Sec. 1121. INDEMNITY PAYMENTS FOR COTTON PRODUCERS
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## SEC. 1121 INDEMNITY PAYMENTS FOR COTTON PRODUCERS **[**[7 U.S.C. 1421 note](/us/usc/t7/s1421)**]** ###
(a)Federal Contribution Subject to subsection (b), the Secretary of Agriculture shall pay $5,000,000 to the State of Georgia to help fund an indemnity fund, to be established and managed by that State, to compensate cotton producers in that State for losses incurred in 1998 or 1999 from the loss of properly stored, harvested cotton as the result of the bankruptcy of a warehouseman or other party in possession of warehouse receipts evidencing title to the commodity, an improper conversion or transfer of the cotton, or such other potential hazards as determined appropriate by the State. ###
(b)Conditions on Payment to State The Secretary of Agriculture shall make the payment to the State of Georgia under subsection
(a)only if the State— ####
(1)contributes $5,000,000 to the indemnity fund and agrees to expend all amounts in the indemnity fund by not later than January 1, 2002 (or as soon as administratively practical thereafter), to provide compensation to cotton producers as provided in such subsection; ####
(2)requires the recipient of a payment from the indemnity fund to repay the State, for deposit in the indemnity fund, the amount of any duplicate payment the recipient otherwise recovers for such loss of cotton, or the loss of proceeds from the sale of cotton, up to the amount of the payment from the indemnity fund; and ####
(3)agrees to deposit in the indemnity fund the proceeds of any bond collected by the State for the benefit of recipients of payments from the indemnity fund, to the extent of such payments. ###
(c)Reporting Requirements The State of Georgia shall submit a report to the Secretary of Agriculture and the Congress describing the State's efforts to use the indemnity fund to provide compensation to injured cotton producers. ###
(d)Additional Disbursement to Cotton Ginners The State of Georgia shall use funds remaining in the indemnity fund, after the provision of compensation to cotton producers in Georgia under subsection
(a)(including cotton producers who file a contingent claim, as defined and provided in section 5.1 of chapter 19 of title 2 of the Official Code of Georgia), to compensate cotton ginners (as defined and provided in such section) that— ####
(1)incurred a loss as the result of— #####
(A)the business failure of any cotton buyer doing business in Georgia; or #####
(B)the failure or refusal of any such cotton buyer to pay the contracted price that had been agreed upon by the ginner and the buyer for cotton grown in Georgia on or after January 1, 1997, and had been purchased or contracted by the ginner from cotton producers in Georgia; ####
(2)paid cotton producers the amount which the cotton ginner had agreed to pay for such cotton received from such cotton producers in Georgia; and ####
(3)satisfy the procedural requirements and deadlines specified in chapter 19 of title 2 of the Official Code of Georgia applicable to cotton ginner claims.
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Sec. 1121
INDEMNITY PAYMENTS FOR COTTON PRODUCERS
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