7 CFR § 1427.6 - Disbursement of MALs.

---
identifier: "/us/cfr/t7/s1427.6"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "7 CFR § 1427.6 - Disbursement of MALs."
title_number: 7
title_name: "Agriculture"
section_number: "1427.6"
section_name: "Disbursement of MALs."
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"
---


# 1427.6 Disbursement of MALs.

(a) Individual producers may request loans from:

(1) FSA County Service Centers;

(2) Loan servicing agents; or

(3) An approved cotton clerk who has entered into a written agreement with CCC on a form prescribed by CCC.

(b) Loan proceeds may be disbursed by CCC or a cotton commercial bank.

(c) The loan documents will not be presented for disbursement unless the cotton covered by the mortgage or pledged as security is eligible under § 1427.5. If the cotton was not eligible cotton at the time of disbursement, the total amount disbursed under the loan, and charges plus interest will be refunded promptly.

[67 FR 64459, Oct. 18, 2002, as amended at 73 FR 65720, Nov. 5, 2008; 80 FR 139, Jan. 2, 2015]