---
kind: "section"
citation: "7 C.F.R. § 1436.15"
title: "7"
number: "1436.15"
heading: "Maintenance, liability, insurance, and inspections."
url: "https://uscodex.org/cfr/7/1436.15"
---

# §1436.15. Maintenance, liability, insurance, and inspections.

- (a) The borrower must maintain the loan collateral in a condition suitable for the storage or handling of one or more of the facility loan commodities.
- (b) Until the loan has been repaid, the borrower will be liable for all damages to or destruction of the collateral. CCC will not assume any loss of the collateral.
- (c) CCC may conduct annual collateral inspections to insure compliance with this part. The borrower must consent to such inspection as a term of the loan and failure to supply such access will put the borrower into default.
- (d) Facilities must be insured against all perils in all cases and must also be insured against flooding if the structure is located in a flood plain, as determined by CCC. Proof of flood insurance, if required, and proof of all peril insurance, must be provided to CCC annually. CCC must be listed as a loss payee on all peril and flood insurance policies.
- (e) CCC will have rights to enter, leave, and return to the property where the facility is located. Failure of the borrower to secure such access will render a borrower ineligible for the loan and, if a loan has already been made will constitute a loan default for which the remaining balance of the loan will become immediately due and payable.
- (f) For sugar storage facility loans, in addition to the requirements of [paragraph (d)](#d) of this section, sugar processors must also insure the contents of storage structures used as collateral for a sugar storage facility loan against all perils.

## Notes

### Amendments

[66 FR 4612, Jan. 18, 2001, as amended at 67 FR 54939, Aug. 26, 2002; 74 FR 41591, Aug. 18, 2009; 81 FR 25595, Apr. 29, 2016; 82 FR 16101, Apr. 3, 2016]

### Authority

Authority: 7 U.S.C. 7971 and 8789; and 15 U.S.C. 714 through 714p.

### Source

Source: 66 FR 4612, Jan. 18, 2001, unless otherwise noted.

### Amendments

[66 FR 4612, Jan. 18, 2001, as amended at 67 FR 54939, Aug. 26, 2002; 74 FR 41591, Aug. 18, 2009; 81 FR 25595, Apr. 29, 2016; 82 FR 16101, Apr. 3, 2016]