(a) To be eligible to receive an individual or joint loan or loan deficiency payments under this part, a person must:
(1) Have produced honey in the United States during the calendar year for which a loan is requested and extracted on or before December 31 of such calendar year;
(2) Be responsible for the risk of keeping the bees and producing honey;
(3) Have a continuous beneficial interest in the honey from the time the honey was extracted through date of repayment of the loan;
(4) Store the honey pledged as loan collateral in eligible storage and in eligible containers that meet the requirements of§ 1434.7 and § 1434.8, respectively; and
(5) Adequately protect the interests of CCC by providing security for a loan in accordance with the requirements in§ 1434.8 and by maintaining in good condition the honey pledged as security for a loan.
(b) A person who complies with paragraph (a) of this section, who enters into a contract to sell the honey used as collateral for a loan but retains a beneficial interest in the honey and who does not receive an advance payment from the purchaser to enter into the contract unless the purchaser is a cooperative marketing association (CMA) that is eligible under paragraph (g) of this section, remains eligible for a loan.
(c) Two or more applicants may be eligible for a joint loan if:
(1) The conditions in paragraphs (a) and (b) of this section are met with respect to the commingled honey collateral stored in the same eligible containers they are tendering for a loan; and
(2) The commingled honey is not used as collateral for an individual loan that has not been repaid.
(d) Heirs who succeed to a beneficial interest in the honey are eligible for a loan if they:
(1) Assume the decedent's obligation under a loan if such loan has already been obtained; and
(2) Assure continued safe storage of the honey if such honey has been pledged as collateral for a loan.
(e) A representative may be eligible to receive a loan on behalf of a person or estate who or which meets the requirements in paragraphs (a), (b), (c), and (d) of this section and that the honey tendered as collateral by the representative, in the capacity of a representative, shall be considered as tendered by the person or estate being represented.
(f) A minor who otherwise meets the requirements of this part for a loan shall be eligible to receive a loan only if the minor meets one of the following requirements:
(1) A court or statute has conferred the right of majority on the minor;
(2) A guardian has been appointed to manage the minor's property and the applicable loan documents are signed by the guardian;
(3) Any note signed by the minor is cosigned by a person determined by the county committee to be financially responsible; or
(4) A surety, by furnishing a bond, guarantees to protect CCC from any loss incurred for which the minor would be liable had the minor been an adult.
(g) A CMA that the Executive Vice President, CCC, determines meets the requirements for CMA's inpart 1425 of this title may be eligible to obtain a loan on behalf of those members who themselves are eligible to obtain a loan provided that:
(1) The beneficial interest in the honey must always, until loan repayment or forfeiture, remain in the member who delivered the honey to the eligible CMA or its member CMA's, except as otherwise provided in this part; and
(2) The honey delivered to an eligible CMA shall not be eligible for a loan if the member who delivered the honey does not retain the right to share in the proceeds from the marketing of the honey as provided inpart 1425 of this title.
Title 7 published on 2015-01-01.
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This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.