Commodity certificate exchanges.

CFR · 2024-01-01 · US · Title 7

(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.

official document · source cfr-2024 · id 7:§ 1427.22