[Code of Federal Regulations]
[Title 7, Volume 10]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1421.104]

[Page 438]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1421_GRAINS AND SIMILARLY HANDLED COMMODITIES_MARKETING ASSISTANCE LOANS 
 
                  Subpart B_Marketing Assistance Loans
 
Sec.  1421.104  Marketing assistance loan making.

    (a)(1) CCC will conduct lien searches with respect to all 
commodities pledged as collateral for marketing assistance loan 
disbursements in amounts greater than $25,000 and perfect its security 
interest in such commodity as provided for under State law. With respect 
to marketing assistance loan disbursements of $25,000 or less, CCC may 
conduct a lien search when it is determined that CCC's interest is at 
risk and perfect its security interest in such commodity as provided for 
under State law. In all instances, if a producer has violated the 
provisions of this part in the crop year preceding the crop year in 
which the marketing assistance loan is being requested, CCC will conduct 
a lien search with respect to all commodities pledged as collateral for 
a marketing assistance loan and perfect its security interest in such 
commodity as provided for under State law.
    (2) The cost for terminating the financing statement for marketing 
assistance loans disbursed under paragraph (a)(1) of this section before 
the end of the term shall be paid by the producer.
    (3) If there are any liens or encumbrances on the commodity pledged 
as collateral for a marketing assistance loan made under this part, 
waivers that fully protect CCC's interest must be obtained even though 
the liens or encumbrances are satisfied from loan proceeds disbursed 
under this part. No additional liens or encumbrances shall be placed on 
the commodity after such a loan is approved.
    (b) Fees, charges, and interest must be paid by the producer to CCC 
at a rate CCC determines. Such fees, charges, and interest include:
    (1) A non-refundable loan service fee;
    (2) Interest that accrues on a loan under part 1405 of this chapter;
    (3) For each soybean crop, the producer as defined in the Soybean 
Promotion, Research and Consumer Information Act (7 U.S.C. Chapter 
6301), shall remit to CCC an assessment that CCC determines when it 
acquires the commodity and shall be equal to one-half of 1 percent of 
the amount determined under Sec.  1412.112.
    (c) For peanuts, charges associated with warehouse stored loans 
including but not limited to storage and in charges, as determined by 
CCC are paid by CCC to the producer.
    (d) The cost of terminating a financing statement shall be paid by 
the producer.

[67 FR 63511, Oct. 11, 2002, as amended at 71 FR 32424, June 6, 2006]

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