7 CFR § 1499.16 - Suspension and termination of agreements.

---
identifier: "/us/cfr/t7/s1499.16"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "7 CFR § 1499.16 - Suspension and termination of agreements."
title_number: 7
title_name: "Agriculture"
section_number: "1499.16"
section_name: "Suspension and termination of agreements."
chapter_name: "COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE"
subchapter_number: "C"
subchapter_name: "EXPORT PROGRAMS"
part_number: "1499"
part_name: "FOOD FOR PROGRESS PROGRAM"
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. 1736o; and 15 U.S.C. 714b and 714c."
regulatory_source: "81 FR 62605, Sept. 12, 2016, unless otherwise noted."
cfr_part: "1499"
---


# 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 or 200.340 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 and 200.341 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 and 200.345.

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