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computed from multiplying the difference (d) Subtract an amount equal to the between the appropriate Class I price of total value of the plus location differenthe preceding month and the appropriate tials computed pursuant to $ 1060.82(a); Class I price for the current month by the (e) Add an amount equal to not less hundredweight of skim milk and butter- than one-half of the unobligated balfat subtracted from Class I pursuant to ance in the producer-settlement fund; § 1060.46(a) (3) and the corresponding (f) Divide the resulting amount by the step of § 1060.46(b): Provided, That if sum of the following for all handlers inthe Class I price for the current month cluded in these computations; is less than the Class I price for the (1) The total hundredweight of propreceding month, the result shall be a ducer milk; and minus amount;

(2) The total hundredweight for (e) Add the amount equal to the dif- which a value is computed pursuant to ference between the value at the Class I § 1060.70(f); and price applicable at the pool plant and the (g) Subtract not less than 4 cents nor value at the Class II price, with respect more than 5 cents per hundredweight. to skim milk and butterfat from other The result shall be the “uniform price" source milk subtracted from Class I pur- for milk received from producers. suant to § 1060.46(a) (4) and the corre

PAYMENTS sponding step of $ 1060.46(b), except that for receipts of fluid milk products § 1060.80 Time and method of payment. assigned to Class I pursuant to § 1060.46 Each handler shall make payment for (a) (4) (iv) and (v) and the correspond- milk received from producers or cooperaing step of § 1060.46(b) the Class I price

tive associations as follows: shall be adjusted to the location of the

(a) To each producer for whom paytransferor plant; and

ment is not made pursuant to paragraph (f) Add an amount equal to the value (b) or (c) of this section: at the Class I price adjusted for location (1) A final settlement on or before the of the nearest nonpool plant(s) from 15th day after the end of each month which an equivalent volume was received during which producer milk was received, with respect to skim milk and butterfat

at not less than the uniform price for subtracted from Class I pursuant to such milk, adjusted by the butterfat dif§ 1060.46(a) (8) and the corresponding ferential computed pursuant to § 1060.81, step of § 1060.46(b).

subject to the location adjustment to (32 F.R. 13703, Sept. 30, 1967, as amended at producers pursuant to § 1060.82, and less 34 F.R. 18660, Nov. 22, 1969]

the following amounts: § 1060.71 Computation of uniform

(i) The payments made pursuant to price.

subparagraph (2) of this paragraph;

(ii) Marketing service deductions purFor each month the market adminis

suant to g 1060.87; and trator shall compute a uniform price as follows:

(iii) Any deductions authorized by the (a) Combine into one total the values

producer: Provided, That if by such date computed pursuant to § 1060.70 for all

such handler has not received full payhandlers who filed reports pursuant to

ment for such month pursuant to $$ 1060.35 and 1060.37(b) for the month § 1060.85, he may reduce his total payand who made the payments pursuant to ment to all producers uniformly by not $ $ 1060.80 and 1060.84 for the preceding less than the amount of reduction in month;

payment from the market administrator; (b) Add or subtract for each one-tenth the handler shall, however, complete percent that the average butterfat con- such payments not later than the date tent of milk represented by the values

for making such payments pursuant to specified in paragraph (a) of this section

this paragraph next following receipt of is less or more, respectively, than 3.5

the balance from the market adminispercent, the amount obtained by mul

trator; tiplying such difference by the butterfat differential pursuant to § 1060.81 and by

(2) A partial payment on or before multiplying the result by the total hun

the last day of each month with respect dredweight of such milk;

to producer milk received during the first (c) Add an amount equal to the total

15 days of the month at not less than value of minus location differentials the Class II price for the preceding computed pursuant to § 1060.82(a); month (without deduction for hauling);

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(b) (1) On or before the second day (d) In making payments to producers prior to the date payments are due indi- pursuant to paragraph (a) of this secvidual producers as specified in this sec- tion, each handler shall furnish each tion, pay to a cooperative association producer with a supporting statement which requests and which the in such form that it may be retained by market administrator determines is the producer, which shall show: authorized by its members to col- (1) The month and the identity of the lect payments for their milk and handler and of the producer; which promises in writing to reim- (2) The pounds per shipment, the toburse the handler the amount of tal pounds, and the average butterfat test any actual loss incurred by him because of milk delivered by the producer; of any member's claim on the part of (3) The minimum rate or rates at the cooperative association of the pay- which payment to the producer is rements pursuant to paragraph (a) of quired under the provisions of $ $ 1060.80, this section an amount equal to the sum 1060.81, and 1060.82; of the individual payments otherwise (4) The rate which is used in making payable to such producers. The fore- payment, if such rate is other than the going payment shall be made with re- applicable minimum rate; spect to milk of each producer whom (5) The amount or the rate per hunthe cooperative association certifies is a dredweight of each deduction claimed by member effective on and after the first the handler, including any deduction day of the calendar month next Tollow- claimed under paragraph (c) (2) of this ing receipt of such certification through section and $ 1060.87, together with a the last day of the month next preced- description of the respective deductions; ing receipt of notice from the coopera- and tive association of a termination of (6) The net amount of payment to the membership or until the original re- producer. quest is rescinded in writing by the co

§ 1060.81 Butterfat differential to prooperative association; and

ducers. (2) A copy of each such request, promise to reimburse, and certified list of The uniform price for producer milk members shall be filed simultaneously

shall be increased or decreased for each with the market administrator by the

one-tenth of 1 percent that the butterfat cooperative association and shall be sub

content of such milk is above or below ject to verification at his discretion

3.5 percent, respectively, at the rate dethrough audit of the records of the co

termined by multiplying the pounds of operative association pertaining thereto.

butterfat in producer milk allocated to Exceptions, if any, to the accuracy of

Class I and Class II milk pursuant to such certification by a producer claimed

§ 1060.46 by the respective butterfat difto be a member, or by a handler, shall be

ferential for each class, determined purmade by written notice to the market

suant to § 1060.52, dividing the sum of administrator and shall be subject to

such values by the total pounds of such his determination;

butterfat, and rounding the resultant (c) To cooperative association

figure to the nearest one-tenth cent. which is a handler pursuant to g 1060.10 § 1060.82 Location differentials to pro(a) or (b) for milk which it caused to ducers and on nonpool milk. be delivered to such handler:

(a) For producer milk received at & (1) A final settlement on or before

pool plant or diverted to a nonpool plant the 13th day after the end of the month

located outside the base zone, the uniin which the skim milk or butterfat was

form price shall be adjusted at the rate received, an amount equal to not less

set forth in § 1060.53. than the applicable class prices for all (b) For purposes of computation purskim milk and butterfat so delivered, less

suant to $ $ 1060.84 (b) (2) and 1060.85, the amount of payment made pursuant

the uniform price shall be adjusted at the to subparagraph (2) of this paragraph;

rates set forth in § 1060.53 applicable at (2) A partial payment on or before

the location of the nonpool plant(s) from the 26th day of each month at not less which the milk was received. than the applicable Class II price for the preceding month (without deduction for

§ 1060.83 Producer-settlement fund. hauling) for all skim milk and butterfat The market administrator shall estabso delivered during the first 15 days of lish and maintain a separate fund known the current month;

as the “producer-settlement fund" into

a

which he shall deposit all funds received if any by which the amount computed pursuant to paragraph (a) of this section pursuant to § 1060.84 (b) exceeds the and out of which he shall make all pay- amount computed pursuant to g 1060.84 ments required pursuant to paragraph (a). The market administrator shall off(b) of this section:

set any payment due any handler against (a) Payments made by handlers pur- payments due from such handler. If the suant to $$ 1060.61, 1060.62, 1060.84 and balance in the producer-settlement fund 1060.86.

is insuficient to make all payments pur(b) Payments due handlers pursuant suant to this section, the market adminto $ $ 1060.85 and 1050.86: Provided, That istrator shall reduce uniformly such paypayments due any handler shall be offset ments and shall complete such payments by payments due from such handler pur- as soon as the necessary funds are suant to $$ 1060.62, 1060.84, 1060.86, available. 1060.87, and 1060.88.

§ 1060.86 Adjustment of accounts. [32 F.R. 13703, Sept. 30, 1967, as amended at 34 F.R. 18660, Nov. 22, 1969]

(a) Whenever audit by the market

administrator of any handler's reports, § 1060.84 Payments to the producer

books, records, or accounts discloses settlement fund.

errors resulting in moneys due the marOn or before the 13th day after the end

ket administrator or any producer or of the month each handler shall pay to

cooperative association from such the market administrator the amount, if

handler, the market administrator shall any, by which the total amounts specified

promptly notify such handler of the in paragraph (a) of this section exceed amount due and payment therefor shall the amount specified in paragraph (b) be made within 5 days if such amount is of this section: Provided, That payment due the market administrator, or on or made by a cooperative association as a before the next date for making payhandler shall not relieve the transferee ments to producers or a cooperative ashandler of any obligation on any such sociation, if such amount is due them. milk which is due the cooperative asso- Whenever such audit discloses errors ciation, or otherwise due pursuant to resulting in moneys due such handler $$ 1060.80 through 1060.88:

from the market administrator, payment (a) The sum of:

shall be made within 5 days. (1) The total of the net pool obligation computed pursuant to § 1060.70 for such

§ 1060.87 Marketing services. handlers; and

(a) Except as set forth in paragraph (2) In the case of a cooperative asso- (b) of this section, each handler in makciation which is a handler pursuant to ing payments to producers other than to § 1060.10(c), the minimum amounts due himself pursuant to § 1060.80(a) (1) shall from other handlers pursuant to § 1060.80 deduct 5 cents per hundredweight or (c) (1); and

such lesser amount as the Secretary may (b) The sum of:

prescribe with respect to all milk re(1) The amount required to be paid ceived by such handler from producers producers (including payments to pro- during the month, and shall pay such ducers through cooperative associations) deductions to the market administrator pursuant to $ 1060.80 before deductions not later than the 15th day after the end authorized by the producer or coopera- of the month. Such money shall be used tive association or for marketing serv- by the market administrator to verify or ices pursuant to § 1060.87; and

establish weights, samples, and tests of (2) The value at the uniform price(s) milk received from, and to provide marapplicable at the location of the plant(s) ket information to, such producers. Such from which received (not to be less than services shall be performed in whole or the value at the Class II price) with in part by the market administrator or respect to other source milk for by an agent engaged by and responsible which a value is computed pursuant to to him. § 1060.70(e).

(b) In the case of producers for whom § 1060.85 Payments out of the producer

a cooperative association is performing, settlement fund.

as determined by the Secretary, the servOn or before the 14th day after the

ices set forth in paragraph (a) of this end of each month the market adminis

section, each handler shall, in lieu of the trator shall pay (subject to the proviso deductions specified in paragraph (a) of of $ 1060.83) to each handler the amount this section, make such deductions from

as

the payments to be made directly to pro- which the obligation exists, were received ducers pursuant to § 1060.80(a) (1), or handled; and are authorized by such producers and, on (3) If the obligation is payable to one or before the 15th day after the end of or more producers or to an association of each month, pay over such deductions to producers, the name of such producer(s) the association (of which such producers or association of producers, or if the are members) rendering such services. obligation is payable to the market ad

(c) When requested by the coopera- ministrator, the account for which it is tive association a statement shall be sup- to be paid. plied the cooperative association show- (b) If a handler fails or refuses, with ing for each producer for whom such respect to any obligation under this part, deduction is made the amount of such to make available to the market admindeduction, the total delivery of milk, and istrator or his representatives all books unless otherwise previously provided, the

and records required by this part to be butterfat test.

made available, the market administra

tor may, within the 2-year period pro§ 1060.88 Expense of administration.

vided for in paragraph (a) of this As his pro rata share of the expense section, notify the handler in writing of of the administration of the order, each such failure or refusal. If the market adhandler shall pay to the market adminis- ministrator so notified a handler, the trator on or before the 15th day after the said 2-year period, with respect to such end of each month four cents per hun- obligation, shall not begin to run until dredweight or such lesser amount as the the 1st day of the calendar month folSecretary may prescribe with respect to lowing the month during which all such skim milk and butterfat contained in: books and records pertaining to such ob

(a) Producer milk (including a han- ligation are made available to the mardler's own farm production);

ket administrator or his representatives. (b) Other source milk allocated to (c) Notwithstanding the provisions of Class I milk pursuant to $ 1060.46(a) (4) paragraphs (a) and (b) of this section, and (8) and the corresponding steps in a handler's obligation under this part to § 1060.46(b); and

pay money shall not be terminated with (c) Class I milk disposed of in the respect to any transaction involving marketing area from a partially regulated fraud or willful concealment of a fact, distributing plant that exceeds the material to the obligation, on the part of hundredweight of Class I milk received the handler against whom the obligation during the month at such plant from is sought to be imposed. pool plants and other order plants.

(d) Any obligation on the part of the § 1060.89 Termination of obligations.

market administrator to pay a handler

any money which such handler claims to The provisions of this section shall ap- be due him under the terms of this part ply to any obligation under this part for shall terminate 2 years after the end of the payment of money.

the calendar month during which the (a) The obligation of any handler to skim milk and butterfat involved in the pay money required to be paid under the claim were received if an underpayment terms of this part shall, except as pro- is claimed, or 2 years after the end of the vided in paragraphs (b) and (c) of this calendar month during which the paysection, terminate 2 years after the last ment (including deduction or setoff by day of the calendar month during which the market administrator) was made by the market administrator receives the the handler if a refund on such payment handler's utilization report on the skim is claimed, unless such handler, within milk and butterfat involved in such ob- the applicable period of time files purligation unless within such 2-year period suant to section 8c(15) (A) of the Act, a the market administrator notifies the

petition claiming such money. handler in writing that such money is

[32 F.R. 13703, Sept. 30, 1967, as amended at due and payable. Service of such notice

34 F.R. 18660, Nov. 22, 1969] shall be complete upon mailing to the handler's last known address and it shall

EFFECTIVE TIME, SUSPENSION OR

TERMINATION contain, but need not be limited to, the following information:

§ 1060.90 Effective time. (1) The amount of the obligation; The provisions of this part, or any

(2) The months during which the amendments hereto, shall become effecskim milk and butterfat, with respect to tive at such time as the Secretary may declare and shall continue in force until to effectuate any such disposition. If & suspended or terminated pursuant to liquidating agent is so designated, all as§ 1060.91.

sets, books, and records of the market § 1060.91 Suspension or termination.

administrator shall be transferred

promptly to such liquidating agent. If The Secretary may suspend or ter

upon such liquidation, the funds on hand minate any or all of the provisions of

exceed the amounts required to pay outthis part after such reasonable notice as the Secretary shall give whenever he

standing obligations of the office of the finds that it obstructs or does not tend

market administrator and to pay necesto effectuate the declared policy of the

sary expenses of liquidating and distribuAct. This part shall, in any event, ter

tion, such excess shall be distributed to minate whenever the provisions of the

contributing handlers and producers in Act authorizing it cease to be in effect. an equitable manner. § 1060.92 Continuing obligations.

MISCELLANEOUS PROVISIONS (a) If, upon the suspension or ter- § 1060.100 Agents. mination of any or all of the provisions of this part, there are any obligations

The Secretary may, by designation in arising hereunder, the final accrual or

writing, name any officer or employee of ascertainment of which requires further

the United States to act as his agent or acts by any handler, by the market ad- representative in connection with any of ministrator, or by any other person, the the provisions of this part. power and duty to perform such further

$ 1060.101 Separability of provisions. acts shall continue notwithstanding such suspension or termination: Provided,

If any provision of this part, or its apThat any such acts required to be per

plication to any person or circumstances, formed by the market administrator is held invalid, the application of such shall, if the Secretary so directs, be per- provision, and of the remaining proviformed by such other person, persons, or sions of this part, to other persons or ciragency as the Secretary may designate. cumstances shall not be affected there(b) The market administrator or such

by. other person as the Secretary may designate shall (1) continue in such capacity

PART 1061—MILK IN THE SOUTHuntil removed by the Secretary; (2) from time to time account for all re

EASTERN MINNESOTA-NORTHERN ceipts and disbursements and deliver IOWA (DAIRYLAND MARKETING all funds or property on hand together AREA with the books and records of the mar

DEFINITIONS ket administrator or such person, to such Sec. person as the Secretary shall direct; and 1061.1 Act. (3) if so directed by the Secretary, ex

1061.2 Secretary.

1061.3 Department. ecute assignments or other instruments

1061.4 Person. necessary or appropriate to vest in

1061.5 Cooperative association. such person full title to all funds, prop- 1061.6 Southeastern Minnesota-Northern erty and claims vested in the market ad

Iowa (Dairyland) marketing ministrator or such person pursuant

1061.7 Fluid milk product. thereto.

1061.8 Route disposition. § 1060.93 Liquidation.

1061.9 Distributing plant.

1061.10 Supply plant. Upon the suspension or termination 1061.11 Pool plant. of the provisions of this part, except this 1061.12 Nonpool plant.

1061.13 Handler. section, the market administrator, or

1061.14 Producer-handler. such liquidating agent as the Secretary

1061.15 Producer. may designate shall if so directed by the

1061.16 Producer milk. Secretary, liquidate the business of the 1061.17 Diverted milk. market administrator's office, dispose of

1061.18 Other source milk. all property in his possession or control,

MARKET ADMINISTRATOR including accounts receivable, and ex

1061.20 Designation. ecute and deliver all assignments or other 1061.21 Powers. instruments necessary or appropriate 1061.22 Duties.

area.

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