Loan Forfeiture

Business / Agriculture / Loan Forfeiture: Under commodity program rules, a producer or processor who pledges a stored commodity as collateral to the Commodity Credit Corporation to obtain a nonrecourse loan can settle the repayment obligation by forfeiting the commodity without any penalty. This happens, by design, if forfeiture is more profitable than selling the commodity in the marketplace. In this way the loan program serves a price support function.

Other Words for Loan

Loan Verb Synonyms: advance, allowance, credit, accommodation
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Loan Forfeiture Level

Business / Agriculture / Loan Forfeiture Level: The lowest market price that a processor must receive before concluding that forfeiting pledged sugar to the Commodity Credit Corporation is more profitable than selling the sugar. In practice, USDA h MORE

Forfeiture Penalty (Sugar)

Business / Agriculture / Forfeiture Penalty (Sugar): A penalty paid to the Commodity Credit Corporation by a processor of sugar beets or sugarcane who, having taken out a nonrecourse loan, decides to hand over sugar pledged as collateral to the CCC rath MORE

Parallel Loan

Business / Finance / Parallel Loan: A process whereby two companies in different countries borrow each other's currency for a specific period of time, and repay the other's currency at an agreed maturity for the purpose of reducing fore MORE

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