Page:United States Statutes at Large Volume 80 Part 1.djvu/1619

 80 STAT.]

PUBLIC LAW 8 9 - 8 0 9 - N O V. 13, 1966

1583

by payment in money or other property (except per-unit retain certificates) to a patron with respect to products marketed for him, the amount of which is fixed without reference to the net earnings of the organization pursuant to an agreement between the organization and the patron, " (g) P E R - U N I T RETAIN CERTIFICATE.—For purposes of this subchapter, the term 'per-unit retain certificate' means any written notice which discloses to the recipient the stated dollar amount of a per-unit retain allocation to him by the organization. " (h) QUALIFIED P E R - U N I T RETAIN CERTIFICATE.—

" (1) DEFINED.—For purposes of this subchapter, the term 'qualified per-unit retain certificate' means any per-unit retain certificate which the distributee has agreed, in the manner provided in paragraph (2), to take into account at its stated dollar amount as provided in section 1385(a). "(2) MANNER OF OBTAINING AGREEMENT.—^A distributee shall agree to take a per-unit retain certificate into account as provided in paragraph (1) only by— ' ' (A) making such agreement in writing, or " (B) obtaining or retaining membership in the organization after— " (i) such organization has adopted (after the date of the enactment of this subsection) a bylaw providing that membership in the organization constitutes such agreement, and "(ii) he has received a written notification and copy of such bylaw.

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" (3) PERIOD FOR WHICH AGREEMENT IS EFFECTIVE.— " (A) GENERAL RULE.—Except as provided in subpara-

graph (B) — " (i) an agreement described in paragraph (2)(A) shall be an agreement with respect to all products delivered by the distributee to the organization during the taxable year of the organization during which such agreement is made and all subsequent taxable years of the organization; and "(ii) an agreement described in paragraph (2)(B) shall be an agreement with respect to all products delivered by the distributee to the organization after he received the notification and copy described in paragraph(2)(B)(ii). " (B) REVOCATION, ETC.—

" (i) Any agreement described in paragraph (2)(A) may be revoked (in writing) by the distributee at any time. Any such revocation shall be effective with respect to products delivered by the distributee on or after the first day of the first taxable year of the organization beginning after the revocation is filed with the organization; except that in the case of a pooling arrangement described in section 1382(e) a revocation made by a distributee shall not be effective as to any products which were delivered to the organization by the distributee before such revocation. "(^ii) A n v agreement described in paragraph (2)(B) shall not be effective with respect to any products delivered after the distributee ceases to be a member of the organization or after the bylaws of the organization cease to contain the provision described in paragraph (2)(B)(i).

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