§ 1421.
(e)
Processors’ assurances; payment if assurances inadequate
(1)
Whenever any price support or surplus removal operation for any agricultural commodity is carried out through purchases from or loans or payments to processors, the Secretary shall, to the extent practicable, obtain from the processors such assurances as he deems adequate that the producers of the agricultural commodity involved have received or will receive maximum benefits from the price support or surplus removal operation.
(2)
(A)
If the assurances under paragraph (1) are not adequate to cause the producers of sugar beets and sugarcane, because of the bankruptcy or other insolvency of the processor, to receive maximum benefits from the price support program within 30 days after the final settlement date provided for in the contract between such producers and processor, the Secretary, on demand made by such producers and on such assurances as to nonpayment as the Secretary shall require, shall pay such producers such maximum benefits less benefits previously received by such producers.
(B)
On such payment, the Secretary shall—
(i)
be subrogated to all claims of such producers against the processor and other persons responsible for nonpayment; and
(ii)
have authority to pursue such claims as necessary to recover the benefits not paid to the producers.
(C)
The Secretary shall carry out this paragraph through the Commodity Credit Corporation.
([Oct. 31, 1949, ch. 792], title IV, § 401, [63 Stat. 1054]; [Aug. 28, 1954, ch. 1041], title II, §§ 206, 207, [68 Stat. 901]; [Pub. L. 88–297, title I, § 103(c)], Apr. 11, 1964, [78 Stat. 175]; [Pub. L. 99–198, title IX, § 903(a)], Dec. 23, 1985, [99 Stat. 1444]; [Pub. L. 100–707, title I], 109(a)(1), Nov. 23, 1988, [102 Stat. 4708].)