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U.S. Code as of:
01/03/05
Section 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 designated or registered as
a contract market or a derivatives transaction execution facility
exclude (!1) from membership in, and all privileges on, such board
of trade, any association or corporation engaged in cash commodity
business having adequate financial responsibility which is
organized under the cooperative laws of any State, or which has
been recognized as a cooperative 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 conditions as are or may be imposed lawfully upon other
members of such board, and as are or may be imposed lawfully upon a
cooperative association of producers engaged in cash commodity
business, unless such board of trade is authorized by the
commission to exclude such association or corporation from
membership and privileges after hearing held upon at least three
days' notice subsequent to the filing of complaint 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 contract 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 without imposing conditions, or it may permit
such board of trade immediately to bar such association or
corporation from membership and privileges. Any order of said
commission entered hereunder shall be reviewable by the court of
appeals for the circuit in which such association or corporation,
or such board of trade, has its principal place of business, on
written petition either of such association or corporation, or of
such board of trade, under the procedure provided 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 compensation
on a commodity-unit basis, or otherwise, by any federated
cooperative association to its regional member-associations for
services rendered or to be rendered in connection with any
organization work, educational activity, or procurement of
patronage, provided no part of any such compensation is returned to
patrons (whether members or nonmembers) of such cooperative
association, or of its regional or local member-associations,
otherwise than as a dividend on capital stock or as a patronage
dividend out of the net earnings or surplus of such federated
cooperative association.
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