Page:United States Statutes at Large Volume 68A.djvu/620

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INTERNAL REVENUE CODE OF 1954

Subchapter D—Cotton Futures

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Part I. General provisions. Part II. Exemptions. Part III. Administrative provisions.

PART I—GENERAL PROVISIONS Sec. Sec. Sec. Sec.

4851. 4852. 4853. 4854.

Imposition of tax. Definition. Form and validity of contracts. Cotton standards.

SEC. 4851. IMPOSITION OF TAX,

(a) RATE.—Upon each contract of sale of any cotton for future delivery made at, on, or in any exchange, board of trade, or similar institution or place of business, there shall be imposed a tax in the nature of an excise of 2 cents for each pound of the cotton involved in any such contract. (b) BY W H O M P A I D. — The tax imposed by subsection (a) shall be

paid by the seller of the cotton involved in the contract of sale. SEC. 4852. DEFINITION.

For the purpose of this subchapter, the term "contract of sale" shall be held to include sales, agreements of sale, and agreements to seU. SEC. 4853. FORM AND VALIDITY OF CONTRACTS.

(a) FORM.—Each contract of sale of cotton for future delivery mentioned in section 4851(a) shall be in writing plainly stating, or evidenced by written memorandum showing, the terms of such contract, including the quantity of the cotton involved and the names and addresses of the seller and buyer in such contract, and shall be signed by the party to be charged, or by his agent in his behalf. If the contract or memorandum specify in bales the quantity of the cotton involved, without giving the weight, each bale shall, for the purpose of this subchapter, be deemed to weigh 500 pounds. (b) VALIDITY.—No contract of sale of cotton for future delivery mentioned in section 4851(a), which does not conform to the requirements of subsection (a) of this section and has not the necessary stamps affixed thereto as required by section 4871, shall be enforceable in any court of the United States by, or on behalf of, any party to such contract or his privies. SEC. 4854. COTTON

STANDARDS.

(a) SOURCE AND DESCRIPTION.—Subject to the provisions of section 6 of the Act of March 4, 1923 (42 Stat. 1518; 7 U.S.C. 56), the Secretary of Agriculture is authorized, from time to time, to establish and promulgate standards of cotton by which its quality or value may be judged or determined, including its grade, length of staple, strength of staple, color, and such other qualities, properties, and conditions as may be standardized in practical form, which, for the §4851

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