Recourse loans are Marketing Assistance Loans for which the commodity offered as collateral does not meet the quality eligibility requirements according to U.S. grading standards.
Recourse loans:
- may not be delivered or forfeited to CCC in satisfaction of the loan indebtedness
- must be repaid in full on or before the loan maturity date at principal plus interest only.
About the Program
Eligibility
The following are considered recourse loans:
- high moisture corn and grain sorghum
- acquired grain for high moisture corn or grain sorghum loans
- distress loans on any commodity that is not stored in eligible storage
- any commodity otherwise eligible for nonrecourse loan, but the commodity does not meet the quality eligibility requirements according to U. S. grading standards.