---
kind: "section"
citation: "7 C.F.R. § 1499.16"
title: "7"
number: "1499.16"
heading: "Suspension and termination of agreements."
url: "https://uscodex.org/cfr/7/1499.16"
---

# §1499.16. Suspension and termination of agreements.

- (a) CCC may suspend or terminate an agreement if it determines that:
  - (1) One of the bases in 2 CFR [200.339](/cfr/2/200.339.md) or [200.340](/cfr/2/200.340.md) for suspension or termination by CCC has been satisfied;
  - (2) The continuation of the assistance provided under the agreement is no longer necessary or desirable; or
  - (3) Storage facilities are inadequate to prevent spoilage or waste of the donated commodities, or distribution of the donated commodities will result in a substantial disincentive to or interference with domestic production or marketing in the target country.
- (b) The termination provisions in 2 CFR [200.340](/cfr/2/200.340.md) and [200.341](/cfr/2/200.341.md) will apply to an agreement.
- (c) If an agreement is terminated, the recipient:
  - (1) Is responsible for the security and integrity of any undistributed donated commodities and must dispose of such commodities only as agreed to by CCC;
  - (2) Is responsible for any sale proceeds, CCC-provided funds, interest, or program income that have not been disbursed and must use or return them only as agreed to by CCC; and
  - (3) Must comply with any closeout and post-closeout provisions specified in the agreement and 2 CFR [200.344](/cfr/2/200.344.md) and [200.345](/cfr/2/200.345.md).

## Notes

### Amendments

[81 FR 62605, Sept. 12, 2016, as amended at 84 FR 45060, Aug. 28, 2019; 87 FR 53368, Aug. 31, 2022]

### Authority

Authority: 7 U.S.C. 1736o; and 15 U.S.C. 714b and 714c.

### Source

Source: 81 FR 62605, Sept. 12, 2016, unless otherwise noted.

### Amendments

[81 FR 62605, Sept. 12, 2016, as amended at 84 FR 45060, Aug. 28, 2019; 87 FR 53368, Aug. 31, 2022]