[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: 7CFR1434.21]

[Page 559-560]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1434_NONRECOURSE MARKETING ASSISTANCE LOAN AND LDP REGULATIONS FOR 
 
Sec.  1434.21  Loan deficiency payments.

    (a) Loan deficiency payments shall be available for 2002-2007 crop 
honey.
    (b) In order to be eligible to receive loan deficiency payment for a 
crop of honey, the producer must:
    (1) Comply with all of the program requirements to be eligible to 
obtain loan in accordance with this part;
    (2) Agree to forego obtaining such loans;
    (3) Submitted a request for a honey Loan deficiency payment on the 
form as CCC prescribes.
    (4) Comply with Sec. Sec.  1434.7 and 1434.8 or provide evidence of 
production as determined by CCC for such quantity; and
    (5) Otherwise comply with all program requirements.
    (c) The loan deficiency payment rate for a crop shall be the amount 
by which the marketing assistance loan rate exceeds the rate at which 
CCC has announced that producers may repay their marketing assistance 
loan in accordance with Sec.  1434.18.
    (d) The loan deficiency payment applicable to a crop of honey shall 
be computed by multiplying the loan deficiency payment rate, as 
determined in accordance with paragraph (e) of this section, by the 
quantity of honey the producer is eligible to pledge as collateral for a 
price support loan for which a loan deficiency payment is required.

[[Page 560]]

    (e) Notwithstanding any provisions in this section, loan deficiency 
payments may be based on 100 percent of the net quantity specified on 
acceptable evidence of disposition of the honey certified as eligible 
for a loan deficiency payment if CCC determines that such quantity 
represented the quantity for the number of containers of honey initially 
certified for the loan deficiency payment when the payment was made.
    (f) When applying for an individual loan deficiency payment, each 
producer agrees:
    (1) The producer will provide correct, accurate, and truthful 
certifications and representations of the loan quantity and all other 
matters of fact and interest when submitting a request for a honey loan 
deficiency payment; and
    (2) That violation of the terms and conditions of this part will 
cause harm or damage to CCC in that funds may be disbursed to the 
producer for a LDP quantity that is not actually in existence or for a 
quantity for which the producer is not eligible.
    (g) For the purposes of this section, violations include any failure 
to comply with this part or the loan agreement, including but not 
limited to any incorrect certification.

[66 FR 15177, Mar. 15, 2001, as amended at 67 FR 64481, Oct. 18, 2002]