7 USC 8789 - Storage facility loans

U.S Code last checked for updates: Jan 18, 2025

§ 8789.

Storage facility loans

(a)

In general

(b)

Eligible producers

A storage facility loan under this section shall be made available to any producer described in subsection (a) that, as determined by the Secretary—

(1)

has a satisfactory credit history;

(2)

has a need for increased storage capacity; and

(3)

demonstrates an ability to repay the loan.

(c)

Term of loans

(d)

Loan amount

(e)

Loan disbursements

(f)

Loan security

Approval of a storage facility loan under this section shall—

(1)

require the borrower to provide loan security to the Secretary, in the form of—

(A)

a lien on the real estate parcel on which the storage facility is located; or

(B)

such other security as is acceptable to the Secretary;

(2)

under such rules and regulations as the Secretary may prescribe, not require a severance agreement from the holder of any prior lien on the real estate parcel on which the storage facility is located, if the borrower—

(A)

agrees to increase the down payment on the storage facility by an amount determined appropriate by the Secretary; or

(B)

provides other security acceptable to the Secretary; and

(3)

allow a borrower, upon the approval of the Secretary, to define a subparcel of real estate as security for the storage facility loan if the subparcel is—

(A)

of adequate size and value to adequately secure the loan; and

(B)

not subject to any other liens or mortgages that are superior to the lien interest of the Commodity Credit Corporation.

(Pub. L. 110–234, title I, § 1614, May 22, 2008, 122 Stat. 1020; Pub. L. 110–246, § 4(a), title I, § 1614, June 18, 2008, 122 Stat. 1664, 1748.)

cite as: 7 USC 8789