[Code of Federal Regulations]
[Title 7, Volume 10]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1436.3]

[Page 601-602]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1436_FARM STORAGE FACILITY LOAN PROGRAM REGULATIONS--Table of Contents
 
Sec. 1436.3  Definitions.

    The following definitions shall be applicable to the program 
authorized by this part and will be used in all aspects of administering 
this program:
    Aggregate outstanding balance means the sum of the outstanding 
balances of all loans disbursed under this part to each borrower signing 
the note and security agreement.
    Assumption means the act or agreement by which one borrower takes 
over or assumes the debt of another borrower.
    Collateral means the storage structure, drying equipment or handling 
equipment securing the loan.
    Crop of economic significance means any insurable facility loan 
commodity that contributes 10 percent or more of the total expected 
value of all crops grown by the loan applicant except if the expected 
liability under the catastrophic level of crop insurance for a crop is 
equal to or less than the administrative fee for the crop, that crop 
shall not be economically significant.
    Facility loan commodity means wheat, rice, raw or refined sugar, 
soybeans, sunflower seed, canola, rapeseed, safflower, flaxseed, mustard 
seed, other oilseeds as determined and announced by CCC, dry peas, 
lentils, small chickpeas, harvested as whole grain and including 
peanuts, except that corn, grain sorghum, oats, wheat, or barley shall 
be included whether harvested as whole grain or other than whole grain.
    Financing statement means the appropriate document that gives legal 
notice of a security interest in personal property when properly filed 
or recorded.
    Non-movable or non-salable collateral means either collateral the 
county committee determines cannot be sold and moved to a new location 
because of the type of construction involved or because the collateral 
has deteriorated to the point that it has no sale recovery value.
    Person means any individual, group of individuals, partnership, 
corporation, estate, trust, association, cooperative, tribal venture, or 
other business enterprise, or other legal entity who is, or whose 
members are, a citizen or citizens of the United States, or a legal 
resident alien.
    Satisfactory credit history means a history of repaying debts as 
they came due unless the failure to repay or tardiness in payment was 
due to circumstance beyond the applicant's control as determined by CCC 
upon proof submitted by the applicant.
    Severance agreement means an agreement under which a party may 
consent to the security interest of another in property thereby allowing 
the severance of a fixture from the real estate.
    Storage need requirement means:
    (1) The average of the most recent 3 years available, the 
applicant's share of the acres farmed for each facility loan commodity 
requiring storage at the proposed facility multiplied by a yield 
determined reasonable by the county committee, multiplied by two, less 
existing storage capacity. If acreage data is not available, including 
prevented planted acres, or the data is not applicable to the storage 
need, a reasonable acreage projection may be made for newly acquired 
farms, changes in cropping operations, or for

[[Page 602]]

facility loan commodity crops being grown for the first time.
    (2) For sugar-related loans, a projection from the processor of the 
processing volume, available storage capacity, volume not to be marketed 
due to marketing allotments, and other factors affecting the processor's 
storage need, as appropriate. CCC shall determine if the storage need is 
reasonable using data such as past processing volume and marketing 
allotments.
    Subordination agreement means any agreement under which a party may 
subordinate a security interest in property to the interest of another 
party.
    Uniform Commercial Code means the laws generally known by that name 
covering commercial transactions such as sales, negotiable instruments, 
and secured transactions.

[66 FR 4612, Jan. 18, 2001, as amended at 67 FR 54938, Aug. 26, 2002]