[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: 7CFR1434.6]

[Page 553-554]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1434_NONRECOURSE MARKETING ASSISTANCE LOAN AND LDP REGULATIONS FOR 
 
Sec.  1434.6  Beneficial interest.

    (a) To be eligible to receive marketing assistance loans under this 
part a producer must have the beneficial interest in the honey that is 
tendered to CCC for a loan. The producer must always have had the 
beneficial interest in the honey unless, before the honey was extracted, 
the producer and a former producer whom the producer tendering the honey 
to CCC has succeeded had such an interest in the honey. Honey obtained 
by gift or purchase shall not be eligible to be tendered to CCC for 
loans. Heirs who succeed to the beneficial interest of a deceased 
producer or who assume the decedent's obligations under an existing loan 
shall be eligible to receive loans whether succession to the honey 
occurs before or after extraction so long as the heir otherwise complies 
with the provisions of this part.
    (b) For the 2002 crop of honey, in the case of producers that would 
be eligible for a loan deficiency payment under this section except for 
the fact that the producers lost beneficial interest in the crop before 
October 18, 2002, the producers shall be eligible for a loan deficiency 
payment as of the date producers marketed or otherwise lost beneficial 
interest in the honey, as determined by the Secretary.
    (c) A producer shall not be considered to have divested the 
beneficial interest in the honey if the producer retains control, title, 
and risk of loss in the honey including the right to make all decisions 
regarding the tender of such honey to CCC for a loan, and the producer:
    (1) Executes an option to purchase, whether or not a payment is made 
by the potential buyer for such option to purchase, with respect to such 
honey if all other eligibility requirements are met and the option to 
purchase contains the following provision:

    Notwithstanding any other provision of this option to purchase, 
title, risk of loss, and beneficial interest in the honey, as specified 
in 7 CFR part 1434, shall remain with the producer until the buyer 
exercises this option to purchase the honey. This option to purchase 
shall expire, notwithstanding any action or inaction by either the 
producer or the buyer, at the earlier of: (1) The maturity of any CCC 
loan which is secured by such honey; (2) the date the CCC claims title 
to such honey; or (3) such other date as provided in this option.''


or:

    (2) Enters into a contract to sell the honey if the producer retains 
title, risk of loss, and beneficial interest in the honey and the 
purchaser does not pay to the producer any advance payment amount or any 
incentive payment amount to enter into such contract except as provided 
in part 1425 of this chapter.
    (d) If loans are made available to producers through an approved CMA 
in accordance with part 1425 of this chapter, the beneficial interest in 
the honey must always have been in the producer-member who delivered the 
honey to the CMA or its member CMA's, except as otherwise provided in 
this section. Honey delivered to such a CMA shall not be eligible for 
loans if the producer-member who delivered the honey does not retain the 
right to share in the proceeds from the marketing of the honey as 
provided in part 1425 of this chapter.
    (e) A producer may, before the final date for obtaining a loan for 
honey, re-offer as loan honey any honey that has been previously pledged 
if the loan was repaid with principal plus interest, the loan on such 
re-offered honey shall

[[Page 554]]

have the same maturity date as the original loan.

[66 FR 15177, Mar. 15, 2001, as amended at 67 FR 64480, Oct. 18, 2002]