Fees, charges and interest.

CFR · 2024-01-01 · US · Title 7

(a) A producer must pay a nonrefundable loan service fee to CCC at the time of loan disbursement or, if applicable, to a loan servicing agent, at a rate determined by CCC. The fee is in addition to a cotton clerk fee specified in paragraph (b) of this section. The fee amounts are available in FSA State and county offices and are shown on the note and security agreement. Fees will be deducted from the loan proceeds. (b) Cotton clerks may only charge fees for the preparation of loan or LDP documents at the rate determined by CCC. (1) Such fees may be deducted from the loan or loan deficiency payment proceeds instead of the fees being paid in cash. (2) The amount of such fees is available from CCC and is shown on the note and security agreement. (c) Interest which accrues for a loan will be determined under part 1405 of this chapter. All or a portion of such interest may be waived for a quantity of upland cotton which has been redeemed under § 1427.19 at a level which is less than the principal amount of the loan plus charges and interest. (d) For each crop of upland cotton, the producer, as defined in the Cotton Research and Promotion Act (7 U.S.C. 2101), must remit to CCC an assessment that will be transmitted by CCC to the Cotton Board and will be deducted from the: (1) Loan proceeds for a crop of cotton and will be at a rate equal to one dollar per bale plus up to one percent of the loan amount; and (2) LDP proceeds for a crop of cotton and will be at a rate equal to up to o

official document · source cfr-2024 · id 7:§ 1427.13