HAR §4-60-16. Transfers

(a) The individual quotas established by the board to producers and producer-distributors listed in section 4-60-16 and 4-60-14 shall be evidenced by a quota certificate which shall contain the following: (1) The name and business address of the producer or producer- distributor to whom issued; (2) The amount of quota allocated to the producer or producer- distributor expressed in hundredweight and cans of whole milk per day; (3) Any additional information which the manager may designate. (b) No assignment, sale or other transfer of the quota or any part thereof or interest therein (including a security interest, as that term is defined in the Uniform Commercial Code, chapter 490, Hawaii Revised Statutes), shall be valid without prior written approval of the manager. (c) Not less than ten days before the proposed effective date of any assignment, sale or other transfer of the quota or any part thereof or interest therein, the transferor shall submit a request, on a form prepared by the manager, for approval together with such information as the manager may require concerning the details of the proposed transaction. Transfers by sale shall, when possible, become effective the first day of the month following approval. (d) The manager shall, within a reasonable time after receipt of the request for approval, notify the transferor of approval or disapproval of said request. (e) Upon approval of a transfer request, the following procedure shall apply: (1) The transferor shall present to the manager the transferor’s quota certificate, properly endorsed by all parties to said transfer; indication whether the transfer is by sale, assignment, pledge as securing, or otherwise; and the amount of the quota so transferred, expressed in terms of hundredweight and cans of whole milk per day; (2) Upon presentation of the quota certificate, the manager shall record, in a permanent record kept by the manager for this purpose, the names and addresses of the transferor and the transferee; the amount of the quota so transferred; whether the transfer is by sale, assignment, or otherwise; the number of the quota certificate presented; the number of any new quota certificate issued as set out in this section; and the effective date of such transfer; (3) After the recording, the manager, in the case of a sale or assignment, shall cancel the old quota certificate and issue a new quota certificate or quota certificates to the transferor or transferee or both, as the case may be. For other types of transfers not requiring immediate cancellation of the old quota certificate, such quota certificate properly endorsed shall be returned to the transferor for transmittal to the transferee; and (4) The transferee, after the recording and upon the receipt of the quota certificate, shall acquire all of the rights of the transferor to that portion of the quota so transferred, free from any adverse claim or condition except as may have existed against the original quota certificate or as may be agreed upon by the parties to such transfer. Where the transfer is merely intended to convey a security interest to the transferee, the transferor may continue to produce the amount of the quota so transferred. (f) From the daily production quota established, the manager shall periodically compile and distribute to all interested parties a listing of licensed producers and producer-distributors reflecting all interim quota transfers, increases, decreases, or other changes altering any individual quota or the total daily production quota as follows: (1) License number; (2) Name and address of producers or producer-distributors; (3) Daily quota in hundredweight and cans; (4) Per cent of market held; and (5) Effective date of change (g) Upon loss of a quota certificate, the following procedure shall apply; (1) The holder of a quota certificate, within reasonable time after the certificate has been lost, stolen or destroyed, shall notify the manager in writing of that fact and request the cancellation of the lost, stolen, or destroyed quota certificate and the issuance of a new quota certificate in its place; (2) The manager may require satisfactory proof as to the circumstances concerning the loss, destruction, or wrongful taking of such quota certificate, and may require that the record quota certificate holder requesting the new quota certificate post an indemnity bond in an amount to be determined by the manager; (3) If, in the opinion of the manager, the record quota certificate holder has complied in all respects with the requirements of paragraph (2) the manager shall cancel the lost, stolen, or destroyed quota certificate and shall issue to the owner thereof a new quota certificate in its place; (4) Upon written notice to the manager by the owner that the quota certificate is missing, any attempted transfer of the quota represented by the missing quota certificate other than as provided, shall be void; and (5) The recording of the cancellation and issuance of any new quota certificate pursuant to the provisions of paragraph (1) shall, where applicable, be in a manager provided for the transfer of quota certificate as set out in subsection (e). [Eff 7/16/80; am and comp 12/1/85; am and comp 5/1/87] (Auth: HRS §157-34) (Imp: HRS §157-34)