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 1427—COTTON > SUBPART A—Nonrecourse Cotton Loan and Loan Deficiency Payments (§1427.1 to §1427.25) > 1427.22—Commodity certificate exchanges.

1427.22—Commodity certificate exchanges.

(a) For any outstanding marketing assistance loan provided for upland cotton, a producer may purchase a commodity certificate and exchange that commodity certificate for the marketing assistance loan collateral. This provision terminates effective ending with the 2009 crop and will not be available for subsequent crops.
(b) The exchange rate is the lesser of:
(1) The loan rate and charges, plus interest applicable to the loan, or
(2) The adjusted world price for cotton as determined by CCC.
(c) 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, and
(3) Immediately exchanging the purchased commodity certificate for the outstanding loan collateral.

Code of Federal Regulations

[67 FR 64459, Oct. 18, 2002, as amended at 73 FR 65722, Nov. 5, 2008]