34.98-35.18.

240 .6075

1.2815

34.77-34.97.

.235

.59.50

1.2550

Definitions.

Areas in which loans are available. Loan rates.

Protein premium.

Variations for grades.

Determination of dockage, smut, and garlic.

Determination of quantity of wheat. Farm storage.

Storage allowance.

Warehouse receipts.

Insurance.

Purchase of loan.

Offices of the Regional Directors of Commodity Credit Corporation. County agricultural

committee.

251.18 Release of collateral.

AUTHORITY: §§ 251.1 to 251.18, inclusive, issued under 52 Stat. 43, 55 Stat. 203, as amended; 7 U.S.C. and Sup., 1302, 1330. 56 Stat. 767; 50 U.S.C. App., Sup., 968. 58 Stat. 105.

SOURCE: §§ 251.1 to 251.18, inclusive, contained in 1944 C.C.C. Wheat Form 1, Instructions, President, Commodity Credit Corporation, May 18, 1944, 9 F.R. 7243. Exception is noted following section affected.

§ 251.1 Definitions. For the purpose of this part and the notes and loan agreements or mortgages relating thereto, the following terms shall be construed, respectively, to mean:

(a) Eligible producer. An eligible producer shall be any person, partnership, association, corporation, or other legal entity, who produced wheat in 1944 as landowner, landlord, tenant, or sharecropper.

(b) Eligible wheat. Eligible wheat shall be wheat which meets the following requirements:

(1) Such wheat must be produced in 1944, by the producer tendering the wheat for a loan.

(2) Such wheat must be free and clear of all liens and encumbrances, including landlord's liens, except in favor of the lienholders who are listed in the List of Lienholders.

(3) Such wheat must be tendered for a loan by a person who is the owner of the wheat and who has the legal right to

Public warehouses.

Maturity and interest rate.

conservation

pledge or mortgage it as security for the loan.

(4) The beneficial interest in the wheat must be in the person tendering the wheat for a loan and must always have been in him.

(5) Such wheat must be in eligible storage.

(6) Such wheat must be (i) wheat of any class grading No. 3 or better, or (ii) wheat of any class grading No. 4 or 5 solely on the factor of test weight, but otherwise grading No. 3 or better, except that if the wheat is warehouse-stored, the quality of the wheat must be evidenced by a statement of the warehouseman on the warehouse receipt, the inspection certificate, or the warehouseman's supplemental certificate, substantially as follows: "This wheat grades No.

---- solely because of test weight," or (iii) wheat of the class mixed wheat, consisting only of mixtures of grades of wheat which are eligible for loans as stated in (i) and (ii) hereof, provided such mixtures are the natural products of the field.

(7) If such wheat is of the class hard red spring or durum, it shall contain not more than 141⁄2 percent moisture, and if it is of any other class, it shall contain not more than 14 percent moisture, except that:

(i) When stored in warehouses wheat containing not more than 151⁄2 percent moisture in States west of the Mississippi River and 17 percent moisture in States east of the Mississippi River, grading tough or carrying a notation as to weevils or other insects injurious to stored grain, but otherwise eligible, may be processed at the producer's expense, and such wheat will thereafter be considered eligible for loan purposes provided the original warehouse receipt and warehouseman's supplemental certificate, in addition to other original documents, are accompanied by a certificate of the approved warehouseman issuing said receipts, which should read as follows:

The wheat represented by attached warehouse receipt No. dated

covering loan wheat, has been processed, at the request of the eligible producer, and redelivery will be made of the same countryrun quality, quantity, grade, and protein as shown on the said warehouse receipt and accompanying original inbound inspection, weight, and other required documents free of "tough" and "weevily" notation. Lien for processing charges will not be claimed by

(ii) When stored on farms in all counties in the States of Michigan, Pennsylvania, New York, New Jersey, Maryland, Delaware, and Virginia, and in all counties in the States of Indiana and Ohio north of or intersected by the fortieth parallel meridian, wheat of the classes hard red winter, soft red winter, white, and mixed wheat of such classes grading tough but containing not more than 142 percent moisture, if otherwise meeting the requirements of Commodity Credit Corporation, and in good sound condition, will be eligible for a loan at a discount of 2 cents per bushel from the rate for such wheat testing 14 percent or less in moisture content.

(c) Eligible storage. Eligible storage shall include public grain warehouses and farm storage meeting the following respective requirements:

(1) Public grain warehouses must meet the requirements of Commodity Credit Corporation and must have executed the Uniform Grain Storage Agreement. Such warehouses may be situated either at terminal, subterminal, or country points.

(2) Farm storage shall consist of farm bins and granaries which are of such substantial and permanent construction, as determined by the county agricultural conservation committee, as to afford safe storage of the wheat for a period of 2 years, and permit effective fumigation for the destruction of insects, and afford protection against rodents, other animals, thieves, and weather.

(d) Lending agency. Any bank, cooperative marketing association, or other corporation, partnership, or person making loans, in accordance with these instructions, which has executed the Contract to Purchase on 1940 C. C. C. Form E.

(e) Eligible paper. Eligible paper shall consist of Grain Producer's Notes secured by Grain Chattel Mortgages coving wheat stored on the farm or secured by warehouse receipts representing wheat stored in approved warehouses. Notes must be dated on or subsequent to June 1, 1944, and prior to January 1, 1945, and executed in accordance with these instructions, with State documentary rev

enue stamps affixed thereto where required by law. Notes executed by an administrator, executor, or trustee will be acceptable only where valid in law.

§ 251.2 Areas in which loans are available. (a) Loans are available on eligible wheat stored in approved public grain warehouses in all areas.

(b) Loans are available on eligible wheat stored on farms in the following

areas:

All counties in Arizona, California, Colorado, Delaware, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, New York, New Jersey, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, South Dakota, Tennessee, Utah, Virginia, Washington, West Virginia, Wisconsin, and Wyoming; and in the following counties of the following States:

Oklahoma: Alfalfa, Beaver, Beckham, Blaine, Caddo, Canadian, Cimarron, Cleveland, Comanche, Cotton, Craig, Creek, Custer, Dewey, Ellis, Garfield, Grady, Grant, Greer, Harmon, Harper, Jackson, Kay, Kingfisher, Kiowa, Lincoln, Logan, McClain, Major, Mayes, Noble, Nowata, Okfuskee, Oklahoma, Okmulgee, Osage, Ottawa, Pawnee, Payne, Pottawatomie, Roger Mills, Rogers, Texas, Tillman, Tulsa, Wagoner, Washington, Washita, Woods, and Woodward.

Texas: Andrews, Archer, Armstrong, Bailey, Baylor, Borden, Briscoe, Carson, Castro, Childress, Clay, Cochran, Collingsworth, Cottle, Crosby, Dallam, Dawson, Deaf Smith, Dickens, Donley, Fisher, Floyd, Foard, Gaines, Garza, Gray, Hale, Hall, Hansford, Hartley, Hardeman, Haskell, Hemphill, Hockley, Howard, Hutchinson, Kent, King, Knox, Lamb, Lipscomb, Lubbock, Lynn, Martin, Mitchell, Moore, Motley, Nolan, Ochiltree, Oldham, Parmer, Potter, Randall, Roberts, Scurry, Sherman, Stonewall, Swisher, Terry, Throckmorton, Wheeler, Wichita, Wilbarger, Yoakum, and Young.

§ 251.3 Loan rates. The loan rates on wheat of the designated grades and subclasses stored in approved public grain warehouses or stored on farms, in counties where farm storage is permitted, are set out below and in State supplements (1944 C.C.C. Wheat Form 1-Supplement 2-Kansas, et cetera), which State supplements are available at the offices of the county agricultural conservation committees:

(a) Amount of loans at terminal markets. 1944 wheat loan rates on No. 1 dark hard winter, No. 1 hard winter, No. 1 yellow hard winter, No. 1 red winter, No. 1 western red, No. 1 soft white, No. 1 white club, No. 1 western white, No. 1 hard white, No. 1 dark northern spring,

NOTE: The terminal loan rate for other No. 1 wheat shall be determined by subtracting the following discounts from the applicable terminal loan rates:

(a) For No. 1 wheat of the class "red durum wheat"-discount 15 cents per bushel,

(b) For No. 1 "mixed wheat" (containing less than 10 percent of wheats of the classes "durum" and/or "red durum wheat")-discount 2 cents per bushel,

(c) For No. 1 "mixed wheat" (containing in excess of 10 percent of wheats of the class "durum" and/or "red durum wheat")-discount 15 cents per bushel,

(d) For No. 1 "mixed wheat" grading "amber mixed durum"-discount 5 cents per bushel, and

(e) For No. 1 "mixed wheat" grading "mixed durum"-discount 10 cents per bushel.

The loan rate on No. 1 heavy dark northern spring shall be 1 cent more than the loan rate on No. 1 dark northern spring; the loan rate on No. 1 heavy northern spring shall be 1 cent more than the loan rate on No. 1 northern spring; and the loan rate on No. 1 heavy red spring shall be 1 cent more than the loan rate on No. 1 red spring.

All wheat eligible for loan at the foregoing loan rates must have been shipped on a domestic freight rate basis. The loan rate at the designated terminal market will be reduced by the difference between the freight paid and the domestic rate on any wheat shipped at other than the domestic rate.

The foregoing schedule of loan rates applies to wheat delivered to any desig

nated terminal market in carload lots which has been shipped by rail from a country shipping point to one of the designated terminal markets, as evidenced by paid freight bills duly registered for transit privileges and other documents as required under the instructions (C.C.C. Wheat Form 1): Provided, That in the event the amount of paid-in freight is insufficient to guarantee minimum proportional rate from the terminal market, there shall be deducted from the applicable terminal loan rate the difference between the amount of freight actually paid in and the amount required to be paid in to guarantee minimum proportional basis on the outbound movement: Provided further, That Commodity Credit Corporation will accept in lieu of such bills, warehouse receipts for which a legend, signed by the warehouseman, has been typewritten in the following form, or certificate of such warehouseman containing such an undertaking, or such forms as may hereafter be approved by Commodity Credit Corporation.

FREIGHT CERTIFICATE FOR TERMINALS

(b) Amount of loan at country points. (1) Except for the States and counties hereinafter set forth, Commodity Credit Corporation will determine the loan rate on wheat in storage on the farm or in country warehouses by deducting from the designated terminal market loan value an amount equal to 3 cents more than the all-rail interstate freight rate (in effect on May 16, 1944) from the country warehouse points, plus freight tax, or the shipping point designated by the producer, to such terminal market; except that in the appropriate counties of Illinois, Indiana, Iowa, Michigan, Minnesota, Missouri, Nebraska, Ohio, Oklahoma, Pennsylvania, South Dakota, Arkansas, Texas, and Wisconsin such rates shall be computed on the basis of the average freight rate from all shipping points other than subterminal markets in each county to the appropriate terminal market.

Each approved warehouse will be advised as to the loan rate applicable to wheat stored in such warehouse. Producers may obtain from the county committee the loan rates applicable to wheat stored on each farm and in the public warehouses. Loan rates will be published in C. C. C. Wheat Form 1-Supplement 2, for each State.

The loan rate of eligible wheat stored in approved warehouses (other than those situated in the designated terminal markets) which was shipped by rail may be determined by deducting from the appropriate designated terminal market loan value an amount equal to the transit balance of the through freight rate from point of origin for such wheat to such terminal market, plus freight tax on such transit balance: Provided, That in the case of wheat stored at any railroad transit point, taking a penalty by reason of outof-line movement, or for any other reason, to the appropriate designated market, there shall be added to such transit balance an amount equal to any out-ofline or other costs incurred in storing loan wheat in such position as determined by Commodity Credit Corporation. Arrangements have been made for the railroads to indicate transit balance of the through rate on the inbound paid freight bills on a basis of 100 pounds. To obtain the loan rate as determined above, the warehouse receipts, in addition to other required documents, must be accompanied by the original paid