[Federal Register Volume 62, Number 75 (Friday, April 18, 1997)]
[Rules and Regulations]
[Pages 19023-19024]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-9683]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.
========================================================================
Federal Register / Vol. 62, No. 75 / Friday, April 18, 1997 / Rules
and Regulations
[[Page 19023]]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Part 1427
RIN 0560-AF12
Amendments to the Regulations for the Nonrecourse Cotton Loan and
Loan Deficiency Payment Programs
AGENCY: Commodity Credit Corporation, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Commodity Credit Corporation (CCC) amended regulations for
the nonrecourse cotton loan and loan deficiency payment (LDP) programs
by transferring existing requirements regarding open yard storage
endorsements and fire insurance coverage from the warehouse receipt
section to the general eligibility section of the regulations.
EFFECTIVE DATE: April 18, 1997.
FOR FURTHER INFORMATION CONTACT: George A. Stickels, Agricultural
Program Specialist--Cotton, USDA, Farm Service Agency, Price Support
Division, STOP 0512, 1400 Independence Avenue, SW, Washington, D.C.,
20250-0512; telephone (202) 720-7935.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This final rule has been determined to be not significant and was
not reviewed by the Office of Management and Budget (OMB) under
Executive Order 12866.
Executive Order 12372
This program/activity is not subject to the provisions of Executive
Order 12372, which requires intergovernmental consultation with State
and local officials. See the Notice related to 7 CFR part 3015, subpart
V, published at 48 FR 29115 (June 24, 1983).
Executive Order 12988
This final rule has been reviewed in accordance with Executive
Order 12988. The provisions of this final rule do not preempt State
laws, are not retroactive, and do not involve administrative appeals.
Paperwork Reduction Act
The amendments set forth in this final rule do not generate any new
or revised information collection or record keeping requirements on the
public. The existing information collections were previously cleared by
OMB and assigned OMB control number 0560-0120.
Regulatory Flexibility Act
It has been determined that the Regulatory Flexibility Act is not
applicable to this final rule because it has been determined that this
rule will not have a significant effect on a substantial number of
small businesses. Obtaining a cotton loan or LDP is strictly voluntary.
Environmental Evaluation
It has been determined by an environmental evaluation that this
action will not have significant impact on the quality of the human
environment. Therefore, neither an Environmental Assessment nor an
Environmental Impact Statement is needed.
Background
Pursuant to the provisions of 7 CFR part 1427, the Secretary has
the authority to require that specific information be provided on paper
warehouse receipts or on an electronic warehouse receipt (EWR) record,
as a condition for obtaining nonrecourse cotton loans or LDP's. For
cotton to be eligible for a nonrecourse loan or LDP, 7 CFR part 1427
presently requires that each paper warehouse receipt or EWR must be
issued by a warehouse with an existing Cotton Storage Agreement (CSA)
under terms of the United States Warehouse Act; and must indicate that
any open yard storage endorsement has been rescinded and that the bale
is covered by fire insurance.
Warehouses with an existing CSA must: (1) Keep CCC-interest cotton
stored within a facility approved by CCC; and (2) at all times keep all
CCC-loan cotton insured against loss or damage by fire. Because of
these CSA requirements, and because only receipts issued by a warehouse
with an existing CSA are eligible for CCC loan or LDP, CCC has
determined it unnecessary that each paper receipt or EWR also indicate
compliance with open yard endorsement and fire insurance requirements.
Therefore, CCC has amended 7 CFR part 1427 by transferring open yard
endorsement and fire insurance requirements from the warehouse receipt
and insurance section to the general eligibility requirements section.
List of Subjects in 7 CFR Part 1427
Cotton, Loan programs--agriculture, Packaging and containers, Price
support programs, Reporting and recordkeeping requirements, Surety
bonds, Warehouses.
For the reasons set out in the preamble, 7 CFR part 1427 is amended
as set forth below.
PART 1427--COTTON
1. The authority citation for part 1427 continues to read as
follows:
Authority: 7 U.S.C. 7231-7237; and 15 U.S.C. 714b and 714c.
2. Section 1427.5 is amended by revising paragraph (b)(2) to read
as follows:
Sec. 1427.5 General eligibility requirements.
* * * * *
(b) * * *
(2) Be in existence and good condition, be covered by fire
insurance, be stored in a warehouse with an existing cotton storage
agreement in accordance with Secs. 1427.1081 through 1427.1089 at the
time of disbursement of the loan or loan deficiency payment proceeds,
except as provided in Sec. 1427.23(f), and be stored in approved
storage as determined in accordance with Sec. 1427.10;
* * * * *
3. Section 1427.11 is amended by revising the section heading, and
by revising paragraph (a) to read as follows:
Sec. 1427.11 Warehouse receipts.
(a) Producers may obtain loans on eligible cotton represented by
warehouse receipts only if the warehouse receipts meet the definition
of a warehouse receipt and provide for delivery of the cotton to bearer
or are properly assigned by endorsement in blank, so as to vest title
in the holder of
[[Page 19024]]
the receipt or are otherwise acceptable to CCC. The warehouse receipt
must:
(1) Contain the gin bale number;
(2) Contain the warehouse receipt number;
(3) Be dated on or prior to the date the producer signs the note
and security agreement.
* * * * *
Signed at Washington, DC, on April 7, 1997.
Bruce R. Weber,
Acting Executive Vice President, Commodity Credit Corporation.
[FR Doc. 97-9683 Filed 4-17-97; 8:45 am]
BILLING CODE 3410-05-P
