Loan maintenance.

CFR · 2024-01-01 · US · Title 7

(a) All processors receiving loans shall: (1) Abide by the terms and conditions of the loan application, note and security agreement and storage agreement; (2) Pay interest on the principal at a rate determined in part 1405 of this chapter. (b) The security interests CCC obtains as a result of the execution of security agreements by sugarcane and sugar beet processors shall be superior to all statutory and common law liens on raw cane sugar, refined beet sugar, and in-process sugar for the producers of sugarcane and sugar beets and all prior recorded and unrecorded liens on the crops of sugarcane and sugar beets from which the sugar was derived. (c) A processor receiving a loan under this part shall pay all eligible producers who have delivered or will deliver sugar beets or sugarcane to such processors for processing not less than the minimum payment levels CCC specifies for the applicable crop year. (1) In the case of sugar beets, the minimum payment shall not exceed the rate of payment provided for under the applicable contract between a sugar beet producer and a sugar beet processor. (2) In the case of sugarcane, CCC will annually determine and announce the annual grower minimum payment. (3) Processors are ineligible for loans for the crop year following their failure to meet the required minimum grower payment. (d)(1) A processor shall maintain eligible sugar or in-process sugar of sufficient quality and quantity as collateral to satisfy the processor's loan indebtedness

official document · source cfr-2024 · id 7:§ 1435.104