
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 7USC1433c-1]

 
                          TITLE 7--AGRICULTURE
 
         CHAPTER 35A--PRICE SUPPORT OF AGRICULTURAL COMMODITIES
 
                    SUBCHAPTER I--GENERAL PROVISIONS
 
Sec. 1433c-1. Advance recourse loans


(a) Availability; due date; procedures for repayment; applicability; 
        security; limitation

    It is the sense of Congress that the Secretary of Agriculture carry 
out a program authorized by section 424 of the Agricultural Act of 1949 
[7 U.S.C. 1433c]. Such program, if implemented, shall provide for the 
following:
        (1) Advance recourse loans shall be made available only to those 
    producers of a commodity who are unable to obtain sufficient credit 
    elsewhere to finance the production of the 1986 crop of that 
    commodity, taking into consideration prevailing private and 
    cooperative rates and terms for loans for similar purposes (as 
    determined by the Secretary) in the community in or near which the 
    applicant resides. A producer who has received a commitment or been 
    furnished sufficient credit or a loan for production of the 1986 
    crop of a commodity shall not be eligible for an advance recourse 
    loan to finance the production of that commodity for such crop year.
        (2) Advance recourse loans shall be made available to producers 
    of a commodity at the applicable nonrecourse loan rate for the 
    commodity (as determined by the Secretary). Within the limits set 
    out in paragraphs (5) and (7), advance recourse loans shall be 
    available--
            (A) to producers of wheat, feed grains, cotton, and rice who 
        agree to participate in the program announced for the commodity 
        on an amount of the commodity equal to one-half of the farm 
        program yield for the commodity multiplied by the farm program 
        acreage intended to be planted to the commodity for harvest in 
        1986, as determined by the Secretary;
            (B) to producers of tobacco and peanuts who are on a farm 
        for which a marketing quota or poundage quota has been 
        established on an amount of the commodity equal to one-half of 
        the farm marketing quota or poundage quota for the commodity, as 
        determined by the Secretary; and
            (C) to producers of other commodities on an amount of the 
        commodity equal to one-half of the farm yield for the commodity 
        multiplied by the farm acreage intended to be planted to the 
        commodity for harvest in 1986, as determined by the Secretary.

        (3) An advance recourse loan under section 424 [7 U.S.C. 1433c] 
    shall come due at such time immediately following harvest as the 
    Secretary determines appropriate. Each loan contract entered into 
    under section 424 shall specify the date on which the loan is to 
    come due.
        (4)(A) The Secretary shall establish procedures, when 
    practicable, under which a producer, simultaneously with repayment 
    of his recourse loan, may obtain a nonrecourse loan on his crop (as 
    otherwise provided for in the Agricultural Act of 1949 [7 U.S.C. 
    1421 et seq.]) in an amount sufficient to repay his recourse loan.
        (B) In cases in which nonrecourse loans under such Act are not 
    normally made available directly to producers, the Secretary shall 
    establish procedures under which a producer may repay a recourse 
    loan at the same time the producer receives advances or other 
    payment from the producer's disposition of his crop.
        (5) Advance recourse loans shall be made available as needed 
    solely to cover costs involved in the production of the 1986 crop 
    that are incurred or are outstanding on or after March 20, 1986.
        (6) To obtain an advance recourse loan, the producer on a farm 
    must--
            (A) provide as security for the loan a first lien on the 
        crop covered by the loan or provide such other security as may 
        be available to the producer and determined by the Secretary to 
        be adequate to protect the Government's interests; and
            (B) obtain multiperil crop insurance, if available, to 
        protect the crop that serves as security for the loan.

    If a producer does not have multiperil crop insurance and is located 
    in a county in which the signup period for multiperil crop insurance 
    has expired, the producer shall be required to obtain other crop 
    insurance, if available.
        (7) The total amount in advance recourse loans that may be made 
    to a producer under section 424 [7 U.S.C. 1433c] may not exceed 
    $50,000.
        (8) An advance recourse loan may be made available only to a 
    producer who agrees to comply with such other terms and conditions 
    determined appropriate by the Secretary and consistent with the 
    provisions of section 424 [7 U.S.C. 1433c].

(b) Use of Commodity Credit Corporation, Agricultural Stabilization and 
        Conservation Service, and county committees

    The Secretary shall carry out the program provided for under section 
424 [7 U.S.C. 1433c] through the Commodity Credit Corporation, using the 
services of the Agricultural Stabilization and Conservation Service and 
the county committees established under section 590h(b) of title 16 to 
make determinations of eligibility with respect to the credit test under 
subsection (a)(1) of this section, and determinations as to the 
sufficiency of security under subsection (a)(6) of this section. The 
Secretary may use such committees for such other purposes as the 
Secretary determines appropriate in carrying out section 424.

(c) Regulations

    It is further the sense of Congress that the Secretary of 
Agriculture issue or, as appropriate, amend regulations to implement any 
program established under section 424 [7 U.S.C. 1433c] as soon as 
practicable, but not later than 15 days after March 20, 1986. Loans and 
other assistance provided under such program shall be made available 
beginning on the date such regulations are issued or amended.

(Pub. L. 99-260, Sec. 13, Mar. 20, 1986, 100 Stat. 53.)

                       References in Text

    The Agricultural Act of 1949, referred to in subsec. (a)(4), is act 
Oct. 31, 1949, ch. 792, 63 Stat. 1051, as amended, 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.

                          Codification

    Section was enacted as part of the Food Security Improvements Act of 
1986, and not as part of the Agricultural Act of 1949 which is 
classified principally to this chapter. For complete classification of 
the 1949 Act to the Code, see Short Title note set out under section 
1421 of this title and Tables.
