CFR > Title 7 - Agriculture > SUBTITLE B—Regulations of the Department of Agriculture > CHAPTER XIV—COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE (parts 1400 to 1499) > SUBCHAPTER B—LOANS, PURCHASES, AND OTHER OPERATIONS (parts 1410 to 1499) > PART 1421—GRAINS AND SIMILARLY HANDLED COMMODITIES—MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY PAYMENTS FOR 2008 THROUGH 2012 > SUBPART B—Marketing Assistance Loans (§1421.100 to §1421.113) > 1421.110—Commodity certificate exchanges.

1421.110—Commodity certificate exchanges.

(a) For any outstanding marketing assistance loan for the 2008 and 2009 crop years, a producer may purchase a commodity certificate and exchange that commodity certificate for the marketing assistance loan collateral.
(b) The exchange rate is the lesser of:
(1) The loan rate and charges, plus interest applicable to the loan;
(2) The prevailing world market price, as determined by CCC, for rice or the alternative repayment rate for all other commodities, as determined by CCC.
(c) Commodity certificate exchanges may not be used when locking in a repayment rate under § 1421.10.
(d) Producers must request a commodity certificate exchange in person at the FSA county service center that disbursed the marketing assistance loan by:
(1) Completing a written request as CCC determines.
(2) Purchasing a commodity certificate for the exact amount required to exchange the marketing assistance loan collateral.
(3) Immediately exchanging the purchased commodity certificate for the outstanding loan collateral.
(e) The authority to make commodity certificates available to the producer will terminate effective the ending of the 2009 crop year.

Code of Federal Regulations

[67 FR 63511, Oct. 11, 2002. Redesignated and amended at 74 FR 15655, Apr. 7, 2009]