7 U.S.C. § 7282 — Adjustments of loans

Page 1990 TITLE 7—AGRICULTURE § 7281 1 So in original. Probably should be ‘‘known’’. 2000—Subsec. (e)(1). Pub. L. 106–387, § 1(a) [title VIII, § 836(1)(B)], substituted ‘‘The’’ for ‘‘Subject to para- graph (2), the’’. Pub. L. 106–387, § 1(a) [title VIII, § 836(1)(A)], sub- stituted ‘‘nonrecourse’’ for ‘‘recourse’’. Subsec. (e)(2), (3). Pub. L. 106–387, § 1(a) [title VIII, § 836(2)–(4)], redesignated par. (3) as (2), substituted ‘‘The Secretary shall’’ for ‘‘If the Secretary is required under paragraph (2) to make nonrecourse loans avail- able during a fiscal year or to change recourse loans into nonrecourse loans, the Secretary shall’’, and struck out heading and text of former par. (2). Text read as follows: ‘‘During any fiscal year in which the tariff rate quota for imports of sugar into the United States is established at, or is increased to, a level in ex- cess of 1,500,000 short tons raw value, the Secretary shall carry out this section by making available non- recourse loans. Any recourse loan previously made available by the Secretary under this section during the fiscal year shall be changed by the Secretary into a nonrecourse loan.’’ Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2008 AMENDMENT Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title. EFFECTIVE DATE OF ASSESSMENT TERMINATION Pub. L. 107–171, title I, § 1401(b), May 13, 2002, 116 Stat. 187, provided that: ‘‘Subsection (f) of section 156 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272(f)), as in effect immediately before the enactment of the Farm Security and Rural Invest- ment Act of 2002 [Pub. L. 107–171], is deemed to have been repealed effective as of October 1, 2001.’’ REGULATIONS Pub. L. 106–387, § 1(a) [title VIII, § 840], Oct. 28, 2000, 114 Stat. 1549, 1549A–63, provided that: ‘‘As soon as prac- ticable after the date of enactment of this Act [Oct. 28, 2000], the Secretary and the Commodity Credit Cor- poration, as appropriate, shall issue such regulations as are necessary to implement sections 804, 805, 806, 809, 810, 811, 812, 814, 815, 816, 836, 837, 838, 839, 841, 843, 844, and 845 of this title [amending this section and section 3720B of Title 31, Money and Finance, enacting provi- sions set out as notes under section 3720B of Title 31, and amending provisions set out as a note under sec- tion 1421 of this title]: Provided, That the issuance of the regulations shall be made without regard to: (1) the notice and comment provisions of section 553 of title 5, United States Code; (2) the Statement of Policy of the Secretary of Agriculture effective July 24, 1971 (36 Fed. Reg. 13804), relating to notices of proposed rulemaking and public participation in rulemaking; and (3) chapter 35 of title 44, United States Code (commonly known as the ‘Paperwork Reduction Act’): Provided further, That in carrying out this section, the Secretary shall use the authority provided under section 808 of title 5, United States Code.’’ LOANS FOR 2007 CROP YEAR Pub. L. 110–234, title I, § 1401(b), May 22, 2008, 122 Stat. 981, and Pub. L. 110–246, § 4(a), title I, § 1401(b), June 18, 2008, 122 Stat. 1664, 1709, provided that the Secretary of Agriculture would make loans for raw cane sugar and refined beet sugar available for the 2007 crop year on the terms and conditions provided in section 7272 of this title as in effect on the day before June 18, 2008. [Pub. L. 110–234 and Pub. L. 110–246 enacted identical provisions. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246, set out as a note under section 8701 of this title.] SUBCHAPTER V—ADMINISTRATION § 7281. Administration (a) Use of Commodity Credit Corporation The Secretary shall carry out this chapter through the Commodity Credit Corporation. (b) Omitted (c) Determinations by Secretary A determination made by the Secretary under this chapter shall be final and conclusive. (d) Regulations Not later than 90 days after April 4, 1996, the Secretary and the Commodity Credit Corpora- tion, as appropriate, shall issue such regulations as are necessary to implement this chapter. The issuance of the regulations shall be made with- out regard to— (1) the notice and comment provisions of section 553 of title 5; (2) the Statement of Policy of the Secretary of Agriculture effective July 24, 1971 (36 Fed. Reg. 13804) relating to notices of proposed rulemaking and public participation in rule- making; and (3) chapter 35 of title 44, United States Code (commonly know 1 as the ‘‘Paperwork Reduc- tion Act’’). (Pub. L. 104–127, title I, § 161, Apr. 4, 1996, 110 Stat. 934.) Editorial Notes REFERENCES IN TEXT For definition of ‘‘this chapter’’, referred to in text, see note set out under section 7201 of this title. CODIFICATION Section is comprised of section 161 of Pub. L. 104–127. Subsec. (b) of section 161 of Pub. L. 104–127 amended sections 714b, 714i, and 714k of Title 15, Commerce and Trade. § 7282. Adjustments of loans (a) Adjustment authority The Secretary may make appropriate adjust- ments in the loan rates for any commodity for differences in grade, type, quality, location, and other factors. (b) Manner of adjustment The adjustments under the authority of this section shall, to the maximum extent prac- ticable, be made in such manner that the aver- age loan level for the commodity will, on the basis of the anticipated incidence of the factors, be equal to the level of support determined as provided in this chapter and title I of the Farm Security and Rural Investment Act of 2002 [7 U.S.C. 7901 et seq.]. (c) Adjustment on county basis The Secretary may establish loan rates for a crop for producers in individual counties in a manner that results in the lowest such rate being 95 percent of the national average loan rate, except that such action shall not result in Page 1991 TITLE 7—AGRICULTURE § 7284 1 So in original. Probably should be followed by a comma. an increase in outlays. Adjustments under this subsection shall not result in an increase in the national average loan rate for any year. (Pub. L. 104–127, title I, § 162, Apr. 4, 1996, 110 Stat. 935; Pub. L. 107–171, title I, § 1606, May 13, 2002, 116 Stat. 218.) Editorial Notes REFERENCES IN TEXT For definition of ‘‘this chapter’’, referred to in sub- sec. (b), see note set out under section 7201 of this title. The Farm Security and Rural Investment Act of 2002, referred to in subsec. (b), is Pub. L. 107–171, May 13, 2002, 116 Stat. 134. Title I of the Act is classified prin- cipally to chapter 106 (§ 7901 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note under section 7901 of this title and Ta- bles. AMENDMENTS 2002—Subsec. (b). Pub. L. 107–171 substituted ‘‘this chapter and title I of the Farm Security and Rural In- vestment Act of 2002’’ for ‘‘this chapter’’. § 7283. Commodity Credit Corporation interest rate (a) In general Notwithstanding any other provision of law, the monthly Commodity Credit Corporation in- terest rate applicable to loans provided for agri- cultural commodities by the Corporation shall be 100 basis points greater than the rate deter- mined under the applicable interest rate for- mula in effect on October 1, 1995. (b) Sugar For purposes of this section, raw cane sugar, refined beet sugar, and in-process sugar eligible for a loan under section 7272 of this title shall not be considered an agricultural commodity. (Pub. L. 104–127, title I, § 163, Apr. 4, 1996, 110 Stat. 935; Pub. L. 107–171, title I, § 1401(c), May 13, 2002, 116 Stat. 187.) Editorial Notes AMENDMENTS 2002—Pub. L. 107–171 designated existing provisions as subsec. (a), inserted heading, and added subsec. (b). § 7284. Personal liability of producers for defi- ciencies (a) In general Except as provided in subsection (b), no pro- ducer shall be personally liable for any defi- ciency arising from the sale of the collateral se- curing any nonrecourse loan made under this chapter 1 title I of the Farm Security and Rural Investment Act of 2002 [7 U.S.C. 7901 et seq.], title I of the Food, Conservation, and Energy Act of 2008 [7 U.S.C. 8701 et seq.], and title I of the Agricultural Act of 2014 [7 U.S.C. 9001 et seq.] unless the loan was obtained through a fraudulent representation by the producer. (b) Limitations Subsection (a) shall not prevent the Com- modity Credit Corporation or the Secretary from requiring a producer to assume liability for— (1) a deficiency in the grade, quality, or quantity of a commodity stored on a farm or delivered by the producer; (2) a failure to properly care for and preserve a commodity; or (3) a failure or refusal to deliver a com- modity in accordance with a program estab- lished under this chapter 1 title I of the Farm Security and Rural Investment Act of 2002 [7 U.S.C. 7901 et seq.], title I of the Food, Con- servation, and Energy Act of 2008 [7 U.S.C. 8701 et seq.], and title I of the Agricultural Act of 2014 [7 U.S.C. 9001 et seq.]. (c) Acquisition of collateral In the case of a nonrecourse loan made under this chapter 1 title I of the Farm Security and Rural Investment Act of 2002 [7 U.S.C. 7901 et seq.], title I of the Food, Conservation, and En- ergy Act of 2008 [7 U.S.C. 8701 et seq.], and title I of the Agricultural Act of 2014 [7 U.S.C. 9001 et seq.] or the Commodity Credit Corporation Charter Act (15 U.S.C. 714 et seq.), if the Com- modity Credit Corporation acquires title to the unredeemed collateral, the Corporation shall be under no obligation to pay for any market value that the collateral may have in excess of the loan indebtedness. (d) Sugarcane and sugar beets A security interest obtained by the Com- modity Credit Corporation as a result of the exe- cution of a security agreement by the processor of sugarcane or sugar beets shall be superior to all statutory and common law liens on raw cane sugar and refined beet sugar in favor of the pro- ducers 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. (Pub. L. 104–127, title I, § 164, Apr. 4, 1996, 110 Stat. 935; Pub. L. 107–171, title I, § 1607, May 13, 2002, 116 Stat. 218; Pub. L. 110–234, title I, § 1606, May 22, 2008, 122 Stat. 1017; Pub. L. 110–246, § 4(a), title I, § 1606, June 18, 2008, 122 Stat. 1664, 1746; Pub. L. 113–79, title I, § 1607, Feb. 7, 2014, 128 Stat. 708.) Editorial Notes REFERENCES IN TEXT For definition of ‘‘this chapter’’, referred to in text, see note set out under section 7201 of this title. The Farm Security and Rural Investment Act of 2002, referred to in subsecs. (a), (b)(3), and (c), is Pub. L. 107–171, May 13, 2002, 116 Stat. 134. Title I of the Act is classified principally to chapter 106 (§ 7901 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note under section 7901 of this title and Tables. The Food, Conservation, and Energy Act of 2008, re- ferred to in subsecs. (a), (b)(3), and (c), is Pub. L. 110–246, June 18, 2008, 122 Stat. 1651. Title I of the Act is classified principally to chapter 113 (§ 8701 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 8701 of this title and Tables. The Agricultural Act of 2014, referred to in subsecs. (a), (b)(3), and (c), is Pub. L. 113–79, Feb. 7, 2014, 128 Stat. 649. Title I of the Act is classified principally to chapter 115 (§ 9001 et seq.) of this title. For complete