GroundRules
7 CFR 1427.22: Commodity certificate exchanges.
Where this section sits in the code
- Title 7—Agriculture
- Subtitle B—Regulations of the Department of Agriculture
- CHAPTER XIV—COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
- SUBCHAPTER B—LOANS, PURCHASES, AND OTHER OPERATIONS
- PART 1427—COTTON
- Subpart A—Nonrecourse Cotton Loan and Loan Deficiency Payments
(a) For any outstanding marketing assistance loan provided for upland or ELS cotton, 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; or
(2) The adjusted world price for upland cotton or ELS cotton as determined by CCC.
(c) Producers must request a commodity certificate exchange on or before loan maturity in person at the FSA county office by:
(1) Completing a written request on the form or providing the information as required by CCC:
(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.
(d) Gains realized from a commodity certificate exchange are not subject to AGI or payment limitation provisions specified in part 1400 of this chapter.
Collected 2026-08-27T02:24:01Z. Source file · JSON