[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: 7CFR1421.106]

[Page 440-441]
 
                          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.  1421.106  Warehouse-stored marketing assistance loan collateral.

    (a) A commodity may be pledged as collateral for a warehouse-stored 
marketing assistance loan in the quantity delivered to CCC for storage 
at a warehouse that meets standards for approval at part 1423 of this 
chapter. Such quantity shall be the net weight specified on the 
warehouse receipt or supplemental certificate.
    (b) Two or more producers may obtain a single joint marketing 
assistance loan for commodities stored in an approved warehouse if the 
warehouse receipt pledged as collateral is issued jointly to the 
producers.
    (c) If more than one producer executes a note and security agreement 
with CCC, each such producer shall be jointly and severally liable for 
the violation of the terms and conditions of the note and the 
regulations in this part. Each such producer shall also remain liable 
for repayment of the entire marketing assistance loan amount until the 
marketing assistance loan is fully repaid without regard to such 
producer's claimed share in the commodity pledged as collateral for the 
marketing assistance loan. In addition, such producer may not amend the 
note and security agreement with respect to the producer's claimed share 
in such commodities, or marketing assistance loan proceeds, after 
execution of the note and security agreement by CCC.
    (d) Handling and storage rates that CCC has approved to be deducted 
from marketing assistance loan proceeds are available in USDA State and 
county FSA service centers. Deductions shall be based upon entries on 
the warehouse receipt or supplemental certificate, but the storage rate 
shall not exceed the storage rate CCC has approved. No storage deduction 
shall be made if written evidence acceptable to CCC is submitted 
indicating that:
    (1) Storage charges through the maturity date have been prepaid; or
    (2) The producer has arranged with the warehouse operator for the 
payment of storage charges through the maturity date and the warehouse 
operator enters an endorsement in substantially the following form on 
the warehouse receipt:

    Storage arrangements have been made by the depositor of the 
commodity covered by this receipt through (date through which storage 
has been provided). No lien will be asserted by the warehouse operator 
against CCC or any subsequent holder of the warehouse receipt for the 
storage charges that accrued before the specified date.

    (e) The beginning date to be used for computing storage deductions 
on the commodity stored in an approved warehouse shall be the later of 
the following:
    (1) The date the commodity was received or deposited in the 
warehouse;
    (2) The date the storage charges start; or
    (3) The day following the date through which storage charges have 
been paid.
    (f) For hard red winter and hard red spring wheat tendered to CCC 
and stored in an approved warehouse, producers must obtain official 
protein content determinations or, as CCC determines is acceptable, 
protein content

[[Page 441]]

may be determined by mutual agreement between the producer and the 
warehouse operator. Costs of determinations shall not be paid by CCC.
    (g) For warehouse-stored peanuts, CCC will pay storage charges and 
in-charges and other fees as determined by CCC, to ensure proper storage 
of CCC loan collateral. The beginning date to be used for computing 
storage deductions on the CCC peanut loan collateral stored in an 
approved warehouse shall be the later of the following:
    (1) The date the commodity was received or deposited in the 
warehouse;
    (2) The date the storage charges start; or
    (3) The day following the date through which storage charges have 
been paid.
    (4) The date all required marketing assistance loan documents are 
received in the county office.