
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 7USC1441]

 
                          TITLE 7--AGRICULTURE
 
         CHAPTER 35A--PRICE SUPPORT OF AGRICULTURAL COMMODITIES
 
              SUBCHAPTER II--BASIC AGRICULTURAL COMMODITIES
 
Sec. 1441. Price support levels

    The Secretary of Agriculture (hereinafter called the ``Secretary'') 
is authorized and directed to make available through loans, purchases, 
or other operations, price support to cooperators for any crop of any 
basic agricultural commodity, if producers have not disapproved 
marketing quotas for such crop, at a level not in excess of 90 per 
centum of the parity price of the commodity nor less than the level 
provided in subsections (a) to (c) of this section as follows:




(a) For tobacco (except as        The level of support shall be not less
 otherwise provided herein),       than the following percentage of the
 corn, and wheat, if the supply    parity price:
 percentage as of the beginning
 of the marketing year is:






  Not more than 102..............................................     90
  More than 102 but not more than 104............................     89
  More than 104 but not more than 106............................     88
  More than 106 but not more than 108............................     87
  More than 108 but not more than 110............................     86
  More than 110 but not more than 112............................     85
  More than 112 but not more than 114............................     84
  More than 114 but not more than 116............................     83
  More than 116 but not more than 118............................     82
  More than 118 but not more than 120............................     81
  More than 120 but not more than 122............................     80
  More than 122 but not more than 124............................     79
  More than 124 but not more than 126............................     78
  More than 126 but not more than 128............................     77
  More than 128 but not more than 130............................     76
  More than 130..................................................     75



    For rice of the 1959 and 1960 crops, the level of support shall be 
not less than 75 per centum of the parity price. For rice of the 1961 
crop the level of support shall be not less than 70 per centum of the 
parity price. For the 1962 and subsequent crops of rice the level of 
support shall be not less than 65 per centum of the parity price.




(b) For cotton and peanuts, if    The level of support shall be not less
 the supply percentage as of the   than the following percentage of the
 beginning of the marketing year   parity price:
 is:






  Not more than 108..............................................     90
  More than 108 but not more than 110............................     89
  More than 110 but not more than 112............................     88
  More than 112 but not more than 114............................     87
  More than 114 but not more than 116............................     86
  More than 116 but not more than 118............................     85
  More than 118 but not more than 120............................     84
  More than 120 but not more than 122............................     83
  More than 122 but not more than 124............................     82
  More than 124 but not more than 125............................     81
  More than 125 but not more than 126............................     80
  More than 126 but not more than 127............................     79
  More than 127 but not more than 128............................     78
  More than 128 but not more than 129............................     77
  More than 129 but not more than 130............................     76
  More than 130..................................................     75



    (c) For tobacco, if marketing quotas are in effect, the level of 
support shall be 90 per centum of the parity price.
    (d) Notwithstanding the foregoing provisions of this section--
        (1) if producers have not disapproved marketing quotas for such 
    crop, the level of support to cooperators shall be 90 per centum of 
    the parity price for the 1950 crop of any basic agricultural 
    commodity for which marketing quotas or acreage allotments are in 
    effect;
        (2) if producers have not disapproved marketing quotas for such 
    crop, the level of support to cooperators shall be not less than 80 
    per centum of the parity price for the 1951 crop of any basic 
    agricultural commodity for which marketing quotas or acreage 
    allotments are in effect;
        (3) the level of price support to cooperators for any crop of a 
    basic agricultural commodity, except tobacco, for which marketing 
    quotas have been disapproved by producers shall be 50 per centum of 
    the parity price of such commodity; and no price support shall be 
    made available for any crop of tobacco for which marketing quotas 
    have been disapproved by producers;
        (4) Repealed. Oct. 31, 1949, ch. 792, title I, Sec. 104(b)(3), 
    as added Aug. 28, 1958, Pub. L. 85-835, title II, Sec. 201, 72 Stat. 
    994.
        (5) the price support may be made available to noncooperators at 
    such levels, not in excess of the level of price support to 
    cooperators, as the Secretary determines will facilitate the 
    effective operation of the program;
        (6) except as provided in subsection (c) of this section and 
    section 1422 of this title, the level of support to cooperators 
    shall be not more than 90 per centum and not less than 82\1/2\ per 
    centum of the parity price for the 1955 crop of any basic 
    agricultural commodity with respect to which producers have not 
    disapproved marketing quotas; within such limits, the minimum level 
    of support shall be fixed as provided in subsections (a) and (b) of 
    this section;
        (7) Where a State is designated under section 1335(e) of this 
    title, as outside the commercial wheat-producing area for any crop 
    of wheat, the level of price support for wheat to cooperators in 
    such State for such crop of wheat shall be 75 per centum of the 
    level of price support to cooperators in the commercial wheat-
    producing area.

    (e) Rice.--The Secretary shall make available to producers of each 
crop of rice on a farm price support at a level that is not less than 50 
percent, or more than 90 percent of the parity price for rice as the 
Secretary determines will not result in increasing stocks of rice to the 
Commodity Credit Corporation.

(Oct. 31, 1949, ch. 792, title I, Secs. 101, 104(b)(3), 63 Stat. 1051; 
July 17, 1952, ch. 933, Secs. 2, 3(1), 66 Stat. 759; Aug. 28, 1954, ch. 
1041, title II, Secs. 201, 202, 68 Stat. 899; Pub. L. 85-28, Apr. 25, 
1957, 71 Stat. 27; Pub. L. 85-497, July 2, 1958, 72 Stat. 296; Pub. L. 
85-835, title II, Sec. 201, title III, Sec. 302(a), Aug. 28, 1958, 72 
Stat. 993, 994; Pub. L. 86-389, Sec. 2, Feb. 20, 1960, 74 Stat. 7; Pub. 
L. 90-475, Sec. 5, Aug. 11, 1968, 82 Stat. 702; Pub. L. 94-214, title I, 
Sec. 102, Feb. 16, 1976, 90 Stat. 183; Pub. L. 95-113, title VI, 
Sec. 607, title VII, Sec. 702, Sept. 29, 1977, 91 Stat. 940; Pub. L. 96-
176, Dec. 31, 1979, 93 Stat. 1290; Pub. L. 96-213, Sec. 4(a), Mar. 18, 
1980, 94 Stat. 119; Pub. L. 96-365, title II, Sec. 201(a), Sept. 26, 
1980, 94 Stat. 1319; Pub. L. 97-98, title V, Sec. 508, title VI, 
Sec. 602, Dec. 22, 1981, 95 Stat. 1242; Pub. L. 97-253, title I, 
Sec. 125, Sept. 8, 1982, 96 Stat. 771; Pub. L. 98-88, Sec. 2, Aug. 26, 
1983, 97 Stat. 494; Pub. L. 98-258, title IV, Secs. 401, 402, Apr. 10, 
1984, 98 Stat. 135; Pub. L. 99-198, title VI, Sec. 602, Dec. 23, 1985, 
99 Stat. 1427; Pub. L. 104-127, title I, Sec. 171(b)(3), Apr. 4, 1996, 
110 Stat. 938.)

                       References in Text

    Subsec. (e) of section 1335 of this title, referred to in subsec. 
(d)(7), was eliminated and other provisions substituted by Pub. L. 87-
703, title III, Sec. 315, Sept. 27, 1962, 76 Stat. 621.


                               Amendments

    1996--Subsec. (e). Pub. L. 104-127 added subsec. (e).
    1985--Subsec. (i)(1). Pub. L. 99-198 temporarily redesignated 
existing provisions as subpar. (A) and added subpars. (B) to (D). See 
Effective and Termination Dates of 1985 Amendment note below.
    1984--Subsec. (i)(2)(C). Pub. L. 98-258, Sec. 401, substituted ``and 
$11.90 per hundredweight for the 1984 and 1985 crops'' for ``$11.90 per 
hundredweight for the 1984 crop, and $12.40 per hundredweight for the 
1985 crop''.
    Subsec. (i)(5)(A). Pub. L. 98-258, Sec. 402(1), substituted ``third, 
fourth, and fifth'' for ``third and fourth'' after ``Notwithstanding any 
other provision of law, except as provided in the''.
    Pub. L. 98-258, Sec. 402(2), inserted sentence providing: ``For the 
1985 crop of rice, if the Secretary estimates that the quantity of rice 
on hand in the United States on July 31, 1985 (not including any 
quantity of rice produced in the United States during calendar year 
1985), will exceed twenty-five million hundredweight, the Secretary 
shall provide for a combination of an acreage limitation program as 
described under this subparagraph and a land diversion program as 
described under subparagraph (B) under which the acreage planted to rice 
for harvest on the farm would be limited to the acreage base for the 
farm reduced by a total of not less than 25 per centum, consisting of a 
reduction of 20 per centum under the acreage limitation program and a 
reduction under the land diversion program equal to the difference 
between the total reduction for the farm and the 20 per centum reduction 
under the acreage limitation program.''
    Pub. L. 98-258, Sec. 402(3), substituted ``1983 and 1985 crops of 
rice'' for ``1983 crop of rice'' after ``As a condition of eligibility 
for loans, purchases, and payments on the''.
    Subsec. (i)(5)(B). Pub. L. 98-258, Sec. 402(4), inserted sentence 
providing that if the Secretary implements a land diversion program for 
the 1985 crop of rice under the provisions of subparagraph (A), the 
Secretary shall make crop retirement and conservation payments to any 
producer of the 1985 crop of rice whose acreage planted to rice for 
harvest on the farm is reduced so that it does not exceed the rice 
acreage base for the farm less an amount equivalent to the percentage of 
the acreage base specified by the Secretary, but not less than 5 per 
centum, in addition to the reduction required under the acreage 
limitation program under subparagraph (A), and who devotes to approved 
conservation uses an acreage of cropland equivalent to the reduction 
required from the rice acreage base under this subparagraph.
    Pub. L. 98-258, Sec. 402(5), substituted ``Diversion payments made 
to producers under this subparagraph shall be made in an amount computed 
by multiplying'' for ``Such payments shall be made in an amount computed 
by multiplying''.
    Pub. L. 98-258, Sec. 402(6), substituted ``$3.00 per hundredweight 
for the 1983 crop of rice, except that the rate may be reduced up to 10 
per centum if the Secretary determines that the same program objective 
could be achieved with the lower rate, and at not less than $2.70 per 
hundredweight for the 1985 crop of rice'' for ``$3.00 per hundredweight, 
except that the rate may be reduced up to 10 per centum if the Secretary 
determines that the same program objective could be achieved with the 
lower rate'' after ``The diversion payment rate shall be established by 
the Secretary at not less than'' and inserted a proviso that if the 
Secretary estimates that the quantity of rice on hand in the United 
States on July 31, 1985 (not including any quantity of rice produced in 
the United States during calendar year 1985), will exceed (I) thirty-
five million hundredweight, such rate shall be established by the 
Secretary at not less than $3.25 per hundredweight, and (II) forty-two 
million five hundred thousand hundredweight, such rate shall be 
established by the Secretary at not less than $3.50 per hundredweight.
    Pub. L. 98-258, Sec. 402(7), substituted ``1983 and 1985 crops'' for 
``1983 crop'' after ``The Secretary shall make not less than 50 per 
centum of any payments under this subparagraph to producers of the''.
    1983--Subsec. (f). Pub. L. 98-88 struck out subsec. (f) which read 
as follows: ``The provisions of this Act relating to price support for 
cotton shall apply severally to (1) American upland cotton and (2) extra 
long staple cotton described in subsection (a) of this section and 
ginned as required by subsection (e) of section 1347 of this title, 
except that, notwithstanding any other provision of this Act, price 
support shall be made available for the 1982 and each subsequent crop of 
extra long staple cotton through nonrecourse loans as provided in this 
subsection. If producers have not disapproved marketing quotas for any 
crop of extra long staple cotton, price support loans shall be made 
available to cooperators for such crop at a level which is not less than 
75 per centum or more than 125 per centum in excess of the loan level 
established for Strict Low Middling one and one-sixteenth inch upland 
cotton (micronaire 3.5 through 4.9) of such crop at average location in 
the United States. If producers have disapproved marketing quotas for 
any crop of extra long staple cotton, price support loans shall be made 
available to cooperators for such crop at a level which shall be 50 per 
centum in excess of the loan level established for Strict Low Middling 
one and one-sixteenth inch upland cotton (micronaire 3.5 through 4.9) of 
such crop at average location in the United States. Nothing contained 
herein shall affect the authority of the Secretary to make price support 
available for extra long staple cotton in accordance with section 1422 
of this title.'' See section 1444(h) of this title.
    1982--Subsec. (i)(5)(A). Pub. L. 97-253, Sec. 125(1)-(3), 
substituted ``Notwithstanding any other provision of law, except as 
provided in the third and fourth sentences of this paragraph, the'' for 
``Notwithstanding any other provision of this subsection, the'', 
following second sentence, inserted provision that for the 1983 crop of 
rice, the Secretary shall provide for a combination of (i) an acreage 
limitation program as described under this subparagraph and (ii) a 
diversion program as described under subpar. (B) under which the acreage 
planted to rice for harvest on the farm would be limited to the acreage 
base for the farm reduced by a total of 20 per centum, consisting of a 
reduction of 15 per centum under the acreage limitation program and a 
reduction of 5 per centum under the diversion program, and that as a 
condition of eligibility for loans, purchases, and payments on the 1983 
crop of rice, the producers on a farm must comply with the terms and 
conditions of the combined acreage limitation and diversion program, 
and, following ninth sentence, inserted provision that notwithstanding 
the other provisions of this subparagraph, the acreage base to be used 
for the farm under the program for the 1983 crop of rice shall be the 
same as the acreage base applicable to the farm under the acreage 
limitation program for the 1982 crop, adjusted to reflect established 
crop-rotation practices and to reflect such other factors as the 
Secretary determines should be considered in determining a fair and 
equitable base.
    Subsec. (i)(5)(B). Pub. L. 97-253, Sec. 125(4), inserted provision 
requiring the Secretary to implement a land diversion program for the 
1983 crop of rice under which the Secretary shall make crop retirement 
and conservation payments to producers making a reduction additional to 
that required under subpar. (A) and devoting an equivalent acreage of 
cropland to conservation purposes, and provisions for the computation of 
payments, and establishment of payment rates by the Secretary, as well 
as payment by the Secretary of not less than 50 per centum of any 
payments under this subparagraph to 1983 crop producers as soon as 
practicable after any such producer enters into a land diversion 
contract with the Secretary and in advance of any determination of 
performance, but in no case prior to Oct. 1, 1982, and repayment of 
advances, with interest, in the event of noncompliance by such producer 
with such contract.
    1981--Subsec. (f). Pub. L. 97-98, Sec. 508, substituted provisions 
authorizing price support for extra long staple cotton for the 1982 crop 
and each subsequent crop through nonrecourse loans as provided in this 
subsection and prescribing the level of price support loans available to 
cooperators if producers have not, or have, disapproved marketing quotas 
for any crop of extra long staple cotton as specified percentages of the 
loan level established for Strict Low Middling one and one-sixteenth 
inch upland cotton, micronaire 3.5 through 4.9, of such crop at average 
location in the United States for provisions authorizing price support 
for extra long staple cotton to cooperators for the 1980 crop and each 
subsequent crop based on the loan level established for Strict Low 
Middling one and one-sixteenth inch upland cotton and adjusted by the 
specified factors, provisions determining the computation of acreage 
allotments of extra long staple cotton, provisions authorizing the 
Secretary to establish the price-support payment factor, provisions 
authorizing the manner and mode of payments authorized under this 
section, and provisions making operative subsec. (d)(3) of this section 
upon the disapproval by producers of the national marketing quota 
established pursuant to section 1347 of this title.
    Subsec. (i). Pub. L. 97-98, Sec. 602, temporarily added subsec. (i). 
See Effective and Termination Dates of 1981 Amendment note below.
    1980--Subsec. (h)(4)(B). Pub. L. 96-365, Sec. 201(a)(1), substituted 
``Except as otherwise provided in subparagraph (D) of this paragraph, 
effective with respect to the 1978 through 1981 crops of rice'' for 
``Effective only with respect to the 1978, 1979, and 1980 crops of 
rice''.
    Pub. L. 96-213, Sec. 4(a)(1), substituted ``1978, 1979, and 1980 
crops of rice'' for ``1978 and 1979 crops of rice''.
    Subsec. (h)(4)(C). Pub. L. 96-365, Sec. 201(a)(2), substituted 
``Except as otherwise provided in subparagraph (D) of this paragraph, 
effective with respect to the 1978 through 1981 crops of rice'' for 
``Effective only with respect to the 1978, 1979, and 1980 crops of 
rice''.
    Pub. L. 96-213, Sec. 4(a)(2), substituted ``1978, 1979, and 1980 
crops of rice'' for ``1978 and 1979 crops of rice''.
    Subsec. (h)(4)(D), (E). Pub. L. 96-365, Sec. 201(a)(3), added 
subpar. (D) and redesignated former subpar. (D) as (E).
    1979--Subsec. (f). Pub. L. 96-176 substituted ``1980'' for ``1968'', 
``85'' for ``50'', ``135'' for ``100'', and ``55'' for ``65''.
    1977--Subsec. (f). Pub. L. 95-113, Sec. 607, substituted ``Strict 
Low Middling one and one-sixteenth inch'' for ``Middling one-inch''.
    Subsec. (h). Pub. L. 95-113, Sec. 702, temporarily added subsec. 
(h). See Effective and Termination Dates of 1977 Amendment note below.
    1976--Subsec. (g). Pub. L. 94-214 temporarily added subsec. (g). See 
Effective and Termination Dates of 1976 Amendment note below.
    1968--Subsec. (f). Pub. L. 90-475 substituted provisions authorizing 
price support for extra long staple cotton for the 1968 crop and each 
subsequent crop based on the loan level established for Middling one-
inch upland cotton and adjusted by the specified factors, provisions 
determining the computation of acreage allotments of extra long staple 
cotton, provisions authorizing the Secretary to establish the price-
support payment factor, and provisions authorizing the manner and mode 
of payments authorized under this section, for provisions authorizing 
price support for extra long staple cotton for the 1957 crop and each 
subsequent crop based on the parity price for the 1956 crop and adjusted 
by certain specified factors, with a minimum price support level of not 
less than 60 percent of the parity price, and provisions making 
operative subsec. (d)(3) of this section upon the disapproval by 
producers of the national marketing quota established pursuant to 
section 1347 of this title.
    1960--Subsec. (e). Pub. L. 86-389 repealed subsec. (e) which 
provided that: ``Notwithstanding any of the provisions of this Act, 
section 2 of the Act of July 28, 1945 (59 Stat. 506) shall continue in 
effect.'' See section 1445 of this title.
    1958--Subsec. (a). Pub. L. 85-835, Sec. 302(a), substituted ``and 
wheat'' for ``wheat, and rice'' and added par. requiring rice price 
support levels to be not less than 75, 70, and 65 per centum of parity 
for 1959 and 1960, 1961, and 1962 and subsequent crop years, 
respectively.
    Subsec. (d)(4). Act Oct. 31, 1949, Sec. 104(b)(3), as added Pub. L. 
85-835, Sec. 201, repealed par. (4) which provided for price support 
level for corn to cooperators outside the commercial corn-producing area 
at 75 per centum of the level of price support to cooperators in the 
commercial corn-producing area.
    Subsec. (f). Pub. L. 85-497 provided that the level of support for 
crops of extra long staple cotton shall not exceed the same per centum 
of the parity price as for the 1956 crop, required such level to be 
determined after consideration of the factors specified in section 
1421(b) of this title and the price levels for similar qualities of 
cotton produced outside the United States, and established a minimum of 
not less than 60 per centum of the parity price as the level for extra 
long staple cotton.
    1957--Subsec. (f). Pub. L. 85-28 set the price support for extra 
long staple cotton for 1957 and each subsequent crop at same per centum 
of parity price as for 1956 crop.
    1954--Subsec. (d)(6). Act Aug. 28, 1954, Sec. 201(a), provided for 
flexible price supports.
    Subsec. (d)(7). Act Aug. 28, 1954, Sec. 201(b), added par. (7).
    Subsec. (f). Act Aug. 28, 1954, Sec. 202, set the price support for 
long staple cotton at the minimum determined in accordance with the 
schedule in subsec. (b) of this section.
    1952--Subsec. (d)(6). Act July 17, 1952, Sec. 2, added par. (6).
    Subsec. (f). Act July 17, 1952, Sec. 3(1), added subsec. (f).


            Effective and Termination Dates of 1985 Amendment

    Section 602 of Pub. L. 99-198 provided that the amendment made by 
that section is effective for 1985 crop of rice.


                    Effective Date of 1983 Amendment

    Section 2 of Pub. L. 98-88 provided that the amendment made by that 
section is effective beginning with 1984 crop of extra long staple 
cotton.


            Effective and Termination Dates of 1981 Amendment

    Section 508 of Pub. L. 97-98 provided that the amendment made by 
that section is effective beginning with 1982 crop of extra long staple 
cotton.
    Section 602 of Pub. L. 97-98 provided that the amendment made by 
that section is effective only for 1982 through 1985 crops of rice.


                    Effective Date of 1979 Amendment

    Pub. L. 96-176 provided that the amendment made by that section is 
effective with respect to 1980 and subsequent crops of extra long staple 
cotton.


            Effective and Termination Dates of 1977 Amendment

    Section 702 of Pub. L. 95-113 provided that the amendment made by 
that section is effective only for 1978 through 1981 crops of rice.
    Amendment by Pub. L. 95-113 effective Oct. 1, 1977, except as 
otherwise provided, see section 1901 of Pub. L. 95-113, set out as a 
note under section 1307 of this title.


            Effective and Termination Dates of 1976 Amendment

    Section 102 of Pub. L. 94-214 provided that the amendment made by 
that section is effective for 1976 and 1977 crops of rice.


                    Effective Date of 1958 Amendment

    Section 104(b)(3) of act Oct. 31, 1949, as added by section 201 of 
Pub. L. 85-835, provided for repeal of subsec. (d)(4) of this section 
effective with 1959 crop, to be operative as provided in section 
1444a(b) of this title. See 1958 Referendum for Selection of Alternative 
Corn Program and Operative Status of Certain Provisions note set out 
under section 1444a of this title.
    Section 302(a) of Pub. L. 85-835 provided in part that the amendment 
by Pub. L. 85-835 [amending this section] is effective beginning with 
the 1959 crop.


                       Inapplicability of Section

    Section inapplicable to 1996 through 2002 crops of loan commodities, 
peanuts, and sugar and inapplicable to milk during period beginning Apr. 
4, 1996, and ending Dec. 31, 2002, see section 7301(b)(1)(A) of this 
title.
    Pub. L. 101-624, title VIII, Sec. 808, Nov. 28, 1990, 104 Stat. 
3478, provided that: ``Section 101 of the Agricultural Act of 1949 (7 
U.S.C. 1441) shall not be applicable to the 1991 through 1995 crops of 
peanuts.''
    Section 707 of Pub. L. 99-198 provided that: ``Section 101 of the 
Agricultural Act of 1949 (7 U.S.C. 1441) shall not be applicable to the 
1986 through 1990 crops of peanuts.''
    Section 707 of Pub. L. 97-98 provided that: ``Section 101 of the 
Agricultural Act of 1949 [this section] shall not be applicable to the 
1982 through 1985 crops of peanuts.''


                    Report on Trading of Rice Futures

    Section 603 of Pub. L. 97-98 required Secretary of Agriculture to 
submit a report to Congress evaluating the trading of rice futures on 
commodity exchanges by July 31, 1983.


   Exemption of Disaster Payment Limitations Respecting 1977 Crops of 
               Wheat, Feed Grains, Upland Cotton, and Rice

    Term ``payments'' as used in subsec. (g)(13) of this section shall 
not include any part of any payment which is determined by the Secretary 
of Agriculture to represent compensation for disaster loss with respect 
to 1977 crops of wheat, feed grains, upland cotton, and rice, see Pub. 
L. 95-156, set out as a note under section 1307 of this title.


                             1963 Wheat Crop

    Pub. L. 87-703, title III, Sec. 306, Sept. 27, 1962, 76 Stat. 615, 
required that price support for 1963 crop of wheat be made available as 
provided in section 1441 of this title with certain exceptions.


                             1962 Wheat Crop

    Pub. L. 87-128, title I, Sec. 123, Aug. 8, 1961, 75 Stat. 297, 
required that price support for 1962 crop of wheat be made available as 
provided in section 1441 of this title with certain exceptions.

                  Section Referred to in Other Sections

    This section is referred to in sections 1427, 1428, 1442, 1444, 
1444a, 1444b, 1445, 1445a, 7301 of this title.
