§ 1425.11 - Operations.

(a) A CMA shall establish to the satisfaction of CCC, with respect to the commodity for which approval is requested, that the CMA is so organized and staffed by individuals employed directly by the CMA that it is able to perform contracts with its members and to provide an effective marketing operation for its members.

(b) If a CMA cannot satisfactorily establish that it can provide an effective marketing operation for its members, the CMA may enter into a marketing agreement with another CMA to market the commodity only if:

(1) Such marketing agreement is permitted by law;

(2) The articles of incorporation, articles of association, or bylaws of the CMA acquiring the marketing service and the marketing agreement such CMA has entered into with its members provide the necessary authority to enter into such agreement;

(3) The CMA acquiring the marketing service is a member of the CMA that will provide the marketing service; and

(4) The CMA that will provide the marketing service has been approved under this part to obtain loans for such commodity.

(c) Any marketing agreement entered into by a CMA in accordance with the provisions of paragraph (b), must, as determined by CCC:

(1) Adequately protect the ownership and control interests of the CMA members;

(2) Be in the best interest of the members of the CMA acquiring the service; and

(3) Require that all proceeds from the marketing operation be distributed as provided in § 1425.18.