
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 7USC1425]

 
                          TITLE 7--AGRICULTURE
 
         CHAPTER 35A--PRICE SUPPORT OF AGRICULTURAL COMMODITIES
 
                    SUBCHAPTER I--GENERAL PROVISIONS
 
Sec. 1425. Producer rights and liabilities


(a) Liability for deficiencies

    Except as otherwise provided in section 1425a of this title, no 
producer shall be personally liable for any deficiency arising from the 
sale of the collateral securing any loan made under authority of this 
Act unless such loan was obtained through fraudulent representations by 
the producer. This provision shall not, however, be construed to prevent 
the Commodity Credit Corporation or the Secretary from requiring 
producers to assume liability for deficiencies in the grade, quality, or 
quantity of commodities stored on the farm or delivered by them, for 
failure properly to care for and preserve commodities, or for failure or 
refusal to deliver commodities in accordance with the requirements of 
the program. There is authorized to be included in the terms and 
conditions of any such nonrecourse loan a provision whereby on and after 
the maturity of the loan or any extension thereof Commodity Credit 
Corporation shall have the right to acquire title to the unredeemed 
collateral without obligation to pay for any market value which such 
collateral may have in excess of the loan indebtedness.

(b) Sugarcane and sugar beets

    The security interests obtained by the Commodity Credit Corporation 
as a result of the execution of security agreements by the processors of 
sugarcane and sugar beets shall be superior to all statutory and common 
law liens on raw cane sugar and refined beet sugar in favor of the 
producers 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. The preceding sentence shall not affect the 
application of section 1421(e)(2) of this title.

(Oct. 31, 1949, ch. 792, title IV, Sec. 405, 63 Stat. 1054; Pub. L. 85-
835, title V, Sec. 502, Aug. 28, 1958, 72 Stat. 996; Pub. L. 99-198, 
title X, Sec. 1004, Dec. 23, 1985, 99 Stat. 1447; Pub. L. 100-460, title 
VI, Sec. 634(a), Oct. 1, 1988, 102 Stat. 2263; Pub. L. 102-237, title I, 
Sec. 111(b), Dec. 13, 1991, 105 Stat. 1830.)

                       References in Text

    This Act, referred to in subsec. (a), is act Oct. 31, 1949, ch. 792, 
63 Stat. 1051, as amended, known as the Agricultural Act of 1949, which 
is classified principally to this chapter (Sec. 1421 et seq.). For 
complete classification of this Act to the Code, see Short Title note 
set out under section 1421 of this title and Tables.


                               Amendments

    1991--Subsec. (b). Pub. L. 102-237 amended subsec. (b) generally. 
Prior to amendment, subsec. (b) read as follows:
    ``(1) Notwithstanding any other provision of law, the Secretary may 
provide a negotiable certificate to any producer who repays, together 
with interest, a price support loan made available to such producer 
under any of the annual programs, for wheat, feed grains, upland cotton, 
or rice established under this Act.
    ``(2) The amount of such certificates shall be equal to the amount 
of the interest paid by the producer on such loan.
    ``(3) Such certificate shall be redeemable in wheat, feed grains, 
upland cotton, or rice, as the case may be, owned by the Commodity 
Credit Corporation.
    ``(4) The issuance of such certificate shall be subject to the 
availability of commodities owned by the Corporation.''
    1988--Subsec. (a). Pub. L. 100-460 substituted ``Except as otherwise 
provided in section 1425a of this title, no producer'' for ``No 
producer''.
    1985--Pub. L. 99-198 temporarily designated existing provisions as 
subsec. (a) and added subsec. (b). See Effective and Termination Dates 
of 1985 Amendment note below.
    1958--Pub. L. 85-835 authorized the Commodity Credit Corporation to 
acquire title to agricultural commodities on which nonrecourse price-
support loans have been made without the necessity of computing and 
making payments to the farmer.


                    Effective Date of 1988 Amendment

    Section 634(a) of Pub. L. 100-460 provided that the amendment made 
by that section is effective beginning with 1989 crop year for honey.


            Effective and Termination Dates of 1985 Amendment

    Section 1004 of Pub. L. 99-198 provided that the amendment made by 
that section is effective only for 1986 through 1990 crops.

                  Exceptions From Transfer of Functions

    Functions of Corporations of Department of Agriculture, boards of 
directors and officers of such corporations; Advisory Board of Commodity 
Credit Corporation; and Farm Credit Administration or any agency, 
officer, or entity of, under, or subject to supervision of said 
Administration excepted from functions of officers, agencies, and 
employees transferred to Secretary of Agriculture by 1953 Reorg. Plan 
No. 2, Sec. 1, effective June 4, 1953, 18 F.R. 3219, 67 Stat. 633, set 
out as a note under section 2201 of this title.


                       Inapplicability of Section

    Section inapplicable to 1996 through 2002 crops of loan commodities, 
peanuts, and sugar and inapplicable to milk during period beginning Apr. 
4, 1996, and ending Dec. 31, 2002, see section 7301(b)(1)(J) of this 
title.
