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Sec.

TITLE 6.-SURETY BONDS

This title was enacted by act July 30, 1947, ch. 390, § 1, 61 Stat. 646

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1972-Pub. L. 92-310, title II, § 203 (3), (4), June 6, 1972, 86 Stat. 202, substituted "Surety Bonds" for "Official and Penal Bonds" in the title heading, and struck out items 1, 2, 3, 4, 5, and 14 from the analysis of sections.

S$1 to 5. Repealed. Pub. L. 92-310, title II, § 203(1), June 6, 1972, 86 Stat. 202.

Section 1, acts July 30, 1947, ch. 390, 61 Stat. 646; Oct. 31, 1951, ch. 655, § 13, 65 Stat. 715, related to custody of official bonds.

Section 2, act July 30, 1947, ch. 390, 61 Stat. 647, directed the examination at least once every two years of the sufficiency of sureties on official bonds.

Section 3, acts July 30, 1947, ch. 390, 61 Stat. 647; Sept. 3, 1954, ch. 1263, § 15, 68 Stat. 1231, related to the renewal of bonds and the continuance of liability.

Section 4, act July 30, 1947, ch. 390, 61 Stat. 647, related to notice of delinquency of principal. The provisions of the section were reenacted by section 260 of Pub. L. 92– 310, which is classified to section 497a of Title 31, Money and Finance.

Section 5, act July 30, 1947, ch. 390, 61 Stat. 648, related to limitation of actions against sureties.

§ 6. Surety companies as sureties.

Whenever any recognizance, stipulation, bond, or undertaking conditioned for the faithful performance of any duty, or for doing or refraining from doing anything in such recognizance, stipulation, bond, or undertaking specified, is by the laws of the United States required or permitted to be given with one surety or with two or more sureties, the execution of the same or the guaranteeing of the performance of the condition thereof shall be sufficient when

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executed or guaranteed solely by a corporation incorporated under the laws of the United States or of any State having power to guarantee the fidelity of persons holding positions of public or private trust, and to execute and guarantee bonds and undertakings in judicial proceedings. Such recognizance, stipulation, bond, or undertaking shall be approved by the head of department, court, judge, officer, board, or body executive, legislative, or judicial required to approve or accept the same. No officer or person having the approval of any bond shall require that such bond shall be furnished by a guaranty company or by any particular guaranty company. (As amended June 6, 1972, Pub. L. 92-310, title II, § 203 (2), 86 Stat. 202.)

AMENDMENTS

1972-Pub. L. 92-310 eliminated provisions which excepted bonds obtained under section 14 of this title. SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 29 sections 1112, 1363.

§ 7. Same; appointment of agents; service of process.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in title 29 sections 1112, 1363.

§ 8. Same; deposit of copy of charter.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in title 29 sections 1112, 1363. SECTION REFERRED TO IN D.C. CODE This section is referred to in section 1-244 of the District of Columbia Code.

§§ 9 to 13.

SECTIONS REFERRED TO IN OTHER SECTIONS These sections are referred to in title 29 sections 1112, 1363.

§ 14. Repealed. Pub. L. 92-310, title II, § 203(1), June 6, 1972, 86 Stat. 202.

Section, acts July 30, 1947, ch. 390, 61 Stat. 650; Aug. 9, 1955, ch. 683, § 1, 69 Stat. 618, related to the purchase of bonds to cover officers and employees of the Federal Government.

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Commodity Futures Trading Commission [New].

Commissioners.

(c) General Counsel.

(d) Executive Director.

(e) Powers and functions of Chairman.

(f) Conflict of interest.

(g) Liaison with Department of Agriculture. (h) Transmittal of budget requests and legislative recommendations to Congressional Committees.

(1) Seal.

(j) Rules and regulations.

Trades and executions by floor brokers; trades by
futures commission merchants [New].
Registration of associates of futures commission
merchants [New].
Commodity trading advisors and commodity pool
operators; Congressional finding [New].
Same; use of mails or other means or instru-
mentalities of interstate commerce [New].
Same; registration; application; expiration and
renewal; record keeping and reports; disclosure;
statements of account; denial of registration;
revocation of suspension [New].

Same; fraud; misrepresentation [New].
Standards and examinations [New].
Assessment of money penalties [New].
Annual report to Congress [New].

Reviews and audits by Comptroller General [New].

Disciplinary actions; notice; review of action by Commission [New].

Action to enjoin or restrain violations; compliance writs and orders; jurisdiction and venue; process [New].

Leverage contracts for gold and silver [New]. Complaints against registered persons [New]. (a) Petition.

(b) Investigation and hearing.

(c) Determination.

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Registered futures associations [New].

(a) Registration statement.

(b) Standards for registration; Commission findings.

(c) Suspension of registration.

(d) Fees and charges.

(e) Registered persons not members of registered associations.

(f) Denial of registration.

(g) Withdrawal from registration; notice of withdrawal.

(h) Commission review of disciplinary actions taken by registered futures associations. (1) Notice; hearing; findings; cancellation, reduction, or remission of penalties. (j) Changes or additions to association rules. (k) Abrogation of association rules; requests to associations by Commission to alter or supplement rules.

(1) Suspension and revocation of registration; expulsion of members; removal of association officers or directors.

(m) Reports to Congress.

Research and information programs; reports to Congress [New].

§ 2. Definitions.

For the purposes of this chapter "contract of sale" shall be held to include sales, agreements of sale, and agreements to sell. The word "person" shall be construed to import the plural or singular, and shall include individuals, associations, partnerships, corporations, and trusts. The word "commodity" shall mean wheat, cotton, rice, corn, oats, barley, rye, flaxseed, grain sorghums, mill feeds, butter, eggs, Solanum tuberosum (Irish potatoes), wool, wool tops, fats and oils (including lard, tallow, cottonseed oil, peanut oil, soybean oil and all other fats and oils), cottonseed meal, cottonseed, peanuts, soybeans, soybean meal, livestock, livestock products, and frozen concentrated orange juice, and all other goods and articles, except onions as provided in section 13-1 of this title, and all services, rights, and interests in which contracts for future delivery are presently or in the future dealt in: Provided, That the Commission shall have exclusive jurisdiction with respect to accounts, agreements (including any transaction which is of the character of, or is commonly known to the trade as, an "option", "privilege", "indemnity", "bid", "offer", "put", "call", "advance guaranty", or "decline guaranty"), and transactions involving contracts of sale of a commodity for future delivery, traded or executed on a contract market designated pursuant to section 7 of this title or any other board of trade, exchange, or market, and transactions subject to regulation by the Commission pursuant to section 15a of this title: And provided further, That, except as hereinabove provided, nothing contained in this section shall (i) supersede or limit the jurisdiction at any time conferred on the Securities and Ex

change Commission or other regulatory authorities under the laws of the United States or of any State, or (ii) restrict the Securities and Exchange Commission and such other authorities from carrying out their duties and responsibilities in accordance with such laws. Nothing in this section shall supersede or limit the jurisdiction conferred on courts of the United States or any State. Nothing in this chapter shall be deemed to govern or in any way be applicable to transactions in foreign currency, security warrants, security rights, resales of installment loan contracts, repurchase options, government securities, or mortgages and mortgage purchase commitments, unless such transactions involve the sale thereof for future delivery conducted on a board of trade. The term "future delivery", as used in this chapter, shall not include any sale of any cash commodity for deferred shipment or delivery. The words "board of trade" shall be held to include and mean any exchange or association, whether incorporated or unincorporated, of persons who shall be engaged in the business of buying or selling commodity or receiving the same for sale on consignment. The words "interstate commerce" shall be construed to mean commerce between any State, Territory, or possession, or the District of Columbia, and any place outside thereof; or between points within the same State, Territory, or possession, or the District of Columbia, but through any place outside thereof, or within any Territory or possession, or the District of Columbia. The words "cooperative association of producers" shall mean any cooperative association, cooperate or otherwise, not less than 75 per centum in good faith owned or controlled, directly or indirectly, by producers of agricultural products and otherwise complying with sections 291 and 292 of this title, including any organization acting for a group of such associations and owned or controlled by such associations, provided that business done for or with the United States of America, or any agency thereof, shall not be considered either member or nonmember business in determining the compliance of any such association with said sections. The words "member of a contract market" shall mean and include individuals, associations, partnerships, corporations, and trusts owning or holding membership in, or admitted to membership representation on, a contract market or given members' trading privileges thereon. The words "futures commission merchant" shall mean and include individuals, associations, partnerships, corporations, and trusts engaged in soliciting or in accepting orders for the purchase or sale of any commodity for future delivery on or subject to the rules of any contract market and that, in or in connection with such solicitation or acceptance of orders, accepts any money, securities, or property (or extends credit in lieu thereof) to margin, guarantee, or secure any trades or contracts that result or may result therefrom. The words "floor broker" shall mean any person who, in or surrounding any "pit", "ring", "post", or other place provided by a contract market for the meeting of persons similarly engaged, shall purchase or sell for any other person any commodity for future delivery on or subject to the rules of any contract market. The words "the

Commission" shall mean the Commodity Futures Trading Commission established under section 4a of this title. The term "commodity trading advisor" shall mean any person who, for compensation or profit, engages in the business of advising others, either directly or through publications or writings, as to the value of commodities or as to the advisability of trading in any commodity for future delivery on or subject to the rules of any contract market, or who for compensation or profit, and as part of a regular business, issues or promulgates analyses or reports concerning commodities; but does not include (i) any bank or trust company, (ii) any newspaper reporter, newspaper columnist, newspaper editor, lawyer, accountant, or teacher, (iii) any floor broker or futures commission merchant, (iv) the publisher of any bona fide newspaper, news magazine, or business or financial publication of general and regular circulation including their employees, (v) any contract market, and (vi) such other persons not within the intent of this definition as the Commission may specify by rule, regulation, or order: Provided, That the furnishing of such services by the foregoing persons is solely incidental to the conduct of their business or profession. The term "commodity pool operator" shall mean any person engaged in a business which is of the nature of an investment trust, syndicate, or similar form of enterprise, and who, in connection therewith, solicits, accepts, or receives from others, funds, securities, or property, either directly or through capital contributions, the sale of stock or other forms of securities, or otherwise, for the purpose of trading in any commodity for future delivery on or subject to the rules of any contract market, but does not include such persons not within the intent of this definition as the Commission may specify by rule or regulation or by order. (Sept. 21, 1922, ch. 369, § 2(a) (1), formerly § 2(a), 42 Stat. 998; June 15, 1936, ch. 545, §§ 2, 3, 49 Stat. 1491; Apr. 7, 1938, ch. 108, 52 Stat. 205; Oct. 9, 1940, ch. 786, § 1, 54 Stat. 1059; Aug. 28, 1954, ch. 1041, title VII, § 710(a), 68 Stat. 913; July 26, 1955, ch. 382, § 1, 69 Stat. 375; Feb. 19, 1968, Pub. L. 90-258, § 1, 82 Stat. 26; July 23, 1968, Pub. L. 90-418, 82 Stat. 413; renumbered and amended Oct. 23, 1974, Pub. L. 93463, title I, § 101 (a) (1), (2), title II, §§ 201, 202, Oct. 23, 1974, 88 Stat. 1389, 1395.)

CODIFICATION

Section consists of part of subsec. (a) (1) of section 2 of the Commodity Exchange Act, act Sept. 21, 1922. The remainder of such subsec. (a) (1) is classified to section 4 of this title. Subsec. (a) (2)-(11) of section 2 of the Commodity Exchange Act is classified to section 4a of this title. Subsec. (b) of section 2 of the Commodity Exchange Act is classified to section 3 of this title.

AMENDMENTS

1974 Pub. L. 93-463 struck out "onions," following "eggs," in the definition of "commodity" and added provisions to that definition to include as commodities all other goods and articles, except onions as provided in section 13-1 of this title, and all services, rights, and interests in which contracts for the future delivery are presently or in the future dealt in, added definitions for the terms "commodity trading advisor" and "commodity pool operator", and, as the definition of the words "the Commission". substituted "Commodity Futures Trading Commission established under section 4a of this title" for "Commodity Exchange Commission, consisting of the Secretary of Agriculture, the Secretary of Commerce, and the Attorney

General, or an official or employee of each of the executive departments concerned, designated by the Secretary of Agriculture, the Secretary of Commerce, and the Attorney General, respectively; and the Secretary of Agriculture or his designee shall serve as Chairman".

EFFECTIVE DATE OF 1974 AMENDMENT

Section 418 of Pub. L. 93-463 provided that: "(a) Except as otherwise provided specifically in this Act (see Short Title note under section 4a of this title], the effective date of this Act shall be the 180th day after enactment [Oct. 23, 1974]. The Commission referred to in section 101 [Commodity Futures Trading Commission] is hereby established effective immediately on enactment of this Act [Oct. 23, 1974]. Sections 102 and 410 [amending sections 5108, 5314, 5315, and 5316 of Title 5] shall be effective immediately on enactment of this Act [Oct. 23, 1974]. Activities necessary to implement the changes effected by this Act may be carried out after the date of enactment [Oct. 23, 1974] and before as well as after the 180th day thereafter. Activities to be carried out after the date of enactment [Oct. 23, 1974] and before the 180th day thereafter may include, but are not limited to the following: designation of boards of trade as contract markets, registration of futures commission merchants, floor brokers, and other persons required to be registered under the Act [this chapter], approval or modification of bylaws, rules, regulations, and resolutions of contract markets, and issuance of regulations, effective on or after the 180th day after enactment [Oct. 23, 1974]; appointment and compensation of the members of the Commission; hiring and compensation of staff; and conducting of investigations and hearings. Nothing in this Act shall limit the authority of the Secretary of Agriculture or the Commodity Exchange Commission under the Commodity Exchange Act, as amended, prior to the 180th day after enactment of this Act [Oct. 23, 1974].

"(b) Funds appropriated for the administration of the Commodity Exchange Act, as amended [this chapter], may be used to implement this Act [see Short Title note under section 4a of this title] immediately after the date of enactment of this Act [Oct. 23, 1974].”

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 6c of this title.

SECTION REFERRED TO IN D.C. CODE

This section is referred to in section 1-1182 of the District of Columbia Code.

§ 4. Liability of principal for act of agent.

CODIFICATION

Section 2(a) of act Sept. 21, 1922, was renumbered 2 (a) (1) by Pub. L. 93-463, title I, § 101 (a) (1), Oct. 23, 1974, 88 Stat. 1389.

§ 4a. Commodity Futures Trading Commission. (a) Establishment; composition; term of Commissioners.

There is hereby established, as an independent agency of the United States Government, a Commodity Futures Trading Commission. The Commission shall be composed of a Chairman and four other Commissioners, who shall be appointed by the President, by and with the advice and consent of the Senate. In nominating persons for appointment, the President shall seek to establish and maintain a balanced Commission, including, but not limited to, persons of demonstrated knowledge in futures trading or its regulation and persons of demonstrated knowledge in the production, merchandising, processing or distribution of one or more of the commodities or other goods and articles, services, rights and interests covered by this chapter. Not more than three of the members of the Commission shall be members of the same political party. Each Commissioner shall hold office for a term of five years and until his successor is appointed and has qualified, except that he

shall not so continue to serve beyond the expiration of the next session of Congress subsequent to the expiration of said fixed term of office, and except (A) any Commissioner appointed to fill a vacancy occurring prior to the expiration of the term for which his predecessor was appointed shall be appointed for the remainder of such term, and (B) the terms of office of the Commissioners first taking office after the enactment of this subsection shall expire as designated by the President at the time of nomination, one at the end of one year, one at the end of two years, one at the end of three years, one at the end of four years, and one at the end of five years. (b) Vacancies.

A vacancy in the Commission shall not impair the right of the remaining Commissioners to exercise all the powers of the Commission.

(c) General Counsel.

The Commission shall have a General Counsel, who shall be appointed by the Commission and serve at the pleasure of the Commission. The General Counsel shall report directly to the Commission and serve as its legal advisor. The Commission shall appoint such other attorneys as may be necessary, in the opinion of the Commission, to assist the General Counsel, represent the Commission in all disciplinary proceedings pending before it, represent the Commission in courts of law whenever appropriate, assist the Department of Justice in handling litigation concerning the Commission in courts of law, and perform such other legal duties and functions as the Commission may direct.

(d) Executive Director.

The Commission shall have an Executive Director, who shall be appointed by the Commission, by and with the advice and consent of the Senate, and serve at the pleasure of the Commission. The Executive Director shall report directly to the Commission and perform such functions and duties as the Commission may prescribe.

(e) Powers and functions of Chairman.

(1) Except as otherwise provided in this subsection and in subsections (c) and (d) of this section, the executive and administrative functions of the Commission, including functions of the Commission with respect to the appointment and supervision of personnel employed under the Commission, the distribution of business among such personnel and among administrative units of the Commission, and the use and expenditure of funds, shall be exercised solely by the Chairman.

(2) In carrying out any of his functions under the provisions of this subsection, the Chairman shall be governed by general policies of the Commission and by such regulatory decisions, findings, and determinations as the Commission may by law be authorized to make.

(3) The appointment by the Chairman of the heads of major administrative units under the Commission shall be subject to the approval of the Commission.

(4) Personnel employed regularly and full time in the immediate offices of Commissioners other than the Chairman shall not be affected by the provisions of this subsection.

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