in second sentence, substituted ‘‘designation or registration of the registered entity’’ for ‘‘designation of such board of trade as a contract market’’ and ‘‘reg- istered entities’’ for ‘‘contract markets’’, and, in last sentence, substituted ‘‘person’’ for ‘‘board of trade’’ and ‘‘designated or registered again a registered entity’’ for ‘‘designated again a contract market’’. 1974—Pub. L. 93–463 substituted ‘‘Commission’’ for ‘‘Secretary of Agriculture’’ and ‘‘its order’’ for ‘‘his order’’.