Page:United States Statutes at Large Volume 110 Part 1.djvu/959

 PUBLIC LAW 104-127—APR. 4, 1996 110 STAT. 935 (1) the notice and comment provisions of section 553 of title 5, United States Code; (2) the Statement of Pohcy of the Secretary of Agriculture effective July 24, 1971 (36 Fed. Reg. 13804) relating to notices of proposed rulemaking and public participation in rulemaking; and (3) chapter 35 of title 44, United States Code (commonly know as the "Paperwork Reduction Act"). SEC. 162. ADJUSTMENTS OF LOANS. 7 USC 7282. (a) ADJUSTMENT AUTHORITY.—The Secretary may make appropriate adjustments in the loan rates for any commodity for dif- ferences in grade, type, quality, location, and other factors. (b) MANNER OF ADJUSTMENT.— The adjustments under the authority of this section shall, to the maximum extent practicable, be made in such manner that the average loan level for the commodity will, on the basis of the anticipated incidence of the factors, be equal to the level of support determined as provided in this title. (c) ADJUSTMENT ON COUNTY BASIS.— The Secretary may establish loan rates for a crop for producers in individual counties in a manner that results in the lowest such rate being 95 percent of the national average loan rate, except that such action shall not result in an increase in outlays. Adjustments under this subsection shall not result in an increase in the national average loan rate for any year. SEC. 163. COMMODITY CREDIT CORPORATION INTEREST RATE. 7 USC 7283. Notwithstanding an}^ other provision of law, the monthly Commodity Credit Corporation interest rate applicable to loans provided for agricultural commodities by the Corporation shall be 100 basis points greater than the rate determined under the applicable interest rate foraiula in effect on October 1, 1995. SEC. 164. PERSONAL LIABILITY OF PRODUCERS FOR DEFICIENCIES. 7 USC 7284. (a) IN GENERAL. —Except 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 title 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) a failure or refusal to deliver a commodity in accordance with a program established under this title. (c) ACQUISITION OF COLLATERAL.— In the case of a nonrecourse loan made under this title 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

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