Page:United States Statutes at Large Volume 110 Part 1.djvu/932

 110 STAT. 908 PUBLIC LAW 104-127—APR. 4, 1996 on the first day of the first month after the month in which the loan is made. (b) SPECIAL RULE FOR COTTON. —^A marketing assistance loan for upland cotton or extra long staple cotton shall have a term of 10 months beginning on the first day of the month in which the loan is made. (c) EXTENSIONS PROHIBITED.— The Secretary may not extend the term of a marketing assistance loan for any loan commodity. 7 USC 7234. SEC. 134. REPAYMENT OF LOANS. (a) REPAYMENT RATES FOR WHEAT, FEED GRAINS, AND OIL- SEEDS.—The Secretary shall permit a producer to repay a marketing assistance loan under section 131 for wheat, com, grain sorghum, barley, oats, and oilseeds at a rate that is the lesser of— (1) the loan rate established for the commodity under section 132, 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 internationaly. (b) REPAYMENT RATES FOR UPLAND COTTON AND RICE. — The Secretary shall permit producers to repay a marketing assistance loan under section 131 for upland cotton and rice at a rate that is the lesser of— (1) the loan rate established for the commodity under section 132, 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 132, plus interest (as determined by the Secretary). Regulations. (d) PREVAILING WORLD MARKET PRICE.— For purposes of this section and section 136, 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) 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 132, as determined by the Secretary; and

�