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TITLE 26-INTERNAL REVENUE CODE (B) Revocation, etc. (i) Any consent described in paragraph (2)(A) may be revoked (in writing) by the distributee at any time. Any such revoca- tion shall be effective with respect to pa- tronage occurring on or after the first day of the first taxable year of the organiza- tion beginning after the revocation is filed with such organization; except that in the case of a pooling arrangement described in section 1382(e), a revocation made by a distributee shall not be effective as to any pool with respect to which the distributee has been a patron before such revocation. (ii) Any consent described in paragraph (2)(B) shall not be effective with respect to any patronage occurring (determined without the application of section 1382(e)) after the distributee ceases to be a member of the organization or after the bylaws of the organization cease to con- tain the provision described in paragraph (2)(B)(i). (4) Qualified check For purposes of this subchapter, the term "qualified check" means only a check (or other instrument which is redeemable in money) which is paid as a part of a patronage dividend, or as a part of a payment described in section 1382(c)(2)(A), to a distributee who has not given consent as provided in para- grhph (2)(A) or (B) with respect to such pa- tronage dividend or payment, and on which there is clearly imprinted a statement that the endorsement and cashing of the check (or other instrument) constitutes the consent of the payee to include in his gross income, as provided in the Federal income tax )aws, the stated dollar amount of the written notice of allocation which is a part of the patronage dividend or payment of which such qualified check is also a part. Such term does not in- clude any check (or other instrument) which is paid as part of a patronage dividend or pay- ment which does not include a written notice of allocation (other than a written notice of allocation described in paragraph (1)(A)). (d) Nonqualified written notice of allocation For purposes of this subchapter, the term "nonqualified written notice of allocation" means a written notice of allocation which is not described in subsection (c) or a qualified check which is not cashed on or before the 90th day after the close of the payment period for the taxable year for which the distribution of which it is a part is paid. (e) Determination of amount paid or received For purposes of this subchapter, in determin- ing amounts paid or received- (1) property (other than a written notice of allocation or a per-unit retain certificate) shall be taken into account at its fair market value, and (2) a qualified written notice of allocation or qualified per-unit retain certificate shall be taken into account at its stated dollar amount. (f) Per-unit retain allocation For purposes of this subchapter, the term "per-unit retain allocation" means any alloca- tion, by an organization to which part I of this subchapter applies, to a patron with respect to products marketed for him, the amount of which is fixed without reference to the net earnings of the organization pursuant to an agreement between the organization and the patron. (g) Per-unit retain certificate For purposes of this subchapter, the term "per-unit retain certificate" means any written notice which discloses to the recipient the stated dollar amount of a per-unit retain alloca- tion to him by the organization. (h) Qualified per-unit retain certificate (1) Defined For purposes of this subchapter, the term "qualified per-unit retain certificate" means any per-unit retain certificate which the dis- tributee has agreed, in the manner provided in paragraph (2), to take into account at its stated dollar amount as provided in section 1385(a). (2) Manner of obtaining agreement A distributee shall agree to take a per-unit retain certificate into account as provided in paragraph (1) only by- (A) making such agreement in writing, or (B) obtaining or retaining membership in the organization after- (i) such organization has adopted (after November 13, 1966) a bylaw providing that membership in the organization con- stitutes such agreement, and (Ii) he has received a witten notifica- tion and copy of such bylaw. (3) Period for which agreement is effective (A) General rule Except as provided in subparagraph (B)- (i) an agreement described in paragraph (2)(A) shall be an agreement with respect to all products delivered by the distribu- tee to the organization during the taxable year of the organization during which such agreement is made and all subse- quent taxable years of the organization; and (ii) an agreement described in para- graph (2)(B) shall be an agreement with respect to all products delivered by the distributee to the organization after he received the notification and copy de- scribed in paragraph (2)(B)(ii). (B) Revocation, etc. (i) Any agreement described in para- graph (2)(A) may be revoked (in writing) by the distributee at any time. Any such revocation shall be effective with respect to products delivered by the distributee on or after the first day of the first tax- able year of the organization beginning after the revocation is filed with the orga- nization; except that in the case of a pool- ing arrangement described in section 1382(e) a revocation made by a distributee shall not be effective as to any products which were delivered to the organization by the distributee before such revocation. (ii) Any agreement described in para- graph (2)(B) shall not be effective with re- § 1388 Page 745