document which will govern the conditions under which the purchase is made. The Memorandum of Understanding (Supplement 4 or 5) contains the conditions for handling the seeds being purchased and the procedure to be followed by the dealers and county committees.

§ 274.08 Determination of quantity. The net weight of the seed shall constitute the quantity of seed purchased.

§ 274.09 Determination of quality. All determinations of germination and purity shall be on the basis of an official test of a representative sample.

NOTE: For purposes of this program, an "official test" is an analysis made by a seedtesting laboratory approved by the State PMA committee.

§ 274.10 Liens. The commodity must be free and clear of all liens and encumbrances, or if liens or encumbrances exist on the commodity, proper waivers must be obtained.

§ 274.11 Charges to be paid by producers. In the case of seed purchased by Commodity Credit Corporation, the producer shall pay all cleaning expenses and other expenses (including bagging and cost of bags), except analysis expense, whether covered herein or not, which are necessary to prepare the seed to meet all eligibility requirements. Producers shall pay all charges (including charges for the issuance of reports) in connection with the sampling and analysis of seed which, by official test, is not of an eligible quality.

§ 274.12 Set-offs. A producer who is listed on the county debt register as indebted to any agency or corporation of the United States Department of Agriculture shall designate the agency or corporation to which he is indebted as the payee of the proceeds of the sale to the extent of such indebtedness, but not to exceed that portion of the proceeds remaining after deduction of the service fees and amounts due prior lienholders. The Commodity Credit Corporation shall be given first consideration for outstanding indebtedness after claims of prior lienholders.

§ 274.13 Pricing basis. The prices to be paid for the seed shall be computed in accordance with the applicable sched

ule (Purchase Supplements 1 and 2) for the area.

§ 274.14 Offices of directors of Grain Branch. The offices of the directors of the Grain Branch referred to herein and the areas served by them under these instructions are shown below:

Address of Director and area

208 South La Salle Street, Chicago 4, Ill.: Connecticut, Delaware, Illinois (except East St. Louis), Indiana, Iowa, Kentucky, Maryland, Maine, Massachusetts, Michigan, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, Tennessee, Vermont, Virginia, and West Virginia.

212 West 14th Street, Kansas City 8, Mo.: Alabama, Arkansas, Colorado, Georgia, Florida, Kansas, Louisiana, Mississippi, Missouri (also East St. Louis), Nebraska, New Mexico, Oklahoma, South Carolina, Texas, and Wyoming.

Eastern Outfitting Building, 515 Southwest Tenth and Washington Streets, Portland 5, Oreg.: Arizona, California, Idaho, Nevada, Oregon, Utah, and Washington.

326 McKnight Building, Minneapolis 1, Minn.: Minnesota, Montana, North Dakota, South Dakota, and Wisconsin.

1% 2% 2% (3)

Price of hairy vetch shall not be discounted due to the presence of woollypod.

*Subject to announced bag discounts per cwt.

Live seed including hard seed.

The weighted average germination may be used in determining the germination of mixture of winter legume seed.

No requirements specified for this item. However, the total winter legume requirements where specified and the purity requirement for crimson clover and ryegrass must be met in order for seed to be eligible for purchase.

Minimum requirement for Willamette vetch will be in accordance with the rules and regulations of the authorized certification agency of the State wherein the crop was produced.

Hairy vetch and woollypod vetch will qualify as Willamette vetch provided there is at least 70 percent Willamette vetch present.

Subpart-1946 Seed Loan Program AUTHORITY: §§ 274.15 to 274.39, inclusive, issued under sec. 7 (a), 49 Stat. 4, as amended, sec. 302 (a), 52 Stat. 43, as amended, sec. 4 (b), 55 Stat. 498, 56 Stat. 768; 15 U.S.C. and Sup. 713 (a), 713a-8 (b), 7 U.S.C. 1302 (a); Article Third, par. (b) of Corporate Charter of Commodity Credit Corporation.

SOURCE: §§ 274.15 to 274.39, inclusive, contained in 1946 C.C.C. Seed Bulletin I (Loan), including Amendment 1, Vice President, Commodity Credit Corporation, May 20, 1946, 12 F.R. 170.

§ 274.15

Administration of subpart. The subpart will be administered at the county level by the county agricultural conservation committees under the general supervision of the respective State committees.

Forms may be obtained from county committees in areas where loans are available, or from the office of the Director of the Grain Branch serving the area. State and county committees will determine or cause to be determined the quantity and grade of the commodity and the amount of the loan. All documents will be completed and approved by the county committee, which will retain copies of all documents: Provided, however, That the county committee may designate in writing certain employees of the county agricultural conservation association to execute such forms on behalf of the committee.

The county committee will furnish the borrower with the names of local lending agencies approved for making disbursements on loan documents, or with the address of the Grain Branch office to which loan documents may be forwarded for disbursement.

§ 274.16 Availability of loans. (a) Seed loans shall be available in the areas

where the seed is produced. Insofar as is practicable, warehouse rather than farm storage shall be required by the county committee in all areas.

(b) Seed loans shall be available after the 1946 harvest season begins. Loan documents must be completed prior to September 1, 1946, for blue lupine and February 15, 1947, for other seeds.

§ 274.17 Approved lending agencies. An approved lending agency shall be any bank, cooperative marketing association, corporation, partnership, individual, or other legal entity with which the Commodity Credit Corporation has entered into a Lending Agency Agreement (Form PMA-97) or other lending agency agreement prescribed by Commodity Credit Corporation.

§ 274.18 Eligible producer. An eligible producer shall be any individual, partnership, association, corporation, or other legal entity producing the commodity in 1946, as landowner, landlord, tenant, share cropper, or custom harvester.

§ 274.19 Eligible commodity-(a) Eligible seed. Any seed specified in the attached schedule (Supplement 1, to this bulletin) of specifications and loan rates which is harvested in 1946 by an eligible producer, which can be or is cleaned to meet the specifications, and which does not contain noxious weeds or seeds of White Top, Canada Thistle, Dodder, Quackgrass, Johnson Grass, Bindweed, Russian Knapweed, Perennial Sow Thistle, or Leafy Spurge singly or combined in excess of 45 seeds per pound (90 in unhulled lespedeza seed) is eligible for a loan when placed in proper storage, if the beneficial interest is and always has been in the eligible producer tendering the seed for a loan, or in him and a former producer whom he succeeded before, or at the time, the seed was harvested.

(b) Alfalfa areas. In determining seed specifications for alfalfa, three regional areas, northern, central, and southern, are recognized based on adaptation. The Northern Region includes all producing areas north of the southern boundaries of Idaho, Nebraska, Oregon, and Wyoming, and eastward in counties which are north of, or intersected by, the 40th degree of latitude. The Central Region includes all the producing areas south of the Northern Region and

north of the 37th degree of latitude (excluding California north of the 37th degree of latitude except the counties of Plumas, Tehama, and those counties north. of the 40th degree of latitude, but including all counties south of the 37th degree of latitude in Kentucky, Missouri, Nevada, and Virginia). Approved origin alfalfa seed in Oklahoma tagged and sealed with the official tags and seals of the Oklahoma Crop Improvement Association will be at the rates specified for the Central Region. The Southern Region includes all the producing areas south of the Central Region.

(c) Certified seed. Varieties or strains of hay and pasture seeds designated by State agricultural experiment stations in cooperation with State seed certifying agencies, and Bureau of Plant Industry, Soils and Agricultural Engineering of the U. S. Department of Agriculture will be eligible for loans as "certified seed." Seed of these varieties or strains are to be certified by the State seed certifying agency of the State where grown. The standards and procedures for certification of each State must be approved by the executive committee of the International Crop Improvement Association or its designated agent.

§ 274.20 Eligible storage-(a) Farm. Only inspected and approved structures will qualify. Farm storage is applicable only to Sudan grass seed, uncertified orchard grass seed, and to Kobe lespedeza and only in areas designated by the Field Service Branch. Farm storage shall consist of farm buildings which are of such substantial and permanent construction as determined by the county agricultural conservation committee as to afford safe storage of the seed 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.

(b) Warehouse. Seed shall be stored in a warehouse which has executed a Seed Cleaning and Storage Agreement on CCC Seed Form A and which complies with other provisions of the bulletin. Upon delivery of the seeds to producers on payment of their loans, walehousemen shall label all seed as required by the Federal Seed Act and the applicable State seed law. Upon delivery of the seed to CCC, warehousemen shall label all seed as required by the Federal Seed Act and the seed law of the State

or country into which shipment is directed by CCC.

§ 274.21 Approved forms. The approved forms constitute the loan documents which govern the rights and responsibilities of the producer, and should be read carefully. Any fraudulent representation made by a producer in obtaining a loan or in executing any of the loan documents will render him subject to prosecution under the United States Criminal Code.

(a) Approved forms for farm storage shall consist of producer's notes on CCC Commodity Form A, secured by chattel mortgages on CCC Commodity Form AA.

(b) Approved forms for warehouse storage shall consist of note and loan agreements, CCC Commodity Form B, secured by negotiable warehouse receipts representing the commodity stored in approved warehouses.

(c) Notes and note and loan agreements must be executed in accordance with these instructions, with State and documentary revenue stamps affixed thereto where required by law. Notes

and note and loan agreements executed by an administrator, executor, or trustee will be acceptable only where legally valid.

§ 274.22 Determination of quantity. The actual weight of the seed shall constitute the quantity of seed to be under loan; except that the quantity of Sudan Grass or Kobe Lespedeza Seed in farm storage may be determined by multiplying the number of net cubic feet in the bin times 30 for Sudan and 22 for Kobe, times the percent of pure seed as determined by the analysis, and the product shall be the pounds of seed to be placed under loan. The quantity of uncertified orchard grass in farm storage may be determined by multiplying the number of net cubic feet in the bin, times 11, times the percent of pure seed as determined by the analysis and the product shall be the pounds of seed to be placed under loan. Measurements and computation shall be according to instructions in AAA Commodity Loan Form 2, Part 1.

§ 274.23 Determination of quality. The county agricultural conservation committee shall arrange for the securing of a representative sample for the determination of quality. The sample shall be sent to a laboratory approved by the

Field Service Branch for analysis and germination test. The analysis shall show pure seed, other crop seed, weed seed, inert matter, and noxious weed seeds and germination.

§ 274.24 Liens. The commodity must be free and clear of all liens and encumbrances, or if liens or encumbrances exist on the commodity, proper waivers must be obtained.

§ 274.25 Charges to be paid by producer-(a) Service fees. Where the commodity is farm-stored the producer shall pay a service fee of 2 cents per hundredweight but not less than $3.00; and where the commodity is warehouse-stored the producer shall pay a service fee of 1 cent per hundredweight but not less than $1.50.

(b) Other charges. Costs of cleaning, bags and bagging, testing, tagging, fumigating if necessary, and transportation to approved warehouses are to be borne by the producer. Such costs should not exceed the charges provided in the CCC cleaning and storage agreement for seed processors. In case of warehouse storage in bulk or otherwise where the seed is not ready for merchandising, the cost of the above items not paid for by the producer shall be deducted from the amount of the loan. § 274.26 Set-offs. A producer who is listed on the county AAA debt register as indebted to any agency or corporation of the United States Department of Agriculture shall designate the agency or corporation to which he is indebted as the payee of the proceeds of the loan to the extent of such indebtedness, but not to exceed that portion of the proceeds remaining after deductions of the service fees and amounts due prior lienholders. Indebtedness owing to the Commodity Credit Corporation shall be given first consideration after claims of prior lien-holders.

§ 274.27 Loan rates. Loan and settlement rates for the designated qualities of seed are set out in Loan Supplement 1.

§ 274.28 Interest rate. Loans shall bear interest at the rate of 3 percent per annum; and interest shall accrue from the date of disbursement of the loan, notwithstanding the printed provisions of the note.

§ 274.29 Transfer of producer's equity. The right of the producer to