F E D E R A L CROP
INSURANCE
LARRY C L I F F O R D
MEYER
FEDERAL CROP INSURANCE
Introduction
As far back as the late 1800's, farmers have been obtaining
insurance on their crops.
In 1899, a corporation named Realty Revenue
Guaranty Company provided a form of insurance on revenues from realty. *
This protection included crop insurance.
Insurance companies followed
Realty Revenue in the early 1900's, but time and time again withdrew
from the practice of insuring farm crops because of various difficulties
in administration.
1.
Several reasons were given for this:
Limited distribution of risk where private carriers have
operated in a restricted geographical area;
2.
Attempts to insure income, rather than yield losses alone;
and
3.
Inadequacy of actuarial data. 2
Farming was gradually being recognized in the United States as a
business, and consequently the need for insurance on farm operations as
for any other enterprise was becoming greater
demand.
Congress saw
this need and thus enacted the Federal Crop Insurance Act of 1938.
The
original Federal Crop Insurance Act of 1938 only provided insurance for
wheat farmers.
This limited coverage was inadequate for the farmers'
needs, and other crops were added by the 1947 Federal Crop Insurance
Act, Section 1.
The provisions passed in 1947 allowed three different
types of crops to be added to the coverage of the Act in any one year.
The stated purpose of the Act was
"to promote the national welfare by improving the economic
stability of agriculture through a sound system of crop insurance
and providing the means for research and experience helpful
o
in devising and establishing such insurance."
The rest of this paper will be devoted to a familiarization with the
Act, procedure for obtaining crop insurance, legal problem areas, and
the relation of the commercial lender to crop insurance.
General Description
Federal Crop Insurance is a multipie-risk crop insurance which is
limited to cover the following natural hazards: drought, flood, hail, wind,
frost, winterkill, lightning, fire, excessive rain, snow, wildlife, hurricane,
tornado, insect infestation, plant diseases, and other su: ' unavoidable
causes of loss as may be determined by the Board of D i r e c t o r s . 4
The
causes of loss not insured against are specifically designated in the
insurance policy.
-2-
"The contract shall, not cover any loss due to the neglect or
malfeasance of the insured, any member of his household, his
tenants, sharecroppers or employees, or failure to follow
recognized good farming practices, or to damage resulting
from the backing up of the water by any governmental or public
utilities dam or reservoir project or due to any cause not
specified as an insured cause in this policy as limited by the
applicable endorsement or actuarial table.
Another important item here is that the insurance coverage "shall not
extend beyond the period the insured commodity is in the field.
"An insured crop is a crop for which the insured has applied for
insurance, for which the actuarial table shows a production guarantee or
an amount of insurance per acre and a premium rate, for which an endorsement to this policy is in force and which is grown on insured acreage."
The procedure for obtaining insurance will be discussed later in the
paper.
The Act provides that only 150 counties throughout the United States
can be added to the insurance program in any one year.
The determination
of those counties to be added is based on the following factors: demand
of farmers for such insurance, the extent to which such insurance is
available to commercial producers of insured commodities, and the
8
anticipated risk of loss to the Federal Crop Insurance Corporation.
Premiums are established "on the basis of the parity or comparable
price for the commodity as determined and published by the Secretary of
Agriculture, or on the basis of an average market price designated by
-3-
o
the Board."
"The annual premium for an insured crop shall be earned
and payable when the crop is planted. " 1 0
The Board referred to is the
Board of Directors of the Federal Crop Insurance Corporation which is
charged with the management of the corporation.
The ultimate goal of
the Board in regard to establishment of premiums is to make the Corporation actuarially sound, as is the goal of ali insurance organizations.
It should be noted here that the insurance policy is a continual
policy — continues automatically from year to year.
The policy provides
for a reduction in premiums when the insured acreage has not suffered a
loss in prior years.
At the present time, the reduction in premiums is
based 011 the following table:
Per Cent Premium Reduction
Consecutive Years with No Loss
5%
after
1 year
5%
after
2 years
10%
after
3 years
10%
after
4 years
15%
after
5
20%
after
6
25%
after
7 years o r more
Either parly, the insured or the Corporation, can term-nate the
policy, but only by giving a written and signed notice to the other party
-4-
before the cancellation date specified in the applicable endorsement
immediately preceding the crop year for which the cancellation is to
12
become effective.
Payments for claims are determined by the same price basis as
used to determine the premiums.
The Corporation is required to post at
the county courthouse a list of all claims paid for losses in that county.
If a claim is denied by the Corporation, suit may be filed against the
Corporation in the United States District Court, or in any court of record
of the state having general jurisdiction in the county where the insured
farm is located.
The exact wording of the Act is "in the United States
District Court, or in any court of record of the state having general jurisdiction, sitting in the district or county in which the insured farm is
13
located." In Odessa Trading Company v. Federal Crop Insurance Corp,,
the farmer argued that suit could be maintained in any state court within
the "district".
The court ruled that to give the statute this construction
would mean that the words "or county" are mere surplusage and have no
meaning.
The claimant farmer's construction is unjustified as the court
concluded that, if a farmer has been d&aica settlement, he can bring suit
in the district ovt&<? Federal District Court in which ilio i v r . is located
or the state court in the county in which the farm is locaccd.
Jurisdiction
is conferred upon such district courts without regard to the amount in
controversy.
-5-
If a farmer's claim has been rejected by the Corporation, or if he
feels that his claim has not been fully satisfied, his alternative is to sue
on the insurance contract.
Suit must be brought within one year after the
i
date when notice of denial of the claim is mailed to and received by the
claimant. 14
The one-year limitation period is strictly construed as seen
15
in Godbold v. Federal Crop Insurance Corporation.
Here, the plaintiff,
a cotton farmer, brought suit against the Corporation for damage to his
cotton crop which was insured by the Corporation.
The defendant moved
for summary judgment and this was granted on the basis that, some 18
months prior to the filing of this suit, the farmer had received notice that
his claim for indemnity had been rejected; therefore, the limitation period
of one year had passed.
The farmer's position was that there was no
"denial" within the meaning of 7 U. S. C. 1508(c).
The evidence offered by
the farmer was that he continued in his efforts to persuade the Corporation
to reconsider his claim and that the Corporation agreed to and did in fact
have a meeting with the farmer and his attorney.
At the conclusion of this
meeting, the farmer and his attorney contend that it was their understanding
that the claim would be resubmitted and reconsidered.
No other communi-
cations were made between the farmer and the Corporation.
The court
ruled that the limitation period, i. e . , "one year after the date when nocice
of denial of the claim is mailed and received by the insured," is unequivocal
-6-
and a dissatisfied claim^f iiiust adhere to.lit strictly.
The court went on
to state that there is no distinction between "rejection" of a claim and
"denial" of a claim.
if a.farmer-claimant is successful. Inhis suit against the Corporation, he Is entitled to attorney's fees as a part of his recovery,
in Baker v.
Federal Crop Insurance Corporation, 16 the F . C . I . C . challenged by appeal
the right to recover attorney's fees. This challenge against the validity of
an award of attorney's fees was based upon a claim of governmental
immunity. The Supreme Court of Oregon stated that the general rule is that
"absent some valid federal law to the contrary, a governmental corporation
is .not the 'United States' for purposes of suit; and being given the capacity
to sue and be sued is placed upon an equal footing with private parties as
to the usual incidents of suits In relation to the payments of costs and
allowances." Therefore,' the cour? concluded, that since ths F. C.I.C. had
been given the power to sue
be sued 'ay ?
S.C.J:. 1508(c), attorney's
fees as Incident costs to Sv. /i cculd be recovered by t&s wSiosixs party.
Obtaining Facleral Crop Insurance
The procedure through which one obtains Federal Crop Insurance is
relatively simple. The first question to ask is, "who can get the insurance'
All that is required is that the insured must have an interest in the crop at
-7-
the time of planting.
time of planting.
17
This extends to all who have an interest at the
Those persons are owner-operators, landlords, tenants,
or sharecroppers.
Once the farmer has decided to obtain insurance, the application
must be completed.
(See Appendix A . ) To be insured, the farmer must
only have an insurable interest and be 18 years of age. 1 8
Prior to July 28,
1972, the insured was required to be 21 years of age.
When the application is completed, it must be accepted by the county
committee in order to create a binding contract of insurance.
In Frier v.
Federal Crop Insurance Corporation^19 the plaintiff applied-for insurance
on the standard form. This application was handed to the clerk in the
County Agricultural Committee office. The clerk had no authority to
accept the application as a final contract for insurance.
plaintiff suffered a crop loss.
Later, the
Upon returning to the office, the plaintiff
found that the application had been lost.
The members of the County Com-
mittee, who were supposed to accept the application, test:.:id that they
did not remember signing the application. Acceptance of the application
was required to be evidenced by a copy signed by a member of the county
committee delivered to the applicant. Plain?.?? had no such si.^od copy.
The court held tr-f.t the pl.ai" '.;ff had a duty to know whether he had insurance
or not, and thai he could not rely on the clerk to mako the contract.
-8-
Thus,
the plaintiff's lack of diligence barred him from any recovery for his crop
loss.
Therefore, the importance of acceptance and the duty of the appli-
cant to secure acceptance is apparent.
Another example of caution applicants must take in reliance-on the
agents of the Federal Crop Insurance Corporation is illustrated by
Smith v. Federal Crop Insurance C o r p o r a t i o n . i n this ease, piaintiflT
relied on a statement by the agent that the insurance coverage on plaintiff's
cotton under his policy would be 220 pounds per acre.
The policy delivered
to him made it plain that coverage per acre would be approved by corporation as shown by practice on county actuarial table.
The statement made
by the agent to the insured plaintiff was erroneous because of a mistake
»
which had been made in compiling actuarial information.
The court held
that the defendant corporation was neither bound nor estopped by the
erroneous statements made by its agents to the insured plaintiff concerning
his acreage coverage at the time of the issuance of the crop insurance
policy.
Under the recent regulations, Smif-. crrd Frinr m;:~ht have had
opposite outcomes.
The regulations provf.dc that, whenever sr. insured
i
person under any contract of crop insurance entered into under thsse
regulations has suffered a loss to a crop which is not insured, as v/hen he
is not entitled to indemnity because of failure to comply with the terms of
-9-
the insurance contract, has relied on misrepresentation or erroneous action
by an employee or agent of the Corporation, the farmer is entitled to r e lief. 2 1 The regulation states specifically that the following elements must
be found:
(a)
that an agent or employee of the Corporation did in fact make such
misrepresentation or take other erroneous action or give erroneous
advice;
(b)
that insured relied thereon in good faith; and
(c)
that to deny insured's claim would not be fair and equitable.
After the applicant has received approval by the committee, he can
proceed to plant his crop.
At the time of planting, the insured's interest
in the crop is established.
At this time, the farmer submits an acreage
report.
This report contains information such as
(See Appendix B . )
description of the farm, name of the crop, insured's interest in the crop,
and when the planting'was completed. Once this report is submitted, it is
binding on the insured.
This can sometimes be a harsh rule, as seen in
Federal Crop Insurance Corporation v. DeCell. 2 2 The plaintiff, after
acceptance of his application, signed the acreage report which contained
an error as to the amount of acreage of a portion of his insured property.
The report was fii.'od in by an adjuster for the Federal Crop Insurance
Corporation after the adjuster had inspected insured's planting.
-10-
The error
was that the adjuster wrote in 39.4 acres instead of the correct figure of
7S.I.
About 30 days later, insured discovered the mistake and reported it
to an agent of the Corporation.
The court ruled that the Federal Crop
Insurance Corporation's regulations expressly provide that, once the acreage
report is submitted, it is not subject to change.
Therefore, the farmer was
bound by the 39.4 acres in the report and could recover cotton crop damage
for only that amount.
Therefore, from this case, the necessity for accuracy
is apparent when filing the acreage report.
This harsh result, however, has
probably been changed by the regulations, "Good Ruth Reliance on Misrepre23
sentations" as was previously discussed.
The outcome would be dependent
upon whether the elements of erroneous action, reliance thereon, and injustice
were found; if so, then the plaintiff in T>gCell would have prevailed.
If there is crop damage, the insured must give prompt written notice
of damage to the Corporation at the office for the county, if, during the period
before harvest, the insured crop is damaged to the extent that t'r.r- insured
does not expect to further care f o r the crop o-' harvest any part c : it, or he
wants the consent of the Corporation to put the acreage to another utc.
Corporation will consent to putting the acreage to another use, only
too late to replant the same crop.
The
it is
If the damaged crop is to be threshed or
harvested, the insured farmer must give written notice of the claimed loss
promptly and not more than 15 days after the harvesting or threshing.
-11-
Any
insured acreage which.is not to be harvested is to be left for inspection by
an adjuster .for the Corporation.
If these provisions are not adhered to and
the loss cannot be properly determined, the Corporation reserves the right
to reject the claim.
24
(See Appendix C for Notice of Damage or Loss form.)
Federal Crop Insurance and the Commercial Lender
The agent for the Federal Crop Insurance Corporation in Lubbock
contends that the practice of requiring crop insurance by lenders is becoming more prevalent throughout the United States. However, through
discussions with several farm loan officers in the major banks of this area,
it is apparent that no such requirement is made in this agricultural com- ~
munity.
It is their general concensus that the insurance is too much of an
additional cost to the farmer and that this would only further hinder the
farmer in his future repayment of farm loans.
When farm loans are made,
it is a general practice to take crops as collateral for the loans.
Farm
loans also generally require additional collateral in order to protect the
lending institution against the possibility oi crop loss.
A farmer may express a desire to obtain crop insurance to the loan
officer, and
in order to obtain the loan exccute a collateral assignment
of the indemnity payments under his crop insurance contract.
(See
Appendix D for Collateral Assignment form.) The collateral assignment
-12-
form expressly provides for the conditions of the assignment.
Filing of
the collateral assignment must be made in the county office of the Corporation and is on a first to file basis when the farmer has made more than one
assignment.
Conclusion
In conclusion, the Federal Crop Insurance Program has been a
success to a certain degree.
lack of litigation.
This is evidenced by the fact of a noticeable
The Federal Crop Insurance Corporation is easy to work
with and claims for indemnity have been handled promptly and equitably.
The major drawback to crop insurance is that most farmers look upon it
as simply an additional expense which the majority of farmers do not want
to incur.
It is not a general practice for creditors of farmers to require
that the farmer obtain crop insurance, when those creditors are loaning
funds and taking a security interest in those crops.
Again, the major
reason for this is the cost factor, plus those creditors (farm loan departments in banks) usually require additional collateral for the loans.
Popularity of crop insurance should be on the rise, since the c&y of the
small individual farmer is fading.
Corporate farming is the profitable
method and with this comes a more business-like attitude.
-13-
From this,
crop insurance can be treated as a business expense and should become
more utilized by the farming entities.
-14-
FOOTNOTES
1.
State v. Logan 78 N . W . 1051 (1899).
2.
H. R. Doc. No. 150, 75th Cong., 1st Sess. 3 (1937).
3.
7 U.S. C. A . 3502.
4.
52 STAT. 72 (1938), 7 U . S . C . 1501-1519 (1952).
5.
Federal Crop Insurance Policy - Continuous Contract.
6.
52 STAT. 74 (1938), 7 U . S . C . 1508(a) (1952).
7.
Federal Crop Insurance Policy - Continuous Contract.
8.
52 STAT. 74 (1938), 7 U . S . C . 1508(a) (1952).
9.
52 STAT. 74 (1938), 7 U . S . C . 1508(b) (1952).
10.
Federal Crop Insurance Policy - Continuous Contract.
11.
Id.
12.
Id.
13.
Odessa. Trading Co. v.- Federal Crop Insurance Com., 453
P . 2d 809 (1972).
14.
52 STAT. 74 (1938), 7 U . S . C . 1508(c) " i S S ) .
15.
Godbold v. FederaT
16.
Baker v. Fedora! C-ror insurance Cor.-. 407 P.2d PA'..
17.
7 C . F . R , 401.11.
18.
7 U . S . C . 1520 (IS72).
19.
Frier v. Federal Crop Insurance Corp. 152 F. 2d 149 (iu-ia).
>.snrar.co
365 F.Su;-
(IS73).
20.
Smith v. Federal Crop Insurance Corp. 58 So. 2d 05 (1952).
21.
7 C . F . R . 401.107 (1972).
22.
Federal Crop Insurance Corp. v. DeCell 76 So. 2d 826 (1955).
23.
7 C. F . R . 401.107 (1972).
24.
7 C . F . R . 401.111 (8) ( a , b , c & d) (1972).
.
APPENDIX A.
KMUtniud
U N I T E D STATES DEPARTMENT OF AGRICULTURE
i( 1972
Federal Crop Insurance Corporation
I O T X
A P P L I C A T I O N FOR FEDERAL CROP INSURANCE FOR 19
A N D SUCCEEDING CROP YEARS
(Contract Number)
(Count/)
( N a m e and A d d r e s s )
(State)
(Zip Code)
(Identification l i u m b r )
The undersigned applicant, subjcct to the provisions of the regulations of the Fedcrol Crop Insurance Corporation (herein called t h e " C o r p o r a t i o n " ) , hereby
applies to the Corporation for insurance on his share (for cotton, peanut and tobacco insurance, on his s'narecccpper or share tenant shares as s p e e d e d in
paragraph S below) in the crops stated below that arc insurable crops planted on insurable acreage as shown on the applicable county actuarial table of the Corporation for the above-stated county. The applicant clccts each plan of insurance, amount of insurance, or price at which indemnities shall be computed, shown
below which in each case shall be an electable plan, amount, or price, as provided on the applicable county actuarial table on f..'e
•".<- Corporation's office far
the above county. T h e premium rates and production guarantees shall be those shown on the applicable county actuarial table for each crop year.
CROPS
ELECTIONS
(A)
(?)
Applicable only to cotton, peanut and tobacco:
If the applicant intends to insure only the shares of his sharecroppers or share tenants who have no insurance or. the
w i t h the Corporation, " ( S C - f r . t . } "
shall be entered following the name of the crop. If the applicant intends to insure both his individual share *>-.£ l i i u -mires of his sha.'ccroppcrs er share
tenants, " ( C o m b . I n t . ) " shall be entered following the name of the crop. Insurance for sharecroppers a si share ter.i-.fs shall be provided in accordance w i t h
t h e regulations of the Corporation (7 CFR-401, 103(b) ).
Upon acceptance of this application by the Corporation the contract shall be in efrfcer for the first crop year s p e c i V i i i shave, e*ce?t or. any crop en which she
time lor the f i l i n g of applications has passed at the time this application is filed, and siiali continue vor cac.'i succcttii.'..;
year u n t i l cancelled or t;rir>.nated
as provided in the contract. This application, the insurance
endorsements, and the county actuarial fables sr.,.. constitute the contract. Any changes
in the contract shall be on file in the Corporation's office for the c o u n t / at least 15 days prior to the applicable caACCiiitlof. date.
This application, when executed by a person as an individual, shall not cover h i ; share in :. crop produced by a partner-.l-ia or other legal entity.
The applicant is a
( T y p e c t Entity)
A l l natural persons in whose behalf this application is made arc over 18 years of age
(Yes or No!
PREMIUM N O T E : In consideration hereof, ti.e insured promises to pay t c the order ' J
I t is agreed that any amount due the C c . p u i a i . b / the insured n u , '.je o . i u c . e d t«c.from any loan or payment otherwise d u i tnc insured under any program administered '»>•
f o r p o r a t i o n each crop year r.f the con:ract the annual premiums.
i i m n i t y payable So t U m i n i d
when not prohibited by law,
«..:ted States Department of A g r i c u l t u r e .
.,19.
(Witness to Signature)
( S i c n o t u r e of A p p l i c a n t )
Code
Of
OFFICE FOR C O U N T Y
LOCATION
482
in
OF F/.R.V ( I ,
OR UT.ASQI AJ.T
(Dare)
FOflM r c . l - 1 9
H C V AL»NIL
fa*. • .*Fi>'Ov«:'l
U N I T E D STATES D E P A R T M E N T OF A G R I C U L T U R E
FEDERAL
CHOP
INSURANCE
R o H j r i B.1«OCU N o .
CORPORATION
\j
RUM
CROP INSURANCE ACREAGE REPORT
_19
CROP YEAR
Co"UNTY~NAM£
CONTRACT NUMBER
""
"
NUX10E>) O F S H A H E C ^
CROPS INSURED
(2)
ID
D e l e g a t i o n of F j n n
Area
Twp.
Section
Range
A S C S For-n
Nurr.fvr
No.
'3)
Nome
jjy„
Name if
Cfhor
Person(s)
Shoring in Crop
of
Crop
A.:RAS INS*.
Wn
tr •..)
• i Cfoi
lOlhs n sSuhrarr-ed ' s
or
co».v.
^PTIRS"
ELECTION
101
Unit
No.
.121.
Practice
TyP»,
Clan,
Variety
J'
D- • .
PI •• ling
Cc -dieted
»Jl'
-00
Q
v
i-I
ii.
.I
ill
For i n f o r m a t i o n
REMARKS
< form or ony j t h c r Crop
I n s u r a n c e mutter, contact or w r i t e '
FEDERAL
CROP INSURANCE
CORPORATION
I submit this report pursuant to requirements of my a b o v e - i d e n t i f i e d c r o p insurance p o l i c y ond I c e r t i l y thot to the b e s t of my k n o w l e d g e and b e l i e f the information in columns 1, 3 , 4, 5, i , 8, 9 ond
1 0 a b o v e is c o r r e c t and i n c l u d e s my entire i n t e r e s t in the r e p o r t e d c r o p f s ) in the county and that of o i l s h a r e c r o p p e r s , if a n y , insured under imy c o n t r o c t .
SIGNATURE
OF
FCIC
REPRESENTATIVE
DATE
P7G N A T U R E
OF
INSURED
DATE
APPENDIX C-
-a
Stcte and
UNITED STATES D E P A R T M E N T OF
F E D E R A L CROP
INSURANCE
Cujr.T/
and
Centre'.! Nvmbrf
AGRICULTURE
CORPORATION
2.
N O T i C E OF DAMAGE OR LOSS
I Crop Y ecr
Crop
3 . N a m e of P e r s o n t o l/e C o n t a c t e d
NAM£ AND AOONCSi or* INSUWGD
4. D a y s and T i m e C o n t a c t c o n be
r
n
L
j
5. L o c a ' i o n
Phone
Mode
W h e r e C o n t a c t c o n b e Mo<2e
On
.19—
, n o t i c e of s u b s t a n t i a ! d a m a g e or l o s s u n d e r t h e o b o v e - i d e n t i f i e d c o n t r a c t w e s
w i t h r e s p e c t to the u n i t s i d e n t i f i e d in C o l u m n (A) b e l o w :
1
u
Init
I
iber(s)
C a u s e of
Dole
Damage
of
Doinoge
A p p r O i sol
If A ppr oi s o 1 R e q u e s t e d ,
Request-
Show D o t e L a n d
1
(A)
(B)
and Intended
ed?
(C)
If
Use
(
Total
7
" Y e s , "
Show
(E)
<D>
Is H a r v e s t
Completed
Needed
No.
Reported
Produc tion
Dote
tc>
(F!
received
Pr i c r
Other
Inspec-
Contract
tion?
Numbers
(H)
<i>
1
«
i
1
. >
|
1
•
i
j
i g n o t u r e of C o r p o r a t i o n
Representaiive
j
A d j u s t e r ' s C o p y of t h i s f o r m e n d t h e o p p l i c o b l e
c o n t r a c t f i l e s sent to:
REMARKS
Date
Prepo'cd
S i g n a t u r e of I n j u r e d or M e t h o d of
Reporting
APPENDIX D.
NOV M ,S?O 2 0 " r e v "
U N I T E D S T A T E S ©SPAKTE3ES3T © 7 AOXKOULTU:
L-odcra:
2s?3tEsrasiice Cetrporeiwiosa
( N a m e o f Insured Crop(sj)
(Policy Number)
(Crop. Year)
PASST S. iftSSSQMSaSiM?
The u n d e r s i g n o d _
( N o m e o f A s s i g n o r ( O r i g i n a l Insured O n l y ) — T y p o o r Print)
of
(Full M a i l A d d r e s s — T y p e o r Print)
(herein r e f e r r e d t o as the " A s s i g n o r " ) i n c o n s i d e r a t i o n of
D o l l a r s ($
) h e r e b y assigns t o
( N a m e of Assignee —- T y p o o ; r'rmt)
of
(Full M a i l Address — T y p e or Print)
(herein r e f e r r e d t o as the " A s s i g n e e " ) o i l r i g h t a n d interest t o the extent o f said c o n s i d e r a t i o n t o i n d e m n i t y p c y m c n t ( s ) w h i c h
m a y b e due or b e c o m e d u e a n d p a y a b l e t o the assignor under the insurance c o n t r a c t for trie o n e c r o p y e a r i d e n t i f i e d a b o v e .
It is u n d e r s t o o d a n d c g r e e d t h a t this assignment shall be subject t o the terms e n d c o n d i t i o n : o f the insuccnce c o n t r a c t c r . d t o
the c o n d i t i o n s set f o r t h in PART II h e r e o f .
197
(Date)
(Signature o f Assignor)
{ S i g r w i v . - . <,i \ N O . - « s j
.197
_
(Date)
(Signature or Ai;=gne<j)
(Signcturo o f Wirr.ess)
P A R T 53. CONDETSCNS
(1) A n assignment shall be b i n d i n g u p o n person's) w h o succeed to the assignor's interest
. t . i . - . r j r c n c e cc.-.trcc?. (2; '.-.e'ercnity
p a y m e n t m a d e under the insurance c o n t r a c t shall b e subject to o d e d u c t i o n for a n y i n d e b f i v x e v i o w ; r . ^ t h s f e d e r a l C r o p
Insurance C o r p o r a t i o n (herein r e f e r r e d t o as the " C o r p o r a t i o n " ) b y the- insured, a n d shoi! olco b e subject to crsy U n i t e d States
tox lien d u l y filed p r i o r to a n assignment pursuar.! to the Internal Revenue C o d e . (-• A . i c i v i c n . n c n t :*.c.!l net c r e a t e in I'.a
assignee a n y r i g h t , i n c l u d i n g the right t o receive o r to r e t a i n i n d e m n i t y poymcnrjsS, grecfo." tr.cn the* pciscise-c; b y tho
assignor. (4) The C o r p o r a t i o n sholl d e l e r m i n e the perscn(s) e n t i t l e d to i n d e m n i t y p a y m e n t } : ) o.-.d p-sy"»:rit to such person;!- ; /
j o i n t check or o t h e r w i s e shall constitute o c o m p l e t e tilichc.-ge of the C o r p o r a t i o n ' s o b i i g o r i o n w i t h f o : p e c t so the 'OJS to.' w h : c h
such i n d e m n i t y is p a i d . (5) O n l y one assignment : h c : t b„- in effect at o n y o n e t i m e w i t h ?o:pect : o c . v / insured
for a n y
c r o p y e a r . (6) The assignment in effect o n a n y insured cropis] shell b o the o n e first f i l e d if. t h e e o u r . : / o.V.ce o f the C o r p o r a t i o n
w h i c h is a p p r o v e d b y the C o r p o r a t i o n in PART IV hereof.
E»A7JV CSS. irkt-SKQ
This a s s i g n m e n t w a s filed in t h e c o u n t y o f f i c e o n
, 197
at
(Date)
.-•Alv'T IV. APPROVAL
o'clcei
(Hour)
OF COKPOSfSATSC^
T h e C o r p o r a t i o n h e r e b y a p p r o v e s the f o r e g o i n g a s s i g n m e n t .
FEDERAL CROP INSURANCE CORPORATION
By:
[Authorized 3epr«sr:talive)
(A ddrtitj
137.
(Date)