7 CFR § 1421.404 - Financial security.

---
identifier: "/us/cfr/t7/s1421.404"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "7 CFR § 1421.404 - Financial security."
title_number: 7
title_name: "Agriculture"
section_number: "1421.404"
section_name: "Financial security."
chapter_name: "COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE"
subchapter_number: "B"
subchapter_name: "LOANS, PURCHASES, AND OTHER OPERATIONS"
part_number: "1421"
part_name: "GRAINS AND SIMILARLY HANDLED COMMODITIES—MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY PAYMENTS"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "7 U.S.C. 7231-7237, 7931-7936, and 9031- 40, 15 U.S.C. 714b and c."
cfr_part: "1421"
---


# 1421.404 Financial security.

(a) In order to be approved to handle MALs and LDPs, a DMA must:

(1) Have a current net worth ratio of at least 1:1; and

(2) Provide security equal to $100,000 or a greater amount as determined by CCC.

(b) [Reserved]

[80 FR 128, Jan. 2, 2015]