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persons, and, in case suit shall be instituted within such time, shall hold said bonds or notes or proceeds subject to the order of the court having Jurisdiction thereof. Nothing herein contained shall affect or impair the priority of the claim of the United States against the bonds or notes deposited or any right or remedy granted by said sections 270a to 270d or by this section to the United States for default upon any obligation of said penal bond. All laws inconsistent with this section are hereby so modified as to conform to the provisions hereof. Nothing contained herein shall affect the authority of courts over the security, where such bonds are taken as security in judicial proceedings, or the authority of any administrative officer of the United States to receive United States bonds for security in cases authorized by existing laws. The Secretary may prescribe rules and regulations necessary and proper for carrying this section into effect. The term "person" in this section means an individual, a trust or estate, a partnership, or a corporation; the term "Secretary" means the Secretary of the Treasury. In order to avoid the frequent substitution of securi

ties such rules and regulations may limit the effect of this section, in appropriate classes of cases, to bonds and notes of the United States maturing more than a year after the date of deposit of such bonds as security. The phrase "bonds or notes of the United States" shall be deemed, for the purposes of this section, to mean any public-debt obligations of the United States and any bonds, notes, or other obligations which are unconditionally guaranteed as to both interest and principal by the United States. (July 30, 1947, ch. 390, 61 Stat. 650.)

TRANSFER OF FUNCTIONS

All functions of all officers of the Department of the 'Treasury, and all functions of all agencies and employees of such Department, were transferred, with certain exceptions, to the Secretary of the Treasury, with power vested in him to authorize their performance or the performance of any of his functions, by any of such officers, agencies, and employees, by 1950 Reorg. Plan No. 26, §§ 1, 2, eff. July 31, 1950, 15 F. R. 4935, 64 Stat. 1280, set out in note under section 241 of Title 5, Executive Departments and Government Officers and Employees. The Treasurer of the United States, referred to in this section, is an officer of the Treasury Department.

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Short title.

Definitions.

Transaction in interstate commerce; State; defined. Liability of principal for act of agent.

Prohibition against dealings in commodity futures; exceptions.

Excessive speculation as burden on interstate commerce; trading limits; hedging transactions; application of section.

6b. Contracts designed to defraud or mislead; bucketing orders; buying and selling orders for cotton. Wash sales; cross trades; fictitious sales; privileges; offers; puts; calls; guaranties.

6d. Futures commission merchants, dealing by unregistered merchants prohibited; moneys and securities of customers, care and use.

6e. Floor brokers; dealings by unregistered broker prohibited.

61. Registration of commission merchants and brokers; posting registration.

6g. Suspension or revocation of registration of commission merchant or broker.

6h. Dealing other than through member of contract market.

Reports of deals equal to or in excess of trading limits; books and records.

Designation of board of trade as "contract market"; conditions and requirements.

Duties of contract markets.

(1) By-laws, rules, etc.; furnishing copies to

Secretary.

(2) Access for inspection of books and records.
(3) Books and. records of warehouses; keeping
and inspection.

(4) Periods of delivery; provisions for.
(5) Notice of date of intended delivery.
(6) United States standards; conformity of
grades to.

(7) Warehouse receipts as satisfaction of futures
contract.

7b. Suspension or revocation of designation as "contract market." Application for designation as "contract market"; suspension or revocation of designation; composition of commission; review by court of appeals. Exclusion of persons from privilege of "contract markets"; procedure for exclusion; review by court of appeals.

Resolution declaring dangerous tendency of dealings in commodity futures.

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1936-Act June 15, 1936, substituted "Commodity Exchange Act" for "The Grain Futures Act."

EFFECTIVE DATE OF 1936 AMENDMENT

Section 13 of act June 15, 1936, provided that all provisions of that act authorizing the registration of futures commission merchants and floor brokers, the fixing of fees and charges therefor, the promulgation of rules, regulations and orders, and the holding of hearings precedent to such promulgation should be effective June 15, 1936, and that all other provisions of that act should take effect ninety days after June 15, 1936.

PRIOR LAW

This chapter superseded act Aug. 24, 1921, ch. 86, 42 Stat. 187, known as "The Future Trading Act," which act was declared unconstitutional, at least in part, in Hill v. Wallace, Ill. 1922, 42 S. Ct. 453, 259 U. S. 44, 66 L. Ed. 822. Section 3 of that act was found unconstitutional as imposing a penalty in Trusler v. Crooks, Mo. 1926, 46 S. Ct. 165, 269 U. S. 475, 70 L. Ed. 365.

CROSS REFERENCES

Power of Congress to regulate interstate commerce, see Const. Art. 1, § 8, cl. 3.

§ 2. Definitions.

For the purposes of this chapter "contract of sale" shall be held to include sales, agreements of sale, and agreements to sell. The word "person" shall be construed to import the plural or singular, and shall include individuals, associations, partnerships, corporations, and trusts. The word "commodity" shall mean wheat, cotton, rice, corn, oats, barley, rye, flaxseed, grain sorghums, mill feeds, butter, eggs, onions, Solanum tuberosum (Irish potatoes), wool, wool tops, fats and oils (including lard, tallow, cottonseed oil, peanut oil, soybean oil and all other fats and oils), cottonseed meal, cottonseed, peanuts, soybeans and soybean meal. The term "future delivery", as used in this chapter, shall not include any sale of any cash commodity for deferred shipment or delivery. The words "board of trade" shall be held to include

and mean any exchange or association, whether incorporated or unincorporated, of persons who shall be engaged in the business of buying or selling commodity or receiving the same for sale on consignment. The words "interstate commerce" shall be construed to mean commerce between any State, Territory, or possession, or the District of Columbia, and any place outside thereof; or between points within the same State, Territory, or possession, or the District of Columbia, but through any place outside thereof, or within any Territory or possession, or the District of Columbia. The words "cooperative association of producers" shall mean any cooperative association, corporate or otherwise, not less than 75 per centum in good faith owned or controlled, directly or indirectly, by producers of agricultural products and otherwise complying with sections 291 and 292 of this title, including any organization acting for a group of such associations and owned or controlled by such associations, provided that business done for or with the United States of America, or any agency thereof, shall not be considered either member or nonmember business in determining the compliance of any such association with said sections. The words "member of a contract market" shall mean and include individuals, associations, partnerships, corporations, and trusts owning or holding membership in, or admitted to membership representation on, a contract market or given members' trading privileges thereon. The words "futures commission merchant" shall mean and include individuals, associations, partnerships, corporations, and trusts engaged in soliciting or in accepting orders for the purchase or sale of any commodity for future delivery on or subject to the rules of any contract market and that, in or in connection with such solicitation or acceptance of orders, accepts any money, securities, or property (or extends credit in lieu thereof) to margin, guarantee, or secure any trades or contracts that result or may result therefrom. The words "floor broker" shall mean any person who, in or surrounding any "pit," "ring," "post," or other place provided by a contract market for the meeting of persons similarly engaged, shall engage in executing for others any order for the purchase or sale of any commodity for future delivery on or subject to the rules of any contract market, and who for such services receives or accepts any commission or other compensation. The words "the commission" shall mean the Commodity Exchange Commission, consisting of the Secretary of Agriculture, the Secretary of Commerce, and the Attorney General. (Sept. 21, 1922, ch. 369, § 2 (a), 42 Stat. 998; June 15, 1936, ch. 545, §§ 2, 3, 49 Stat. 1491; Apr. 7, 1938, ch. 108, 52 Stat. 205; Oct. 9, 1940, ch. 786, § 1, 54 Stat. 1059; Aug. 28, 1954, ch. 1041, title VII, § 710 (a), 68 Stat. 913; July 26, 1955, ch. 382, § 1, 69 Stat. 375.)

CODIFICATION

Section constitutes part of subsec. (a) of section 2 of act Sept. 21, 1922. Remainder of such subsec. (a) is classified to section 4 and subsec. (b) of such section 2 is classified to section 3 of this title.

AMENDMENTS

1955-Act July 26, 1955, extended "commodity" to onions.

1954 Act Aug. 28, 1954, extended "commodity" to wool.

1940-Act Oct. 9, 1940, extended "commodity" to "fats and oils (including lard, tallow, cottonseed oil, peanut oil, soybean oil, and all other fats and oils), cottonseed meal, cottonseed, peanuts, soybeans and soybean meal."

1938-Act Apr. 7, 1938, extended "commodity" to "wool

tops."

1936-Act June 15, 1936, substituted "commodity", "any commodity", or "commodities" for "grain" wherever appearing, and "any cash commodity" for "cash grain", and added definitions of "cooperative association of producers," "member of a contract market", "futures commission merchant", "floor broker" and "the commission." EFFECTIVE DATE OF 1955 AMENDMENT

Section 2 of act July 26, 1955, provided that the amendment to this section by that act shall become effective 60 days after July 26, 1955.

EFFECTIVE DATE OF 1954 AMENDMENT

Section 710 (b) of act Aug. 28, 1954, provided that the amendment of this section shall become effective 60 days after Aug. 28, 1954.

EFFECTIVE DATE OF 1940 AMENDMENT Section 2 of act Oct. 9, 1940, provided that the amendment of this section shall become effective 60 days after October 9, 1940.

EFFECTIVE DATE OF 1936 AMENDMENT Amendment effective 90 days after June 15, 1936, see note under section 1 of this title.

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For the purposes of this chapter (but not in any wise limiting the definition of interstate commerce in section 2 of this title) a transaction in respect to any article shall be considered to be in interstate commerce if such article is part of that current of commerce usual in the commodity trade whereby commodity and commodity products and by-products thereof are sent from one State, with the expectation that they will end their transit, after purchase, in another, including in addition to cases within the above general description, all cases where purchase or sale is either for shipment to another State, or for manufacture within the State and the shipment outside the State of the products resulting from such manufacture. Articles normally in such current of commerce shall not be considered out of such commerce through resort being had to any means or device intended to remove transactions in respect thereto from the provisions of this chapter. For the purpose of this section the word "State" includes Territory, the District of Columbia, possession of the United States, and foreign nation. (Sept. 21, 1922, ch. 369, § 2 (b), 42 Stat. 998; June 15, 1936, ch. 545, § 2, 49 Stat. 1491.)

CODIFICATION

Section constitutes subsec. (b) of section 2 of act Sept. 21, 1922. Part of subsec. (a) of such section 2 is classified to section 2 and the remainder of such subsec. (a) is classified to section 4 of this title.

AMENDMENTS

1936-Act June 15, 1936, substituted "commodity" for "grain" throughout.

EFFECTIVE DATE OF 1936 AMENDMENT Amendment effective 90 days after June 15, 1936, see note under section 1 of this title.

CROSS REFERENCES

Interstate commerce defined, see section 2 of this title. Power of Congress to regulate interstate commerce, see Const. Art. 1, § 8, cl. 3.

§ 4. Liability of principal for act of agent.

For the purpose of this chapter the act, omission, or failure of any official, agent, or other person acting for any individual, association, partnership, corporation, or trust within the scope of his employment or office shall be deemed the act, omission, or failure of such individual, association, partnership, corporation, or trust, as well as of such official, agent, or other person. (Sept. 21, 1922, ch. 369, § 2 (a), 42 Stat, 998.)

CODIFICATION

Section constitutes part of subsec. (a) of section 2 of act Sept. 21, 1922. Remainder of such subsec. (a) is classified to section 2 of this title and subsec, (b) is classified to section 3 of this title.

§ 5. Resolution declaring dangerous tendency of dealings in commodity futures.

Transactions in commodity involving the sale thereof for future delivery as commonly conducted on boards of trade and known as "futures" are affected with a national public interest; such transactions are carried on in large volume by the public generally and by persons engaged in the business of buying and selling commodity and the products and byproducts thereof in interstate commerce; the prices involved in such transactions are generally quoted and disseminated throughout the United States and in foreign countries as a basis for determining the prices to the producer and the consumer of commodity and the products and byproducts thereof and to facilitate the movements thereof in interstate commerce; such transactions are utilized by shippers, dealers, millers, and others engaged in handling commodity and the products and byproducts thereof in interstate commerce as a means of hedging themselves against possible loss through fluctuations in price; the transactions and prices of commodity on such boards of trade are susceptible to speculation, manipulation, and control, and sudden or unreasonable fluctuations in the prices thereof frequently occur as a result of such speculation, manipulation, or control, which are detrimental to the producer or the consumer and the persons handling commodity and products and byproducts thereof in interstate commerce, and such fluctuations in prices are an obstruction to and a burden upon interstate commerce in commodity and the products and byproducts thereof and render regulation imperative for the protection of such commerce and the national public interest therein. (Sept. 21, 1922, ch. 369, § 3, 42 Stat. 999; June 15, 1936, ch. 545. § 2. 49 Stat. 1491.)

AMENDMENTS

1936-Act June 15, 1936, substituted "commodity" for "grain" throughout.

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