[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: 7CFR1434.19]

[Page 559]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1434_NONRECOURSE MARKETING ASSISTANCE LOAN AND LDP REGULATIONS FOR 
 
Sec.  1434.19  Settlement.

    The value of the settlement of loans shall be made by CCC on the 
following basis:
    (a) With respect to nonrecourse loans, the schedule of premiums and 
discounts for the commodity:
    (1) If the value of the collateral at settlement is less than the 
amount due, the producer shall pay to CCC the amount of such deficiency 
and charges, plus interest on such deficiency; or
    (2) If the value of the collateral at settlement is greater than the 
amount due, such excess shall be retained by CCC and CCC shall have no 
obligation to pay such amount to any party.
    (b) With respect to honey that is delivered from other than an 
approved warehouse, settlement shall be made by CCC on the basis of the 
basic loan rate that is in effect for the commodity at the producer's 
customary delivery point, as determined by CCC.