Page:United States Statutes at Large Volume 110 Part 1.djvu/927

 PUBLIC LAW 104-127—APR. 4, 1996 110 STAT. 903 terms in section 102 of the Agricultural Market Transition Act.". (c) CONFORMING AMENDMENTS.— (1) Section 100L^ of the Food Security Act of 1985 (7 U.S.C. 1308-1) is amended— (A) in subsection (a)(1), by striking "under the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.)"; and (B) in subsection (b)( 1), by striking "under the Agricultural Act of 1949" (2) Section lOOlC(a) of the Act (7 U.S.C. 1308-3(a)) is amended— (A) by striking "For each of the 1991 through 1997 crops, any" and inserting "Any"; (B) by striking "production adjustment payments, price support program loans, payments, or benefits made available under the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.)," and inserting "loans or payments made available under the Agricultural Market Transition Act,"; and (C) by striking "during the 1989 through 1997 crop years". SEC. 116. VIOLATIONS OF CONTRACT. 7 USC 7216. (a) TERMINATION OF CONTRACT FOR VIOLATION. — Except as provided in subsection (b), if an owner or producer subject to a contract violates a requirement of the contract specified in section 111(a), 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.—I f the Secretary determines that a violation does not warrant termination of the contract under subsection (a), 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 for^jiving the repayments is appropriate to provide fair and equitable treatment. (2) RESUMPTION OF OPERATION.— Th is 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

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