Lesser quantities may be resealed at the | Wheat Circular Letters 10 and 11, Mar. request of producers, Provided: 16, Mar. 31, 1939; 4 F.R. 1626]

(1) Such lesser quantity is not due to a shortage occasioned by act or neglect on the part of the producer.

(2) The producer makes payment for the quantity of wheat not resealed by requesting the county agricultural conservation committee to obtain from Commodity Credit Corporation a statement as to the market value of the quantity not resealed and by paying such amount to the committee in cashier's check or post office money order for transmittal to Commodity Credit Corporation.

No partial deliveries of wheat will be permitted under the foregoing procedure, but allowance will be made for storage on the portion not resealed.

of Borrower
spected on

Name & Address for 8 was rein

(Date of Reinspection) after reported damage from

that

bushels of corn have been re

sealed in a structure meeting the requirement of Commodity Credit Corporation and that such resealed corn is undamaged and defined in the printed Instruction of Commeets the requirements of "eligible corn" as modity Credit Corporation. For the

(County)

(c) Each producer resealing wheat must execute a Storage Agreement on 1939 CCC Wheat Form A-1. The Consent for Storage set forth on such form must be executed in all instances in which the original chattel mortgage indicates consent was originally given by the landlord only until August 1, 1939. In addition, the producer must furnish a Certificate of Insurance in the form set forth in § 204.12a providing primary insurance at least until May 31, 1940. If a lesser quantity is tion Committee resealed, Commodity Credit Corporation will require the delivery only of the quantity of wheat resealed as stated in the Storage Agreement and not the quantity originally stated in the chattel mortgage. After March 31, 1940, upon the delivery of the quantity and quality stated in the agreement, Commodity Credit Corporation will pay storage to the producer on such quantity at the rate of 12 cents per bushel, less interest on the indebtedness to May 31, 1939.

By

(State) Agricultural Conserva

193...

(Signature of Member)

The county agricultural conservation committees have been instructed to communicate with the lending agencies holding the notes when corn is damaged from fire, lightning, cyclone, tornado, windstorm or flood, and to furnish such lending agency with a report of the damage, together with the required certificate for corn resealed. Lending agencies will be

basis of the report of the county agricultural conservation committees.

(d) In the event the maturity of any in position to file claims under any innote secured by resealed wheat is accel-surance coverage they may have on the erated under the provisions of the chattel mortgage, Commodity Credit Corporation will allow the producer, on the quantity of wheat delivered, storage at the rate of 7 cents per bushel, less interest on the note to May 31, 1939, provided such acceleration is not due to a fraudulent misrepresentation by the producer. (Sec. 302 (b), 52 Stat. 43, 820; 7 U.S.C., Sup., 1302 (b)) [As added by 1938

In making purchase of notes as provided above, payment will be made to lending agencies of the loan value of the undamaged resealed corn, plus interest at the rate of 22 percent per annum from the date of the note to the date of purchase. (Sec. 302 (d), 52 Stat. 43, 820; 7 U.S.C., Sup., 1302 (d)) [As added

by 1938 Corn Circular Letter 3, Mar. 31, | agreements on 1938-39 CCC Corn Form 1939; 4 F.R. 2026]

A-5. All agreements and new loan documents covering 1937 corn must be submitted to the Chicago Loan Agency; and agreements and new documents covering 1938 corn shall be submitted to the Loan Agency serving the area as stated

§ 205.13a Extension or renewal of notes. (a) Under the 1938 corn loan program, the corn producers' notes mature August 1, 1939. No deliveries of corn will be accepted by Commodity Credit Corporation in liquidation of in § 206.17. Commodity Credit Corponotes prior to September 1, 1939, except

in those instances where the notes are

called under the terms of the mortgages. (b) Arrangements have been made for the resealing of corn collateral and the extension or renewal of the notes in those instances where the corn collateral and storage structures are found to be in good condition, except for ear corn produced in 1937. However, ear corn produced in 1937 may be shelled and resealed in farm storage. Producers may also shell and deliver corn of any crop year (1937 or 1938) to warehouses approved by Commodity Credit Corporation and obtain a renewal of the loans thereof. To be eligible for a loan extension or renewal, the corn collateral must grade No. 3 or better and contain not more than 132 percent moisture when stored as shelled corn and 151⁄2 percent moisture when stored as ear corn. The extension and renewal program applies only to corn now under loan.

(c) Each producer interested in obtaining an extension or renewal of his loan should communicate with the county agricultural conservation committee for an inspection of the corn collateral and storage structures. Any extension requests for corn stored in the state of Illinois must be transmitted for acceptance prior to November 1, 1939; otherwise, it will be necessary for the producers to submit a renewal note secured by a new chattel mortgage.

(d) In those instances where the corn collateral is already shelled or is to be resealed as ear corn in farm storage, the producer must submit a corn storage agreement on 1938-39 CCC Corn Form A-2. Producers desiring to shell ear corn collateral and to mortgage the shelled corn in substitution therefor must execute renewal notes on 1938-39 CCC Corn Form A-3, secured by chattel mortgage on 1938-39 CCC Corn Form A-4. Producers desiring to store shelled corn in approved public warehouses must execute new notes and loan

in farm storage 7 cents per bushel for ration will pay producers resealing corn storing the corn until August 1, 1940, or the date of delivery of the corn, whichever is later. Such payment is conditioned upon the producer delivering the full quantity of corn resealed grading No. 3 or better. At the request of producers, the storage charge will be advanced at the time of resealing farm stored corn for the sole purpose of enabling the producer to acquire or construct additional facilities for the farm storage of corn. If such an advance is used for

any other purpose, the producer will be liable for the full amount advanced and owing on the corn plus interest and charges.

(e) The corn storage agreements and new notes and chattel mortgages or loan agreements must be properly completed. All liens listed in section 12 of the new chattel mortgage and section 8 of the loan agreement must be waived. Such liens may be waived on the new chattel mortgage or the loan agreement or listed and waived on corn lien waiver (1938-39 CCC Corn Form AB) which may be attached thereto. If the producer is a tenant, the consent for storage must be signed on all forms if the lease expires prior to October 1, 1940. The requirements for completing and filing for record of new chattel mortgages are the same as set forth in Part 206.

(f) In the event the quantity of corn resealed is less than the quantity covered by the original mortgage, the storage agreement or new note and mortgage or loan agreement must be accompanied by funds for the deficiency, as determined in accordance with paragraph (g). New loan documents will not be accepted by Commodity Credit Corporation until settlement is made of such deficiencies.

(g) After September 1, 1939, notes may be liquidated by the delivery of the corn collateral. Such delivery must be made under the instructions of the county committee. Producers may deliver part

of the corn collateral and reseal the remainder as ear corn, except corn produced in 1937, or shell and reseal in farm storage as shelled corn or store shelled corn collateral in approved warehouses. Under no conditions will producers be permitted to purchase all or any part of the corn collateral for less than the loan value plus interest and other charges. Producers must settle for any deficiencies in the quantity of corn delivered or resealed or for deliveries of

(i) Producers desiring to obtain an extension or renewal of loans secured by farm stored corn in the State of Illinois must execute new notes and mortgages on 1938-39 CCC Corn Forms A-3 and A-4. Extension agreements (1938-39 CCC Corn Form 2) will not be acceptable for farm stored corn in Illinois.

(Sec. 302 (d), 52 Stat. 43, 820; 7 U.S.C., Sup., 1302 (d)) [As added by 1938 Corn Circular Letter 4, July 31, 1939 and

amended by 1938-39 Corn Circular Let

NOTE: This section was added by 1938 Corn

Circular Letter 4, July 31, 1939; 4 F.R. 3566, and paragraph (h) was amended and paragraph (1) was added by 1938-39 Corn Circular Letter 4, Aug. 24, 1939; 4 F.R. 4167.

PART 206-1938-39 CORN LOANS § 206.1 Definitions.

corn grading less than No. 3. Any short-ter 4, Aug. 24, 1939; 4 F.R. 3566, 4167] age in quantity must be settled for on the basis of loan value plus interest and charges on the assumption that the full quantity of corn described in the original chattel mortgage was not sealed at the time such chattel mortgage was executed, provided, that if satisfactory evidence is presented by the producer that the full quantity of corn was sealed and that the shortage is due to loss or impairment due to an insured risk, the producer will not be liable for such shortage and collection will be made under the insurance provided by the producer and Commodity Credit Corporation. Deficiencies in quality must be settled on the difference in value between corn grading No. 3 and the grade of the corn delivered. The county committees will advise the producers as to

the amount of the deficiencies.

(h) In consideration of the payment of onefifth cent per bushel on farm storage and onetenth cent per bushel on warehouse storage by producers. Commodity Credit Corporation will not require producers to furnish an insurance certificate or policy. Such funds are intended to protect Commodity Credit Corporation against loss or impairment of the corn collateral from the perils of fire, lightning, windstorm, cyclone, tornado, inherent explosion, flood and theft. The obligations of the producer in connection with such protection are set forth in the loan documents. Payment of this amount shall be made to the county agricultural conservation committees at the time the extension or renewal is approved by the county committee.

[Preceding paragraph, in small type, superseded by following paragraph during period covered by this Supplement]

(h) Producers may obtain an extension or renewal of corn loans without payment of the fees required under former paragraph (h). In completing the extension or renewal loan documents, section 5 of 1938-39 CCC Corn Forms A-2 and A-4 and section 7 of 1938-39 CCC Corn Form A-5 should be deleted.

(e) Eligible paper.

Commodity Credit Corporation will A or 1938-39 CCC Corn Form A in inpurchase loans on 1938 CCC Corn Form stances where a portion of the corn collateral has been damaged by fire, lightning, cyclone, tornado, windstorm flood, only when accompanied by a certificate of the county agricultural conservation committee in the following form:

or

or flood, and to furnish such lending | executing it on behalf of the lending agency with a report of the damage, agency. Such signature may be typetogether with the required certificate for written or stamped on the duplicate corn resealed. Lending agencies will be copy, which copy should be authentiin position to file claims under any in-cated by a certificate of the Notary surance coverage they may have on the Public taking the acknowledgment on basis of the report of the county agri- the original assignment. The original cultural conservation committees. assignment of a Chattel Mortgage by a lending agency may be executed in its corporate name and the signature may be substantially as follows:

In making purchase of notes as provided above, payment will be made to lending agencies of the loan value of the undamaged resealed corn, plus interest at the rate of 22 percent per annum from the date of the note to the date of purchase. (Sec. 302 (d), 52 Stat. 43, 820; 7 U.S.C., Sup., 1302 (d)) [As added by 1938–39 Corn Circular Letter 2, Mar. 31, 1939; 4 F.R. 2026]

§ 206.16 Purchase of loans.

Lending agencies are advised that the Post Office address of both the assignor and assignee must be inserted following the respective names of the parties in the Assignment of Chattel Mortgage (1938-39 CCC Corn Form F). Also, the recording file number or document number of the Chattel Mortgage should be inserted in the Assignment.

Commodity Credit Corporation will accept notes on 1938 CCC Corn Form A and 1938-39 CCC Corn Form A, which are endorsed by rubber stamped endorsement, substantially in the following

form:

By

(Lending Agency)

(Title of Officer)

(Sec. 302 (d), 52 Stat. 43, 820; 7 U.S.C.,
Sup., 1302 (d)) [As added by 1938-39
Corn Circular Letter 1, Feb. 3, 1939; 4
F.R. 1097]

§ 206.19 Extension or renewal of notes. (a) Under the 1938-39 corn loan program, the corn producers' notes mature August 1, 1939. No deliveries of corn will be accepted by Commodity Credit Corporation in liquidation of notes prior to September 1, 1939, except in those instances where the notes are called under the terms of the mortgages.

(b) Arrangements have been made for the resealing of corn collateral and the extension or renewal of the notes in those instances where the corn collateral and storage structures are found to be in good condition, except for ear corn produced in 1937. However, ear corn produced in 1937 may be shelled and re

Pay to the order of Commodity Credit Cor- sealed in farm storage. Producers may poration without recourse on the undersigned.

also shell and deliver corn of any crop year (1937 or 1938) to warehouses approved by Commodity Credit Corporation and obtain a renewal of the loans thereof. To be eligible for a loan extension or renewal, the corn collateral must grade No. 3 or better and contain not more than 131⁄2 percent moisture when stored as shelled corn and 152 percent moisture when stored as ear corn. The extension and renewal program applies only to corn now under loan.

(c) Each producer interested in obtaining an extension or renewal of his loan should communicate with the county agricultural conservation committee for an inspection of the corn collateral and storage structures. Any extension requests for corn stored in the state of Illinois must be transmitted for acceptance prior to November 1, 1939; otherwise, it

will be necessary for the producers to submit a renewal note secured by a new chattel mortgage.

(d) In those instances where the corn collateral is already shelled or is to be resealed as ear corn in farm storage, the producer must submit a corn storage agreement on 1938-39 CCC Corn Form A-2. Producers desiring to shell ear corn collateral and to mortgage the shelled corn in substitution therefor must execute renewal notes on 1938-39 CCC Corn Form A-3, secured by chattel mortgage on 1938-39 CCC Corn Form A-4. Producers desiring to store shelled corn in approved public warehouses must execute new notes and loan agreements on 193839 CCC Corn Form A-5. All agreements and new loan documents covering 1937 corn must be submitted to the Chicago Loan Agency; and agreements and new documents covering 1938 corn shall be submitted to the Loan Agency serving the area as stated in § 206.17. Commodity Credit Corporation will pay producers resealing corn in farm storage 7 cents per bushel for storing the corn until August 1, 1940, or the date of delivery of the corn, whichever is later. Such payment is conditioned upon the producer delivering the full quantity of corn resealed grading No. 3 or better. At the request of producers, the storage charge will be advanced at the time of resealing farm stored corn for the sole purpose of enabling the producer to acquire or construct additional facilities for the farm storage of corn. If such an advance is used for any other purpose, the producer will be liable for the full amount advanced and owing on the corn plus interest and charges.

(f) In the event the quantity of corn resealed is less than the quantity covered by the original mortgage, the storage agreement or new note and mortgage or loan agreement must be accompanied by funds for the deficiency, as determined in accordance with paragraph (g) hereof. New loan documents will not be accepted by Commodity Credit Corporation until settlement is made of such deficiencies.

(g) After September 1, 1939, notes may be liquidated by the delivery of the corn collateral. Such delivery must be made under the instructions of the county committee. Producers may deliver part of the corn collateral and reseal the remainder as ear corn, except corn produced in 1937, or shell and reseal in farm storage as shelled corn or store shelled corn collateral in approved warehouses. Under no conditions will producers be permitted to purchase all or any part of the corn collateral for less than the loan value plus interest and other charges. Producers must settle for any deficiencies in the quantity of corn delivered or resealed or for deliveries of corn grading less than No. 3. Any shortage in quantity must be settled for on the basis of loan value plus interest and charges on the assumption that the full quantity of corn described in the original chattel mortgage was not sealed at the time such chattel mortgage was executed, provided, that if satisfactory evidence is presented by the producer that the full quantity of corn was sealed and that the shortage is due to loss or impairment due to an insured risk, the producer will not be liable for such shortage and collection will be made under the insurance provided by the producer and Commodity Credit Corporation. Deficiencies in quality must be settled on the difference in value between corn grading No. 3 and the grade of the corn delivered. The county committees will advise the producers as to the amount of the deficiencies.

(e) The corn storage agreements and new notes and chattel mortgages or loan agreements must be properly completed. All liens listed in section 12 of the new chattel mortgage and section 8 of the loan agreement must be waived. Such liens may be waived on the new chattel mortgage or the loan agreement or listed (h) In consideration of the payment of and waived on corn lien waiver (1938-39 one-fifth cent per bushel on farm storage and CCC Corn Form AB) which may be at- one-tenth cent per bushel on warehouse stortached thereto. If the producer is a ten-age by producers, Commodity Credit Corporaant, the consent for storage must be signed on all forms if the lease expires prior to October 1, 1940. The requirements for completing and filing for record of new chattel mortgages are the same as set forth in this part.

tion will not require producers to furnish an insurance certificate or policy. Such funds are intended to protect Commodity Credit Corporation against loss or impairment of the corn collateral from the perils of fire, lightning, windstorm, cyclone, tornado, inherent explosion, flood and theft. The obligations of the producer in connection with