§245.2 Where loans may be obtained. Loans may be obtained directly from Commodity Credit Corporation or from any bank or other lending agency making loans pursuant to these instructions, provided such lending agency has executed a Contract to Purchase on C. C. C. Form E (Potatoes). For loans to be made directly by Commodity Credit Corporation in the States of Idaho, Utah, Nevada, Washington, Oregon, and California, the loan documents should be forwarded to the Regional Director, Commodity Credit Corporation, 304 Artisans Building, Portland 5, Oregon, and from all other States to the Regional Director, Commodity Credit Corporation, 208 South La Salle Street, Chicago 4, Illinois. All loans must be approved by the county agricultural conservation committee. The committee will indicate its approval by having one of its members sign in the space provided for such approval on the promissory note. § 245.3 Amount of loan. The amount of the loan in case of U. S. No. 1 potatoes, graded and sacked, shall be computed in accordance with the 1943 Schedule of Loan Rates appended. Loans on U. S. No. 2 potatoes, graded and sacked, shall be on the basis of 60 percent of the loan rate on U. S. No. 1 potatoes. In the case of potatoes in ungraded lots, the loan will be made either on the percentage of U. S. No. 1 quality potatoes in the lot at the applicable loan rate for U. S. No. 1 potatoes, or on the percentage of U. S. No. 2 quality or better potatoes in the lot at 60 percent of the applicable loan rate for U. S. No. 1 potatoes, whichever is greater. § 245.4 Terms of loan. Loans shall mature on demand or on March 1, 1944, whichever is earlier. All loans shall bear interest at the rate of 3 percent per annum. § 245.5 Final date for obtaining loans. Dealers and cooperative associations of producers may not obtain loans after February 15, 1944. Producers may not obtain loans after the date specified in the Agricultural Adjustment Agency regional instructions for the particular region in which the borrower is located. § 245.6 Potatoes eligible for loans. In order for potatoes to be eligible for such loans, they must satisfy the following requirements: (a) They must be mature Irish potatoes of the 1943 crop and in proper condition for storing. (b) They must have been inspected by licensed Federal or Federal-State inspectors, or by a designated member of the county agricultural conservation committee, and, in the case of potatoes in ungraded lots, the percentage of U. S. No. 1 and U. S. No. 2 potatoes in the lot must have been estimated by such inspector. (c) The potatoes must be in lots, as shown by such inspection, containing no more than 2 percent soft rot nor more than 3 percent dry rot, including late blight. (d) They must be free and clear of all liens. (e) In the case of loans to producers, the beneficial interest in the potatoes must be and must have always been in the producer. (f) In the case of loans to cooperative associations of producers, the potatoes must have been acquired pursuant to a 1943 Potato Producer's Sales Agreement (C. C. C. Potatoes Form C). (The purpose of requiring the execution of such sales agreement is to insure that the cooperative association has the power to give a valid mortgage on the potatoes.) (g) In the case of loans to dealers, the dealer must have purchased the potatoes of the quality upon which the amount of the loan is computed from producers at not less than the applicable loan rate for such quality of potatoes. § 245.7 Preparation and execution of loan documents. All borrowers, whether producers, cooperative associations, or dealers, shall, for each loan advanced, execute a promissory note on Grain Producer's Note (C. C. C. Grain Form A (Revised)). There should first be typed across the top of the note the following legend: "Wherever the word 'grain' appears, it shall be read as 'potatoes." Notes representing loans obtained directly from Commodity Credit Corporation should name Commodity Credit Corporation as payee. Notes representing loans obtained from landing agencies should name the lending agency as payee. All borrowers must also execute and file or record, in accordance with the applicable State law, a Grain Chattel Mortgage (C. C. C. Grain Form AA (Revised)) securing each note, with the same legend typed across the top. The mortgage must cover all the potatoes in the lot, notwithstanding that the loan shall be computed on the basis of the U. S. No. 1 or U. S. No. 2 potatoes in the lot. The borrower must also sign the Mortgage Supplement (Loan Agreement) (1943 Potatoes). (In the case of loans on U. S. No. 2 potatoes, the form of Mortgage Supplement which bears the revision date "9/29/43" should be used. In the event the loan is on U. S. No. 1 potatoes, either this or the original form of Mortgage Supplement is satisfactory.) Such signed copy should be retained by the county committee. The names of the holders of all existing liens on the potatoes, such as landlords, laborers, or mortgagees, must be listed in the space provided therefor on the chattel mortgage, and the lienholders so listed must execute the lienholder's waiver on the mortgage or on C. С. С. Form AB. All blanks must be filled in with ink, indelible pencil, or typewriter, and no documents containing additions, alterations, or erasures will be accepted unless such additions, alterations, or erasures have been initialed by the borrower and the person approving the loan for the county agricultural conservation committee. In applying for a loan, there must be submitted to the county agricultural conservation committee, with the note and chattel mortgage, inspector's certificates covering the potatoes, and in addition, in the case of loans to coоорerative associations, copies of Potato Sales Agreements for all of the potatoes tendered, and, in the case of loans to dealers on purchased potatoes, executed or certified copies of all invoices or sales slips showing the price paid for such potatoes. $245.8 Storage. In the case of farmstored potatoes, the potatoes must be stored in storage facilities of sufficiently substantial and permanent construction, as determined by the county agricultural conservation committee, to insure the safe keeping of the potatoes throughout the storage season. In the case of warehouse-stored potatoes, the potatoes must be stored in warehouses, approved by the county agricultural conservation committee, which have convenient shipping facilities, which will afford safe storage throughout the storage season, will afford protection against rodents, other animals, thieves, and weather, are frostproof or contain a heating system sufficient to protect potatoes from frost damage, contain sufficient space and possess or have access to adequate facilities for grading, packaging, weighing, and otherwise handling potatoes, permit the regular inspection of such potatoes by the warehouseman, the county agricultural conservation committee, and Commodity Credit Corporation, and permit the segregation of each lot of potatoes in bins, which bins must be capable of being identified, and must afford adequate ventilation and drainage. § 245.9 Release of potatoes. At any time before the maturity of the loan, the borrower may obtain a release of all or any part of the potatoes upon payment, in the case of total redemption, or, in the case of a partial redemption for processing by the borrower, of the principal amount of the loan, plus all charges applicable thereto, together with 3 percent interest per annum, with respect to the potatoes released, and, in the case of a partial redemption for sale, upon payment of the net proceeds received from the sale of the potatoes, exclusive of the customary sales charges and, in the case of potatoes from ungraded lots, 35 cents for each hundredweight of the potatoes of the quality upon which the amount of the loan was computed, except that in no event shall such partial repayment be less than the amount loaned plus interest with respect to the potatoes released. To obtain a release of the potatoes, the borrower should notify the lending agency from whom he obtained the loan, or, in the event the loan was obtained directly from Commodity Credit Corporation, he should notify the regional office from which such loan was obtained. § 245.10 Supplemental loans to dealers. To enable dealer-borrowers to offer producers a continuous market for their potatoes at support prices, Commodity Credit Corporation agrees that it will loan the dealer-borrower an additional amount on potatoes (meeting at the time of the additional loan, the requirements of an initial loan) which are held under loan on March 1, 1944; Provided, That, if Commodity Credit Corporation extends the date on which the loan may be Union, and Wallowa Cos.. 1.45 1.45 1.65 1 Premium varieties are: Green Mountain, Katahdin. Chippewa, Sebago, Houma, and Sequoia. NOTE: These rates are equal to the support prices for U. S. No. 1 grade potatoes, sacked and loaded f.o.b. cars, as announced by the Department of Agriculture Feb. 3, 1943, and amended by the announcement of the War Food Administration Aug. 24. 1943. PART 246-1943 SWEETPOTATO LOANS [ADDED] 1.75 Oregon. Other. 1.65 1.65 1.85 1.95 California. 1.65 1.65 1.85 1.95 New Jersey. 1.85 1.85 2.05 2. 15 New Hampshire. 1.90 1.90 2.10 2. 20 Vermont. 1.90 1.90 2.10 2. 20 Massachusetts. 1.90 1.90 2.10 2. 20 Rhode Island.. 1.90 1.90 2.10 2.20 Connecticut. 1.90 1.90 2.10 2. 20 West Virginia. 1.85 1.85 2.05 2.15 Ohio 1.75 1.75 1.95 2.05. Indiana. 1.75 1.75 1.95 2.05 Illinois. 1.75 1.75 1.95 2.05 Iowa, Northeast. 1.50 1.50 1.70 1.80 Iowa, Other.. 1.65 1.65 1.85 1.95 1.65 1.65 1.85 1.95 All other Areas. 1 Premium varieties are: Green Mountain, Katahdin, Chippewa, Sebago, Houma, and Sequoia. NOTE: These rates are 35 cents per hundred pounds less than the support prices for U. S. No. 1 grade potatoes, sacked and loaded f. o. b. cars, as announced by the Department of Agriculture Feb. 3. 1943, and amended by the announcement of the War Food Administration Aug. 24, 1943. Sec. 246.1 To whom loans may be made. 246.2 Where loans may be obtained. 246.4 Amount of loan. 246.5 Final date for obtaining loans. documents. Sec. 246.8 Storage. 246.9 Release of sweetpotatoes. AUTHORITY: §§ 246.1 to 246.9, inclusive, issued under 52 Stat. 43, 7 U.S.C. 1302; 55 Stat. 498, 15 U.S.C., Sup., 713; 56 Stat. 768, 50 U.S.C. App., Sup., 969. SOURCE: §§ 246.1 to 246.9, inclusive, contained in 1943 C.C.C. Sweetpotato Form 1, President, Commodity Credit Corporation, Oct. 18, 1943, 8 F.R. 16496. § 246.1 To whom loans may be made. Loans will be made to any person, partnership, or corporation producing sweetpotatoes in 1943, or any cooperative association or established dealer, in the States of Maryland, Virginia, North Carolina, South Carolina, Georgia, Oklahoma, Tennessee, Mississippi, Kentucky, Louisiana, Texas, Arkansas, Missouri, Indiana, Alabama, and Illinois. §246.2 Where loans may be obtained. Loans may be obtained directly from the Regional Director, Commodity Credit Corporation, Masonic Temple Building, New Orleans, Louisiana, or from any bank or other lending agency making loans pursuant to these instructions: Provided, Such lending agency has executed a Contract to Purchase on C.C.C. Form E (Potatoes). All loans must be approved by the county agricultural conservation committee for the county in which the sweetpotatoes are stored. The committee will indicate its approval by having one of its members sign in the space provided for such approval on the promissory note. § 246.3 Amount of loan. 1943 schedule of loan rates for sweetpotatoes: Loan rates on sweetpotatoes grading U. S. No. 1 or better are as follows: $1.15 per bushel through November 30, 1943. $1.30 per bushel during December 1943. $1.50 per bushel during January 1944. $1.65 per bushel from February 1 through February 15, 1944. Loan rates on eligible sweetpotatoes grading U. S. No. 2 containing not less than 75 percent U. S. No. 1 quality will be 15 cents per bushel less than the loan rates for U. S. No. 1 grade. Loans on eligible field-graded sweetpotatoes containing at least 50 percent U. S. No. 1 quality will be made on the percentage of U. S. No. 1 quality sweetpotatoes in the lot at the applicable loan rates for U. S. No. 1 grade. §246.4 Terms of loan. Loans shall mature on demand or on March 1, 1944, whichever is earlier. All loans shall bear interest at the rate of 3 percent per annum. § 246.5 Final date for obtaining loans. Loans may not be obtained after February 15, 1944. § 246.6 Sweetpotatoes eligible for loans. In order for sweetpotatoes to be eligible for such loans, they must satisfy the following requirements: (a) They must be cured sweetpotatoes of sound, merchantable quality, packed in rigid containers, in lots of not less than 1,000 bushels, and in proper condition for storage. (b) They must have been inspected by licensed Federal or Federal-State inspectors, or by a designated member of the county agricultural conservation committee. (c) As shown by such inspection, they must not contain more than 1 percent of either black rot, frost injury, or soft rot or wet breakdown, and the total of any combination of these defects must not exceed 2 percent. (d) As shown by such inspection, the sweetpotatoes must grade either U. S. No. 1 or U. S. No. 2 containing not less than 75 percent U. S. No. 1 quality, or, if in ungraded lots, they must be sound, merchantable sweetpotatoes containing not less than 50 percent U. S. No. 1 quality. (e) They must be free and clear of all liens. (f) In the case of loans to producers, the beneficial interest in the sweetpotatoes must be and must have always been in the producer. (g) In the case of loans to cooperative associations of producers, the sweeetpotatoes must have been acquired pursuant to a 1943 Potato Producer's Sales Agreement (C. C. C. Potato Form C) and, whether acquired green or cured, must have been acquired at not less than the applicable loan rate in the foregoing schedule at the time the sweetpotatoes were acquired. (The purpose of requiring the execution of such sales agree 1 ment is to insure that the cooperative association has the power to give a valid mortgage on the sweetpotatoes.) (h) In the case of loans to dealers, the dealer must have purchased the sweetpotatoes, whether green or cured, from producers at not less than the applicable loan rate in the foregoing schedule at the time the sweetpotatoes were acquired. § 246.7 Preparation and execution of loan documents. All borrowers, whether producers, cooperative associations, or dealers, shall, for each loan advanced, execute a promissory note on Grain Producer's Note (C. C. C. Grain Form A (Revised)). There should first be typed across the top of the note the following legend: "Wherever the word 'grain' appears, it shall be read as 'sweetpotatoes." Notes representing loans obtained directly from Commodity Credit Corporation should name Commodity Credit Corporation as payee. Notes representing loans obtained from lending agencies should name the lending agency as payee. All borrowers must also execute and file or record, in accordance with the applicable State law, a Grain Chattel Mortgage (C. C. C. Grain Form AA Revised)) securing each note, with the legend: "Wherever the word 'grain' appears, it shall be read as 'sweetpotatoes," typed across the top. The mortgage must cover all the sweetpotatoes in the lot, notwithstanding that for ungraded sweetpotatoes the loan shall be computed on the basis of the U. S. No. 1 sweetpotatoes in the lot. The borrower must also sign the Mortgage Supplement (1943 Sweetpotatoes), such signed copy to be retained by the county agricultural conservation committee. The names of the holders of all existing liens on the sweetpotatoes, such as landlords, 'aborers, or mortgagees, must be listed in the space provided therefore on the chattel mortgage, and the lienholders so listed must execute the lienholder's waiver on the mortgage or on C. C. C. Form AB. All blanks must be filled in with ink, indelible pencil, or typewriter, and no documents containing additions, alterations, or erasures, will be accepted unless such additions, alterations, or erasures have been initialed by the borrower and the person approving the loan for the county agricultural conservation committee. In applying for a loan, there must be submitted to the county agricultural conservation committee, with the note and chattel mortgage, inspector's certificates covering the sweetpotatoes, and, in addition, in the case of loans to cooperative associations, copies of potato sales agreements for all of the sweetpotatoes tendered, and, in the case of loans to dealers on purchased sweetpotatoes, executed or certified copies of all invoices or sales slips showing the price paid for such sweetpotatoes. §246.8 Storage. The sweetpotatoes must be stored in warehouses, approved by the county agricultural conservation committee, which afford safe storage for sweetpotatoes throughout the storage season; afford protection against rodents, other animals, weather, and thieves; afford adequate ventilation and drainage; have been fumigated if sweetpotatoes infected with black rot were stored therein during the previous storage season; contain a heating system sufficient to properly protect sweetpotatoes from frost damage and have facilities for the grading, packaging, weighing, and otherwise handling cured sweetpotatoes; have sufficient space and facilities which will permit the segregation of each grade of sweetpotatoes to be stored therein in such a manner that the identity of each grade can be maintained; are so arranged that regular and proper inspection of stored sweetpotatoes can be made by the operator or by representatives of Commodity Credit Corporation; and are operated in such a manner that the sweetpotatoes stored therein will be properly supervised and inspected during the storage period by a competent attendant. §246.9 Release of sweetpotatoes. At any time before the maturity of the loan, the borrower may obtain a release of all or any part of the sweetpotatoes upon payment, in the case of total redemption, or, in the case of a partial redemption for processing or any purpose other than sale, of the principal amount of the loan, plus all charges applicable thereto, togetner with 3 percent interest per annum, with respect to the sweetpotatoes released, and. in the case of a partial redemption for sale, upon payment of the |