[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: 7CFR1421.113]

[Page 447]
 
                          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.  1421.113  Foreclosure.

    (a)(1) Upon maturity and nonpayment of a warehouse-stored loan, 
title to the unredeemed collateral securing the marketing assistance 
loan shall immediately vest in CCC.
    (2) Upon maturity and nonpayment of a farm-stored marketing 
assistance loan, title to the unredeemed collateral shall automatically 
transfer to CCC upon CCC demand.
    (3) When CCC acquires title to the unredeemed collateral, CCC shall 
not pay for any market value that such collateral may have in excess of 
the marketing assistance loan indebtedness, (the unpaid amount of the 
note and charges plus interest).
    (b) If the total amount due on a farm-stored loan (the unpaid amount 
of the note plus charges, and interest) is not satisfied upon maturity, 
CCC may remove the commodity from storage, and assign, transfer, and 
deliver the commodity or documents evidencing title thereto when, how, 
and upon terms as CCC determines. Disposition may also be effected 
without removing the commodity from storage. The commodity may be 
processed before sale and CCC may become the purchaser of the whole or 
any part of the commodity at either a public or private sale.
    (1) The value of settlement for a farm-stored commodity removed by 
CCC from storage and shall be as provided in Sec.  1421.112.
    (2) If a deficiency exists after the collateral is sold, a claim for 
such deficiency will be established in accordance with part 1403 of this 
title.