Code of Federal Regulations (Last Updated: July 5, 2024) |
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 |
§ 1427.22 - Commodity certificate exchanges.
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§ 1427.22 [ReservedCommodity 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.
(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 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.
[86 FR 70706, Dec. 13, 2021]