§7252. Recourse loan program for commercial processors of dairy products
(a) Recourse loans available
Under such reasonable terms and conditions as the Secretary may prescribe, the Secretary shall make recourse loans available to commercial processors of eligible dairy products to assist the processors to manage inventories of eligible dairy products and assure a greater degree of price stability for the dairy industry during the year. The Secretary shall use the funds, facilities, and authorities of the Commodity Credit Corporation to carry out this section.
(b) Amount of loan
The Secretary shall establish the amount of a loan for eligible dairy products, which shall reflect a milk equivalent value of $9.90 per hundredweight of milk containing 3.67 percent butterfat. The rate of interest charged participants under this section shall not be less than the rate of interest charged the Commodity Credit Corporation by the United States Treasury.
(c) Period of loan
The original term of a recourse loan made under this section may not extend beyond the end of the fiscal year in which the loan is made. At the end of the fiscal year, the Secretary may extend the loan for an additional period not to exceed the end of the next fiscal year.
(d) "Eligible dairy products" defined
In this section, the term "eligible dairy products" means cheddar cheese, butter, and nonfat dry milk.
(e) Effective date
This section shall be effective beginning January 1, 2001.
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Amendments
1999-Subsec. (e).