View all text of Subchapter II [§ 7931 - § 7939]
§ 7934. Repayment of loans
(a) General ruleThe Secretary shall permit the producers on a farm to repay a marketing assistance loan under section 7931 of this title for a loan commodity (other than upland cotton, rice, extra long staple cotton, and confectionery and each other kind of sunflower seed (other than oil sunflower seed)) at a rate that is the lesser of—
(1) the loan rate established for the commodity under section 7932 of this title, plus interest (determined in accordance with section 7283 of this title); 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;
(D) allow the commodity produced in the United States to be marketed freely and competitively, both domestically and internationally; and
(E) minimize discrepancies in marketing loan benefits across State boundaries and across county boundaries.
(b) Repayment rates for upland cotton and riceThe Secretary shall permit producers to repay a marketing assistance loan under section 7931 of this title for upland cotton and rice at a rate that is the lesser of—
(1) the loan rate established for the commodity under section 7932 of this title, plus interest (determined in accordance with section 7283 of this title); 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
(d) Prevailing world market priceFor purposes of this section and section 7937 of this title, the Secretary shall prescribe by regulation—
(1) a formula to determine the prevailing world market price for upland cotton and rice, adjusted to United States quality and location; and
(2) a mechanism by which the Secretary shall announce periodically the prevailing world market price for upland cotton and rice.
(e) Adjustment of prevailing world market price for upland cotton
(1) In generalDuring the period beginning on May 13, 2002, through July 31, 2008, 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 7932 of this title, as determined by the Secretary; and
(B) the Friday through Thursday average price quotation for the lowest-priced United States growth as quoted for Middling (M) 13⁄32-inch cotton delivered C.I.F. Northern Europe is greater than the Friday through Thursday average price of the 5 lowest-priced growths of upland cotton, as quoted for Middling (M) 13⁄32-inch cotton, delivered C.I.F. Northern Europe (referred to in this section as the “Northern Europe price”).
(2) Further adjustmentExcept as provided in paragraph (3), the adjusted prevailing world market price for upland cotton shall be further adjusted on the basis of some or all of the following data, as available:
(A) The United States share of world exports.
(B) The current level of cotton export sales and cotton export shipments.
(C) Other data determined by the Secretary to be relevant in establishing an accurate prevailing world market price for upland cotton (adjusted to United States quality and location).
(3) Limitation on further adjustmentThe adjustment under paragraph (2) may not exceed the difference between—
(A) the Friday through Thursday average price for the lowest-priced United States growth as quoted for Middling 13⁄32-inch cotton delivered C.I.F. Northern Europe; and
(B) the Northern Europe price.
(f) Repayment rates for confectionery and other kinds of sunflower seedsThe Secretary shall permit the producers on a farm to repay a marketing assistance loan under section 7931 of this title for confectionery and each other kind of sunflower seed (other than oil sunflower seed) at a rate that is the lesser of—
(1) the loan rate established for the commodity under section 7932 of this title, plus interest (determined in accordance with section 7283 of this title); or
(2) the repayment rate established for oil sunflower seed.
(g) Quality grades for dry peas, lentils, and small chickpeas
(h) Good faith exception to beneficial interest requirement
(Pub. L. 107–171, title I, § 1204, May 13, 2002, 116 Stat. 156; Pub. L. 108–7, div. A, title VII, § 763(c), Feb. 20, 2003, 117 Stat. 47.)