
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 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.
