--- kind: "section" citation: "7 U.S.C. § 10a" title: "7" title_heading: "Agriculture" number: "10a" heading: "Cooperative associations and corporations, exclusion from board of trade; rules of board inapplicable to payment of compensation by association" release: "119-102" date: "2026-07-12" url: "https://uscodex.org/usc/7/10a" units: - "Chapter 1 — Commodity Exchanges" --- # §10a. Cooperative associations and corporations, exclusion from board of trade; rules of board inapplicable to payment of compensation by association - (a) No [board of trade](/usc/7/1a.md?p=6) which has been designated or registered as a contract [market](/usc/7/198.md?p=1) or a derivatives transaction execution facility exclude[^1] from membership in, and all [privileges](/usc/7/1a.md?p=36) on, such [board of trade](/usc/7/1a.md?p=6), any association or corporation engaged in cash [commodity](/usc/7/1a.md?p=9) business having adequate financial responsibility which is organized under the cooperative laws of any [State](/usc/7/198.md?p=5), or which has been recognized as a [cooperative association of producers](/usc/7/1a.md?p=14) by the United States Government or by any agency thereof, if such association or corporation complies and agrees to comply with such terms and conditions as are or may be imposed lawfully upon other [members](/usc/7/1a.md?p=34) of such [board](/usc/7/1a.md?p=5), and as are or may be imposed lawfully upon a [cooperative association of producers](/usc/7/1a.md?p=14) engaged in cash [commodity](/usc/7/1a.md?p=9) business, unless such [board of trade](/usc/7/1a.md?p=6) is authorized by the [commission](/usc/7/1a.md?p=8) to exclude such association or corporation from membership and [privileges](/usc/7/1a.md?p=36) after hearing held upon at least three days’ notice subsequent to the filing of complaint by the [board of trade](/usc/7/1a.md?p=6): Provided, however, That if any such association or corporation shall fail to meet its obligations with any established clearing house or clearing agency of any contract [market](/usc/7/198.md?p=1), such association or corporation shall be ipso facto debarred from further trading on such contract [market](/usc/7/198.md?p=1), except such trading as may be necessary to close open trades and to discharge existing contracts in accordance with the rules of such contract [market](/usc/7/198.md?p=1) applicable in such cases. Such [commission](/usc/7/1a.md?p=8) may prescribe that such association or corporation shall have and retain membership and [privileges](/usc/7/1a.md?p=36), with or without imposing conditions, or it may permit such [board of trade](/usc/7/1a.md?p=6) immediately to bar such association or corporation from membership and [privileges](/usc/7/1a.md?p=36). Any order of said [commission](/usc/7/1a.md?p=8) entered hereunder shall be reviewable by the court of appeals for the circuit in which such association or corporation, or such [board of trade](/usc/7/1a.md?p=6), has its principal place of business, on written petition either of such association or corporation, or of such [board of trade](/usc/7/1a.md?p=6), under the procedure provided in [section 8(b) of this title](/usc/7/8.md?p=b), but such order shall not be stayed by the court pending review. - (b) No rule of any [board of trade](/usc/7/1a.md?p=6) designated or registered as a contract [market](/usc/7/198.md?p=1) or a derivatives transaction execution facility shall forbid or be construed to forbid the payment of compensation on a [commodity](/usc/7/1a.md?p=9)-unit basis, or otherwise, by any federated cooperative association to its regional [member](/usc/7/1a.md?p=34)-associations for services rendered or to be rendered in connection with any organization work, educational activity, or procurement of patronage, provided no part of any such compensation is returned to patrons (whether [members](/usc/7/1a.md?p=34) or nonmembers) of such cooperative association, or of its regional or local [member](/usc/7/1a.md?p=34)-associations, otherwise than as a dividend on capital stock or as a patronage dividend out of the net earnings or surplus of such federated cooperative association. ## Footnotes [^1]: So in original. Probably should read “shall exclude”. ## Source credit (Sept. 21, 1922, ch. 369, § 6a, as added June 15, 1936, ch. 545, § 9, 49 Stat. 1499; amended June 25, 1948, ch. 646, § 32(a), 62 Stat. 991; May 24, 1949, ch. 139, § 127, 63 Stat. 107; Pub. L. 102–546, title II, § 209(b)(4), title IV, § 402(8), Oct. 28, 1992, 106 Stat. 3607, 3625; Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(13)], Dec. 21, 2000, 114 Stat. 2763, 2763A–409.) ## Notes ### Editorial Notes ### Amendments 2000—Subsec. (a). Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(13)(A)], substituted “designated or registered as a contract market or a derivatives transaction execution facility” for “designated as a ‘contract market’ shall”. Subsec. (b). Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(13)(B)], substituted “designated or registered as a contract market or a derivatives transaction execution facility” for “designated as a contract market”. 1992—Pub. L. 102–546 redesignated subsecs. (1) and (2) as (a) and (b), respectively, and in subsec. (a) substituted reference to section 8(b) of this title for reference to section 8 of this title. ### Statutory Notes and Related Subsidiaries ### Change of Name Act June 25, 1948, as amended by act May 24, 1949, substituted “court of appeals” for “circuit court of appeals” wherever appearing. ### Effective Date For effective date of section, see section 13 of act June 15, 1936, set out as an Effective Date of 1936 Amendment note under section 1 of this title.