1427.6—Disbursement of loans.
(3)
An approved cotton clerk who has entered into a written agreement with CCC on a form prescribed by CCC.
(c)
The loan documents shall not be presented for disbursement unless the cotton covered by the mortgage or pledged as security is eligible under § 1427.5. If the cotton was not eligible cotton at the time of disbursement, the total amount disbursed under the loan, and charges plus interest shall be refunded promptly.