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Otoe, Pawnee, Perkins, Phelps, Pierce, Platte, Polk, Redwillow, Richardson, Saline, Sarpy, Saunders, Seward, Sherman, Stanton, Thayer, Thurston, Valley, Washington, Wayne, Webster, Wheeler, York.
Ohio. Adams, Allen, Ashland, Auglaize, Brown, Butler, Champaign, Clark, Clermont, Clinton, Coshocton, Crawford, Darke, Defiance, Delaware, Erie, Fairfield, Fayette, Franklin, Fulton, Greene, Hamilton, Hancock, Hardin, Henry, Highland, Holmes, Huron, Jackson, Knox, Logan, Lorain, Lucas, Madison, Marion, Mercer, Miami, Montgomery, Morrow, Muskingum, Ottawa, Paulding, Perry, Pickaway, Pike, Preble, Putnam, Richland, Ross, Sandusky, Sciota, Seneca, Shelby, Union, Van Wert, Warren, Williams, Wood, Wyandot.
South Dakota, Bon Homme, Brookings, Charles Mix, Clay, Davidson, Deuel, Douglas, Grant, Hanson, Hutchinson, Kingsbury, Lake, Lincoln, McCook, Miner, Minnehaha, Moody, Roberts, Sanborn, Turner, Union, Yankton.
Wisconsin. Columbia, Dane, Dodge, Fond du Lac, Grant, Greene, Green Lake, Iowa, Jefferson, Kenosha, Lafayette, Racine, Rock, Sauk, Walworth, Washington, Winnebago.*†
†In 88 201.2 to 201.18, inclusive, the numbers to the right of the decimal point correspond with the respective section numbers in Instructions concerning the making of corn loans by Commodity Credit Corporation, 1937-38 CCC Corn Form 1, 3 F.R. 123.
201.3 Documents required. The following documents must be delivered in connection with every loan made or purchased by the Commodity Credit Corporation. The forms are identified and no reprints or substitutes may be used.
(a) Note of producer (1937-38 CCC Corn Form A).
(b) Loan Agreement (1937-38 CCC Corn Form A).
(c) Original and duplicate producer's Letter of Transmittal (193738 CCC Corn Form B), or lending agency's Letter of Transmittal (1937-38 CCC Corn Form C), whichever is appropriate.
(d) Farm Warehouse Certificates issued subsequent to December 1, 1937, under authority of the farm storage warehouse laws of States hereinbefore named.
(e) Insurance Certificate in form printed at the end of the instructions in this part or in form containing identical terms and conditions, except that hail coverage may be excluded.*t
CROSS REFERENCE: For insurance certificate, see § 201.19.
201.4 Source and preparation of documents. With the exception of the farm warehouse certificates, which will be issued by authorized State sealers, forms may be obtained from any County Agricultural Conservation Committee, in the counties listed in § 201.2, or any Loan Agency of the Reconstruction Finance Corporation listed in & 201.16.
All blanks in 1937-38 CCC Corn Form A must be filled in with ink, typewriter, or indelible pencil and no documents containing additions, alterations, or erasures, will be accepted by the Commodity Credit Corporation. The white copy marked "Original" will be executed and the colored copy marked "Duplicate" will be retained by the producer.
The Corn Sealer's Work Sheet (1937-38 CCC Corn Form K) and the Moisture Test Form (1937-38 CCC Corn Form H) will be retained by the County Agricultural Conservation Committee. To be acceptable to Commodity Credit Corporation the certificate contained in Section 15 of the note and loan agreement must be executed by the County Agricultural Conservation Committee.*t
*For statutory citation, see note to § 201.1.
201.5 Farm warehouse certificates. These certificates must be in form approved by the State Warehouse Supervising Authority and the Commodity Credit Corporation. They must be issued by a sealer, or inspector, who is properly authorized by the State Warehouse Supervising Authority.
Each certificate must designate as a delivery point, a railroad loading station convenient to the producer or state that delivery will be made of the corn at a grain elevator or other point designated by the holder of the certificate, which is reasonably convenient to the producer for delivery purposes. All farm warehouse certificates and duplicates thereof must be assigned by all the parties to whom issued with a legend in substantially the following form:
For value received the undersigned hereby endorses, assigns, transfers, and delivers to the holder of the original of this certificate the corn therein described as collateral security to any indebtedness due said holder.
A duplicate copy of the certificate after assignment must be filed for record with the respective local or county officials as follows:
In all of the States listed in §201.2, the original certificate and duplicate marked "Duplicate Certificate, No Value," will be issued to the producer by the Sealer or Inspector, except in Minnesota and Nebraska, where they are issued by the Railroad and Warehouse Commission and the State Railway Commission, respectively.
To be acceptable to Commodity Credit Corporation, the original certificate must have stamped or printed thereon the receipt of the proper county official, stating that the duplicate thereof has been filed of record, as authorized by law, in the county in which the corn is stored.
In Kansas, Minnesota, South Dakota, and Wisconsin, the duplicate is to be filed with the register of deeds; in Iowa, Indiana, and Ohio, with the county recorder; in Illinois and Missouri, with the recorder of deeds; and in Nebraska, with the county clerk.*+
201.6 Amount. Loans will be made at the rate of 50 cents per bushel, a bushel being determined by using not less than 22 cubic feet of ear corn testing 14 percent in moisture content. A deduction will be made for moisture content in excess of 14 percent in accordance with the following table:
201.7 Inspection and sealing of corn. Any eligible producer with eligible corn desiring to obtain a loan should first "level off" the corn contained in the crib(s) which he is offering as collateral and then completely enclose such crib(s). Completing this, he should arrange with the County Warehouse Board or Authorized State Sealer or Inspector for an inspection of his corn and crib(s). An inspection of the corn crib (s) and the corn contained therein will then be made. It shall be the sealer's duty to secure representative samples of corn from each crib to be sealed, as well as to record on the Corn Sealer's Work Sheet (1937-38 CCC Corn Form K) pertinent information regarding the crib structure and crib measure
*For statutory citation, see note to § 201.1.
ments. One sample of corn from each crib to be placed under seal shall be submitted by the sealer to the County Agricultural Conservation Committee for the county in which the corn is stored for moisture-test purposes. The moisture content will be determined by the State Agricultural Conservation Committee through the use of Tag Heppenstall electric moisture meters, and the results of the test will be submitted on the Moisture Test Form (1937-38 CCC Corn Form H) to the county committee submitting the sample.
The sealer, while on the premises, will complete the measurements, secure the representative sample (s) of corn, and seal the crib (s) of corn.*t
201.8 Certificate of seller. The Certificate of seller, as contained in 1937-38 CCC Corn Form A, must be executed by the seller of the corn in connection with all loans in which any part of the corn pledged was not grown by the producer but was purchased from another producer as outlined in § 201.1 (b) (2).**
201.9 Listing of lienholders. The corn collateral must be free and clear of all liens except in favor of the lienholders listed in the space provided therefor in 1937-38 CCC Corn Form A. The names of the holders of all existing liens on the pledged corn, such as landlord, laborers, or mortgagees, must be listed in the space provided therefor in Section 11 of the loan agreement.
Producers should read carefully all real estate or other mortgages previously given by them in order to be sure that crops are not covered thereby. A misrepresentation as to prior liens, or otherwise, will render the producer personally liable for the amount of the loan, plus insurance and other charges under the terms of the loan agreement. Any misrepresentation of fact made in the execution of the note and loan agreement and related forms will render the person or persons parties to the misrepresentation, subject to the provisions of the United States Criminal Code and section 16 (a) of the Reconstruction Finance Corporation Act (47 Stat. 11; 15 U.S.C. 616 (a)).*+
201.10 Tenant loans. Where the borrower is a tenant farmer, the expiration date of the lease must be given in Section 3 (c) of the loan agreement. If the expiration date of the lease is prior to sixty (60) days after the maturity date of the note, the landlord must execute the consent for storage agreement, Section 13 of 1937-38 CCC Corn Form A. The consent agreements must also be signed by any other party or parties entitled to possession.*†
201.11 Insurance. All producers who obtain loans are required, at their own expense, to keep the corn collateral insured, so long as the loan is unpaid, against loss by fire, lightning, cyclone, tornado, windstorm, and with or without hail coverage, for not less than the amount of the loan with accrued interest to maturity. Producers must also obtain at their own expense any insurance coverage desired with respect to their equity in the pledged corn.
To comply with this requirement there must be attached to each producer's note a certificate in the form printed in 8 201.19, issued by a company or association licensed to do business in the State in
*For statutory citation, see note to § 201.1.
which the corn is stored. The insurance coverage may be obtained through the customary channels and the form of certificate required will be furnished by the agent writing same. Certificates of insurance issued by official State sealers or inspectors will not be accepted by the Commodity Credit Corporation.
Commodity Credit Corporation has obtained a blanket policy to protect it against loss on account of theft, conversion, and certain other risks not covered by the primary insurance carried by producers. The cost of this coverage is one and one-half (12) cents per $100 per month on the daily average balance of loans outstanding, and this amount will be added as a charge against the corn while the note is held by Commodity Credit Corporation as provided under the terms of the loan agreement.
Banks and other lending agencies desirous of insurance coverage in addition to the primary insurance carried by the producer, until the notes are purchased by Commodity Credit Corporation, must obtain such coverage at their own expense. Such coverage may be obtained through the customary channels or under the blanket policy carried by the Commodity Credit Corporation.
Banks and other lending agencies desiring coverage under the Corporation's blanket policy should write Commodity Credit Corporation, Washington, D. C., and appropriate instructions will be issued, together with the necessary forms for reporting thereunder.** 201.12 Liability of producer. If the producer has made no misstatement or misrepresentation and complied with the terms of the loan agreement he will not be personally liable for any deficiency upon the sale of the pledged corn. The note and loan agreement governs the liability of the producer and should be read carefully.*+
201.13 Direct loans. It is contemplated that producers will ordinarily obtain loans from a local bank or other lending agency which, in turn, may sell the paper evidencing such loans to Commodity Credit Corporation. Arrangements, however, have been made for making direct loans to producers. In such cases the note must be made payable to Commodity Credit Corporation and must be delivered to a Loan Agency of the Reconstruction Finance Corporation shown in § 201.16. Paper for direct loans tendered by mail, in person, or otherwise, must be accompanied by a Producer's Letter of Transmittal on 1937-38 CCC Corn Form B, in duplicate, and must be delivered or postmarked prior to April 1, 1938. The triplicate copy of this letter is to be retained by the producer as a memorandum. Upon delivery of all necessary documents properly executed and upon approval of the loan by the Manager of the Loan Agency, payment will be made pursuant to the letter.*†
201.14 Conditions of loans and purchases. Commodity Credit Corporation will purchase eligible paper, as defined above, only from lending agencies which have executed and delivered to the Loan Agency to which notes are submitted Contract to Purchase 1937-38 CCC Čorn Form D, obtainable only from Loan Agencies of the Reconstruction Finance Corporation. Under the terms of this contract, lending agencies are required to report monthly on 1937-38 CCC Corn Form E all payments or collections on producers' notes held by
*For statutory citation, see note to § 201.1.
them, and to remit promptly to Commodity Credit Corporation at Washington, D. C., an amount equivalent to one and one-half percent interest per annum on the principal amount collected from the date of the note to the date of payment.**
201.15 Obligation of lending agency. The lending agency may endorse the notes of producers to Commodity Credit Corporation without recourse as provided in 1937-38 CCC Corn Form A, provided, however, that the lending agency has executed 1937-38 CCC Corn Form D in accordance with instructions given in § 201.1 (d). No producer's notes are to be endorsed to Reconstruction Finance Corporation. A lending agency desiring to tender producer's notes to Commodity Credit Corporation should execute the last form of endorsement printed on the reverse of such notes. Care should be exercised by the lending agency to determine the authenticity of the signatures to the note and loan agreement and to be assured that the warehouse certificates are genuine and represent merchantable corn in existence.**
201.16 Reconstruction Finance Corporation loan agencies. The location of the Loan Agencies of the Reconstruction Finance Corporation previously referred to herein are shown below:
Kansas City, Mo.
201.17 Federal Reserve Banks as fiscal agents of Reconstruction Finance Corporation. The Federal Reserve banks and branches thereof will act as fiscal agents of the Reconstruction Finance Corporation in making disbursements on eligible paper approved by the Loan Agency of the Reconstruction Finance Corporation in that district. Such notes, together with the farm warehouse certificates securing the same, will be held by the Federal Reserve banks or branches thereof as security for the loans made by the Reconstruction Finance Corporation to Commodity Credit Corporation.**
201.18 Release of collateral. A producer may obtain the release of the collateral pledged upon his request in writing and payment of the amount due thereon with accrued interest and proper charges. If the release of all collateral is desired the producer's note and loan agreement, with the farm warehouse certificate or certificates securing same, will be transmitted to an approved bank with instructions to deliver the note and the farm warehouse certificate, or certificates, to the producer, or his agent, upon the payment of the amount due thereon with accrued interest and proper charges. Where such paper is sent to an approved bank for collection, instructions will be given to return such paper to the sender if payment and release are not effected within 15 days. All charges and expenses of the collecting bank are to be paid by the producer.
Partial releases of collateral will be made on the same basis as stated above, except that the certificate or certificates desired to be released must cover separate cribs and will be sent to an approved bank for delivery to the producer, or his agent, upon the payment of the amount loaned thereon together with accrued interest and
*For statutory citation, see note to § 201.1. †For source citation, see note to § 201.2.
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