Page:United States Statutes at Large Volume 116 Part 1.djvu/210

 116 STAT. 184 PUBLIC LAW 107-171—MAY 13, 2002 "(1) IN GENERAL.—^A loan under this section during any fiscal year shall be made available not earlier than the beginning of the fiscal year and shall mature at the earlier of— "(A) the end of the 9-month period beginning on the first day of the first month after the month in which the loan is made; or "(B) the end of the fiscal year in which the loan is made. "(2) SUPPLEMENTAL LOANS.—In the case of a loan made under this section in the last 3 months of a fiscal year, the processor may repledge the sugar as collateral for a second loan in the subsequent fiscal year, except that the second loan shall— "(A) be made at the loan rate in effect at the time the second loan is made; and "(B) mature in 9 months less the quantity of time that the first loan was in effect. "(e) LOAN TYPE; PROCESSOR ASSURANCES.— "(1) NONRECOURSE LOANS.— The Secretary shall carry out this section through the use of nonrecourse loans. "(2) PROCESSOR ASSURANCES.— "(A) IN GENERAL.—The Secretary shall obtain from each processor that receives a loan under this section such assurances as the Secretary considers adequate to ensure that the processor will provide payments to producers that are proportional to the value of the loan received by the processor for the sugar beets and sugarcane delivered by producers to the processor. " (B) MINIMUM PAYMENTS. — "(i) IN GENERAL.— Subject to clause (ii), the Secretary may establish appropriate minimum payments for purposes of this paragraph. "(ii) LIMITATION. —In the case of sugar beets, the minimum payment established under clause (i) shall not exceed the rate of payment provided for under the applicable contract between a sugar beet producer and a sugar beet processor. "(iii) EFFECT OF DISASTER.—The Secretary may not bar a beet sugar processor from eligibility to obtain a loan under this section because of the failure of the processor to provide the appropriate minimum pay- ment established under this subsection if the failure— "(I) occurred during a crop year prior to the date of enactment of the Farm Security and Rural Investment Act of 2002; and "(II) was related, at least in part, to the effects of a natural disaster, including damage from freeze. "(3) ADMINISTRATION.— The Secretary may not impose or enforce any prenotification requirement, or similar administrative requirement not otherwise in effect on the date of enactment of the Farm Security and Rural Investment Act of 2002, that has the effect of preventing a processor from electing to forfeit the loan collateral (of an acceptable grade and quality) on the maturity of the loan. " (f) LOANS FOR IN-PROCESS SUGAR. —

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