[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: 7CFR1436.11]

[Page 585-586]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1436_FARM STORAGE FACILITY LOAN PROGRAM REGULATIONS--Table of Contents
 
Sec.  1436.11  Disbursement and assignments.

    (a) Disbursement of the loan by CCC will be made after the farm 
storage facility has been delivered, erected, constructed, assembled, or 
installed and a CCC representative has inspected and approved such 
facility.
    (b) Disbursement will be made only if the borrower furnishes 
satisfactory evidence of the total cost of the facility and payment of 
all debts on the facility in excess of the amount of the loan.

[[Page 586]]

    (c) Disbursement may be made jointly to the borrower and the 
contractor or supplier, except disbursement may be made to the borrower 
only if CCC determines the borrower has paid the contractor or supplier 
all amounts that are due and owing with respect to the facility and that 
all applicable liens, security interests, or other encumbrances have 
been released.
    (d) A release of liability will be required from contractors and 
suppliers providing goods and services to the loan applicant.
    (e) Loan proceeds cannot be assigned.