
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: 7USC7234]

 
                          TITLE 7--AGRICULTURE
 
               CHAPTER 100--AGRICULTURAL MARKET TRANSITION
 
    SUBCHAPTER III--NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN 
                           DEFICIENCY PAYMENTS
 
Sec. 7234. Repayment of loans


(a) Repayment rates for wheat, feed grains, and oilseeds

    The Secretary shall permit a producer to repay a marketing 
assistance loan under section 7231 of this title for wheat, corn, grain 
sorghum, barley, oats, and oilseeds at a rate that is the lesser of--
        (1) the loan rate established for the commodity under section 
    7232 of this title, plus interest (as determined by the Secretary); 
    or
        (2) a rate that the Secretary determines will--
            (A) minimize potential loan forfeitures;
            (B) minimize the accumulation of stocks of the commodity by 
        the Federal Government;
            (C) minimize the cost incurred by the Federal Government in 
        storing the commodity; and
            (D) allow the commodity produced in the United States to be 
        marketed freely and competitively, both domestically and 
        internationally.

(b) Repayment rates for upland cotton and rice

    The Secretary shall permit producers to repay a marketing assistance 
loan under section 7231 of this title for upland cotton and rice at a 
rate that is the lesser of--
        (1) the loan rate established for the commodity under section 
    7232 of this title, plus interest (as determined by the Secretary); 
    or
        (2) the prevailing world market price for the commodity 
    (adjusted to United States quality and location), as determined by 
    the Secretary.

(c) Repayment rates for extra long staple cotton

    Repayment of a marketing assistance loan for extra long staple 
cotton shall be at the loan rate established for the commodity under 
section 7232 of this title, plus interest (as determined by the 
Secretary).

(d) Prevailing world market price

    For purposes of this section and section 7236 of this title, the 
Secretary shall prescribe by regulation--
        (1) a formula to determine the prevailing world market price for 
    each loan commodity, adjusted to United States quality and location; 
    and
        (2) a mechanism by which the Secretary shall announce 
    periodically the prevailing world market price for each loan 
    commodity.

(e) Adjustment of prevailing world market price for upland cotton

                           (1) In general

        During the period ending July 31, 2003, the prevailing world 
    market price for upland cotton (adjusted to United States quality 
    and location) established under subsection (d) of this section shall 
    be further adjusted if--
            (A) the adjusted prevailing world market price is less than 
        115 percent of the loan rate for upland cotton established under 
        section 7232 of this title, as determined by the Secretary; and
            (B) the Friday through Thursday average price quotation for 
        the lowest-priced United States growth as quoted for Middling 
        (M) 1\3/32\-inch cotton delivered C.I.F. Northern Europe is 
        greater than the Friday through Thursday average price of the 5 
        lowest-priced growths of upland cotton, as quoted for Middling 
        (M) 1\3/32\-inch cotton, delivered C.I.F. Northern Europe 
        (referred to in this section as the ``Northern Europe price'').

                       (2) Further adjustment

        Except as provided in paragraph (3), the adjusted prevailing 
    world market price for upland cotton shall be further adjusted on 
    the basis of some or all of the following data, as available:
            (A) The United States share of world exports.
            (B) The current level of cotton export sales and cotton 
        export shipments.
            (C) Other data determined by the Secretary to be relevant in 
        establishing an accurate prevailing world market price for 
        upland cotton (adjusted to United States quality and location).

                (3) Limitation on further adjustment

        The adjustment under paragraph (2) may not exceed the difference 
    between--
            (A) the Friday through Thursday average price for the 
        lowest-priced United States growth as quoted for Middling 1\3/
        32\-inch cotton delivered C.I.F. Northern Europe; and
            (B) the Northern Europe price.

(Pub. L. 104-127, title I, Sec. 134, Apr. 4, 1996, 110 Stat. 908.)

                  Section Referred to in Other Sections

    This section is referred to in section 7235 of this title.
