(1) Quota is the property of each eligible producer. It may be transferred pursuant to the following terms and conditions:

(a) Quota transfers must be a minimum of 100 pounds a day. If the eligible producer is going out-of-business and has a daily quota balance amount that is less than 100 pounds, then that amount may be transferred.

(b) Any time quota is transferred there is a forfeited 10% reduction.

(c) The bureau must be notified in writing by the proposed quota transferor at least seven days prior to the first day of the month during which the transfer is contemplated. Such notice must include the name of the prospective transferee, the effective date of the proposed transfer, and the amount of quota to be transferred. The producer must also notify the producer's pool plant of the transfer. The bureau will notify the producer committee of any proposed transfers.

(d) All quota transfers are effective only upon approval by the producer committee. The proposed quota transfer must be bona fide and not for the purpose of evading any provisions of applicable law.

(e) A quota transfer may be made only to an eligible producer.

(f) Leasing of quota is prohibited.