Eligible commodity and pooling.

CFR · 2024-01-01 · US · Title 7

(a) A CMA may establish separate loan pools as needed for quantities of a commodity. (b) Loans and, if applicable, LDP's will be available to CMA's for any eligible commodity in a loan pool as provided in paragraph (e) of this section and the beneficial interest provisions of parts 1421 and 1427 of this chapter. (c) A loan pool is eligible for MALs and LDPs if: (1) All of the commodity in the loan pool is eligible for MALs or LDPs, except as provided in paragraphs (d) and (e) of this section; (2) The commodity was delivered by members to the CMA for their benefit; (3) The commodity was delivered and the members are eligible for MALs and LDPs; (4) Members retain the right to share in marketing proceeds from the commodity in accordance with § 1425.18; and (5) Members agreed to accept a payment of initial advances from the CMA in accordance with § 1425.18(a). (6) Members agree to refund to the CMA, if requested by the CMA, any denied market loan gain or LDP benefit realized when the proceeds from the loan pool are distributed to the CMA members. (d) Ineligible commodities may be included in eligible pools when: (1) The CMA inadvertently included ineligible quantities based on grade, quality, bale weight or repacking in the case of cotton, or other factors; or (2) There are eligibility discrepancies within FSA records, the producer has certified to the CMA that the commodity is eligible for a MAL, and there is no market gain or LDP involved in the loan pool for the crop year. (e)

official document · source cfr-2024 · id 7:§ 1425.17