Availability, disbursement, and maturity of loans.

CFR · 2024-01-01 · US · Title 7

(a) Before obtaining a loan, a processor must: (1) File a loan application, as CCC prescribes, no earlier than October 1 and no later than September 30 of the applicable crop year, with the State committee of the State where such processor is headquartered, or with a county committee designated by the State committee. (2) Execute a note and security agreement, and storage agreement with CCC; (3) Provide quantity and quality information as prescribed by CCC of the commodity to be pledged as collateral; (4) Pay CCC a loan service fee, as determined by CCC, for the disbursement of each loan. (5) If there are any liens or encumbrances on sugar or in-process sugar pledged as loan collateral, obtain waivers that fully protect CCC's interest even though the liens or encumbrances are satisfied from the loan proceeds. No additional liens or encumbrances shall be placed on the sugar after loan approval; and (6) Agree to reimburse CCC for any costs incurred as a result of the failure of the processor to obtain the waivers specified in subparagraph (5). (b) No loan proceeds may be disbursed until the sugar and in-process sugar have actually been produced and are otherwise established as being eligible to be pledged as loan collateral. (c)(1) A processor may, within the loan availability period, repledge as collateral sugar that previously served as loan collateral for a repaid loan. In making application for such a loan, the processor shall: (i) Specify that the loan collateral should be

official document · source cfr-2024 · id 7:§ 1435.103