12 2 STA T . 1 70 7 PUBLIC LA W 110 – 2 46—J U NE 1 8, 2008 ‘ ‘ (1)DEFIN I T I O NOFIN -PR O C E S SS UGA RS AN D S Y RUPS .—Inthis s ub s ec ti o n , the te rm ‘in- p rocess su ga rs an d s y rups ’ does not inc l ude ra w sugar, li q uid sugar, in v ert sugar, invert syrup, or other f inished product that is otherwise eligible for a loan under subsection (a) or (b). ‘‘( 2 ) AV AI L A B ILITY.— T he S ecretary shall ma k e nonrecourse loans available to processors of a crop of domestically grown sugarcane and sugar beets for in-process sugars and syrups derived from the crop. ‘‘( 3 ) L OAN RATE.—The loan rate shall be equal to 80 percent of the loan rate applicable to raw cane sugar or refined beet sugar, as determined by the Secretary on the basis of the source material for the in-process sugars and syrups. ‘‘( 4 ) F URT H ER PROCESSING ON FORFEITURE.— ‘‘(A) IN GENERAL.—As a condition of the forfeiture of in-process sugars and syrups serving as collateral for a loan under paragraph (2), the processor shall, within such reasonable time period as the Secretary may prescribe and at no cost to the C ommodity Credit Corporation, con- vert the in-process sugars and syrups into raw cane sugar or refined beet sugar of acceptable grade and quality for sugars eligible for loans under subsection (a) or (b). ‘‘( B ) TRANSFER TO CORPORATION.— O nce the in-process sugars and syrups are fully processed into raw cane sugar or refined beet sugar, the processor shall transfer the sugar to the Commodity Credit Corporation. ‘‘(C) P AY M ENT TO PROCESSOR.—On transfer of the sugar, the Secretary shall make a payment to the processor in an amount equal to the amount obtained by multi- plying— ‘‘(i) the difference between— ‘‘(I) the loan rate for raw cane sugar or refined beet sugar, as appropriate
and ‘‘(II) the loan rate the processor received under paragraph (3); by ‘‘(ii) the quantity of sugar transferred to the Sec- retary. ‘‘( 5 ) LOAN CONVERSION.—If the processor does not forfeit the collateral as described in paragraph (4), but instead further processes the in-process sugars and syrups into raw cane sugar or refined beet sugar and repays the loan on the in-process sugars and syrups, the processor may obtain a loan under subsection (a) or (b) for the raw cane sugar or refined beet sugar, as appropriate. ‘‘( 6 ) TERM OF LOAN.—The term of a loan made under this subsection for a quantity of in-process sugars and syrups, when combined with the term of a loan made with respect to the raw cane sugar or refined beet sugar derived from the in- process sugars and syrups, may not e x ceed 9 months, consistent with subsection (c). ‘‘(f) AVOIDING FORFEITURES; CORPORATION INVENTORY DISPOSI- TION.— ‘‘(1) IN GENERAL.—Sub j ect to subsection (d)(3), to the max- imum extent practicable, the Secretary shall operate the pro- gram established under this section at no cost to the Federal G overnment by avoiding the forfeiture of sugar to the Com- modity Credit Corporation.
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