§ 7284. — Personal liability of producers for deficiencies.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 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 and
title I of the Farm Security and Rural Investment Act of 2002 [7 U.S.C.
7901 et seq.] 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 and title I of the
Farm Security and Rural Investment Act of 2002 [7 U.S.C. 7901 et
seq.].
(c) Acquisition of collateral
In the case of a nonrecourse loan made under this chapter and title
I of the Farm Security and Rural Investment Act of 2002 [7 U.S.C. 7901
et seq.] 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; Pub.
L. 107-171, title I, Sec. 1607, May 13, 2002, 116 Stat. 218.)
References in Text
For definition of ``this chapter'', referred to in text, see note
set out under section 7201 of this title.
The Farm Security and Rural Investment Act of 2002, referred to in
subsecs. (a), (b)(3), and (c), is Pub. L. 107-171, May 13, 2002, 116
Stat. 134. Title I of the Act is classified principally to chapter 106
(Sec. 7901 et seq.) of this title. For complete classification of this
Act to the Code, see Short Title note under section 7901 of this title
and Tables.
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.
Amendments
2002--Subsecs. (a), (b)(3), (c). Pub. L. 107-171 substituted ``this
chapter and title I of the Farm Security and Rural Investment Act of
2002'' for ``this chapter''.
