fees incurred by the county committee in connection with the making of farmstorage loans will be for the account of CCC.

§ 421.1347

Determination of quantity.

(a) General. At the time a loan is made, the quantity of beans may be determined either by weight or if farm stored in bulk by measurement. Where the quantity is determined by measurement 2.1 cubic feet shall constitute 100 pounds. The weight of bagged beans, not represented by a commingled warehouse receipt, for the purpose of the making of loans and settlement of loans and purchase agreements shall be the net weight of the lot determined under paragraph (c) of this section, or a quantity determined by multiplying the number of bags by 100 pounds, whichever is smaller. When necessary to convert bagged beans from gross weight to net weight, there shall be allowed 34 pound per bag for the weight of the bags.

(b) Commingled warehouse storage. In the case of commingled warehousestorage loans and settlement of loans and purchase agreements, where a commingled warehouse receipt is issued by an approved warehouse, the quantity shall be the net weight as specified on the warehouse receipt or supplemental certificate as applicable.

(c) Other storage-(1) For loan purposes. For the purpose of making loans the quantity of identity-preserved beans grading U.S. No. 2 or better stored in bulk shall be the net weight of the beans as shown on the warehouse receipt or supplemental certificate. The quantity of thresher-run beans shall be determined on the basis of either weight or measurement and loans shall be made on the basis of the net weight of the sound beans in the lot. Sound beans shall be beans free from dockage and other defects as defined in the United States Standards for Beans. In the case of beans stored on the farm, the quantity shall be expressed in units of 100 pounds after dropping all fractions.

(2) For settlement purposes. The quantity of eligible beans acquired by CCC under loan or purchase agreement, not represented by a commingled warehouse receipt, shall be determined on the basis of an official weight certificate. Such certificate dated not earlier than 30 days prior to the applicable maturity date shall be furnished the county committee at the time of delivery. The cost

of such certificate shall not be for the account of CCC.

(d) Safety margin. A safety factor as established by the State committee shall be deducted from the net quantity as determined by measurement when beans are offered for a farm-storage loan.

§ 421.1348

Credit for loss or damage.

The amount to be credited to the producer for loss or damage assumed by CCC, in accordance with § 421.1116 shall be determined by multiplying the number of hundredweight of sound beans, lost or damaged, by the support rate for U.S. No. 2 beans of the class lost or damaged, except that if the warehouse receipt or an official inspection certificate covering the beans shows a grade of U.S. No. 2 or better, the amount credited shall be determined by multiplying the net weight of the beans lost or damaged by the support rate for the class and grade of such beans. There shall be deducted from such amount any insurance proceeds to which CCC may be entitled and the salvage value of the commodity. § 421.1349 Warehouse receipts.

Warehouse receipts representing beans: in approved warehouse-storage to be placed under loan, to be delivered in satisfaction of a farm-storage loan, or to be acquired under a purchase agreement, must meet the requirements of this section.

(a) Manner of issuance and endorsement. Warehouse receipts must be issued in the name of the producer if presented for a warehouse-storage loan, in the name of the producer or CCC if presented for delivery under a farm-storage loan or in the name of the producer, or CCC if presented for delivery under a purchase agreement. Such receipts must be properly endorsed in blank so as to vest title in the holder, and must be receipts issued by a warehouse for which a CCC Form 28, "Bean Storage Agreement" is in effect and which is approved by CCC for price support purposes. The receipts must be negotiable and must cover eligible beans actually in store in the warehouse.

(b) Entries for weight and grade. Each warehouse receipt or warehouseman's supplemental certificate (in duplicate) properly identified with the warehouse receipt, must show (1) net weight, (2) class, (3) grade, (4) or all grading factors used in the determination of the

is also

(d) Where warehouseman owner. If the receipt is issued for beans of which the warehouseman is the owner either solely, jointly, or in common with others, the fact of such ownership shall be stated on the receipt. Such receipts shall also be registered or recorded with appropriate State or local officials when required by State law. Notwithstanding the provisions of paragraph (a) of this section, in States where the pledge of warehouse receipt by a warehouseman on his own beans is not valid under State law and the warehouseman elects to deliver beans to CCC under a purchase agreement for which he is eligible under this program, the warehouse receipt shall be issued in the name of CCC.

(e) Insurance. Each warehouse receipt or accompanying supplemental certificate representing beans stored in an approved warehouse operating under a CCC Form 28, "Bean Storage Agreement" shall state that the beans are insured by the warehouseman at full market value against loss or damage by fire, lightning, inherent explosion, windstorm, cyclone or tornado, except that, insurance on identity-preserved beans must be obtained by either the producer or the warehouseman. If the insurance is obtained by the producer, it must be assigned to the warehouseman, with the consent of the insurance company, before a loan will be made and the warehouseman must also certify that the insurance has been assigned to him with the consent of the insurance company. The cost of such insurance shall not be for the account of CCC. Insurance is not required in order for warehouse receipts to be purchased under the purchase agreement program.

§ 421.1350 Warehouse charges and packaging.

(a) Warehouse charges. Storage, bagging, cleaning, inspection fees and all other charges, except receiving and loading out charges in the warehouse in

which the beans are acquired by CCC, accruing through the applicable maturity date for loans, shall be paid by the producer prior to the time that the beans are placed under warehouse-storage loans, delivered in settlement of a farmstorage loan, or delivered under a purchase agreement, or shall be paid from the loan proceeds, settlement proceeds or purchase proceeds, whichever is applicable. Such charges include the cost of movement to a normal railroad shipping point if the warehouse is not located on a railroad, and any unpiling, turning, repiling, or other charges, except loading out charges, incident to official weight and grade determinations on identitypreserved beans. CCC will assume warehouse-storage charges (not in excess of those approved for the 1962 crop under CCC Form 28, "Bean Storage Agreement") accruing after the applicable maturity date for loans, for beans which are delivered to or acquired by CCC.

(b) Packaging. Unless otherwise approved by CCC, beans acquired under loan or purchase agreement must be packed 100 pounds net in new bags made of 36-inch, extra quality 10.4 ounce or heavier weight jute or provision must have been made for such packaging by the producer. Bag seams must be as strong as the full strength of the cloth. Bags must be marked to show the commodity name and class; the net weight when packed; and the name and address of the packer.

§ 421.1351 Maturity of loans.

Loans mature on demand but not later than April 30, 1963.

§ 421.1352 Storage in transit.

Reimbursement will be made by CCC to producers or warehousemen for paid-in freight on beans stored in approved warehouses, subject to the following conditions:

(a) The movement from point of origin to storage point must be an "inline" movement as determined by CCC, and must be no greater than 100 miles from the point of production unless otherwise approved by CCC prior to the date of shipment.

(b) The freight must have been paid in by the person claiming reimbursement and he must not have been otherwise reimbursed.

(c) The warehouseman must furnish the descriptive data on all freight bills or transit tonnage slips on all eligible

beans received into the storage facility at the time and in the manner stipulated in CCC Form 28, "Bean Storage Agreement", in effect with CCC for the 1962 crop.

(d) The freight bills or transit tonnage slips must be made available to CCC in accordance with the provisions of CCC Form 28, “Bean Storage Agreement".

(e) Not more than one transit stop must have been used on billing.

(f) The freight bills must be otherwise acceptable to CCC under the terms of the storage agreement.

(g) Reimbursement for paid-in freight under this section will be made by the appropriate ASCS commodity office subsequent to actual delivery of the beans to CCC pursuant to a loan or purchase agreement.

Settlement for beans acquired by CCC under loan or purchase agreement will be made with the producer as provided in applicable provisions of the preceding sections and this section. The support rate per cwt. at which settlement will be made for eligible beans, shall be determined under the applicable provisions of § 421.1354. Deliveries of beans in settlement of loans and purchase agreements shall be in accordance with instructions issued by the county office. Beans purchased under the purchase agreement shall be paid for by sight draft drawn on CCC and the producer shall indicate on commodity purchase Form 4 or 4A, whichever is applicable, to whom payment shall be made.

(a) Inspection of purchase agreement beans. Where the producer is required to retain the beans after maturity date as outlined in paragraph (b) of this section, CCC will not assume any loss in quantity or quality of beans covered by a purchase agreement, occurring prior to delivery to CCC, except for quality deterioration under the following circumstances. If a producer has properly requested delivery instructions and CCC cannot accept delivery within the 60day period following the applicable loan maturity date, the producer may notify the county committee at any time after such 60-day period that the beans are going out of condition or are in danger of going out of condition. Such notice must be confirmed in writing. If the county committee determines that the beans are going out of condition or are

in danger of going out of condition and that the beans cannot be satisfactorily conditioned by the producer, and delivery cannot be accepted within a reasonable length of time, the county committee shall obtain an inspection and grade and quality determination. If such inspection shows the beans to be of an eligible grade, settlement when delivery is completed shall be made on the basis of such grade and quality determination or on the basis of the grade and quality determination made at the time of delivery, whichever is higher, and on the basis of the quantity actually delivered, but not in excess of the quantity specified on the purchase agreement.

(b) Storage payment where CCC is unable to take delivery of beans stored in other than an approved warehouse under loan or purchase agreement. The producer may be required to retain beans stored in other than an approved warehouse under loan or purchase agreement for a period of 60-days after the maturity date without any cost to CCC. However, if CCC is unable to take delivery of such beans within the 60-day period after maturity, the producer shall be paid a storage payment upon delivery of the beans to CCC: Provided, however, That a storage payment shall be paid a producer whose beans are stored in other than an approved warehouse under purchase agreement only if he has properly given notice of his intention to sell the beans to CCC and delivery cannot be accepted within the 60-day period after maturity. The period for earning such storage payment shall begin the day following the expiration of the 60-day period after the maturity date and extend through the final date of delivery, or the final date for delivery as specified in the delivery instructions issued to the producer by the county office, whichever is earlier. The storage payment shall be computed at the rate for identitypreserved warehouse-stored beans as shown in the schedule of rates for the Bean Storage Agreement in effect at the time of such storage.

(c) Refund of prepaid handling charges. In case a warehouseman charges the producer for the receiving or the receiving and loading out charges on beans under loan or purchase agreement stored in a warehouse under the Bean Storage Agreement, the producer shall, upon delivery of the beans to CCC, be reimbursed or given credit by the county office for such prepaid charges

in an amount not to exceed the charges authorized under the Bean Storage Agreement, provided the producer furnishes to the county committee written evidence signed by the warehouseman that such charges have been paid.

(d) Ineligible beans inadvertently accepted by CCC. In the case of: (1) Ineligible beans delivered to or acquired by CCC in connection with a loan or (2) beans delivered in excess of the maximum quantity stated in the purchase agreement, and any other ineligible beans delivered under a purchase agreement, the settlement value shall be the market price as determined by CCC, but in no event more than the applicable support rate. If CCC sells the beans for the purpose of determining their market price, the settlement value shall be such sales price. The provisions of this paragraph do not apply to ineligible beans covered by paragraphs (e) and (f) of this section.

(e) Fraud. The making of any fraudulent representation by the producer in connection with settlement or deliveries under a loan shall render the producer personally liable, aside from any additional liability under criminal and civil fraud statutes, for the amount of the loan, for any additional amounts paid to the producer on the beans, and for all costs which CCC would not have incurred had it not been for the producers fraudulent representation, together with interest at the rate of 6 percent per annum on such amounts from the date of disbursement. For the purpose of establishing any deficiency remaining due in the event the producer has made any such fraudulent representation, the value of the commodity acquired by CCC under the loan shall be the market value, as determined by CCC on the date of delivery or removal in the case of farm-storage loans or the market value of the beans as of the close of the market on the final date for repayment in the case of warehouse-storage loans, or in the case of both farm-storage and warehouse-storage loans the sales price if the beans are sold by CCC in order to determine its market value. If the producer has made a fraudulent representation in a sale under a purchase agreement or in the purchase agreement documents, he shall be personally liable, aside from any additional liability under criminal or civil fraud statutes for any loss which CCC sustains upon the beans delivered under

the purchase agreement. For the purpose of this program such loss shall be deemed to be the price paid to the producer on the beans delivered under the purchase agreement plus all costs sustained by CCC in connection with the beans, together with interest at the rate of 6 percent per annum from the time of disbursement, less the market value, as determined by CCC, of the beans as of the close of the market on the date of delivery, or the sales price if the beans are sold in order to determine its market value.

(f) Poisonous substances. If the beans delivered to CCC contain mercurial compounds or other substances poisonous to man or animals, such beans shall be sold for seed (in accordance with applicable State seed laws and regulations), fuel, or industrial uses where the end product will not be consumed by man or animals, and the settlement value shall be the same as the sales price, except that if CCC is unable to sell such beans for the uses specified above, the settlement value shall be the market value, as determined by CCC, as of the date of delivery.

§ 421.1354 Support rates.

The support rate for the quality of beans placed under a loan or acquired under a loan or purchase agreement shall be the applicable basic county support rate shown in paragraph (a) of this section, for the class and grade, and for the county in which the beans were produced, adjusted in accordance with the provisions of this section and in the case of settlement of loans and purchase agreements as further provided in § 421.1353. Except in the case of large lima beans, if the beans have been moved by truck to approved storage in a higher loan rate county, or if the warehouseman guarantees delivery by truck to approved storage or on track in a higher support rate county, the loan rate shall be the support rate for the county in which the beans are stored or to which delivery is guaranteed.

(a) Basic county supports rates. The basic county support rates per 100 pounds net weight for beans of all classes: grading U.S. No. 1 are as follows:

Area II-All counties in Kansas, Nebraska, Oklahoma, and Texas. In Colorado, the counties of Adams, Arapahoe, Baca, Bent, Boulder, Cheyenne, Clear Creek, Crowley, Denver, Douglas, Elbert, El Paso, Fremont, Gilpin, Huerfano, Jefferson, Kiowa, Kit Carson, Larimer, Las Animas, Lincoln, Logan, Morgan, Otero, Phillips, Prowers, Pueblo, Sedgwick, Teller, Washington, Weld, and Yuma. In Wyoming, the counties of Goshen, Laramie, and Platte____

6.28

Area I-All counties in Minnesota, Nebraska, and North Dakota. In Colorado, all counties east of 106° longitude. In Wyoming, the counties of Goshen, Laramie, and Platte

Area II-All counties in South Dakota. All counties in Wyoming except Goshen, Laramie, and Platte

Area III-All counties in Montana. In Idaho, the counties of Ada, Bannock, Bear Lake, Bingham, Boise, Canyon, Caribou, Cassia, Elmore, Franklin, Gem, Gooding, Jerome, Lincoln, Minidoka, Oneida, Owyhee, Payette, Power, and Twin Falls. In Oregon, Malheur County

7.02

6.82

6.62

Class and area

Large Lima:

U.S. No. 1

Rate per 100 pounds

Area I-In California, counties of
Monterey, Orange, San Luis
Obispo, Santa Barbara, Ventura,

Los Angeles and San Diego----- $10.20 Area II-All other countries in California

Baby Lima..

(b) Premiums—grade.

10.05

5.40

Cents per 100 pounds

U.S. CHP (Pea beans).

+25

U.S. Extra No. 1---

(c) Discounts-grade.

U.S. No. 2-----

-25

(d) Safety factor. In the case of farm-stored thresher-run loans, and identity-preserved warehouse-stored thresher-run loans, the rate shall be reduced by the following amounts:

Subpart-1962-Crop Grain Sorghums Loan and Purchase Agreement Program

AUTHORITY: §§ 421.1401 to 421.1412 issued under sec. 4, 62 Stat. 1070 as amended; 15 U.S.C. 714b. Interpret or apply sec. 5, 62 Stat. 1072, secs. 105, 401, 63 Stat. 1051, as amended; 15 U.S.C. 714c, 7 U.S.C. 1421, 1441.

SOURCE: §§ 421.1401 to 421.1412 contained in 1962 CCC Grain Price Support Bulletin 1, Supplement 1, Grain Sorghums, 27 F.R. 6463, July 10, 1962; 27 F.R. 6693, July 14, 1962; 27 F.R. 8025, Aug. 11, 1962, except as otherwise noted.

This supplement states additional specific requirements which, together with the applicable provisions of the general regulations contained in the 1962 C.C.C. Grain Price Support Bulletin 1 (27 F.R. 4411) (§§ 421.1101 to 421.1132) and any amendments thereto, apply to loans and purchase agreements under the 1962Crop Grain Sorghums Price Support Program.

§ 421.1402

Availability of price support. (a) Area. Price support will be available through farm-storage and warehouse-storage loans and purchase agreements on eligible grain sorghums wherever grain sorghums are grown in