loans outstanding. Banks and other lending agencies desirous of insurance coverage in addition to the primary insurance provided by the producers and the warehouse receipts shall obtain such coverage at their own expense. Banks and other lending agencies desiring coverage under the Corporation's blanket policy should write to Commodity Credit Corporation, Washington, D. C., and appropriate instructions will be issued, together with the necessary forms for reporting thereunder.*† § 208.14a Insurance certificate referred to in § 208.14. CERTIFICATE OF INSURANCE WHEAT IN FARM STORAGE elsewhere in the printed conditions of this policy or certificate, except that if such actual cash market value is less than the loan value per bushel, plus accrued interest at four percent (4%) per annum, then such actual cash value shall be disregarded and the value of any wheat so mortgaged shall be deemed to be the loan value per bushel plus interest thereon. 4. The provisions of this endorsement shall apply and cover until the note has been paid and/or released and/or the wheat sold. apply to any wheat not mortgaged in the 5. This special adjustment clause does not manner hereinbefore described. 6. In witness whereof, this Company has executed and attested these presents, but this certificate shall not be valid until countersigned by a duly authorized agent of this company or association. President. 1. This certifies that in consideration of dollars premium (subject to all the terms and conditions of Open Policy No. issued by this Company or Association) does (Company or association) insure against all direct loss or damage by fire, lightning, inherent explosion, windstorm, cyclone, tornado, and hail 2 in the sum of dollars on -. --- bushels of wheat stored and sealed in the possession of the assured in structure(s) situated on the quarter of section ----- ----------- township range County of State of for the term of one (1) year day of 19--, day of at 12 o'clock noon, to the - 19, at 12 o'clock noon, said structure(s) having been inspected and sealed in accordance with regulations issued by the Secretary of Agriculture pursuant to the Agricultural Adjustment Act of 1938. 2. Any loss which may be ascertained and proven to be due the insured under this contract shall be payable to the insured and/or Commodity Credit Corporation as their respective interests may appear. SPECIAL (WHEAT) ENDORSEMENT PROVIDING THE BASIS OF ADJUSTMENT IN CASE OF LOSS ON WHEAT MORTGAGED TO COMMODITY CREDIT CORPORATION 3. All or any part of the wheat described in this policy and/or certificate having been mortgaged to Commodity Credit Corporation as security for a loan by said Commodity Credit Corporation, it is a condition of this insurance that in event of loss or damage to any of such mortgaged wheat the basis of adjustment shall be the actual cash value at the time and place of the loss, as set out 1 Optional in Michigan. 2 Optional. § 208.15 County agricultural consercommittees. The forms 1939 vation CCC Wheat Forms AA and B contain a certificate which should not bear a date prior to the date of the mortgage or loan agreement and which must be signed in each instance by a member of the county agricultural conservation committee of the county in which the wheat was produced for warehoused wheat, and the county in which the wheat is stored for farm-stored wheat.*+ § 208.16 Source and preparation of documents. Forms will be obtainable from any county agricultural conservation committee in the areas designated in § 208.2 and any loan agency of the Reconstruction Finance Corporation listed in § 208.19. All blanks in 1939 CCC Wheat Forms A, AA, and B must be filled in with ink, typewriter, or indelible pencil, and no documents containing additions, alterations, or erasures shall be accepted by Commodity Credit Corporation.*† § 208.17 Source of loans. It is contemplated that loans will ordinarily be obtained from banks and other local lending agencies which, in turn, may sell the paper evidencing such loans to Commodity Credit Corporation. Producers may also obtain loans directly from Commodity Credit Corporation. Such notes shall be made payable to Commodity § 208.19 Reconstruction Finance Corporation Loan Agencies. The locations of the loan agencies of the Reconstruction Finance Corporation previously referred to herein and the districts served by them under these instructions are Credit Corporation and shall be delivered | per annum on the principal amount colto a loan agency of the Reconstruction lected from the date of the note to the Finance Corporation serving the district date of payment.*+ in which the wheat is stored. Paper for direct loans tendered by mail, in person, or otherwise should be accompanied by a producer's letter of transmittal on 1939 CCC Wheat Form C, in duplicate, and must be delivered or postmarked prior to January 1, 1940. The triplicate copy of this letter shall be retained by the producer as a memorandum. Upon delivery of all necessary documents properly executed and upon approval of the loan by the manager of the loan agency, payment shall be made pursuant to the letter of Cleveland___. transmittal.*† shown below: Loan agency Denver__ District served Area in 7th Federal Reserve District, except eastern Area included in 11th Fed- Area in 7th Federal Reserve Area in 9th Federal Reserve Kansas City Area in 10th Federal Reserve § 208.18 Purchase of loans. Commod- Dallas.. ity Credit Corporation will purchase, without recourse, eligible paper, as defined above, only from lending agencies which have executed and delivered to Detroit.. the loan agency to which notes are submitted Contract to Purchase, 1939 CCC Helena_. Wheat Form E, obtainable only from loan agencies of the Reconstruction Finance Corporation. Each note and chattel mortgage tendered by a lending agency to Commodity Credit Corporation for Louisville----purchase in which the lending agency is not named as payee, must be accompanied by an assignment or assignments to such lending agency on 1939 CCC Wheat Form G. The original or a dupli- Minneapolis cate copy of such assignments must have been filed for record in the office(s) of the recording official(s) of the county or counties in which the mortgage was filed or recorded. Nashville_‒‒‒‒ New York. Omaha. sas City. Area in 8th Federal Reserve District attached to Louisville, including those portions of Indiana and Kentucky in the 8th Federal Reserve District, and Area in 9th Federal Reserve eastern Kentucky. District attached to Minneapolis. Area in 6th Federal Reserve Area included in 2d Federal District attached to Oklahoma City. Paper held by lending agencies must Oklahoma City. Area in 10th Federal Reserve be tendered to the loan agency of Reconstruction Finance Corporation holding the contract to purchase and serving the district in which the wheat is stored 30 days prior to maturity. The purchase price to be paid by Commodity Credit Corporation for notes accepted will be the face amount of such notes plus accrued interest from the respective dates to the date of payment of the purchase price at the rate of 22 percent per annum. Under the terms of the contract to purchase, lending agencies are required to report monthly on 1939 CCC Wheat Form F all payments or collections on producers' notes held by them, and to remit promptly to Commodity Credit Corporation, Washington, D. C., an amount equivalent to 12 percent interest Area in 10th Federal Reserve District attached to Omaha and following counties in Iowa: Adams, Adair, Appanoose, Audubon, Boone, Buena Vista, Calhoun, Carroll, Cass, Cerro Gordo, Cherokee, Clarke, Clay, Crawford, Dallas, Decatur, Dickinson, Emmet, Franklin, Fremont, Greene, Guthrie, Hamilton, Hancock, Hardin, Harrison, Humboldt, Ida, Jasper, Kossuth, Lucas, Lyon, Madison, Marion, Marshall, Mills, Monona, Monroe, Montgomery, O'Brien, Osceola, Page, Palo Alto, Plymouth, Pocahontas, Polk, Pottowattamie, Ringgold, Sac, Loan agency Omaha (Con.)- Portland__ Richmond_____ District served Area in 12th Federal Reserve Area included in 3d and 5th San Francisco... Area in 12th Federal Reserve Spokane___ District attached to Los Area in 12th Federal Reserve District attached to Se- [ 1939 CCC Wheat Form 1, as amended by 1939 Wheat Circular Letter 1, July 21, 1939; 4 F.R. 3545, 3547] NOTE: This section was amended by inserting the words "including those portions of Indiana and Kentucky in the 8th Federal Reserve District" in the Louisville area, by 1939 Wheat Circular Letter 1, July 21, 1939; 4 FR. 3547. § 208.20 Release of collateral held by Commodity Credit Corporation. A producer may obtain the return of notes secured by wheat upon his request in writing and payment of the principal amount due thereon with accrued interest and proper charges. The producer's note and mortgage or loan agreement, with the warehouse receipt(s) (if any) securing same, will be transmitted to an approved bank with instructions to deliver such documents to the producer, or his agent, upon the payment of the full amount due thereon with accrued interest and proper charges. Where such paper is sent to an approved bank for collection, instructions shall be given to return such paper to the sender if payment and release are not effected within 15 days. All charges and expenses of the collecting bank shall be paid by the producer. If the note is secured by farm-stored wheat, county agricultural conservation committees will be requested to release the mortgage of record after payment in full either by the filing of an instrument of release or by a margin release on the county records. If the producer's note is made payable directly to Commodity Credit Corporation and he desires to obtain the release *For statutory citation, see note to § 208.1. of collateral upon payment as aforesaid, he should notify the Federal Reserve Bank or branch thereof serving the district in which the wheat is stored as above provided. If his note was made payable to a payee other than Commodity Credit Corporation the producer should notify the payee named therein. Partial releases of collateral will be made as follows: (a) In the case of farm-stored wheat, the producer must identify to the lending agency or loan agency of Reconstruction Finance Corporation the seal number of the bin to be released. Such release must cover all the wheat in any one bin. Upon receipt of such a request, a partial release of the chattel mortgage will be forwarded to an approved bank to be released to the producer against payment of the amount loaned on the particular bin of wheat plus interest and charges. (b) In the case of elevator-stored wheat, producers desiring to obtain partial releases should notify the lending agency or Loan Agency of Reconstruction Finance Corporation serving the district in which the wheat is stored, describing the wheat to be released by warehouse receipt numbers. Each partial release must cover all the wheat under one warehouse receipt. The warehouse receipts representing wheat held by Commodity Credit Corporation will be forwarded to an approved bank to be released to the producer or his agent against payment of the amount loaned on the wheat to be released, plus interest on such amount and any charges applicable thereto. (c) Banks and other lending agencies on 1939 CCC Wheat holding notes Forms A and B may also permit partial releases as provided above and Commodity Credit Corporation will purchase notes on which partial releases have been made, provided the note is credited by the lending agencies with the full amount of the loan on the wheat released, plus interest at the rate of 4 percent thereon. An amount equivalent to 12 percent interest per annum on the amount of such principal collected at the time of such partial releases from the date of the note or notes to the date of payment should be remitted to Commodity Credit Corporation in accordance Page 343 with the terms of the contract to pur- | weather, as determined by the county chase (1939 CCC Wheat Form B). (a) Eligible producer. Any person, partnership, association or corporation producing rye as landowner, landlord, or tenant upon whose farm the 1939 total soil-depleting acreage does not exceed the total soil-depleting acreage allotment for the farm under the 1939 Agricultural Conservation Program. (b) Eligible rye. Rye grading No. 2 or better or rye grading No. 3 solely on the factor of test weight but otherwise grading No. 2 or better, produced in 1939, beneficial title to which is and always has been in the eligible producer. Rye grading tough, ergoty, light smutty, smutty, light garlicky, or garlicky shall not be eligible for a loan. agricultural conservation committee.**†† CROSS REFERENCE: For 1939 Agricultural Conservation Program, see 7 CFR 701.1 701.19. the authority contained in sec. 302, 52 Stat. 43, 820; 7 U.S.C., Sup., 1302. **§§ 209.1 to 209.10, inclusive, issued under The source of §§ 209.1 to 209.10, inclusive, is 1939 CCC Rye Form 1, Secretary, Commodity Credit Corporation; 4 F.R. 4167. § 209.2 Areas. Loans will be made on eligible rye stored on farms in the states of Michigan, Minnesota, Montana, Nebraska, North Dakota, South Dakota, Wisconsin and Wyoming.**†† § 209.3 Amount of loans. The loan value for eligible rye grading No. 2 or better, or rye grading No. 3 solely on the factor of test weight but otherwise grading No. 2 or better, shall be 22 cents per bushel less than the applicable farm storage loan value for No. 2 Hard Winter wheat (under Part 208) or 38 cents per bushel, whichever is lower.**†† § 209.4 Maturity and interest rate. All loans upon the security of rye will be made directly by Commodity Credit Corporation and the notes evidencing such loans will be payable on demand or in any event not later than April 30, 1940. All loans will bear interest at the rate of 4 percent per annum. Notes evidencing such loans must be dated on or before December 31, 1939.**†† § 209.5 Farm storage. Rye stored on the farm must have been stored in the granary at least 30 days prior to its inspection for measurement, sampling and sealing. In accordance with regulations issued by the Secretary of Agriculture, the State and county agricultural conservation committees will inspect and approve storage facilities and will arrange for measuring, sampling, grading and sealing the rye collateral in ap(c) Eligible storage. Shall consist of proved structures. Chattel mortgages farm bins and granaries which are of covering farm-stored rye must be such substantial and firm construction executed and filed in accordance with the as to afford safe storage of the rye for applicable state law. The chattel morta period of 2 years and permit effec-gage requirements of the various States tive fumigation for the destruction are set forth in § 208.12. Producers of insects and afford protection against may obtain information and assistrodents, other animals, thieves, and ance from the county agricultural con *For statutory and source citations, see note to § 208.1. servation committees in regard to the | to the producer as contained in the mortexecution and filing of such chattel gage must be signed personally by all mortgages. Where the borrower is a lienholders listed or by their agents, tenant farmer, and the rye collateral whose duly executed authority must be is stored on the farm, the expiration securely attached. Whenever such date of the lease shall be given in waiver and consent, etc., is executed for section 2 (c) of the chattel_mortgage (1939 CCC Rye Form A-1). If the expiration date of the lease is prior to July 1, 1940, the landlord shall execute the Consent for Storage, section 13 of 1939 CCC Rye Form A-1. The consent agreement shall also be signed by any other party or parties entitled to possession. Each producer must designate in section 4 of the mortgage (1939 CCC Rye Form A-1) a shipping point reasonably convenient for the delivery of the rye as determined by the county committee. Notes and mortgages will not be acceptable which provide a shipping point other than the normal shipping point customarily used by the producers in the locality in which the rye was produced. A separate note and chattel mortgage must be submitted for rye stored on each quarter section of land. Commodity Credit Corporation will pay 7 cents per bushel for storing the rye for the period ending July 1, 1940, or the date of the delivery of such rye to Commodity Credit Corporation, whichever is earlier; Provided, Such delivery is made upon the demand or with the consent of Commodity Credit Corporation; Provided further, Such payment will be conditioned upon the delivery of the mortgaged rye of the quantity described in the chattel mortgage grading No. 2 or better or No. 3, provided the mortgaged rye originally graded No. 3 on test weight only.*+ a corporation by a designated officer thereof customarily authorized to execute such instruments, the duly executed authority need not be attached. (In lieu of signing the section of the chattel mortgage entitled "List of Lienholders and Their Waivers and Consent to Pledge", lienholders may sign 1939 CCC Rye Form AB, which must completely identify the related note.) The producer may direct in the Letter of Transmittal (1939 CCC Rye Form B) that the proceeds of the loan be made payable to him and/or such other person or concern as he may direct thereon. Producers should read carefully all real estate or other mortgages previously given by them in order to be sure that crops are not covered thereby. Any fraudulent misrepresentation of fact made in the execution of the note and mortgage and related forms shall render the producer personally liable for the amount of the loan and subject to the provisions of the United States Criminal Code. *† $209.7 Insurance. In lieu of primary and secondary insurance, the 'producer will authorize Commodity Credit Corporation to deduct from the proceeds of the loan one-fifth of 1 cent per bushel for the rye sealed as collateral to the loan. Such funds are to protect Commodity Credit Corporation against loss or impairment of the rye collateral from fire, lightning, cyclone, tornado, windstorm, inherent explosion, flood, hail and theft. The obligations of the producer in connection with such protection are set forth in the chattel mortgage.*† § 209.6 Liens. The rye collateral must be free and clear of all liens except in favor of the lienholders listed § 209.8 County agricultural conservain the space provided therefor in 1939 tion committees. Forms will be obtainCCC Rye Form A-1 or Form AB. The able from county agricultural conservanames of the holders of all existing liens tion committees in the above-named on the pledged or mortgaged rye, such states or from any Loan Agency of the as landlord, laborers, threshers, or Reconstruction Finance Corporation mortgagees, must be listed in the space hereafter listed. The chattel mortgage provided therefor in the mortgage or contains a certificate which must be loan agreement. The waiver and con- signed in each instance by a member of sent to the mortgage of the rye and the the county committee of the county in payment of the proceeds of the loan and which the rye is stored. Pursuant to inthe proceeds of the sale of the rye solely | structions issued by the Secretary of |