
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: 7USC7284]

 
                          TITLE 7--AGRICULTURE
 
               CHAPTER 100--AGRICULTURAL MARKET TRANSITION
 
                      SUBCHAPTER V--ADMINISTRATION
 
Sec. 7284. Personal liability of producers for deficiencies


(a) In general

    Except as provided in subsection (b) of this section, no producer 
shall be personally liable for any deficiency arising from the sale of 
the collateral securing any nonrecourse loan made under this chapter 
unless the loan was obtained through a fraudulent representation by the 
producer.

(b) Limitations

    Subsection (a) of this section shall not prevent the Commodity 
Credit Corporation or the Secretary from requiring a producer to assume 
liability for--
        (1) a deficiency in the grade, quality, or quantity of a 
    commodity stored on a farm or delivered by the producer;
        (2) a failure to properly care for and preserve a commodity; or
        (3) a failure or refusal to deliver a commodity in accordance 
    with a program established under this chapter.

(c) Acquisition of collateral

    In the case of a nonrecourse loan made under this chapter or the 
Commodity Credit Corporation Charter Act (15 U.S.C. 714 et seq.), if the 
Commodity Credit Corporation acquires title to the unredeemed 
collateral, the Corporation shall be under no obligation to pay for any 
market value that the collateral may have in excess of the loan 
indebtedness.

(d) Sugarcane and sugar beets

    A security interest obtained by the Commodity Credit Corporation as 
a result of the execution of a security agreement by the processor of 
sugarcane or 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.

(Pub. L. 104-127, title I, Sec. 164, Apr. 4, 1996, 110 Stat. 935.)

                       References in Text

    For definition of ``this chapter'', referred to in text, see note 
set out under section 7201 of this title.
    The Commodity Credit Corporation Charter Act, referred to in subsec. 
(c), is act June 29, 1948, ch. 704, 62 Stat. 1070, as amended, which is 
classified generally to subchapter II (Sec. 714 et seq.) of chapter 15 
of Title 15, Commerce and Trade. For complete classification of this Act 
to the Code, see Short Title note set out under section 714 of title 15 
and Tables.
