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Title 7 — AgricultureRelease 119-73not60

§1383a Written Consent for Reconcentration of Cotton

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

Last updated Apr 3, 2026|Official source

Summary

Producers or borrowers must give written permission before any cotton used as loan collateral can be moved from one warehouse to another. That permission must be on a separate paper made just for that purpose, and older loan contracts do not count. A borrower cannot be forced to sign that permission to get a new Commodity Credit Corporation loan. But permission is not needed if there is severe crowding and the local warehouse asks the Corporation to move the cotton, or if the Corporation finds the cotton is stored wrong, at risk of damage, uninsured, loan terms are broken, or storage charges are far higher and the warehouse won’t lower them after notice. The Corporation can require consent for such moves in future loan agreements.

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 3, 2026

Release point: 119-73not60