(a) Farm-stored loans and purchases. CCC will assume receiving and warehouse storage charges on rice delivered to an approved warehouse after loan maturity date and acquired by CCC (1) in satisfaction of a farm storage loan or (2) through purchase, except that warehouse storage charges will be assumed by CCC only from and after the date of completion of deposit of such rice in the warehouse.

(b) Warehouse-stored loans and purchases. CCC will assume warehouse storage charges accruing on and after the day following the loan maturity date on rice which is in approved warehouse storage under loan and is acquired by CCC and on rice which is in approved warehouse storage on the loan maturity date and is purchased by CCC.

(c) Refund of prepaid handling charges. The receiving or the receiving and loading out charges on the rice referred to in paragraph (a) of this section and in 1421.72 (1) may not exceed 8 cents per hundredweight.

$1421.308 Fees and charges.

The producer shall pay a loan service fee and delivery charge as specified in 1421.60(b). In addition, a charge of $3.50 for each lot sampled will be made in connection with farm-stored loans and for each warehouse receipt for a modified-commingled and identity-preserved warehouse-stored loan.

Settlement for eligible rice acquired by CCC under loan or by purchase will be made with the producer as provided in

1421.72. the annual crop year supplement and this section Where rice is placed under a farm storage loan in an area where a location differential is in effect and is delivered to CCC in satisfaction of the loan in an area where no differential is applicable, settlement for rice acquired by CCC will be made on the basis of the support rate for the area where the rice is delivered. Deliveries of rice shall be in accordance with instructions issued by the county office.

(a) Commingled warehouse storage. Settlement for eligible rice stored commingled in an approved warehouse and acquired by CCC under a loan or by purchase shall be made on the basis of the class and the grade, quality and quantity as shown on the warehouse receipt or supplemental certificate if applicable. Settlement shall also be made on such a basis (1) where an approved warehouse issues a commingled warehouse receipt for loan rice delivered into the warehouse from farm storage pursuant to instructions of the county office, (2) where an approved warehouse issues commingled warehouse receipts in exchange for warehouse receipts representing rice under identity preserved or modified commingled warehouse storage loan and (3) where CCC determines that a warehouseman failed to maintain the identity of rice covered by an identity preserved warehouse storage loan or modified commingled warehouse storage loan. In the case of purchases, the producer shall, not later than the day following the maturity date specified in the annual crop year supplement, deliver to the county office warehouse receipts under which an approved warehouse guarantees the class and the grade, quality, and quantity of rice sold to CCC.

(b) Modified commingled-(1) Loans. Settlement for eligible rice stored modified commingled in an approved warehouse and acquired by CCC under a loan shall be made on the basis of the class, grade, and quality shown on Federal or Federal-State sample inspection certificates and on the basis of the quantity shown on the warehouse receipt or supplemental certificate, if applicable. The county office shall sample the rice for settlement purposes within 10 days after the maturity date.

(2) Purchases. Settlement for eligible rice stored modified commingled in an approved warehouse and acquired by CCC under a purchase shall be made on the basis of the class, grade, and quality shown on Federal or Federal-State sample inspection certificates and on the basis of the quantity shown on the warehouse receipt or supplemental certificate, if applicable. The producer shall, within 5 days following the maturity date, deliver to the county office warehouse receipts representing rice stored modified commingled in an approved warehouse. The county office shall sample the rice for settlement purposes within 5 days of the time the producer delivers the warehouse receipt or 10 days after the maturity date, whichever is later.

(c) Other storage. Settlement for eligible rice acquired under loan or purchase not covered by paragraph (a) or (b) of this section shall be made on the basis of the class and of the grade and quality shown on Federal or FederalState sample inspection certificate and on the basis of the quantity shown on official weight certificates. Certificates required by this paragraph (c) shall be dated not earlier than 30 days before the maturity date.

(1) Loans. In the case of rice stored identity preserved in approved warehouse storage and acquired by CCC under a loan, the county office shall obtain official weight certificates and sample the rice for quality determination within 10 days following the maturity date.

(2) Purchases. In the case of rice stored identity preserved in approved warehouse storage and acquired by CCC under purchase, the producer shall, within 5 days following the maturity date deliver to the county office warehouse receipts representing rice stored identity preserved in an approved warehouse. The county office shall obtain official weight certificates and sample the rice for settlement purposes within 5

days of the time the producer delivers the warehouse receipt or 10 days after the maturity date, whichever is later.

(d) Bagged or bulk rice-(1) Farm storage. The weight of farm-stored bulk rice acquired by CCC on which settlement will be made shall be the net weight of the rice. The weight of farm-stored bagged rice acquired by CCC on which settlement will be made shall be the combined net weight of the rice and the bags, and title to the bags will pass to CCC with the rice. CCC shall not otherwise pay any amount representing the value of the bags.

(2) Warehouse-stored. Rice in approved warehouse storage shall be acquired by CCC on a bagged or bulk basis in accordance with the manner in which the rice is to be loaded out by the warehouseman as indicated on the warehouse receipt. The quantity for settlement purposes shall be the net weight of the rice when acquired in bulk and the combined net weight of the rice and the bags when acquired in bags. Where the warehouse receipt indicates that rice will be loaded out in bags, title to the bags shall pass to CCC at the time of acquisition of the rice. CCC shall not otherwise pay any amount representing the value of the bags. In the event any person should successfully dispute the passing of title to the bags, the producer shall indemnify CCC for any loss sustained by reason thereof. [33 F.R. 8431, June 7, 1968, as amended by Amdt. 1, 34 F.R. 7017, Apr. 29, 1969]

§ 1421.311 Maturity of loans.

Loans will mature on demand but not later than the date specified in the annual crop year supplement to the regulations in this part.

§ 1421.312 Support rates.

The basic support rate, premium and discounts and location differentials for use in making loans and purchases shall be set forth in the annual crop year supplement to the regulations in this part.

Subpart-1969 Crop Rice Loan and Purchase Program

AUTHORITY: The provisions of this subpart issued under sec. 4, 62 Stat. 1070, as amended; 15 U.S.C. 714b. Interpret or apply sec. 5, 62 Stat. 1072, secs. 101, 401, 62 Stat. 1051, as amended, 1054, sec. 302, 72 Stat. 988; 15 U.S.C. 714c, 7 U.S.C. 1421, 1441.

SOURCE: The provisions of this Subpart contained in CCC Grain Price Support Regs.,

its election, either (1) return to the producer warehouse receipts representing a grade, quality, and quantity of the same kind of a commodity which has a market value determined by CCC to be equivalent to the market value of the pledged commodity or (2) settle with the producer by paying him the amount, if any, by which the market value of the pledged commodity exceeds the loan indebtedness. If CCC elects to return warehouse receipts to the producer, such receipts may be issued by any warehouse which has a storage agreement with CCC and which CCC determines is located in the same locality as the warehouse in which the pledged commodity was stored when such pledge was made. Market value of a pledged commodity shall be determined by CCC on the basis of (i) the quantity, grade, and quality of the pledged commodity as shown on the original warehouse receipts, (ii) the location of the warehouse where the commodity was stored when such pledge was made, and (iii) the date the producer notified the county office in writing of his desire to redeem. For purposes of settlement under this subsection, the amount of the producer's loan indebtedness shall be the amount of the loan principal disbursed to or in behalf of the producer or credited to his account and interest thereon from the date of disbursement at the rate specified in the note and loan agreement, plus the amount of any warehouse charges which accrued for the account of the producer prior to the original maturity date and were paid by CCC.

[31 F.R. 5941, Apr. 19, 1966, as amended by Amdt. 1, 32 F.R. 7844, May 30, 1967; Amdt. 4, 33 F.R. 223, Jan. 6, 1968; Amdt. 11, 34 F.R. 1229, Jan. 25. 1969]

§ 1421.73 Foreclosure.

(a) Removal from storage. If the loan (i.e., the amount of the note, interest, and charges) is not satisfied upon maturity, CCC may remove the commodity from storage, and assign, transfer, and deliver the commodity or documents evidencing title thereto at such time, in such manner, and upon such terms as CCC may determine, at public or private sale. Any such disposition may similarly be effected without removing the commodity from storage. The commodity may be processed before sale and CCC may become the purchaser of the whole or any part of the commodity.

(b) When CCC takes title to commodity. Upon maturity and nonpayment of the producer's note, title to the unredeemed collateral securing the note shall, at CCC's election, immediately vest in CCC without a sale thereof. Whenever

CCC acquires title to the unredeemed collateral, CCC shall have no obligation to pay for any market value which such collateral may have in excess of the loan indebtedness, i.e., the unpaid amount of the note plus interest and charges.

(c) Payments to producer. Nothing herein shall preclude the making of the following payments to the producer, or to his personal representative only, without right of assignment to or substitution of any other party: (1) Any amount by which the settlement value of the mortgaged or pledged commodity exceeds the principal amount of the loan or (2) the amount by which the proceeds of sale exceed the loan indebtedness including interest and charges if the loan collateral is sold to third persons rather than CCC acquiring full title to such loan collateral.

(d) Commodity sold at less than amount due on loan. If a farm-stored commodity removed by CCC from storage is sold at less than the amount due on the loan (excluding interest) the producer shall pay to CCC the difference between the amount due on the loan and the higher of the sales proceeds or the settlement value of the commodity removed by CCC plus interest on such difference. The amount of the deficiency may be setoff against any payment which would otherwise be due the producer under any other Agricultural program administered by the Secretary of Agriculture, or any other payments which are due or may become due the producer from CCC, or any other agency of the United States.

§ 1421.74 Weed control laws.

As used in the regulations in this subpart, and in all instructions, forms and documents in connection therewith, the words and phrases listed in this section shall have the meaning assigned to them herein unless the context or subject matter otherwise requires.

(a) General. The following words or phrases: "Person," "State committee," "State Executive Director," "county commmittee," "county office manager," and "farm," respectively, shall each have the same meaning as the definitions of such term in the regulations pertaining to Reconstitution of Farms, Farm Allotments, and Farm History and Soil Bank Acreages, Part 719 of this title (23 F.R. 6731) and any amendments thereto.

(b) Settlement value. The term "settlement value" means the value at which settlement is made with the producer on the mortgaged or pledged commodity or the commodity offered for purchase, as determined under the provisions of the regulations in this subpart.

(c) Charges. The term "charges" means all fees, costs, and expenses incident to insuring, carrying, handling, storing, conditioning, and marketing the commodity and otherwise protecting the

interest in the loan collateral of CCC or the producer, including foreclosure costs. The (d) Basic price support rate. term "basic price support rate" means the support rate for an applicable area, county, or terminal before adjustment for premiums and discounts.

(e) County committee. The term "county committee" means only the committee and not its representative.

(f) Representative of the county committee and county committee representative. The terms "representative of the county committee" and "county committee representative" means a member of the county committee, the county office manager or a person designated by the county office manager to act in his behalf.

(g) The regulations in this subpart. The term "the regulations in this subpart" means the regulations in Subpart— General Regulations Governing Price Support for the 1964 and Subsequent Crops and in the applicable commodity supplements together with any amendments thereto.

(h) Request for price support. The term "request for price support" means a request for loan or notice of intent to sell to CCC as applicable.

(i) Chattel mortgage. The term "chattel mortgage" means any security instrument which secures a farm storage loan.

§ 1421.77 Death, incompetency, or dis

appearance.

In case of the death, incompetency, or disappearance of any producer who is entitled to the payment of any sum in settlement of a loan or a purchase, payment shall, upon proper application to the office of the county committee which made the loan or purchase, be made to the person or persons who would be entitled to such producer's payment under the regulations contained in Part 707— Payments Due Persons Who Have Died, Disappeared, or Have Been Declared Incompetent, §§ 707.1 to 707.7 of this title (30 F.R. 6246).

§ 1421.79 Forms.

The following forms shall be used in connection with the price support program. Form CCC-677, Farm Storage Note, Chattel Mortgage, and Security Agreement; Form CCC-678, Warehouse Storage Note and Security Agreement; Form CCC-679, Lien Waiver; Form CCC681, Authorization for Removal of Farm Stored Collateral; Form CCC-687-1, Approval to Move Loan Collateral; Form CCC-691, Commodity Delivery Notice; and Form CCC-692, Settlement Statement. These forms may be obtained in ASCS State and county offices. [32 F.R. 7844, May 30, 1967]

Subpart-1968 and Subsequent Crops, Rice Loan and Purchase Program

AUTHORITY: The provisions of this subpart issued under sec. 4, 62 Stat. 1070 as amended; 15 U.S.C. 714 b. Interpret or apply sec. 5, 62 Stat. 1072, secs. 101, 401, 62 Stat. 1051, as amended, 1054, sec. 302, 72 Stat. 988; 15 U.S.C. 714c, 7 U.S.C. 1421, 1441.

SOURCE: The provisions of this subpart contained in CCC Grain Price Support Regs., 33 F.R. 8431, June 7, 1968, unless otherwise noted.

(1) Eligible producer. The rice must have been produced by an eligible producer.

(2) Classes. The rice must be one of the classes specified in (i) the applicable annual crop year supplement or (ii) the Official Standards of the United States for Rough Rice other than "Mixed Rough Rice."

and (3) Contamination poisonous substances. Rice must not be contaminated by rodents, birds, insects, or other vermin or contain mercurial compounds or other substances poisonous to man or animals.

(b) Grade requirements for loans. In addition to the requirements of paragraph (a) of this section, rice at the time it is placed under loan must:

(1) Grade U.S. No. 5 or better (rice of special grades shall not be eligible) and

(2) Contain not more than 14 percent moisture.

§ 1421.303 Compliance requirements.

An eligible producer shall be a producer on whose farm the rice acreage allotment established for the farm under the provisions of the Rice Acreage Allotment Regulations of Part 730 of this title has not been knowingly exceeded. If the farm is determined to be in compliance with the farm rice acreage allotment under the provisions of Parts 718 and 730 of this title, the farm rice acreage allotment will not be considered to have been knowingly exceeded. If a producer has an interest in a rice crop produced on more than one farm in the same county, he must also, in order to be eligible for price support, be entitled to market rice produced on each such farm as penalty free rice under the provisions of the Rice Marketing Quota Regulations of Part 730 of this title and any amendments thereto. If a producer is engaged in the production of rice in more than one county (in the same State or in two or more States) and the requirements of Rice Marketing Quota Regulations of Part 730 of this title, and any amendments thereto, are applied to such multiple farming unit, he must also, in order to be eligible for price support, be entitled to market rice produced on each such farm, wherever situated, as penalty free rice under the provisions of such regulations. Notwithstanding the provisions of this section, rice produced on a farm shall be considered as available for marketing as penalty free rice for