7 CFR § 1427.22 - Commodity certificate exchanges.

---
identifier: "/us/cfr/t7/s1427.22"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "7 CFR § 1427.22 - Commodity certificate exchanges."
title_number: 7
title_name: "Agriculture"
section_number: "1427.22"
section_name: "Commodity certificate exchanges."
chapter_name: "COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE"
subchapter_number: "B"
subchapter_name: "LOANS, PURCHASES, AND OTHER OPERATIONS"
part_number: "1427"
part_name: "COTTON"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "7 U.S.C. 7231-7237, 7931-7936, 9011, and 9031-40, 15 U.S.C. 714b and c."
cfr_part: "1427"
---


# 1427.22 Commodity 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]