Liability of the producer.

CFR · 2024-01-01 · US · Title 7

(a)(1) If a producer makes any fraudulent representation in obtaining a MAL or LDP or in maintaining or settling a loan, or disposes of or moves the loan collateral without the prior written approval of CCC, such loan or LDP will be payable upon demand by CCC. The producer will be liable for: (i) The amount of the MAL or LDP; (ii) Any additional amounts paid by CCC for the loan or LDP; (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; (v) Liquidated damages under paragraph (e) of this section; and (vi) About amounts due for a loan, the payment of such amounts may not be satisfied by the forfeiture of loan collateral to CCC of cotton with a settlement value that is less than the total of such amounts or by repayment of such loan at the lower loan repayment rate as prescribed in § 1427.19. (vii) CCC will not assume any loss pertaining to cotton stored in a warehouse for any reason. (2) If a producer makes a 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 will be equal to its loan value, plus accrued interest, plus warehouse charges, and liquidated damages, as determined by CCC. (b) If the amount disbursed under a MAL, or in settlement thereof, or LDP exceeds the amount authorized by this subpart, the producer will b

official document · source cfr-2024 · id 7:§ 1427.18