7 U.S.C. § 7284 | Personal liability of producers for deficiencies

(a)

In general

1 So in original. Probably should be followed by a comma.

7 U.S.C. 7901 7 U.S.C. 8701 7 U.S.C. 9001Except as provided in subsection (b), no producer shall be personally liable for any deficiency arising from the sale of the collateral securing any nonrecourse loan made under this chapter  title I of the Farm Security and Rural Investment Act of 2002 [ et seq.], title I of the Food, Conservation, and Energy Act of 2008 [ et seq.], and title I of the Agricultural Act of 2014 [ et seq.] unless the loan was obtained through a fraudulent representation by the producer.

(b)

Limitations

Subsection (a) 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)

¹7 U.S.C. 7901 7 U.S.C. 8701 7 U.S.C. 9001 a failure or refusal to deliver a commodity in accordance with a program established under this chapter  title I of the Farm Security and Rural Investment Act of 2002 [ et seq.], title I of the Food, Conservation, and Energy Act of 2008 [ et seq.], and title I of the Agricultural Act of 2014 [ et seq.].

(c)

Acquisition of collateral

¹7 U.S.C. 7901 7 U.S.C. 8701 7 U.S.C. 9001 15 U.S.C. 714In the case of a nonrecourse loan made under this chapter  title I of the Farm Security and Rural Investment Act of 2002 [ et seq.], title I of the Food, Conservation, and Energy Act of 2008 [ et seq.], and title I of the Agricultural Act of 2014 [ et seq.] or the Commodity Credit Corporation Charter Act ( 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, § 164Apr. 4, 1996110 Stat. 935 Pub. L. 107–171, title I, § 1607May 13, 2002116 Stat. 218 Pub. L. 110–234, title I, § 1606May 22, 2008122 Stat. 1017 Pub. L. 110–246, § 4(a)June 18, 2008122 Stat. 1664 Pub. L. 113–79, title I, § 1607Feb. 7, 2014128 Stat. 708(, , ; , , ; , , ; , title I, § 1606, , , 1746; , , .)

Editorial Notes

References in Text

section 7201 of this titleFor definition of “this chapter”, referred to in text, see note set out under .

Pub. L. 107–171May 13, 2002116 Stat. 134 section 7901 of this titleThe Farm Security and Rural Investment Act of 2002, referred to in subsecs. (a), (b)(3), and (c), is , , . Title I of the Act is classified principally to chapter 106 (§ 7901 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note under and Tables.

Pub. L. 110–246June 18, 2008122 Stat. 1651 section 8701 of this titleThe Food, Conservation, and Energy Act of 2008, referred to in subsecs. (a), (b)(3), and (c), is , , . Title I of the Act is classified principally to chapter 113 (§ 8701 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under and Tables.

Pub. L. 113–79Feb. 7, 2014128 Stat. 649 section 9001 of this titleThe Agricultural Act of 2014, referred to in subsecs. (a), (b)(3), and (c), is , , . Title I of the Act is classified principally to chapter 115 (§ 9001 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under and Tables.

act June 29, 1948, ch. 704 62 Stat. 1070 section 714 of title 15The Commodity Credit Corporation Charter Act, referred to in subsec. (c), is , , which is classified generally to subchapter II (§ 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 and Tables.

Codification

Pub. L. 110–234 Pub. L. 110–246 Pub. L. 110–234 section 4(a) of Pub. L. 110–246 and made identical amendments to this section. The amendments by were repealed by .

Amendments

Pub. L. 113–792014—Subsecs. (a), (b)(3), (c). substituted “title I of the Food, Conservation, and Energy Act of 2008, and title I of the Agricultural Act of 2014” for “and title I of the Food, Conservation, and Energy Act of 2008”.

Pub. L. 110–246, § 16062008—Subsecs. (a), (b)(3), (c). , substituted “title I of the Farm Security and Rural Investment Act of 2002, and title I of the Food, Conservation, and Energy Act of 2008” for “and title I of the Farm Security and Rural Investment Act of 2002”.

Pub. L. 107–1712002—Subsecs. (a), (b)(3), (c). substituted “this chapter and title I of the Farm Security and Rural Investment Act of 2002” for “this chapter”.

Statutory Notes and Related Subsidiaries

Effective Date of 2008 Amendment

Pub. L. 110–234 Pub. L. 110–246May 22, 2008Pub. L. 110–234 section 4 of Pub. L. 110–246 section 8701 of this titleAmendment of this section and repeal of by effective , the date of enactment of , see , set out as an Effective Date note under .