7 CFR 993.65 : Disposition of reserve prunes.

(a)Committee's right of disposition. The shall have the power and authority to sell or dispose of any and all (1) to meet demand either (i) as trade demand, or (ii) as foreign trade demand, or (2) for use in any outlet, defined in rules and procedures, established by the after recommendation of the , noncompetitive with normal outlets for .

(b)Methods of disposition. The may, for any of the purposes of § 993.65(a), offer to sell and sell to for disposition or sale by them in specified outlets. Sale of by the to any for resale in such outlets or for resale to other for sale in such outlets shall be governed by the provisions of a sales agreement, executed by the with the . The may refuse to sell to any if the violates the terms and conditions of the agreement or other provisions of this . The may sell into any outlet in which direct selling is determined to be more appropriate.

(c)Offers to sell reserve prunes. No offer to sell either to or to other shall be made by the until 5 days (exclusive of Saturdays, Sundays, and holidays) have elapsed from the time it files with the complete information as to the terms and conditions of the proposed offer including the basis for determining the handlers' shares: Provided, That at any time prior to the expiration of the 5-day period the offer may be made upon the receiving from the notice that he does not disapprove it.

(d)Transfer of shares. No may transfer a reserve obligation. However, any who is authorized by the to dispose of may arrange with another to dispose of his share of through such other . In that event, credit for the reserve disposition shall go to the whose are used.

(e)Distribution of proceeds. Expenses incurred by the for the receiving, handling, holding, or disposing of any quantity of shall be charged against the proceeds of sales of such . Net proceeds from the disposition of shall be distributed by the either directly, or through as agents of the , under safeguards to be established by the , to in proportion to their contributions thereto, or to their successors in interest, with appropriate and differentials as established by the . Progress payments may be made by the as sufficient funds accumulate. Distribution of the proceeds in connection with the contributed by a cooperative marketing association shall be made to such association, if it so requests.