Liability of the producer.

CFR · 2024-01-01 · US · Title 7

(a)(1) If a producer makes any fraudulent representation in obtaining a loan, maintaining a loan, or settling a loan or if the producer disposes of or moves the loan collateral without the prior approval of CCC, such loan amount must be refunded upon demand by CCC. The producer will be liable for: (i) The amount of the loan; (ii) Any additional amounts paid by CCC for the loan; (iii) All other costs which CCC would not have incurred but for the fraudulent representation or the unauthorized disposition or movement of the loan collateral; (iv) Applicable interest on such amounts; and (v) Liquidated damages under paragraph (e) of this section. (2) Notwithstanding any provision of the note and security agreement, if a producer has made any such fraudulent representation or if the producer has disposed of, or moved, the loan collateral without prior written approval from CCC, the value of such collateral acquired by CCC will be equal to the sales price of the cotton less any costs incurred by CCC in completing the sale. (b) If the amount disbursed under a loan, or in settlement thereof, exceeds the amount authorized by this subpart, the producer is liable for repayment of such excess, plus interest. In addition, seed cotton pledged as collateral for such loan will not be released to the producer until such excess is repaid. (c) If the amount collected from the producer in satisfaction of the loan is less than the amount required under this subpart, the producer is personally liabl

official document · source cfr-2024 · id 7:§ 1427.175