§ 7234. — Repayment of loans.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC7234]
TITLE 7--AGRICULTURE
CHAPTER 100--AGRICULTURAL MARKET TRANSITION
SUBCHAPTER III--NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN
DEFICIENCY PAYMENTS
Sec. 7234. Repayment of loans
(a) Repayment rates for wheat, feed grains, and oilseeds
The Secretary shall permit a producer to repay a marketing
assistance loan under section 7231 of this title for wheat, corn, grain
sorghum, barley, oats, and oilseeds at a rate that is the lesser of--
(1) the loan rate established for the commodity under section
7232 of this title, plus interest (as determined by the Secretary);
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; and
(D) allow the commodity produced in the United States to be
marketed freely and competitively, both domestically and
internationally.
(b) Repayment rates for upland cotton and rice
The Secretary shall permit producers to repay a marketing assistance
loan under section 7231 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
7232 of this title, plus interest (as determined by the Secretary);
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
Repayment of a marketing assistance loan for extra long staple
cotton shall be at the loan rate established for the commodity under
section 7232 of this title, plus interest (as determined by the
Secretary).
(d) Prevailing world market price
For purposes of this section and section 7236 of this title, the
Secretary shall prescribe by regulation--
(1) a formula to determine the prevailing world market price for
each loan commodity, adjusted to United States quality and location;
and
(2) a mechanism by which the Secretary shall announce
periodically the prevailing world market price for each loan
commodity.
(e) Adjustment of prevailing world market price for upland cotton
(1) In general
During the period ending July 31, 2003, the prevailing world
market price for upland cotton (adjusted to United States quality
and location) established under subsection (d) of this section 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 7232 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) 1\3/32\-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) 1\3/32\-inch cotton, delivered C.I.F. Northern Europe
(referred to in this section as the ``Northern Europe price'').
(2) Further adjustment
Except 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 adjustment
The 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 1\3/
32\-inch cotton delivered C.I.F. Northern Europe; and
(B) the Northern Europe price.
(Pub. L. 104-127, title I, Sec. 134, Apr. 4, 1996, 110 Stat. 908.)
Section Referred to in Other Sections
This section is referred to in sections 7235, 7934 of this title.
