[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: 7CFR1421.108]

[Page 442-443]
 
                          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.  1421.108  Transfers and reconcentrations.

    (a) Upon request by the producer before transfer, the county 
committee may approve the transfer of a quantity of a commodity that is 
pledged as collateral for a farm-stored loan to a warehouse-stored loan 
at any time during the loan period.
    (1) Liquidation of the farm-stored loan or part thereof shall be 
made through the pledge of warehouse receipts for the commodity placed 
under warehouse-stored loan and the immediate payment by the producer of 
the

[[Page 443]]

amount by which the warehouse-stored loan is less than the farm-stored 
loan or part thereof and charges plus interest. The loan quantity for 
the warehouse-stored loan cannot exceed 110 percent of the loan quantity 
transferred from the farm-stored loan.
    (2) Any amounts due the producer shall be disbursed by the FSA 
county service center.
    (b) Upon request by the producer before the transfer, the county 
committee may approve the transfer of a warehouse-stored loan or part 
thereof to a farm-stored loan at any time during the marketing 
assistance loan period. Quantities pledged as collateral for a farm-
stored loan shall be based on a measurement or a calculation of average 
production of wool and mohair, such measurement or calculation to be 
made by a representative of the county office before approving the farm-
stored loan. The producer must immediately repay the amount by which the 
farm-stored loan is less than the warehouse-stored loan and charges plus 
interest on the shortage. The maturity date of the farm-stored loan 
shall be the maturity date applicable to the warehouse-stored loan that 
was transferred.
    (c) Upon the filing of the Reconcentration Agreement and Trust 
Receipt by the producer and warehouse operator, CCC may, during the 
marketing assistance loan period, approve the reconcentration in another 
CCC-approved warehouse for all or part of a commodity that is pledged as 
collateral for a warehouse-stored loan. Any such approval shall be 
subject to the terms and conditions in the Reconcentration Agreement and 
Trust Receipt. A producer may, before the new warehouse receipt is 
delivered to CCC, pay to CCC:
    (1) The principal amount of the marketing assistance loan and 
charges plus interest and applicable charges; or
    (2) If CCC so announces, an amount less than the principal amount of 
the marketing assistance loan and charges plus interest under the terms 
and conditions specified by CCC at the time the producer redeems the 
commodity pledged as collateral for such marketing assistance loan.