3-589. Pledge or mortgage of grain; deduction of
fee
A. If a pledge or mortgage of grain is given as security for a loan under the
federal price support program, the fee is deductible from the proceeds of the loan at the
time the loan is made or is deductible thereafter by agencies of the federal
government. Producer's note and loan agreements pertaining to farm storage, warehouse
storage and delivery instructions issued by a federal agency to the grower are deemed to
constitute proof of payment of the research and promotional fee on the grain listed.
B. Supplemental or alternate forms which may be proposed by the commodity credit
corporation and which contain the necessary information as required by this article may
be used.
C. If the grain described in subsection A remains in farm storage for the duration
of the pledge or mortgage, the promotional fee paid at the time the loan was made is
deemed a complete satisfaction of the promotional fee liability.
D. In connection with the collection of the grain council fee on commodity credit
corporation grain loans disbursed and purchase agreement settlements made,
undercollections or overcollections of the grain promotional fee amounting to fewer than
three dollars as a result of errors do not require collection of the underpayment or
refunds of the overpayment by the commodity credit corporation, and their responsibility
in such cases is waived.
|