---
kind: "section"
citation: "7 U.S.C. § 136m"
title: "7"
title_heading: "Agriculture"
number: "136m"
heading: "Indemnities"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/136m"
units:
  - "Chapter 6 — Insecticides and Environmental Pesticide Control"
  - "Subchapter II — Environmental Pesticide Control"
---

# §136m. Indemnities

- (a) **General indemnification—**
  - (1) **In general—** Except as otherwise provided in this section, if—
    - (A) the [Administrator](/usc/7/136.md?p=b) notifies a [registrant](/usc/7/136.md?p=y) under [section 136d(c)(1) of this title](/usc/7/136d.md?p=c-1) that the [Administrator](/usc/7/136.md?p=b) intends to suspend a [registration](/usc/7/136.md?p=z) or that an emergency order of suspension of a [registration](/usc/7/136.md?p=z) under [section 136d(c)(3) of this title](/usc/7/136d.md?p=c-3) has been issued;
    - (B) the [registration](/usc/7/136.md?p=z) in question is suspended under [section 136d(c) of this title](/usc/7/136d.md?p=c), and thereafter is canceled under section [136d(b)](/usc/7/136d.md?p=b), [136d(d)](/usc/7/136d.md?p=d), or [136d(f)](/usc/7/136d.md?p=f) of this title; and
    - (C) any [person](/usc/7/136.md?p=s) who owned any quantity of the [pesticide](/usc/7/136.md?p=u) immediately before the notice to the [registrant](/usc/7/136.md?p=y) under [subparagraph (A)](#a-1-A) suffered losses by reason of suspension or cancellation of the [registration](/usc/7/136.md?p=z);

    the [Administrator](/usc/7/136.md?p=b) shall make an indemnity payment to the [person](/usc/7/136.md?p=s).

  - (2) **Exception—** [Paragraph (1)](#a-1) shall not apply if the [Administrator](/usc/7/136.md?p=b) finds that the [person](/usc/7/136.md?p=s)—
    - (A) had knowledge of facts that, in themselves, would have shown that the [pesticide](/usc/7/136.md?p=u) did not meet the requirements of [section 136a(c)(5) of this title](/usc/7/136a.md?p=c-5) for [registration](/usc/7/136.md?p=z); and
    - (B) continued thereafter to [produce](/usc/7/136.md?p=w) the [pesticide](/usc/7/136.md?p=u) without giving timely notice of such facts to the [Administrator](/usc/7/136.md?p=b).
  - (3) **Report—** If the [Administrator](/usc/7/136.md?p=b) takes an action under [paragraph (1)](#a-1) that requires the payment of indemnification, the [Administrator](/usc/7/136.md?p=b) shall report to the Committee on Agriculture of the House of Representatives, the Committee on Agriculture, Nutrition, and Forestry of the Senate, and the Committees on Appropriations of the House of Representatives and the Senate on—
    - (A) the action taken that requires the payment of indemnification;
    - (B) the reasons for taking the action;
    - (C) the estimated cost of the payment; and
    - (D) a request for the appropriation of funds for the payment.
  - (4) **Appropriation—** The [Administrator](/usc/7/136.md?p=b) may not make a payment of indemnification under [paragraph (1)](#a-1) unless a specific line item appropriation of funds has been made in advance for the payment.
- (b) **Indemnification of end users, dealers, and distributors—**
  - (1) **End users—** If—
    - (A) the [Administrator](/usc/7/136.md?p=b) notifies a [registrant](/usc/7/136.md?p=y) under [section 136d(c)(1) of this title](/usc/7/136d.md?p=c-1) that the [Administrator](/usc/7/136.md?p=b) intends to suspend a [registration](/usc/7/136.md?p=z) or that an emergency order of suspension of a [registration](/usc/7/136.md?p=z) under [section 136d(c)(3) of this title](/usc/7/136d.md?p=c-3) has been issued;
    - (B) the [registration](/usc/7/136.md?p=z) in question is suspended under [section 136d(c) of this title](/usc/7/136d.md?p=c), and thereafter is canceled under section [136d(b)](/usc/7/136d.md?p=b), [136d(d)](/usc/7/136d.md?p=d), or [136d(f)](/usc/7/136d.md?p=f) of this title; and
    - (C) any [person](/usc/7/136.md?p=s) who, immediately before the notice to the [registrant](/usc/7/136.md?p=y) under [subparagraph (A)](#b-1-A), owned any quantity of the [pesticide](/usc/7/136.md?p=u) for purposes of applying or using the [pesticide](/usc/7/136.md?p=u) as an end user, rather than for purposes of distributing or selling it or further processing it for distribution or sale, suffered a loss by reason of the suspension or cancellation of the [pesticide](/usc/7/136.md?p=u);

    the [person](/usc/7/136.md?p=s) shall be entitled to an indemnity payment under this subsection for such quantity of the [pesticide](/usc/7/136.md?p=u).

  - (2) **Dealers and distributors—**
    - (A) Any [registrant](/usc/7/136.md?p=y), wholesaler, [dealer](/usc/7/499a.md?p=b-6), or other distributor (hereinafter in this paragraph referred to as a “seller”) of a registered [pesticide](/usc/7/136.md?p=u) who distributes or sells the [pesticide](/usc/7/136.md?p=u) directly to any [person](/usc/7/136.md?p=s) not described as an end user in [paragraph (1)(C)](#b-1-C) shall, with respect to any quantity of the [pesticide](/usc/7/136.md?p=u) that such [person](/usc/7/136.md?p=s) cannot use or resell as a result of the suspension or cancellation of the [pesticide](/usc/7/136.md?p=u), reimburse such [person](/usc/7/136.md?p=s) for the cost of first acquiring the [pesticide](/usc/7/136.md?p=u) from the seller (other than the cost of transportation, if any), unless the seller provided to the [person](/usc/7/136.md?p=s) at the time of distribution or sale a notice, in writing, that the [pesticide](/usc/7/136.md?p=u) is not subject to reimbursement by the seller.
    - (B) If—
      - (i) the [Administrator](/usc/7/136.md?p=b) notifies a [registrant](/usc/7/136.md?p=y) under [section 136d(c)(1) of this title](/usc/7/136d.md?p=c-1) that the [Administrator](/usc/7/136.md?p=b) intends to suspend a [registration](/usc/7/136.md?p=z) or that an emergency order of suspension of a [registration](/usc/7/136.md?p=z) under [section 136d(c)(3) of this title](/usc/7/136d.md?p=c-3) has been issued;
      - (ii) the [registration](/usc/7/136.md?p=z) in question is suspended under [section 136d(c) of this title](/usc/7/136d.md?p=c), and thereafter is canceled under section [136d(b)](/usc/7/136d.md?p=b), [136d(d)](/usc/7/136d.md?p=d), or [136d(f)](/usc/7/136d.md?p=f) of this title;
      - (iii) any [person](/usc/7/136.md?p=s) who, immediately before the notice to the [registrant](/usc/7/136.md?p=y) under [clause (i)](#b-2-B-i)—
        - (I) had not been notified in writing by the seller, as provided under [subparagraph (A)](#b-2-A), that any quantity of the [pesticide](/usc/7/136.md?p=u) owned by such [person](/usc/7/136.md?p=s) is not subject to reimbursement by the seller in the event of suspension or cancellation of the [pesticide](/usc/7/136.md?p=u); and
        - (II) owned any quantity of the [pesticide](/usc/7/136.md?p=u) for purposes of—
          - (aa) distributing or selling it; or
          - (bb) further processing it for distribution or sale directly to an end user;

        suffered a loss by reason of the suspension or cancellation of the [pesticide](/usc/7/136.md?p=u); and

      - (iv) the [Administrator](/usc/7/136.md?p=b) determines on the basis of a claim of loss submitted to the [Administrator](/usc/7/136.md?p=b) by the [person](/usc/7/136.md?p=s), that the seller—
        - (I) did not provide the notice specified in [subparagraph (A)](#b-2-A) to such [person](/usc/7/136.md?p=s); and
        - (II) is and will continue to be unable to provide reimbursement to such [person](/usc/7/136.md?p=s), as provided under [subparagraph (A)](#b-2-A), for the loss referred to in [clause (iii)](#b-2-B-iii), as a result of the insolvency or bankruptcy of the seller and the seller’s resulting inability to provide such reimbursement;

      the [person](/usc/7/136.md?p=s) shall be entitled to an indemnity payment under this subsection for such quantity of the [pesticide](/usc/7/136.md?p=u).

    - (C) If an indemnity payment is made by the United States under this paragraph, the United States shall be subrogated to any right that would otherwise be held under this paragraph by a seller who is unable to make a reimbursement in accordance with this paragraph with regard to reimbursements that otherwise would have been made by the seller.
  - (3) **Source—** Any payment required to be made under paragraph [(1)](#b-1) or [(2)](#b-2) shall be made from the appropriation provided under [section 1304 of title 31](/usc/31/1304.md).
  - (4) **Administrative settlement—** An administrative settlement of a claim for such indemnity may be made in accordance with the third paragraph of [section 2414 of title 28](/usc/28/2414.md) and shall be regarded as if it were made under that section for purposes of [section 1304 of title 31](/usc/31/1304.md).
- (c) **Amount of payment—**
  - (1) **In general—** The amount of an indemnity payment under subsection [(a)](#a) or [(b)](#b) to any [person](/usc/7/136.md?p=s) shall be determined on the basis of the cost of the [pesticide](/usc/7/136.md?p=u) owned by the [person](/usc/7/136.md?p=s) (other than the cost of transportation, if any) immediately before the issuance of the notice to the [registrant](/usc/7/136.md?p=y) referred to in subsection [(a)(1)(A)](#a-1-A), [(b)(1)(A)](#b-1-A), or [(b)(2)(B)(i)](#b-2-B-i), except that in no event shall an indemnity payment to any [person](/usc/7/136.md?p=s) exceed the fair [market](/usc/7/198.md?p=1) value of the [pesticide](/usc/7/136.md?p=u) owned by the [person](/usc/7/136.md?p=s) immediately before the issuance of the notice.
  - (2) **Special rule—** Notwithstanding any other provision of this subchapter, the [Administrator](/usc/7/136.md?p=b) may provide a reasonable time for use or other disposal of the [pesticide](/usc/7/136.md?p=u). In determining the quantity of any [pesticide](/usc/7/136.md?p=u) for which indemnity shall be paid under this section, proper adjustment shall be made for any [pesticide](/usc/7/136.md?p=u) used or otherwise disposed of by the owner.

## Source credit

(June 25, 1947, ch. 125, § 15, as added Pub. L. 92–516, § 2, Oct. 21, 1972, 86 Stat. 993; amended Pub. L. 100–532, title V, § 501(a), Oct. 25, 1988, 102 Stat. 2674.)

## Notes

### Editorial Notes

### Amendments

1988—Pub. L. 100–532 amended section generally, in subsec. (a), substituting provisions relating to general indemnification for provisions relating to requirements for payment, adding subsec. (b), and redesignating provisions of former subsec. (b), with further amendment, as subsec. (c).

### Statutory Notes and Related Subsidiaries

### Effective Date of 1988 Amendment

Pub. L. 100–532, title V, § 501(a), Oct. 25, 1988, 102 Stat. 2674, provided that amendment made by Pub. L. 100–532 is effective 180 days after Oct. 25, 1988.

### Effective Date

For effective date of section, see section 4 of Pub. L. 92–516, set out as a note under section 136 of this title.

### Interim Payments

Pub. L. 100–532, title V, § 501(b), Oct. 25, 1988, 102 Stat. 2676, provided that: Source.—Any obligation of the Administrator to pay an indemnity arising under section 15 [this section], as it existed prior to the effective date of the amendment made by this section [see Effective Date of 1988 Amendment note above], shall be made from the appropriation provided under section 1304 of title 31, United States Code. Administrative settlement.—An administrative settlement of a claim for such indemnity may be made in accordance with the third paragraph of section 2414 of title 28, United States Code, and shall be regarded as if it were made under that section for purposes of section 1304 of title 31, United States Code.”