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Title 7 — AgricultureRelease 119-73

§1383a Written consent for reconcentration of cotton

Title 7 › Chapter CHAPTER 35— - AGRICULTURAL ADJUSTMENT ACT OF 1938 › Subchapter SUBCHAPTER II— - LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS, MARKETING QUOTAS, AND MARKETING CERTIFICATES › Part Part F— - Miscellaneous Provisions and Appropriations › Subpart subpart i— - miscellaneous › § 1383a

Last updated Apr 6, 2026|Official source

Summary

Producers or borrowers must sign a separate paper that only says they agree to move cotton held as loan collateral before that cotton can be moved from one warehouse to another. That separate consent is required for cotton used as security for loans made or arranged by the Commodity Credit Corporation, and consent buried in other loan documents does not count. The CCC also cannot make giving that separate consent a condition for getting a future loan. Consent is not needed if storage is crowded and the local warehouse certifies and asks the CCC to move the cotton; or if the CCC finds the cotton is badly stored, at risk of damage, uninsured, loan terms are broken, or storage charges are much higher than normal and the warehouse won’t lower them after notice. The CCC may require consent in future loan agreements when these situations apply.

Full Legal Text

Title 7, §1383a

Agriculture — Source: USLM XML via OLRC

In the administration of section 1383(b) of this title the written consent of the producer or borrower to the reconcentration of any cotton held as security for any loan heretofore or hereafter made or arranged for by the Commodity Credit Corporation shall not be deemed to have been given unless such consent shall have been given in an instrument made solely for that purpose. Notwithstanding any provision of any loan agreement heretofore made, no cotton held under any such agreement as security for any such loan shall be moved from one warehouse to another unless the written consent of the producer or borrower shall have been obtained in a separate instrument given solely for that purpose, as required by this section. The giving of written consent for the reconcentration of cotton shall not be made a condition upon the making of any loan hereafter made or arranged for by the Commodity Credit Corporation: Provided, however, That in cases where there is congestion and lack of storage facilities, and the local warehouse certifies such fact and requests the Commodity Credit Corporation to move the cotton for reconcentration to some other point, or when the Commodity Credit Corporation determines such loan cotton is improperly warehoused and subject to damage, or if uninsured, or if any of the terms of the loan agreement are violated, or if carrying charges are substantially in excess of the average of carrying charges available elsewhere, and the local warehouse, after notice, declines to reduce such charges, such written consent as provided in this section need not be obtained; and consent to movement under any of the conditions of this proviso may be required in future loan agreements.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Codification Section was not enacted as part of the Agricultural Adjustment Act of 1938 which comprises this chapter.

Executive Documents

Transfer of Functions

Administration of program of Commodity Credit Corporation transferred to Secretary of Agriculture by 1946 Reorg. Plan No. 3, § 501, eff. July 16, 1946, 11 F.R. 7877, 60 Stat. 1100, set out in the Appendix to Title 5, Government Organization and Employees. Exceptions From

Transfer of Functions

Functions of Corporations of Department of Agriculture, boards of directors and officers of such corporations; Advisory Board of Commodity Credit Corporation; and Farm Credit Administration or any agency, officer, or entity of, under, or subject to supervision of said Administration excepted from functions of officers, agencies, and employees transferred to Secretary of Agriculture by 1953 Reorg. Plan No. 2, § 1, effective June 4, 1953, 18 F.R. 3219, 67 Stat. 633, set out as a note under section 2201 of this title.

Reference

Citations & Metadata

Citation

7 U.S.C. § 1383a

Title 7 — Agriculture

Last Updated

Apr 6, 2026

Release point: 119-73