12 2 STA T .97 9 PUBLIC LA W 11 0– 2 34—M A Y 22 , 200 8and a t n oc o s ttot heC o m mod i t y C r edit Cor p oration , con -v ert the in-process s ug ars and syrups into ra w cane sugar or re f ined b eet sugar of acceptab l e grade and q uality for sugars eligible for loans under subsection ( a ) or (b) .‘ ‘( B ) TRANSFE R TOC OR P ORAT I ON. —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 A YM ENT TO PROCESSOR.—On transfer of the sugar, the S ecretary shall ma k e 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 ) L OAN CON V ERSION.—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 L OAN.—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) A VOI D IN GF ORFEIT U RES; CORPORATION INVENTORY D ISPOSI- 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. ‘‘( 2 ) INVENTORY DISPOSITION.— ‘‘(A) IN GENERAL.—To carry out paragraph (1), the Commodity Credit Corporation may accept bids to obtain raw cane sugar or refined beet sugar in the inventory of the Commodity Credit Corporation from (or otherwise make available such commodities, on appropriate terms and conditions, to) processors of sugarcane and processors of sugar beets (acting in conjunction with the producers of the sugarcane or sugar beets processed by the processors) in return for the reduction of production of raw cane sugar or refined beet sugar, as appropriate. ‘‘(B) BIOENERGY FEEDSTOC K .—If a reduction in the quantity of production accepted under subparagraph (A) involves sugar beets or sugarcane that has already been planted, the sugar beets or sugarcane so planted may not be used for any commercial purpose other than as a bio- energy feedstock.
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