Commodity Credit Corporation, USDA § 1435.2
the county office that made the loan, AUTHORITY: 7 U.S.C. 7272; and 15 U.S.C. 714b be made to the persons who would be and 714c entitled to such producer’s share under SOURCE: 61 FR 37618, July 18, 1996, unless the regulations contained in part 707 of otherwise noted. this title. Applications for loans may be made upon application of a rep- Subpart A—General Provisions resentative of the producer as allowed under standard practice for farm pro- § 1435.1 Applicability. grams. These regulations set forth the terms (b) Appeals of adverse decisions made and conditions under which Com- under this part shall be subject to the modity Credit Corporation (CCC) will provisions of 7 CFR parts 11 and 780. make loans and enter agreements with (c) In order to effectuate a conversion eligible processors for the 1996–2002 of 2000-crop recourse honey loans to crop years. Additional terms and condi- nonrecourse loans, producers will be re- tions are set forth in the loan applica- quired to sign a new CCC–677 Note and tion and the note and security agree- Security Agreement. The loan matu- ment which the processor must execute rity date will remain the same as the in order to receive a loan. These regu- original recourse loan, the loan rate lations stipulate the requirements for will be increased and additional dis- making sugar marketing assessment bursements will be paid to the pro- payments to CCC for fiscal years 1996 ducers. through 2003 and the information re- porting requirements for the 1996–2002 PART 1435—SUGAR PROGRAM crop years.
Subpart A—General Provisions [61 FR 37618, July 18, 1996, as amended at 62 FR 34612, June 27, 1997] Sec. 1435.1 Applicability. § 1435.2 Definitions. 1435.2 Definitions. The definitions set forth in this sec- 1435.3 Maintenance and inspection of tion are applicable for all purposes of records. program administration. The terms de- Subpart B—Loan Program fined in part 718 of this title are also applicable. 1435.100 Applicability. Beet sugar means sugar which is proc- 1435.101 Administration. essed directly or indirectly from sugar 1435.102 Loan rates. beets or sugar beet molasses. 1435.103 Eligibility requirements. Cane sugar refiner means a person 1435.104 Availability, disbursement, and ma- who processes raw cane sugar into re- turity of loans. 1435.105 Loan maintenance. fined crystalline sugar or liquid sugar. 1435.106 Loan settlement and foreclosure. CCC means the Commodity Credit 1435.107 Storage facility requirements. Corporation, USDA. 1435.108 Processor storage agreement. Crop year for the 1996 crop means the 1435.109 Miscellaneous provisions. period from July 1, 1996 through Sep- 1435.110 Applicable forms. tember 30, 1997. Crop year for the 1997– 2001 crops means the period from Octo- Subpart C—Sugar Marketing Assessments ber 1 through September 30, inclusive, 1435.200 General statement. and is identified by the year in which 1435.201 Marketing assessment rates. the crop year begins. For example, the 1435.202 Remittance. 1997 crop year begins on October 1, 1997. 1435.203 Civil penalties and interest. The 1997 crop of sugar beets, sugarcane, 1435.204 Refunds. or sugar means domestically-produced 1435.205 Special rules for fiscal years 2000 sugar beets, domestically-produced and 2001. sugarcane, or sugar processed from do- mestically-produced sugar beets or sug- Subpart D—Information Reporting and arcane during the 1997 crop year. Crop Recordkeeping Requirements year for the 2002 crop means the period 1435.300 General statement. from October 1, 2002 through June 30, 1435.301 Civil penalties. 2003. Sugar from desugaring molasses is
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considered to be from the crop year the and consisting of, or containing, su- desugaring took place. crose or invert sugar, including all raw First processor means a person who sugar, refined crystalline sugar, liquid commercially produces beet sugar or sugar, edible molasses, and cane syrup. raw cane sugar, directly or indirectly, Sugar beet processor means a person from domestically-produced sugar who produces sugar by commercially beets or sugarcane, or from molasses or processing sugar beets or sugar beet thick juice derived from domestically- molasses. produced sugar beets or sugarcane. Sugarcane processor means a person Market means, relative to any first who produces raw cane sugar by com- processor, the shipment in conjunction mercially processing sugarcane or sug- with a sale or other disposition, or the arcane molasses. forfeiture to CCC, of beet sugar or raw Tariff-rate quota means the total of cane sugar by the first processor of the aggregate quantities of raw cane such sugar, and the movement of raw sugar and other sugars, syrups and mo- cane sugar into the refining process. lasses established, or subsequently Beet sugar or raw cane sugar is deemed modified, by the Secretary pursuant to to be marketed as of the date of ship- the provisions of additional U.S. note ment from the first processor’s facility, 5(a) to chapter 17 of the Harmonized the date on which raw cane sugar was Tariff Schedule of the United States moved into the refining process, or the (HTS) for imports to be entered, or date on which sugar was forfeited to withdrawn from warehouse for con- CCC. sumption, under subheadings 1701.11.10, Nonrecourse loan means a loan for 1701.12.10, 1701.91.10, 1701.99.10, 1702.90.10, which the eligible sugar offered as loan and 2106.90.44 of the HTS or successor collateral may be delivered or forfeited subheadings. to CCC, at loan maturity, in satisfac- tion of the loan indebtedness. [61 FR 37618, July 18, 1996, as amended at 62 Raw sugar means any sugar which is FR 34612, June 27, 1997; 66 FR 15182, Mar. 15, to be further refined or improved in 2001] quality. § 1435.3 Maintenance and inspection of Raw value of any quantity of sugar records. means its equivalent in terms of raw sugar testing 96 sugar degrees, as de- (a) CCC, as well as any other U.S. termined by a polarimetric test per- Government agency, has the right of formed in accordance with procedures access to the premises of any sugar recognized by the International Com- beet processor, sugarcane processor, mission for Uniform Methods of Sugar cane sugar refiner, or of any other per- Analysis (ICUMSA). Direct-consump- son having custody of records that the tion sugar derived from sugar beets and examining agency deems necessary to testing 92 or more sugar degrees by the verify compliance with the require- polariscope shall be translated into ments of this part. The examining terms of raw value by multiplying the agency has the right to inspect, exam- actual number of pounds of such sugar ine, and make copies of such books, by 1.07. Sugar derived from sugarcane records, accounts, and other written or and testing 92 sugar degrees or more by electronic data as the examining agen- the polariscope shall be translated into cy deems relevant. terms of raw value in the following (b) Each sugar beet processor, sugar- manner: raw value = {[(actual degree of cane processor, and cane sugar refiner polarization ¥ 92 ) × 0.0175 ] + 0.93} × ac- or any person having custody of the tual weight. For sugar testing less than records shall retain such books, 92 sugar degrees by the polariscope, de- records, accounts, and other written or rive raw value by dividing the number electronic data for not less than 3 of pounds of the ‘‘total sugar content’’ years from the date: (i.e., the sum of the sucrose and invert (1) A loan is disbursed in accordance sugars) thereof by 0.972. with subpart B; Sugar means any grade or type of sac- (2) A marketing assessment is remit- charine product derived, directly or in- ted to CCC in accordance with subpart directly, from sugarcane or sugar beets C; and
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(3) Market data are reported to CCC (e) The Deputy Administrator, FSA, in accordance with subpart D. may authorize State and county com- mittees to waive or modify deadlines Subpart B—Loan Program and other program requirements in cases where lateness or failure to meet § 1435.100 Applicability. such requirements do not adversely af- fect program operation. (a) This subpart is applicable to the (f) A CCC representative may execute 1996 through 2002 crops of sugar beets loans and related documents only and sugarcane. The regulations of this under the terms and conditions CCC de- subpart set forth the terms and condi- termines and announces. Any such doc- tions under which CCC will make non- ument which is not executed in accord- recourse loans available to eligible ance with such terms and conditions, processors. Additional terms and condi- including any purported execution tions are set forth in the loan applica- prior to the CCC-authorized date, shall tion and note and security agreement be null and void. which a processor must execute to re- ceive a loan. § 1435.102 Loan rates. (b) Loan rates used in administering (a) The national average loan rate for the loan program are available in FSA raw cane sugar produced from the 1996 State and county offices. through 2002 crops of domestically- (c) Loans shall not be available for grown sugarcane is 18 cents per pound, sugar produced from imported sugar raw value. beets, sugarcane, or molasses. (b) The national average loan rate for refined beet sugar from 1996–2002-crop [61 FR 37618, July 18, 1996, as amended at 66 domestically-grown sugar beets is 22.90 FR 15182, Mar. 15, 2001] cents per pound of refined beet sugar. § 1435.101 Administration. (c) The loan rates for eligible sugar are adjusted to reflect the processing (a) The loan program shall be admin- location of the sugar offered as loan istered under the general supervision of collateral and are available from State the Executive Vice President, CCC, and county offices. (Administrator, FSA) and shall be car- ried out in the field by FSA State and [61 FR 37618, July 18, 1996. Redesignated at 66 FR 15182, Mar. 15, 2001] county committees. (b) State and county committees, and § 1435.103 Eligibility requirements. representatives and employees thereof, (a) An eligible producer is the owner may not modify or waive any of the of a portion or all of the domestically- provisions of the regulations of part produced sugar beets or sugarcane, in- 1435. cluding share rent landowners, at both (c) The State committee shall take the time of harvest and the time of de- any action part 1435 requires which the livery to the processor, except pro- county committee has not taken. The ducers determined to be ineligible as a State committee shall also: result of the regulations governing (1) Correct, or require a county com- highly erodible land and wetland con- mittee to correct, a county committee servation found at 7 CFR part 12, regu- action which is not in accordance with lations governing crop insurance at 7 part 1435; or CFR part 400, or the regulations gov- (2) Require a county committee to erning controlled substance violations withhold taking any action which is at 7 CFR part 718. not in accordance with part 1435. (b) A sugar beet or sugarcane proc- (d) No provision or delegation herein essor is eligible for loans if the proc- to a State or county committee shall essor agrees to all the terms and condi- preclude the Executive Vice President, tions in the loan application and the CCC, (Administrator, FSA) from deter- note and security agreement. mining any question arising under the (c) Sugar pledged as collateral during program or from reversing or modi- the crop year: fying any State or county committee (1) May not exceed the quantity de- determination. rived from processing domestically-
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grown sugar beets or sugarcane from tember 30 of the applicable crop year eligible producers during the applicable for the 1997–2001 crop years, and no ear- crop year; lier than October 1, 2002 and no later (2) Must be processed and owned by than June 30, 2003, for the 2002 crop the eligible processor and stored in year, with the State committee of the suitable storage; State where such processor is (3) May not have been processed from headquartered, or with a county com- imported sugarcane, sugar beets, or mittee designated by the State com- molasses; mittee; (4) Must have been processed in the (2) Execute a note and security agree- United States or Puerto Rico; and ment as CCC prescribes; and (5) Must have processor certification (3) Pay CCC a loan service fee in con- in the loan application that the sugar nection with the disbursement of each is eligible and available to be pledged loan. The Executive Vice President, as collateral. CCC, will determine and announce the (d) Sugar must meet the following service fee amount. minimum quality requirements to be (b) If there are any liens or encum- eligible to be pledged as loan collat- brances on sugar pledged as collateral eral: for a loan, the processor must obtain (1) Refined beet sugar to be pledged waivers that fully protect CCC’s inter- as loan collateral must be: est even though the liens or encum- (i) Dry and free flowing; brances are satisfied from the loan pro- (ii) Free of excessive sediment; and ceeds. No additional liens or encum- (iii) Free of any objectionable color, brances shall be placed on the sugar flavor, odor, or other characteristic after the loan is approved. which would impair its (c) No loan proceeds may be dis- merchantability or which would impair bursed until the sugar has actually or prevent its use for normal commer- been processed and is otherwise estab- cial purposes. lished as being eligible to be pledged as (2) Raw cane sugar to be pledged as loan collateral. loan collateral must be: (d) A processor may, within the loan (i) Of reasonable grain size; availability period, repledge as collat- (ii) Free from excessive color or eral sugar that previously served as moisture; and loan collateral for a repaid loan. (iii) Free of any objectionable color, (1) In making application for such flavor, odor, or other characteristic loan, the processor shall: which would impair its (i) Specify that the loan collateral merchantability or which would impair should be treated as a quantity of eligi- or prevent its use for normal refining ble sugar that previously served as or commercial purposes. loan collateral for a repaid loan; and (3) Sugarcane syrup or edible molas- (ii) Designate the loan to which the ses must be free from any objectionable reoffered loan collateral was originally color, flavor, odor, or other char- pledged. acteristic which would impair the (2) The subsequent loan shall have merchantability of such syrup or mo- the same maturity date as the original lasses or would impair or prevent the loan. use of such syrup or molasses for nor- (3) Loan collateral repledged that mal commercial purposes. was previously redeemed from CCC is [61 FR 37618, July 18, 1996. Redesignated at 66 not included in determining the total FR 15182, Mar. 15, 2001] quantity of sugar on which loans have been obtained for purposes of § 1435.104. § 1435.104 Availability, disbursement, (e)(1) Disbursements shall be made and maturity of loans. without regard to the actual polarity (a) To obtain a loan, a processor of the sugar pledged as loan collateral must: but shall be made on the assumption (1) File a loan request, as CCC pre- that the polarity of such sugar is 96 de- scribes, no later than September 30, grees by the polariscope. 1997, for the 1996 crop year, no earlier (2) Adjustments for polarity are only than October 1 and no later than Sep- made at the time of loan forfeiture.
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(f)(1) Loans will mature at the earlier quantity as collateral to satisfy the of: processor’s loan indebtedness to CCC. (i) the end of the 9-month period be- CCC shall not assume any loss in quan- ginning on the 1st day of the first tity or quality of the loan collateral. month after the month in which the (1) The borrower is responsible for loan is made; or storage costs through the loan matu- (ii) September 30 following disburse- rity date. ment of the loan. (2) Sugar pledged as loan collateral (2) CCC may accelerate loan matu- need not be stored identity preserved. rity dates in accordance with (3) When the proceeds of the sale of § 1435.107(g). the sugar pledged as loan collateral are (g) Processors receiving loans in needed to repay all or part of a sugar July, August, or September may re- loan, the processor may request and pledge the sugar as collateral for a sup- plemental loan. Such supplemental obtain prior written approval from the loan shall: loanmaking office by executing a Mar- (1) Be requested by the processor dur- ket Authorization for Loan Collateral ing the following October; (form CCC–681–1) to remove a specified (2) Be made at the loan rate in effect quantity of the loan collateral from at the time the supplemental loan is storage for the purpose of delivering it made; and to a buyer prior to repayment of the (3) Mature in 9 months minus the loan. Any such approval shall be sub- number of whole months that the ini- ject to the terms and conditions set tial loan was in effect. forth in the applicable form and the (h) No loans will be made after June loanmaking office shall not approve 30, 2003. such a request unless the buyer of the sugar agrees to pay CCC an amount [61 FR 37618, July 18, 1996, as amended at 62 FR 34612, June 27, 1997. Redesignated and necessary to satisfy the processor’s amended at 66 FR 15182, Mar. 15, 2001] loan indebtedness regarding the sugar being sold. Any such approval shall § 1435.105 Loan maintenance. not: (a) All processors receiving loans (i) Constitute a release of CCC’s secu- shall: rity interest in the sugar; or (1) Abide by the terms and conditions (ii) Relieve the processor of liability of the loan application and the note for the full amount of the loan indebt- and security agreement; and edness, including interest. (2) Pay interest on the principal at a (4) If CCC determines, by actual rate determined in part 1405. measurement or otherwise, that the ac- (b) The security interests obtained by tual quantity serving as collateral for CCC as a result of the execution of se- a nonrecourse loan is less than the loan curity agreements by the processors of quantity, because of incorrect certifi- sugarcane and sugar beets shall be su- cation, unauthorized removal, or unau- perior to all statutory and common law thorized disposition, CCC may call the liens on raw cane sugar and refined loan and other outstanding loans. Such beet sugar in favor of the producers of determination shall result in the proc- sugarcane and sugar beets and all prior essor being ineligible for nonrecourse recorded and unrecorded liens on the loans for the remainder of that crop crops of sugarcane and sugar beets year and through the next crop year. from which the sugar was derived. (c) Nonrecourse loan recipients shall [61 FR 37618, July 18, 1996. Redesignated and pay all eligible producers who have de- amended at 66 FR 15182, Mar. 15, 2001] livered or will deliver sugar beets or sugarcane to such processor for proc- § 1435.106 Loan settlement and fore- essing not less than the minimum pay- closure. ment levels CCC specifies for the appli- (a) A processor may, at any time cable crop year when nonrecourse loans prior to loan maturity, redeem all or are in effect. any part of the loan collateral by pay- (d) A processor shall maintain eligi- ing CCC the applicable principal and ble sugar of sufficient quality and interest.
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(b) Forfeiture will be accepted as CCC or processor action, be deemed to payment in full of the principal and in- have been forfeited and delivered to terest due under a nonrecourse loan, CCC in-store at the processor’s storage applicable to the quantity of sugar de- facility on the day following the matu- livered, subject to adjustment for po- rity date of the loan. Title, all rights, larity, if the processor: and interest to the sugar immediately (1) Notifies in writing the appropriate vests in CCC upon delivery. loanmaking office of the processor’s in- (f)(1) CCC may at any time accelerate tent to forfeit the loan collateral, the date for loan repayment indebted- states the amount of loan collateral in- ness, including interest. CCC will give tended to be forfeited, and delivers the the processor notice of such accelera- notice to the loanmaking office no tion at least 15 days in advance of the later than 30 days prior to the matu- accelerated loan maturity date. rity date of the loan; (2) In the event of any such accelera- (2) Executes a storage agreement, as tion of nonrecourse loans, the required CCC prescribes, prior to forfeiture or notice of intent to forfeit, as set forth delivers the loan collateral to a CCC- in paragraph (d)(1), may be given at approved storage facility upon for- any time prior to the accelerated ma- feiture; and turity date. (3) Pays the following forfeiture pen- (g) If a processor’s nonrecourse loan alty on sugar pledged as collateral at indebtedness is not satisfied in accord- the time of forfeiture: ance with the provisions of this sec- (i) The penalty for raw cane sugar is tion: 1 cent per pound; and (1) Interest on the processor’s indebt- (ii) The penalty for beet sugar is 1.072 edness shall accrue as specified in part cents per pound; and 1403 in this chapter and shall accrue (4) Reduces payments owed producers until the debt is paid; by the producer’s share of the aggre- (2) CCC may, upon notice, with or gate loan forfeiture penalty incurred without removing the collateral from by the processor. The producer’s share storage, sell such collateral at either a of the aggregate loan forfeiture penalty public or private sale; and is calculated as the producer’s share of (3) The processor shall be liable for the net selling price of the processor’s the deficiency if the net proceeds are sugar, provided for explicitly or implic- less than the amount of principal, in- itly in the contract between producers terest, and any other charges incurred and processor, times the aggregate by the CCC. loan forfeiture penalty. (c) Even though a processor gave no- [61 FR 37618, July 18, 1996. Redesignated and tice of intent to forfeit, the processor amended at 66 FR 15182, 15183, Mar. 15, 2001] may, at any time prior to maturity of the nonrecourse loan, redeem the loan § 1435.107 Storage facility require- ments. collateral in accordance with this sec- tion. (a) Sugar forfeited to CCC must be (d) CCC shall not accept delivery of delivered in or to a CCC-approved stor- sugar in settlement of a nonrecourse age facility. loan in excess of: (1) Eligible storage is any storage fa- (1) the amount specified in the notice cility which: of intent to forfeit; or (i) Meets CCC Standards for Approval (2) the quantity of sugar which is of Dry and Cold Storage Warehouses shown on the note and security agree- for Processed Agricultural Commod- ment minus any quantity that was re- ities, Extracted Honey, and Bulk Oils deemed or released for removal in ac- (part 1423 of this chapter); and cordance with this section. (ii) Is placed under a storage contract (e) If the processor does not redeem with CCC. any amount of the nonrecourse loan (2) If the sugar is delivered in or to collateral and the conditions of para- an ineligible storage facility, the proc- graph (c) of this section have been ful- essor is responsible for all costs in- filled, the unredeemed nonrecourse curred in moving the sugar to an eligi- loan collateral will, without further ble storage facility.
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(b) CCC has the right to inspect loan § 1435.109 Miscellaneous provisions. collateral or CCC-owned sugar and the (a) The regulations issued by the Sec- storage facilities in which the sugar is situated at any time. retary governing setoffs and with- (c) Regardless of whether CCC in- holding set forth at part 3 of this title spected the sugar and storage facility and part 1403 of this chapter are appli- prior to delivery, the processor is liable cable to the program set forth in this to CCC for any damages CCC suffers if: subpart. (1) The processor delivers ineligible (b) A producer or processor may ob- sugar to CCC; or tain reconsideration and review of de- (2) The processor delivers sugar into terminations made under this subpart ineligible storage. in accordance with the regulations at 7 CFR part 780. [61 FR 37618, July 18, 1996. Redesignated at 66 (c) Any false certification, including FR 15182, Mar. 15, 2001] those made for the purpose of enabling § 1435.108 Processor storage agree- a processor to obtain a loan to which it ment. is not entitled, will subject the person (a) By executing a note and security making such certification to liability agreement, the processor agrees to under applicable Federal civil and store any forfeited loan collateral on criminal statutes. behalf of CCC under the terms and con- [61 FR 37618, July 18, 1996. Redesignated at 66 ditions specified in this subpart and FR 15182, Mar. 15, 2001] any storage agreement entered into be- tween CCC and the processor. Should § 1435.110 Applicable forms. the terms of these regulations and the CCC forms used for this program are terms of the storage agreement con- available from the appropriate State flict, the terms set forth in the regula- committee or designated county com- tions are applicable. mittee. For purposes of any CCC form (b) The storing processor is respon- that refers to program participation by sible for maintaining the quality and producers, the term ‘‘producer’’ shall condition of CCC-owned sugar. The be taken to mean ‘‘processor.’’ processor is liable to CCC for any dam- ages CCC suffers due to the failure of [61 FR 37618, July 18, 1996. Redesignated at 66 the processor to load out sugar meet- FR 15182, Mar. 15, 2001] ing the criteria set forth in § 1435.104(d). Also, the processor shall store the Subpart C—Sugar Marketing sugar in the eligible storage where de- Assessments livered for as long as CCC deems nec- essary. § 1435.200 General statement. (c) If a processor forfeits loan collat- eral and CCC and the processor fails to (a) This subpart sets forth the terms enter into a storage contract, the proc- and conditions for the payment to CCC essor is responsible for all costs in- of marketing assessments for beet curred in moving the sugar to an eligi- sugar and raw cane sugar marketed ble storage facility. during fiscal years 1996 through 2003. (d) A processor storing CCC-owned (b) Except as provided in § 1435.205, sugar is responsible for all load-out ex- the marketing assessment applies to: penses in the event that CCC sells the (1) First processor marketings of all sugar. raw cane sugar processed during fiscal (e) CCC shall make monthly storage years 1996 through 2003 from domesti- payments to the processor for the pe- cally-produced sugarcane or sugarcane riod of time the processor stores the molasses, and forfeited sugar. The storage payment (2) First processor marketings of all rate shall be as CCC and the processor beet sugar processed during fiscal years agree, and according to the terms and 1996 through 2003 from domestically- conditions CCC sets forth when exe- produced sugar beets or sugar beet mo- cuting a note and security agreement. lasses. [61 FR 37618, July 18, 1996. Redesignated at 66 [61 FR 37618, July 18, 1996, as amended at 65 FR 15182, Mar. 15, 2001] FR 7956, Feb. 16, 2000]
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§ 1435.201 Marketing assessment rates. (ii) Raw cane sugar, raw value, mar- ketings during the previous calendar (a) For marketings during fiscal year month. 1996, the assessment rate per pound of (2) First processors who do not oper- beet sugar is 0.2123 cents per pound. ate on a calendar month basis may pay The assessment rate for fiscal years their assessments based on marketings 1997 through 2003 is 0.2654 cents per on several extra days or fewer days pound. than the calendar month reporting pe- (b) For marketings during fiscal year riod, consistent with the processor’s 1996, the assessment rate per pound of standard accounting period. However: raw cane sugar is 0.1980 cents per (i) Assessments must be paid on all pound, raw value. The assessment rate marketings of specific crop year sugar for fiscal years 1997 through 2003 is in the fiscal year it is due; and 0.2475 cents per pound, raw value. (ii) The marketing assessments must be remitted monthly and by the dates § 1435.202 Remittance. specified in this section. (a) The monthly amount of the beet (3) The entire assessment that is due sugar marketing assessment to be re- and payable shall be remitted with the mitted to CCC is determined by multi- Form CCC–80. plying the number of pounds of beet (e)(1) If, when a raw cane sugar as- sugar marketed in the calendar month sessment is due and payable, the first by the assessment rate. processor cannot determine the exact (b) The monthly amount of the mar- raw value of such sugar, an estimate of keting assessment on raw cane sugar raw value based on the recent experi- to be remitted to CCC is determined by ence of the processor shall be made and multiplying the number of pounds, raw the assessment submitted on the esti- value, of raw cane sugar marketed, or mated quantity. estimated to be marketed in accord- (2) Whenever an assessment is based ance with (e)(1) of this section, in the on an estimate of raw value pursuant calendar month by the assessment to (e)(1), any necessary adjustments to rate. the quantity of raw sugar subject to (c)(1) First processors shall remit the assessment shall be made by filing marketing assessments to CCC no later a corrected Form CCC–80 no later than than the 30th calendar day following 30 calendar days after the last day of the end of the month in which the beet the month in which the estimated as- sugar or raw cane sugar subject to the sessment was paid. If, according to the assessment was marketed. corrected Form CCC–80: (i) The assessment was underpaid, (2) Mailed remittances will be consid- the first processor shall remit the addi- ered timely if they are postmarked not tional assessment due with the cor- later than the 25th calendar day fol- rected Form CCC–80, and lowing the month in which the beet (ii) If the assessment was overpaid, sugar or cane sugar subject to the as- the first processor shall subtract the sessment was marketed. overpayment from any assessment due (3) CCC must receive electronic re- at the time the corrected Form CCC–80 mittances by the 30th calendar day fol- is filed, or if none is due at that time, lowing the month in which the beet from the assessment next due. sugar or raw cane sugar subject to the (f) By October 30 of each year, first assessment was marketed. processors shall determine the quan- (4) Any processor who fails to file a tity of beet sugar or raw cane sugar on remittance by the due date shall be as- hand that was produced during the pre- sessed a civil penalty and interest in ceding fiscal year but not marketed by accordance with § 1435.203. September 30 of such preceding fiscal (d)(1) Except as provided in § 1435.205, year and shall remit a marketing as- first processors shall prepare and sub- sessment to CCC as if the sugar had mit a fully and accurately completed been marketed in September of such form CCC–80 each month that shows: preceding fiscal year. Such sugar is not (i) Beet sugar marketings during the subject to a second assessment when it previous calendar month; and is marketed.
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(g) First processors shall send remit- § 1435.204 Refunds. tances and CCC–80 forms as CCC speci- Marketing assessments are non- fies. refundable. However, upon presen- [61 FR 37618, July 18, 1996, as amended at 65 tation of evidence acceptable to the FR 7956, Feb. 16, 2000] Controller, CCC, adjustments to an as- sessment may be made by CCC to re- § 1435.203 Civil penalties and interest. flect the actual marketings of beet (a) A first processor is liable for a sugar or raw cane sugar, or a first proc- civil penalty of up to 100 percent of the essor may adjust the amount of the as- relevant national average loan rate sessment due in accordance with times the marketings of beet sugar or § 1435.202. raw cane sugar involved in the viola- tion if the processor: § 1435.205 Special rules for fiscal years (1) Fails to remit, on a timely basis, 2000 and 2001. the entire amount of any marketing (a) First processors are not required assessment in accordance with this to pay the marketing assessments pro- subpart; vided for in this subpart that would (2) Fails to submit Form CCC–80 fully otherwise be due under this part during and accurately completed; or the period from October 22, 1999 (3) Fails to maintain and permit in- through September 30, 2001; spection of records as required by (b) First processors are not required § 1435.204. to prepare and submit form CCC–80 (b) In addition to any civil penalty pursuant to § 1435.202(d)(1) during the assessed in accordance with this sec- period from October 22, 1999 through tion, interest on unpaid assessments or September 30, 2001; and deficiencies in assessments paid is due (c) Sugar in inventory at the end of and payable at the rate specified in fiscal year 2001 that is marketed there- part 1403 of this chapter beginning on after will be subject to an assessment the 1st day of the month after the mar- at the rate that is current at the time keting assessment was due in accord- of marketing unless that sugar was the ance with § 1435.203. Interest shall con- subject of a previously paid assess- tinue to accrue until such amount is ment. paid. However, if full payment of an as- sessment is received within 30 calendar [65 FR 7956, Feb. 16, 2000] days of the date on which the assess- ment was due, no interest shall apply. Subpart D—Information Reporting (c) The Controller, CCC, shall assess and Recordkeeping Requirements civil penalties and interest. (d) Affected first processors may re- § 1435.300 General statement. quest reconsideration of civil penalties (a) Every sugar beet processor, sugar- by filing a request, within 30 days of re- ceipt of certified written notification cane processor, and cane sugar refiner by the Controller, CCC, of such assess- shall report, on a monthly basis on ment of civil penalties, with the Execu- CCC required forms, its imports and re- tive Vice President, CCC, Stop 0501, ceipts, processing inputs, production, 1400 Independence Ave. SW, Wash- distribution, stocks, and other infor- ington, D.C. 20250–0501. mation necessary to administer sugar (e) After reconsideration, affected programs. first processors may appeal civil pen- (b) Any processor must, upon CCC’s alties by filing a notice of appeal, with- request, provide such information as in 30 calendar days of receipt of cer- CCC deems appropriate for determining tified written notification by the Exec- regional loan rates. utive Vice President, CCC, of an affir- (c) The sugar information reporting mation of the assessment of civil pen- and recordkeeping requirements of this alties, with the National Appeals Divi- subpart are administered under the sion in accordance with part 780 of this general supervision of the Executive chapter. Vice President, CCC.
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§ 1435.301 Civil penalties. § 1436.1 Applicability. (a) Any processor or refiner who will- The regulations of this part provide fully fails or refuses to furnish the in- the terms and conditions under which formation, or who willfully furnishes CCC may provide low-cost financing for false data required under § 1435.300, is producers to build or upgrade on-farm subject to a civil penalty of no more storage and handling facilities. Be- than $10,000 for each such violation. cause liens and security interests re- (b) The Controller, CCC, shall assess lated to this activity may be governed civil penalties and interest. by state law, CCC may adapt certain (c) Affected first processors may re- procedures relating to those issues that quest reconsideration of civil penalties may vary between States. by filing a request, within 30 days of re- ceipt of certified written notification § 1436.2 Administration. by the Controller, CCC, of such assess- (a) The Farm Storage Facility Loan ment of civil penalties, with the Execu- tive Vice President, CCC, Stop 0501, Program shall be administered under 1400 Independence Ave. SW, Wash- the general supervision of the Execu- ington, D.C. 20250–0501. tive Vice President, CCC or designee (d) After reconsideration, affected and shall be carried out in the field by first processors may appeal civil pen- FSA State committees, FSA county alties by filing a notice of appeal, with- committees and FSA employees. in 30 calendar days of receipt of cer- (b) FSA State committees, FSA tified written notification by the Exec- county committees and FSA employ- utive Vice President, CCC, of an affir- ees, do not have the authority to mod- mation of the assessment of civil pen- ify or waive any of the provisions of alties, with the National Appeals Divi- the regulations of this part. sion in accordance with part 780 of this (c) The FSA State committee shall chapter. take any action required by these regu- lations that has not been taken by the PART 1436—FARM STORAGE FA- county committee. The FSA State CILITY LOAN PROGRAM REGULA- committee shall also: TIONS (1) Correct, or require the FSA coun- ty committee to correct, any action taken by such FSA county committee Sec. 1436.1 Applicability. that is not in accordance with the reg- 1436.2 Administration. ulations of this part; and 1436.3 Definitions. (2) Require the FSA county com- 1436.4 Availability of loans. mittee to withhold taking any action 1436.5 Eligible borrowers. that is not in accordance with the reg- 1436.6 Eligible storage or handling equip- ulations of this part. ment. 1436.7 Term of loan. (d) No provision or delegation herein 1436.8 Security for loan. to a State or FSA county committee 1436.9 Loan amount and loan application shall preclude the Executive Vice approvals. President, CCC, or a designee, or the 1436.10 Down payment. Administrator, FSA, or a designee, 1436.11 Disbursements and assignments. from determining any question arising 1436.12 Interest and fees. under the program or from reversing or 1436.13 Loan installments, delinquency, and modifying any determination made by acceleration of maturity date. 1436.14 Taxes. the State or FSA county committee. 1436.15 Maintenance, liability, insurance, (e) The Deputy Administrator, Farm and inspections. Programs, FSA, may authorize State 1436.16 Foreclosure, liquidation, assump- and FSA county committees to waive tions, sale or conveyance, bankruptcy. or modify deadlines and other program 1436.17 Environmental compliance. requirements in cases where lateness 1436.18 Appeals. or failure to meet such other require- AUTHORITY: 15 U.S.C. 714 et seq. ments does not adversely affect the op- SOURCE: 66 FR 4612, Jan. 18, 2001, unless eration of the Farm Storage Facility otherwise noted. Loan Program.
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