[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: 7CFR1436.13]

[Page 586-587]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1436_FARM STORAGE FACILITY LOAN PROGRAM REGULATIONS--Table of Contents
 
Sec.  1436.13  Loan installments, delinquency, and acceleration of maturity date.

    (a) Equal installments of principal plus interest will be amortized 
over the loan term for purposes of setting a payment schedule. 
Installments are due and payable not later than the last day of each 12-
month period of the loan, until the principal plus interest has been 
paid in full.
    (b) Each installment may be paid in cash, money order, wire 
transfer, or by personal, certified, or cashier's check. Repayment shall 
be applied first to accrued interest and then to principal.
    (c) The following actions will be taken when installments are not 
paid on the due date: A demand for payment shall be mailed to the debtor 
after the due date has passed. If the installment is not paid within 30 
days of the due date or if a new due date acceptable to CCC has not been 
established based on a financial plan submitted by the debtor, the 
initial demand may be followed by two subsequent written demands at 
approximately 30-day intervals unless other action is needed to protect 
the interests of CCC. If the debtor files an appeal according to Sec.  
1436.18 of this part, collection action shall cease until the appeal 
process is complete, however, any payments due the debtor may be 
withheld and, depending on the outcome of the appeal, may later be 
offset and applied to reduce the indebtedness. In lieu of a foreclosure 
on the collateral in the case of a delinquency, CCC may permit a 
rescheduling of the debt or other measures consistent with the 
collection of other debts under the provisions of Part 1403. 
Alternately, CCC may implement such other collection procedures as it 
deems appropriate.
    (d) A claim shall be established against a borrower for any amounts 
remaining due after liquidation of the loan.
    (e) CCC may declare the entire indebtedness immediately due and 
payable if the borrower violates any of the terms and conditions of this 
part, fails to pay any installment on time, or breaches any of the terms 
and conditions of any of the instruments executed in connection with the 
loan, or if , during the life of the loan, the collateral is used in 
connection with or by any unauthorized commercial operation including, 
but not limited to, elevators, warehouses, dryers or processing plants.
    (f) Any action authorized by the provisions of this section may be 
taken:
    (1) Against a debtor's pro rata share of payments due any entity 
that the borrower participates in, either directly or indirectly, as 
determined by CCC.
    (2) Against related persons or entities, irrespective of the debtors 
share, when CCC determines that the debtor has established an entity, or 
reorganized, transferred ownership of, or changed in some other manner, 
their operation, for the purpose of avoiding the payment of the debt.
    (g) The loan may be paid in full or in part without penalty at any 
time before maturity.

[[Page 587]]

    (h) Upon payment of a loan, CCC shall release CCC's security 
interest in the collateral.