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16 U.S.C. § 3821 — Program ineligibility

Federal law — U.S. Code and appendices · legal_authorities

16 U.S.C. § 3821 — Program ineligibility

**(a) Production on converted wetland** Except as provided in this subchapter and notwithstanding any other provision of law, any person who in any crop year produces an agricultural commodity on converted wetland, as determined by the Secretary, shall be— (1) in violation of this section; and (2) ineligible for loans or payments in an amount determined by the Secretary to be proportionate to the severity of the violation. **(b) Ineligibility for certain loans and payments** If a person is determined to have committed a violation under subsection (a) during a crop year, the Secretary shall determine which of, and the amount of, the following loans and payments for which the person shall be ineligible: (1) Contract payments under a production flexibility contract, marketing assistance loans, and any type of price support or payment made available under the Agricultural Market Transition Act [[7 U.S.C. 7201](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section7201&num=0&edition=prelim) et seq.], the Commodity Credit Corporation Charter Act ([15 U.S.C. 714](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section714&num=0&edition=prelim) et seq.), or any other Act. (2) A loan made or guaranteed under the Consolidated Farm and Rural Development Act ([7 U.S.C. 1921](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1921&num=0&edition=prelim) et seq.) or any other provision of law administered by the Consolidated Farm Service Agency,11 See Change of Name note below. if the Secretary determines that the proceeds of the loan will be used for a purpose that will contribute to conversion of a wetland (other than as provided in this subchapter) to produce an agricultural commodity. (3) During the crop year:

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**(a) Production on converted wetland** Except as provided in this subchapter and notwithstanding any other provision of law, any person who in any crop year produces an agricultural commodity on converted wetland, as determined by the Secretary, shall be— (1) in violation of this section; and (2) ineligible for loans or payments in an amount determined by the Secretary to be proportionate to the severity of the violation. **(b) Ineligibility for certain loans and payments** If a person is determined to have committed a violation under subsection (a) during a crop year, the Secretary shall determine which of, and the amount of, the following loans and payments for which the person shall be ineligible: (1) Contract payments under a production flexibility contract, marketing assistance loans, and any type of price support or payment made available under the Agricultural Market Transition Act [[7 U.S.C. 7201](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section7201&num=0&edition=prelim) et seq.], the Commodity Credit Corporation Charter Act ([15 U.S.C. 714](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section714&num=0&edition=prelim) et seq.), or any other Act. (2) A loan made or guaranteed under the Consolidated Farm and Rural Development Act ([7 U.S.C. 1921](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1921&num=0&edition=prelim) et seq.) or any other provision of law administered by the Consolidated Farm Service Agency,11 See Change of Name note below. if the Secretary determines that the proceeds of the loan will be used for a purpose that will contribute to conversion of a wetland (other than as provided in this subchapter) to produce an agricultural commodity. (3) During the crop year: (A) A payment made pursuant to a contract entered into under the environmental quality incentives program under subpart A of part IV of subchapter IV. (B) A payment under any other provision of subchapter IV. (C) A payment under section 2201 or 2202 of this title. (D) A payment, loan, or other assistance under section 1003 or 1006a of this title. **(c) Ineligibility for crop insurance premium assistance** (1) **Requirements** (A) *In general* — If a person is determined to have committed a violation under subsection (a) or (d) during a crop year, the person shall be ineligible to receive any payment of any portion of premium paid by the Federal Crop Insurance Corporation for a plan or policy of insurance under the Federal Crop Insurance Act ([7 U.S.C. 1501](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1501&num=0&edition=prelim) et seq.) pursuant to this subsection. (B) *Applicability* — Ineligibility under this subsection shall— (i) only apply to reinsurance years subsequent to the date of a final determination of a violation, including all administrative appeals; and (ii) not apply to the existing reinsurance year or any reinsurance year prior to the date of the final determination. (2) **Conversions** (A) *In general* — Notwithstanding paragraph (1), ineligibility for crop insurance premium assistance shall apply in accordance with this paragraph. (B) *New conversions* — In the case of a wetland that the Secretary determines was converted after February 7, 2014— (i) the person shall be ineligible to receive crop insurance premium subsidies in subsequent reinsurance years unless the Secretary determines that an exemption pursuant to [section 3822 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title16-section3822&num=0&edition=prelim) applies; or (ii) for any violation that the Secretary determines impacts less than 5 acres of an entire farm, the person may pay a contribution in an amount equal to 150 percent of the cost of mitigation, as determined by the Secretary, to the fund described in [section 3841(f) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title16-section3841/f&num=0&edition=prelim) for wetland restoration in lieu of ineligibility to receive crop insurance premium assistance. (C) *Prior conversions* — In the case of a wetland that the Secretary determines was converted prior to February 7, 2014, ineligibility under this subsection shall not apply. (D) *Conversions and new policies or plans of insurance* — In the case of an agricultural commodity for which an individual policy or plan of insurance is available for the first time to the person after February 7, 2014— (i) ineligibility shall apply only to conversions that take place after the date on which the policy or plan of insurance first becomes available to the person; and (ii) the person shall take such steps as the Secretary determines appropriate to mitigate any prior conversion in a timely manner but not to exceed 2 reinsurance years. (3) **Limitations** (A) *Mitigation required* — Except as otherwise provided in this paragraph, a person subject to a final determination, including all administrative appeals, of a violation described in subsection (d) shall have 1 reinsurance year to initiate a mitigation plan to remedy the violation, as determined by the Secretary, before becoming ineligible under this subsection in the following reinsurance year to receive any payment of any portion of the premium paid by the Federal Crop Insurance Corporation for a policy or plan of insurance under the Federal Crop Insurance Act ([7 U.S.C. 1501](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1501&num=0&edition=prelim) et seq.). (B) *Persons covered for the first time* — Notwithstanding the requirements of paragraph (1), in the case of a person that is subject to this subsection for the first time solely due to the amendment made by section 2611(b) of the Agricultural Act of 2014, the person shall have 2 reinsurance years after the reinsurance year in which a final determination is made, including all administrative appeals, of a violation described in this subsection to take such steps as the Secretary determines appropriate to remedy or mitigate the violation in accordance with this subsection. (C) *Good faith* — If the Secretary determines that a person subject to a final determination, including all administrative appeals, of a violation described in this subsection acted in good faith and without intent to commit a violation described in this subsection as described in [section 3822(h) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title16-section3822/h&num=0&edition=prelim), the person shall have 2 reinsurance years to take such steps as the Secretary determines appropriate to remedy or mitigate the violation in accordance with this subsection. (D) *Tenant relief* (i) *In general* — If a tenant is determined to be ineligible for payments and other benefits under this subsection, the Secretary may limit the ineligibility only to the farm that is the basis for the ineligibility determination if the tenant has established, to the satisfaction of the Secretary that— (I) the tenant has made a good faith effort to meet the requirements of this section, including enlisting the assistance of the Secretary to obtain a reasonable plan for restoration or mitigation for the farm; (II) the landlord on the farm refuses to comply with the plan on the farm; and (III) the Secretary determines that the lack of compliance is not a part of a scheme or device to avoid the compliance. (ii) *Report* — The Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate an annual report concerning the ineligibility determinations limited during the previous 12-month period under this subparagraph. (E) *Certificate of compliance* (i) *In general* — Beginning with the first full reinsurance year immediately following February 7, 2014, all persons seeking eligibility for the payment of a portion of the premium paid by the Federal Crop Insurance Corporation for a policy or plan of insurance under the Federal Crop Insurance Act ([7 U.S.C. 1501](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1501&num=0&edition=prelim) et seq.) shall provide certification of compliance with this section as determined by the Secretary. (ii) *Timely evaluation* — The Secretary shall evaluate the certification in a timely manner and— (I) a person who has properly complied with certification shall be held harmless with regard to eligibility during the period of evaluation; and (II) if the Secretary fails to evaluate the certification in a timely manner and the person is subsequently found to be in violation of this subsection, ineligibility shall not apply to the person for that violation. (iii) *Equitable contribution* (I) *In general* — If a person fails to notify the Secretary as required and is subsequently found to be in violation of this subsection, the Secretary shall— (aa) determine the amount of an equitable contribution to conservation by the person for the violation; and (bb) deposit the contribution in the fund described in [section 3841(f) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title16-section3841/f&num=0&edition=prelim). (II) *Limitation* — The contribution shall not exceed the total of the portion of the premium paid by the Federal Crop Insurance Corporation for a policy or plan of insurance for all years the person is determined to have been in violation subsequent to the date on which certification was first required under this subparagraph. (4) **Duties of the Secretary** (A) *In general* — In carrying out this subsection, the Secretary shall use existing processes and procedures for certifying compliance. (B) *Responsibility* — The Secretary, acting through the agencies of the Department of Agriculture, shall be solely responsible for determining whether a producer is eligible to receive crop insurance premium subsidies in accordance with this subsection. (C) *Limitation* — The Secretary shall ensure that no agent, approved insurance provider, or employee or contractor of an agency or approved insurance provider, bears responsibility or liability for the eligibility of an insured producer under this subsection, other than in cases of misrepresentation, fraud, or scheme and device. **(d) Wetland conversion** (1) **In general** — Except as provided in [section 3822 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title16-section3822&num=0&edition=prelim) and notwithstanding any other provision of law, any person who in any crop year beginning after November 28, 1990, converts a wetland by draining, dredging, filling, leveling, or any other means for the purpose, or to have the effect, of making the production of an agricultural commodity possible on such converted wetland shall be ineligible for those payments, loans, or programs specified in subsection (b) for that crop year and all subsequent crop years. (2) **Duty of the Secretary** — No person shall become ineligible under paragraph (1) if the Secretary determines that an exemption under [section 3822(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title16-section3822/b&num=0&edition=prelim) applies to that person. **(e) Prior loans** This section shall not apply to a loan described in subsection (b) made before December 23, 1985. **(f) Wetland** The Secretary shall have, and shall not delegate to any private person or entity, authority to determine whether a person has complied with this subchapter.

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Federal law — U.S. Code and appendices · legal_authorities

15 U.S.C. § 714 — Creation and purpose of Corporation

For the purpose of stabilizing, supporting, and protecting farm income and prices, of assisting in the maintenance of balanced and adequate supplies of agricultural commodities, products thereof, foods, feeds, and fibers (hereinafter collectively referred to as “agricultural commodities”), and of facilitating the orderly distribution of agricultural commodities, there is created a body corporate to be known as Commodity Credit Corporation (hereinafter referred to as the “Corporation”), which shall be an agency and instrumentality of the United States, within the Department of Agriculture, subject to the general supervision and direction of the Secretary of Agriculture (hereinafter referred to as the “Secretary”).

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Federal law — U.S. Code and appendices · legal_authorities

15 U.S.C. § 714 — Creation and purpose of Corporation

§ 714. Creation and purpose of Corporation For the purpose of stabilizing, supporting, and protecting farm income and prices, of assisting in the maintenance of balanced and adequate supplies of agricultural commodities, products thereof, foods, feeds, and fibers (hereinafter col- lectively referred to as ‘‘agricultural commod- ities’’), and of facilitating the orderly distribu- tion of agricultural commodities, there is cre- ated a body corporate to be known as Com- modity Credit Corporation (hereinafter referred to as the ‘‘Corporation’’), which shall be an agency and instrumentality of the United States, within the Department of Agriculture, subject to the general supervision and direction of the Secretary of Agriculture (hereinafter re- ferred to as the ‘‘Secretary’’). (June 29, 1948, ch. 704, § 2, 62 Stat. 1070; June 7, 1949, ch. 175, § 1, 63 Stat. 154.) Editorial Notes AMENDMENTS 1949—Act June 7, 1949, placed the general supervision and direction of the Commodity Credit Corporation in the Secretary of Agriculture. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section 18 of act June 29, 1948, provided that sections 714 to 714o of this title shall take effect as of midnight June 30, 1948. SHORT TITLE Congress in enacting sections 714 to 714p of this title provided by section 1 of act June 29, 1948, that they should be popularly known as the ‘‘Commodity Credit Corporation Charter Act’’. ESTABLISHING QUALITY AS GOAL FOR COMMODITY CREDIT CORPORATION PROGRAMS Pub. L. 101–624, title XXV, § 2517, formerly § 2518, Nov. 28, 1990, 104 Stat. 4078, as renumbered by Pub. L. 104–66, title I, § 1011(h), Dec. 21, 1995, 109 Stat. 710, provided that: ‘‘In carrying out its activities the Commodity Credit Corporation shall, to the extent prac

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Federal law — U.S. Code and appendices · legal_authorities

16 U.S.C. § 3821 — Program ineligibility

§ 3821. Program ineligibility (a) Production on converted wetland Except as provided in this subchapter and not- withstanding any other provision of law, any person who in any crop year produces an agri- cultural commodity on converted wetland, as determined by the Secretary, shall be— (1) in violation of this section; and (2) ineligible for loans or payments in an amount determined by the Secretary to be proportionate to the severity of the violation. (b) Ineligibility for certain loans and payments If a person is determined to have committed a violation under subsection (a) during a crop year, the Secretary shall determine which of, and the amount of, the following loans and pay- ments for which the person shall be ineligible: (1) Contract payments under a production flexibility contract, marketing assistance loans, and any type of price support or pay- ment made available under the Agricultural Market Transition Act [7 U.S.C. 7201 et seq.], the Commodity Credit Corporation Charter Act (15 U.S.C. 714 et seq.), or any other Act. (2) A loan made or guaranteed under the Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.) or any other provi- sion of law administered by the Consolidated Farm Service Agency,1 if the Secretary deter- mines that the proceeds of the loan will be used for a purpose that will contribute to con- version of a wetland (other than as provided in this subchapter) to produce an agricultural commodity. (3) During the crop year: (A) A payment made pursuant to a con- tract entered into under the environmental quality incentives program under subpart A of part IV of subchapter IV. (B) A payment under any other provision of subchapter IV. (C) A payment under section 2201 or 2202 of this title. (D) A pay

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Federal law — U.S. Code and appendices · legal_authorities

7 U.S.C. § 1501 — Short title and application of other provisions

This subchapter may be cited as the “Federal Crop Insurance Act”. Except as otherwise expressly provided the provisions in titles I to IV, inclusive, shall not apply with respect to this subchapter, and the term “Act” wherever it appears in such titles shall not be construed to include this subchapter.

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Federal law — U.S. Code and appendices · legal_authorities

7 U.S.C. § 1501 — Short title and application of other provi-

§ 1501. Short title and application of other provi- sions This subchapter may be cited as the ‘‘Federal Crop Insurance Act’’. Except as otherwise ex- pressly provided the provisions in titles I to IV, inclusive, shall not apply with respect to this subchapter, and the term ‘‘Act’’ wherever it ap- pears in such titles shall not be construed to in- clude this subchapter. (Feb. 16, 1938, ch. 30, title V, § 501, 52 Stat. 72; Pub. L. 110–234, title XII, § 12033(c), May 22, 2008, 122 Stat. 1405; Pub. L. 110–246, § 4(a), title XII, § 12033(c), June 18, 2008, 122 Stat. 1664, 2167.) Editorial Notes REFERENCES IN TEXT ‘‘Titles I to IV, inclusive,’’ and ‘‘such titles’’, referred to in text, are references to titles I to IV of act Feb. 16, 1938, ch. 30, 52 Stat. 31, known as the Agricultural Ad- justment Act of 1938, which is classified principally to chapter 35 (§ 1281 et seq.) of this title. For complete classification of this Act to the Code, see section 1281 of this title and Tables. CODIFICATION Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246. AMENDMENTS 2008—Pub. L. 110–246, § 12033(c), inserted section catch- line and substituted ‘‘subchapter’’ for ‘‘chapter’’ wher- ever appearing in text. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2008 AMENDMENT Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title. EFFECTIVE DATE OF 2000 AMENDMENT Pub. L. 106–224, title I, § 171, June 20, 2000, 114 Stat. 397, provided that: ‘‘(a) IN GENERAL.—Exc

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Federal law — U.S. Code and appendices · legal_authorities

7 U.S.C. § 1921 — Repealed. Pub. L. 110–234, title VI, § 6002(b), May 22, 2008, 122 Stat. 1162, and Pub. L. 110–246, § 4(a), title VI, § 6002(b), June 18, 2008, 122 Stat. 1664, 1923

### Statutory Notes Section 2009ee, Pub. L. 107–171, title VI, § 6301, May 13, 2002, 116 Stat. 421, defined terms. Section 2009ee–1, Pub. L. 107–171, title VI, § 6302, May 13, 2002, 116 Stat. 422, related to SEARCH grant program. See [section 1926 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1926&num=0&edition=prelim). Section 2009ee–2, Pub. L. 107–171, title VI, § 6303, May 13, 2002, 116 Stat. 424, related to annual report on projects. Section 2009ee–3, Pub. L. 107–171, title VI, § 6304, May 13, 2002, 116 Stat. 424, related to funding. #### Codification Pub. L. 110–234 and Pub. L. 110–246 repealed this subchapter. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246. #### Effective Date of Repeal Repeal of this subchapter and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under [section 8701 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section8701&num=0&edition=prelim).

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Federal law — U.S. Code and appendices · legal_authorities

7 U.S.C. § 1921 — Congressional findings

§ 1921. Congressional findings The Congress finds that the statutory author- ity of the Secretary of Agriculture, hereinafter referred to in this chapter as the ‘‘Secretary,’’ for making and insuring loans to farmers and ranchers should be revised and consolidated to provide for more effective credit services to farmers. (Pub. L. 87–128, title III, § 301(b), Aug. 8, 1961, 75 Stat. 307.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in text, was in the original ‘‘this title’’, meaning title III of Pub. L. 87–128, Aug. 8, 1961, 75 Stat. 307, known as the Consolidated Farm and Rural Development Act, which is classified principally to this chapter. For complete classification of title III to the Code, see Short Title note set out below and Ta- bles. CODIFICATION Section is comprised of subsec. (b) of section 301 of Pub. L. 87–128. Subsec. (a) of such section 301 is set out as a Short Title note below. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Former section 300.1 of Title 6, Code of Federal Regu- lations, promulgated on Oct. 15, 1961, by the Adminis- trator of the Farmers Home Administration, published in 26 F.R. 10031, provided: ‘‘The Consolidated Farmers Home Administration Act of 1961 (7 U.S.C. 1921) [this chapter], is hereby made effective on October 15, 1961, except (a) as to its authorizations to make and sell in- sured loans with 41⁄2 percent yield to the lender and a three-year repurchase agreement which was made ef- fective by regulations issued on September 13, 1961 (26 F.R. 9307), pursuant to assignment of functions con- tained in 26 F.R. 7888, and (b) that the provisions of Title IV of the Bankhead-Jones Farm Tenant Act which requires mineral reservations in lands disposed of under Title III of that Act

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Federal law — U.S. Code and appendices · legal_authorities

7 U.S.C. § 7201 — Short title and purpose

**(a) Short title** This chapter may be cited as the “Agricultural Market Transition Act”. **(b) Purpose** It is the purpose of this chapter— (1) to authorize the use of binding production flexibility contracts between the United States and agricultural producers to support farming certainty and flexibility while ensuring continued compliance with farm conservation and wetland protection requirements; (2) to make nonrecourse marketing assistance loans and loan deficiency payments available for certain crops; (3) to improve the operation of farm programs for milk, peanuts, and sugar; and (4) to establish a commission to undertake a comprehensive review of past and future production agriculture in the United States.

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Federal law — U.S. Code and appendices · legal_authorities

7 U.S.C. § 7201 — Short title and purpose

§ 7201. Short title and purpose (a) Short title This chapter may be cited as the ‘‘Agricul- tural Market Transition Act’’. (b) Purpose It is the purpose of this chapter— (1) to authorize the use of binding produc- tion flexibility contracts between the United States and agricultural producers to support farming certainty and flexibility while ensur- ing continued compliance with farm conserva- tion and wetland protection requirements; (2) to make nonrecourse marketing assist- ance loans and loan deficiency payments available for certain crops; (3) to improve the operation of farm pro- grams for milk, peanuts, and sugar; and (4) to establish a commission to undertake a comprehensive review of past and future pro- duction agriculture in the United States. (Pub. L. 104–127, title I, § 101, Apr. 4, 1996, 110 Stat. 896.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in text, was in the original ‘‘this title’’, meaning title I of Pub. L. 104–127, Apr. 4, 1996, 110 Stat. 896, which enacted this chapter and sec- tion 6933 of this title, amended sections 1308, 1308–1, 1308–3, 1358–1, 1358b, 1358c, 1359a, 1373, 1441, 1445j, 1508, 1516, 4504, 6401, 6402, 6413, 6414, and 6932 of this title and sections 713a–14, 714b, 714i, and 714k of Title 15, Com- merce and Trade, repealed sections 1426, 1433f, 1441–2, 1444–2, 1444f, 1445b–3a, 1445c–3, 1445h, 1446e to 1446h, and 1519 of this title, enacted provisions set out as notes under sections 1373, 1446e, 1446e–1, and 1508 of this title, and repealed provisions set out as a note under section 1421 of this title. For complete classification of title I to the Code, see Tables. Statutory Notes and Related Subsidiaries SHORT TITLE OF 1998 AMENDMENT Pub. L. 105–228, § 1, Aug. 12, 1998, 112 Stat. 1516,

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