Page:United States Statutes at Large Volume 46 Part 1.djvu/60

 16 Patronage dividend. Loan authorized to corporation to control, etc ., surplus in a com- modity. Reserv es from pro fits. Payment of losses therefrom, or by revolv- ing fund loan. Avoidance of losses. Lim itat ion of c on- trol. No a ssessm ent of stockholders for losses. Accounts, etc ., to be kept. Audit by the Board. Loans made only in fur therance of decl ared policy. Ante, p. ii. Clearing house Asso- ciations . Formation of, maybe assisted by the Board, for economic market- ing, upon application of commodity associa- tions or producers. Registration, etc. Eligibility of inde- pendent dealers, etc. Proviso. Approval of policy. SE VEXTY-FIRST CONGZ I~SS. Snss. I. Cs. 24. 19A such loans and accrued interest have been fully repaid, then it may distribute a patronage dividend to its stockholders or members. Such patronage dividend shall be paid to each stockholder or member on the basis of the total volume of the commodity or its products for the year marketed for his account through the corporation. (d) Upon request of the advisory committee for any commodity the board is authorized to make loans from the revolving fund to the stabilization corporation for the commodity to enable the corporation to control any surplus in the commodity as hereinbefore provided and for meeting carrying and handling charges and other operating expenses in connection therewith. The board shall require a stabili- zation corporation to establish and maintain adequate reserves from its profits from its surplus control operations before it shall pay any dividends out of such profits. All losses of the corporation from such operations shall be paid from such reserves, or if such reserves are inadequate, then such losses shall be paid by the board as a loan from the revolving fund. Any amounts so loaned for payment of losses shall be repaid into the revolving fund b y th e c or por at ion f rom future profits from its surplus control operations. Any stabiliza- tion corporation receiving loans under this subdivision for surplus control operations shall exert every reasonable effort to avoid losses and to secure profits, but shall not withhold any commodity from the domestic market if the prices have become unduly enhanced, re sulting in distre ss to do mestic c onsumers. Sto ckh olde rs or mem - bers of the corporation shall not be subject to assessment for any losses incurred in surplus control operations of the corporation. (e) A stabilization corporation shall keep such accounts, records, and memoranda, and make such reports with respect to its transac- tions, business methods, and financial condition, as the board may from time to time prescribe ; shall permit the board to audit its accounts annually and at such other times as the board deems advisa- ble ; and shall permit the board, upon its own initiative or upon written request of any stockholder or member, to investigate the fi nancial condition and bus iness me thods of the cor poration. (f) No loan shall be made to any stabilization corporation unless, in the judgment of the board, the loan is in furtherance of the policy declare d in section 1. CLEARING MUM ASSOCIATION'S Ste. 10. Upon application of any cooperative association handling an agricultural commodity or of producers of an agricultural com- modity, the board is authorized, if it deems such association or pro- ducers representative of the commodity, to assist in fo rming pro- ducer-controlled clearing house associations adapted to effecting the econom ic distribution of the agricul tural commodity among the various markets and to minimizing waste and loss in the marketing of the commodity, if such assistance, in the judgment of the board, will be in furtherance of the policy decla red in section 1. The b oard may provide for the registration, and for the termination of the registration, of any clearing house association in accordance with such regulations as the board may prescribe. Such clearing house associations are authorizedd to operate under rules adopted by the member cooperative associations and approved by the board. Inde- pendent dealers in, and handlers, distributors, and processors of, the commodity, as well as cooperative associations handling the com- modity, shall be eligible for membership in the clearing house asso- ciation : Provided, That the policy of such clearing house associa- tion shall be approved by a committee of producers which, in the

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