---
kind: "section"
citation: "7 C.F.R. § 955.44"
title: "7"
number: "955.44"
heading: "Excess funds."
url: "https://uscodex.org/cfr/7/955.44"
---

# §955.44. Excess funds.


If, at the end of a fiscal period, the assessments collected are in excess of expenses incurred, such excess shall be accounted for as follows:

- (a) The committee, with the approval of the Secretary, may establish an operating reserve and may carry over to subsequent fiscal periods excess funds in a reserve so established, except funds in the reserve shall not exceed the equivalent of approximately three fiscal periods' budgeted expenses. Such reserve funds may be used:
  - (1) To defray any expenses authorized under this part;
  - (2) To defray expenses during any fiscal period prior to the time assessment income is sufficient to cover such expenses;
  - (3) To cover deficits incurred during any fiscal period when assessment income is less than expenses;
  - (4) To defray expenses incurred during any period when any or all provisions of this part are suspended or are inoperative; and
  - (5) **To cover necessary expenses of liquidation in the event of termination of this part.**
- (b) If such excess is not retained in a reserve as provided in [paragraph (a)](#a) of this section, each handler entitled to a proportionate refund of the excess assessments collected shall be credited at the end of a fiscal period with such refund against the operations of the following fiscal period unless such handler demands payment thereof, in which event such proportionate refund shall be paid.

## Notes

### Authority

Authority: 7 U.S.C. 601-674.

### Source

Source: 55 FR 717, Jan. 9, 1990, unless otherwise noted.