and other good farming practices are being followed. The Corporation may reject any application for insurance, or may limit the insured percentage to 50 percent of the adjusted average yield for the farm, in any case where it determines that the risks to be incurred under the insurance contract warrant either such action.*†

(b) An application shall cover the ap- | to farms upon which soil conservation plicant's interest in the wheat to be seeded on a farm (except as provided in paragraph (c) of this section) if his interest is the same in the wheat to be seeded on all tracts constituting the farm, and if the persons other than the applicant having an interest in the wheat to be seeded are the same with respect to all tracts. The applicant shall file a separate application for each tract or tracts with respect to which the applicant's interest in the wheat to be seeded differs from his interest in the wheat to be seeded on another tract or tracts within the farm. The applicant shall also file a separate application for each tract with respect to which the other person or persons having an interest in the wheat to be seeded on such tract are different from the person or persons having an interest in the wheat to be seeded on the other tract or tracts

within the farm.

§ 402.22 Period of insurance. Insurance under the insurance contract shall attach at the time the wheat crop is seeded if the premium has been paid and the application is accepted by the Corporation.

to any portion of the insured crop upon The insurance shall cease with respect threshing (unless combined, field-sacked, event the insurance shall not cease for and remaining in the field, in which 120 hours thereafter) or removal from the farm, but in no event later than midnight of the thirtieth day of September, 1940, unless such time is extended in writing by the Corporation. Midnight means midnight of standard time at the place where the farm is located.*+

(c) An application may be submitted covering only spring wheat even though both winter and spring wheat are seeded on the farm, but, as provided in §§ 402.60-402.65 of this part, the total production of wheat for the purpose of determining the amount of loss under the insurance contract shall include the voidable, and the premium paid thereon production from both winter and spring wheat.

§ 402.23 Fraud, misrepresentation, etc. The entire insurance contract shall be

shall be forfeited at the election of the Corporation, if the insured has concealed or misrepresented, or conceals or misrepresents, any material fact or circumstance concerning the insurance contract or the subject thereof, or if the interest of the insured in the crop covered hereunder be not truly stated in the application, or if the insured is guilty of any fraud or makes any false statements relating to the insurance contract or the subject thereof, whether before or after a loss, or if the insured shall neglect to use all reasonable means to develop, care for, and save the entire crop covered by the insurance contract, whether before or after damage has occurred.*+

(d) An application must be submitted at the office of the county committee, together with the premium, before the beginning of the seeding of the wheat crop (or the seeding of the spring wheat where an application is submitted, in accordance with the provisions of paragraph (c) of this section, covering only spring wheat even though both winter and spring wheat are being seeded on the farm) or the final date established by the Corporation for the submission of applications in the area in which the farm is located, whichever occurs first.*+ § 402.21 Acceptance of application by the Corporation. Acceptance of applications shall be made by the issuance to the applicant of a notice of acceptance signed by the Manager and countersigned by a duly authorized officer or representative of the Corporation. Applications shall not be accepted by the Corporation until the premium has been paid. Applications shall be accepted only with respect of such contract be waived or changed

§ 402.24 Modification of insurance contract. No notice to any representative of the Corporation or knowledge possessed by any such representative or by any other person shall be held to effect a waiver or change in any part of the insurance contract or estop the Corporation from asserting any right or power under such contract; nor shall the terms

except by a form prescribed by the Corporation, signed by the Manager and countersigned by a duly authorized officer or representative of the Corporation; nor shall any provision or condition of this insurance contract or any forfeiture be held to be waived by any delay or omission by the Corporation in exercising its rights and powers hereunder or by any requirement, act, or proceeding, on the part of the Corporation or of its representatives relating to appraisal or to any examination herein provided for.*+

The receiving of any deposit by the Corporation shall not obligate the Corporation to insure the interest of the depositor, and any insurance contract for which such deposit is made will be subject to the provisions of the regulations applicable to the insurance program for which the deposit is made.

A depositor shall have no title or interest in any wheat (including any wheat deposited) held by the Corporation. The Corporation shall be liable to the depositor only for the cash equivalent of the quantity of wheat credited or to be § 402.25 Insurance contract voidable credited to the depositor's account, such unless full compliance. Failure to give cash equivalent to be determined in acany notice to the Corporation or to fur-cordance with the provisions of § 402.32.*† nish proof of loss within the time and in the manner prescribed herein, or failure to comply with any of the terms, conditions, or covenants of the insurance contract, shall render the insurance contract voidable and, at the election of the Corporation, shall constitute a forfeiture of the premium paid.*†

TIME AND MANNER OF PAYMENT OF PRE

MIUMS AND TENDER OF DEPOSITS

§ 402.30 Time and place of payment of premiums. Premiums shall be payable at the office of the county committee for the county in which the farm is located. Premiums may be paid either in wheat or the cash equivalent thereof, at the option of the insured. Premiums shall be payable at the time the application is taken, and in no event shall a premium (except an additional payment supplementing a premium payment) be paid after the beginning of the seeding of the wheat crop, except as provided in § 402.20 (c), or after the date specified by the Corporation as the closing date for the receipt of applications, whichever occurs first.*+

§ 402.31 Deposits to be applied toward future premiums. Any person who submits an application for insurance may tender, at such time, with his premium payment toward the payment of future premiums a deposit of wheat or cash in an amount not in excess of the premium for the crop year during which the deposit is made. The Corporation reserves the right to reject the tender of any deposit. A tender of deposit shall be made at the office of the county committee for the county in which the farm is located.

§ 402.32 Payment of premium or tender of deposits in cash equivalent. The payment of premiums in the cash equivalent shall be made in cash, check, money order, or bank draft payable to the Treasurer of the United States, or by means of an advance from the Secretary of Agriculture. The tender of dedeposits in the cash equivalent shall be made in cash, check, money order, or bank draft payable to the Treasurer of the United States. All checks and drafts will be accepted subject to collection and premiums or deposits shall not be regarded as paid unless collection is made.

The cash equivalent of any premium or deposit shall be determined by multiplying the number of bushels of wheat of the applicable class and grade constituting the premium or deposit by the price of such wheat at the current basic market designated by the Corporation, less price differentials. such wheat at the current basic market shall be the price, as determined by the Corporation, for the day when the premium is paid or the deposit is made.

The price of

The cash equivalent of any additional payment supplementing a premium payment shall be determined by multiplying the number of bushels of wheat of the applicable class and grade constituting such additional payment, by the price of such wheat used for the computation of the original premium payment. * †

§ 402.33 Payment of premium or tender of deposits in wheat. (a) When premiums are paid in wheat, such payments shall be made by the delivery of a ne

thereby, may be set off against any indemnity which may be or become due under any insurance contract entered into with the applicant or in which he may have an interest. Settlements necessitated by the transfer of receipts failing to convey complete and unencumbered title to the receipt and the wheat represented thereby shall be on the basis of the cash equivalent applicable on the date when such receipt was tendered to the Corporation.*†

gotiable warehouse receipt, or some surance contract for which any such other instrument acceptable to the Cor- receipt was tendered as premium, and poration (both hereinafter referred to as any refund of deposit, shall be returned "warehouse receipt"), representing the to the Corporation without limiting any number of bushels of wheat of mer- other right or remedy of the Corporachantable quality constituting the cur- tion. Any charges or cost to the Corporent year's premium and representing ration in connection with such warewheat of the class specified in the ap-house receipt, or the wheat represented plication and the grade specified for such class by the Corporation for the current year's premium. Tender of deposits in wheat shall be made in a similar manner. Warehouse receipts shall be accepted only when issued by a warehouse designated by the Corporation. No warehouse receipt will be accepted as a payment of premium or tender of deposit unless it is received at the office of the county committee within the time fixed by the Corporation and unless there are no warehouse charges or other liens outstanding against the wheat rep-deposits. Any amount which is on deposit § 402.34 Disposition of 1939 crop-year resented by the warehouse receipt other with the Corporation pursuant to Part than the usual charges for receiving and 401, as amended, at the election of the storage, if any, for a period not in excess of 10 days prior to the date the depositor (a) shall be applied in payment payment or tender was made. Premiums which his application is accepted, (b) of the premium for any insurance for or deposits shall not be regarded as paid shall be re-deposited and shall become a unless the warehouse receipts representing wheat tendered in payment of the deposit subject to the provisions of this premium or the deposit are accepted by part, or, (c) shall be refunded in the Corporation. One warehouse receipt representing wheat may be tendered to cover both the premium and the deposit.

(b) If, for any reason whatsoever, it appears at any time that the transfer of a warehouse receipt, whether received by the Corporation or its agent as payment of premium or deposit, did not convey to the Corporation complete and unencumbered title to the receipt and the wheat represented thereby, except for the usual charges for receiving and

storage not in evcess of 10 days, or if at any time the Corporation's title to such receipt or the wheat represented thereby is questioned by any person, then, unless the question of title to or charges against such wheat is immediately settled without cost to the Corporation, the Corporation shall not be liable for the payment of any indemnity under the insurance contract for which such receipt was tendered as premium and shall not be liable for a deposit or refund because of the tendering of such receipt. Any payment of indemnity or refund of premium made under the in

accordance with Part 401.

At the time the depositor makes application for insurance with respect to the 1940 crop he shall specify one or sition of his deposit: Provided, however, more of the foregoing methods of dispoThat any such deposit or any portion thereof which, at the direction of the depositor, is not applied in payment of premium or re-deposited will be refunded as soon as practicable by the Corporation in accordance with Part 401, as amended: And provided, further, That any excess of the amount applied in payment of the premium will become a deposit, or will be refunded at the election of the depositor, in accordance with the provisions of § 402.40 of this part.*† Me

§ 402.35 Conversion of cash into deposits of wheat. Any tender of deposit made in cash will be credited to the depositor's account in terms of the wheat equivalent of such cash at the time the tender of deposit is made and will be deposited on the basis of the class and grade of wheat specified for the payment of the current year's premium. The wheat equivalent of any cash tendered for de

posit will be determined on the same basis for refund of a deposit shall be conas that provided in § 402.32 of this part for the determination of the cash equivalent of a deposit.*†

sidered prior to the final date fixed by the Corporation for the receipt of applications for the 1941 Wheat Crop Insurance Program in the county where the farm in connection with which the deposit was made is located. Nothing in this paragraph shall be construed to restrict the Corporation's right to refund any deposit or premium at such earlier

§ 402.36 Application of wheat deposits toward premiums. A deposit, at the direction of the depositor, will be applied by the Corporation toward the payment of the premium for any insurance for which the depositor's application is accepted. Where the deposit is to be applied to-date as it may determine. ward a premium for an insurance contract covering a farm for which different price differentials are applicable, the depositor will be charged or credited with an amount of wheat, as determined by the Corporation, reflecting the difference between the price differentials applicable at the place where the deposit was made and the price differentials at the local delivery point for the farm for which the application for insurance was made. * †

§ 402.37 Premium earned upon seeding. Premiums shall be regarded as earned upon the seeding of the wheat crop.*+

REFUND OF PREMIUMS AND DEPOSITS § 402.40

(c) The cash equivalent of any refund of a deposit shall be determined by multiplying the amount to be refunded in terms of bushels of wheat of the class and grade specified for the payment of the premium for the insurance contract with respect to which the deposit was made by the price of such wheat, at the local delivery point, applicable for the day the deposit was tendered to the Corporation, whether or not such deposit was made in wheat or in the cash equivalent thereof.

wheat, at the local delivery point, applicable for the day the premium was paid, whether or not such premium was paid in wheat or in the cash equivalent

thereof.

(d) The cash equivalent of any refund, other than a refund of a deposit, shall be determined by multiplying the amount to be refunded in terms of bushels of wheat of the class and grade specified Computation of refunds; claim for refunds. (a) Any refund of pre-insurance contract by the price of such for the payment of the premium for the miums, excess payments, or deposits shall be made only in the cash equivalent of the quantity of wheat to be refunded, less an amount, fixed by the Corporation, to cover storage and handling expenses. In no case shall such deduction exceed one-twentieth of 1 cent per day per (e) No refund shall be made if the bushel. The period for which such de- amount thereof is less than 1 bushel.*† ductions shall be computed shall com§ 402.41 Refund or deposit of excess mence with and include the day follow-payment. In any case where an excess ing the day on which the premium was payment results from an adjustment in paid or the deposit was delivered. Such the total insured production, or the comperiod shall end with and include the puting of the total insured production on day on which payment of the refund the basis of the wheat acreage allotment, is approved by the Corporation. or the permitted acreage, whichever is applicable, as set forth in § 402.50 of this part, or from any other reason, such excess payment, other than payment by an advance by the Secretary, shall be credited to the insured's account as a deposit to be applied toward the payment of the premium on any application which is accepted by the Corporation, unless the insured has indicated in his application that he elects to have such excess payment refunded. Any amount credited to the insured's account pursuant to this section shall be

(b) Claims for refunds shall be made on forms prescribed by the Corporation Claims for refunds of premiums or deposits shall be submitted to the Corporation at the office of the county committee where the premium was paid or the deposit was delivered. No claim for refund of premium shall be acted upon by the Corporation until the acreage seeded to wheat on the farm covered by the insurance contract has been determined. Except as may otherwise be provided by the Corporation, no claim

deemed to have been deposited on the insurance contract shall be the product date of payment of the premium.*† of the adjusted average yield, the in

surance contract shall be the sum of

the products of the adjusted average yield, the insured percentage, the insured's interest in the crop, and the acreage used for the computation of the premium computed separately for the acreage under each special practice.

§ 402.42 Death, incompetency, or dis-sured percentage, the insured's interest appearance of person entitled to refund; in the crop, and the acreage used for change of fiduciaries. In any case where the computation of the premium: Proa person who is entitled to a refund of vided, however, That if special practices premium or deposit has died, has be- are accepted as the basis for insurance, come incompetent, has disappeared leav- the total insured production for the ining his whereabouts unknown for a period of 150 days from the date the Corporation determines that a refund is due, or has ceased to act as a fiduciary, such refund will be made to his legal representative or successor. If no such legal representative or successor has been appointed, or is otherwise legally qualified, and the quantity of wheat to be refunded before deduction of storage and handling expenses is less than 500 bushels, such refund may be made to any one or more of the persons beneficially entitled to share in such refund on behalf of all the persons so entitled upon proof of the facts satisfactory to the Corporation. The determination of the Corporation as to the existence or non-existence of a circumstance in the event of which payment of a refund may be made to a In the event that the farm covered person other than the person who paid by the insurance contract is grouped the premium or made the deposit, as the with other farms to constitute one farm case may be, shall be final and conclu- under the 1940 Agricultural Conservasive and payment in accordance with tion Program, the acreage of wheat used such determination shall constitute a in computing the total insured produccomplete discharge of the Corporation's tion for the farm covered by the inobligation with respect to the refund.*surance contract may exceed the wheat

§ 402.43 Assignment of claims for refunds; creditors. (a) No claim solely for a refund, or any part or share thereof, or any interest therein, shall be transferable except where the Corporation has recognized an assignment of the insurance contract pursuant to the provisions of § 402.86 of this part. Notwithstanding any assignment for receiving payment of any such refunds, the Corporation reserves the right to make payment of the refund jointly to the assignor and assignee, and payment in such manner shall constitute a complete discharge of the Corporation's obligation with respect to such refund.

(b) The provisions of § 402.87 of this part shall be applicable to the payment of refunds.*†

TOTAL INSURED PRODUCTION

§ 402.50 Total insured production. (a) The total insured production for the

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(b) If the acreage of wheat seeded for harvest as grain is in excess of the wheat acreage allotment for the farm under the 1940 Agricultural Conservation Program or the acreage permitted to be planted to wheat under such program without deduction from payment, the wheat acreage allotment or such permitted acreage shall be used in lieu of the acreage of wheat seeded for harvest as grain for the purpose of computing the total insured production.

acreage allotment, or the permitted acreage for such farm, whichever is applicable, if the acreage seeded on all such farms constituting one farm under the 1940 Agricultural Conservation Program is not in excess of the total wheat acreage allotment or the permitted acreage for the farm as constituted under the 1940 Agricultural Conservation Program. If the acreage of wheat seeded on all such farms constituting one farm under the 1940 Agricultural Conservation Program is in excess of the total acreage allotment for all such farms, or the permitted acreage, the acreage used in computing the total insured production for each such farm covered by an insurance contract shall be the same percentage of the acreage seeded to wheat for harvest as grain on the farm that the total acreage allotment for all such farms is of the acreage seeded on all such farms.