nonrecourse loans

The major price support instrument used by the Commodity Credit Corporation to support the price of wheat, feed grains, cotton, rice, honey, sugar, peanuts, and tobacco. Farmers who agree to comply with all commodity program provisions may pledge a quantity of a commodity as collateral and obtain a loan from the CCC. The borrower may elect either to repay the loan with interest within a specified period and regain control of the collateral commodity, or to forfeit it to the CCC. In case of a forfeiture, the borrower forfeits without penalty the collateral to the CCC and the CCC accepts it as satisfaction of the loan. This includes the accumulated interest, regardless of the price of the commodity in the market at the time of forfeiture.

Authorization Path: 1.2.1.2.12.0