1. (a) The total amount owed by the handler to all producers shall be called the “gross default”. From the gross default, any surety bond recovery shall be deducted. The resulting amount is called the “adjusted default”.
2. (b) From the adjusted default, any amounts ineligible for coverage per FAC Section 62580 shall be deducted. The resulting amount is called the “net default”.
3. (c) The $200,000 deductible required by FAC Section 62624 shall be deducted from the net default. The resulting amount is the total maximum exposure of the Fund.
4. (d) An eligible producer who claims reimbursement from the Fund will be paid his/her pro rata shares from the total maximum exposure amount.

The amount paid to each eligible producer shall be determined as follows:

Note: Authority cited: Section 407, Food and Agricultural Code. Reference: Sections 62580, 62623 and 62624, Food and Agricultural Code.

History

1. New article 2 (section 2102) and section filed 10-6-2004; operative 11-5-2004 (Register 2004, No. 41).