Personal liability of the producer.

CFR · 2024-01-01 · US · Title 7

(a) When a producer obtains a commodity MAL, the producer agrees, in writing, not to: (1) Provide an incorrect certification of the quantity or make any fraudulent or erroneous representation for the MAL; (2) Remove or dispose of a quantity of commodity that is collateral for a CCC farm-stored MAL without prior written approval from CCC in accordance with § 1421.10; or (3) Violate the terms and conditions of the note and security agreement, which will cause harm or damage to CCC in that funds may be disbursed to the producer for a quantity of a commodity that is not actually in existence or for a quantity on which the producer is not eligible. If CCC determines that the producer has violated the terms and conditions of the applicable forms prescribed by CCC, liquidated damages will be assessed on the quantity of the commodity that is involved in the violation. (b) Such violations as referred to in paragraph (a)(3) of this section may include, but are not limited to: (1) Incorrect certification; (2) Unauthorized removal; and (3) Unauthorized disposition. (c) If the county committee determines that the producer has committed such violations, liquidated damages will be assessed on the quantity of the commodity that is involved in the violation. (d) Liquidated damages assessed in accordance with this section will be determined by multiplying the quantity involved in the violation by 10 percent (e) When it has been determined that a violation of the terms and conditions of the not

official document · source cfr-2024 · id 7:§ 1421.109