[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: 7CFR1421.11]

[Page 436]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1421_GRAINS AND SIMILARLY HANDLED COMMODITIES_MARKETING ASSISTANCE LOANS 
 
                            Subpart A_General
 
Sec.  1421.11  Spot checks.

    (a) CCC may inspect the collateral for marketing assistance loans, 
and producers with such loans shall allow CCC access to the farm and 
storage facility as necessary to conduct collateral inspections, or 
``spot checks'' as they are called. Spot checks will verify that the 
quality and quantity of farm-stored commodities pledged as collateral 
for marketing assistance loans are maintained by the producer.
    (b) Loan deficiency payments are selected for spot check to ensure 
that all eligibility requirements, as required by CCC, are met in order 
to receive such loan deficiency payment.
    (c) Producers must present production evidence for commodities 
acceptable to CCC when a spot check is conducted.