[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: 7CFR1421.403]

[Page 455]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1421_GRAINS AND SIMILARLY HANDLED COMMODITIES_MARKETING ASSISTANCE LOANS 
 
         Subpart E_Designated Marketing Associations for Peanuts
 
Sec.  1421.403  DMA eligibility to process loans and loan deficiency payments.

    (a) A DMA is eligible to process any marketing assistance loan or 
loan deficiency payments only if approved in advance to handle such 
matters by the Farm Service Agency pursuant to this part; and:
    (1) The DMA meets the financial requirements and other requirements 
in this subpart and part;
    (2) The DMA is comprised solely of peanut producers or is a 
subsidiary of an organization of peanut producers;
    (3) The DMA is not controlled directly or indirectly by a person or 
entity that acquires peanuts for processing or crushing through a 
business involved in buying and selling peanuts or peanut products;
    (4) The DMA does not take title at any time to any peanuts for which 
it processes loans or loan deficiency payments, irrespective of whether 
such title is taken before or after those activities are performed. If 
such title or interest is taken, the DMA shall be responsible to return 
to CCC the full amount of the CCC proceeds disbursed with respect to the 
peanuts; and
    (5) The DMA meets any additional requirements imposed by CCC or FSA.
    (b) The DMA's activities under this part shall be conducted only 
with respect to peanuts and only for producers and peanuts that meet all 
the eligibility requirements of this part. Such requirements include, 
but are not limited to, the requirement of Sec.  1421.6 that the 
producer must have the beneficial interest in the peanuts while the 
peanuts are under loan or when the loan deficiency payment is received 
and must be the only person that has had such an interest in the peanuts 
prior to that time except as allowed by Sec.  1421.6.